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An agreement has been reached between Hungary and Türkiye on the construction of a new gas power plant and the exploration and production of two domestic oil and gas fields, Minister of Foreign Affairs and Trade Péter Szijjártó announced.
At a joint press conference with the Turkish Energy Minister, Alparslan Bayraktar, on Wednesday, the Minister said that the strategic cooperation between the two countries has reached another important milestone, and that everyone can witness another joint success story, as the parties have agreed on a major Turkish investment in the Hungarian energy sector.
He underlined that huge investments are being made in Eastern Hungary that will soon lead to the opening of large factories, therefore the creation of a secure energy supply is a key issue. This is why a decision has been made to build gas-fired power plants, he explained.
One of the largest of those power plants will be built by a Turkish company with an investment of over HUF 500 billion (EUR 1.2 billion), together with an Italian partner, under a recently signed agreement.
In addition, concession contracts have been signed for the exploration of two new oil and gas fields in Hungary in the Tamási and Buzsák regions, and MOL and Turkish Petroleum (TPAO) have set up a joint venture for this purpose.
Zsolt Hernádi, Chairman and CEO of MOL (front, R) and Ahmet Türkoglu, CEO of Turkish TPAO (front, L) signing the concession contract during a meeting between Péter Szijjártó, Minister of Foreign Affairs and Trade (R3) and Alparslan Bayraktar, Turkish Minister of Energy and Natural Resources (L3). Photo: MTI/Koszticsák Szilárd
TPAO is making an investment of around HUF 6 billion (EUR 14 million) and thanks to this investment and the cooperation between MOL and TPAO, we will be able to secure a larger share of Hungary’s oil needs from domestic production than before,”
Mr. Szijjártó said.
He shared that this is not the first cooperation between MOL and TPAO, as they have been operating a joint natural gas field in Russia for ten years and there is also long-term cooperation between the two companies in Azerbaijan. “Today’s agreement also marks the start of joint oil production plans not only in Hungary, but also in third countries, further increasing MOL’s regional role,” he added.
MOL stressed in a statement that the joint tender and exploration program is the first significant step since the strategic partnership agreement between the two companies last year. The two companies signed a Memorandum of Understanding in Istanbul in October 2024,
expressing 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.
The Ministry of Energy announced new mining concessions last autumn after a five-year break, stressing the importance of increasing production in Hungary and reducing import exposure. MOL applied for five concessions, four of which were awarded. The company applied independently for the two concessions covering the Kiskőrös and Hatvan areas in Hungary, and jointly with TPOC, a subsidiary of Turkish Petroleum, for the Buzsák and Tamási concessions.
MOL is the largest hydrocarbon producer in Hungary, with around 1,300 oil and gas production wells. In 2024, it accounted for 47 percent of Hungary’s crude oil production (almost 600,000 tons) and around 90 percent 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 percent of total production, according to the statement.
Via MTI, Featured image: Pixabay