Hungarian-Turkish Cooperate in Hydrocarbon Exploration

The Mol Group and Turkish Petroleum have signed concession agreements with the Hungarian Ministry of Energy, allowing them to launch joint hydrocarbon exploration in two concession areas in Hungary, Tamási and Buzsák, Mol announced on Wednesday.

The joint tender and exploration program is the first significant step since the two companies signed a strategic partnership agreement last year. The two companies signed a memorandum of understanding in Istanbul in October 2024, in which they expressed their intention to jointly participate in exploration, field development and production projects in the Caspian region, Turkey, North Africa, the Middle East, and Central and Eastern Europe.

They said the Ministry of Energy announced new mining concessions last fall, after a five-year hiatus, stressing the importance of increasing production in Hungary and reducing import exposure. Mol submitted tenders for five concessions, four of which were awarded. It applied independently for the two concessions covering the Kiskőrös and Hatvan areas, and jointly with TPOC Ltd, a subsidiary of Turkish Petroleum, for the Buzsák and Tamási (South Transdanubia) concessions.

According to the information, Mol and Turkish Petroleum have previously cooperated on hydrocarbon exploration and production projects, such as in Azerbaijan, in the ACG (Azeri-Chirag-Gunashli) deepwater field and in the Baitugan field in Russia.

Mol is the largest hydrocarbon extraction company in Hungary, with around 1,300 oil and gas production wells. In 2024, it will account for 47% of Hungary's crude oil production (almost 600,000 tons) and around 90% of natural gas production (almost 1.5 billion cubic meters). Hungary remains the most important country in the Mol Group's hydrocarbon production portfolio, currently accounting for around 39% of total production.

Thanks to its exploration activities, Mol recently set a five-year record for production volumes in Hungary, discovering the oil field near Vecsés in 2022, where three wells are already producing. Recently, another oil field was discovered in the Somogysámson region in South Transdanubia.

In recent years, the company has drilled 24 successful shallow gas wells and acquired natural gas fields and related infrastructure in Eastern Hungary covering an area of 1,000 square kilometers with 29 producing wells and further exploration potential.

As part of the Mol Group's international portfolio, it has oil and gas exploration and production interests in nine countries and is producing in eight countries. The company aims to strengthen its international portfolio and forge new strategic partnerships, including recently signing cooperation agreements with the national oil companies of Kazakhstan (KazMunayGas), Azerbaijan (SOCAR) and Turkey (Turkish Petroleum), the statement said.