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Hungary’s MOL Eyes Oil Import From Iran, Business Chief Tells Reuters

By Tamás Székely // 2016.02.11.

Hungarian oil and gas company MOL recently held talks in Iran and is ready to start importing oil from Iran via the Adriatic pipeline if opportunities arise, Ferenc Horváth, who heads MOL’s downstream business, said in an interview with Reuters. “If Iran starts exporting crude officially … we will be very pleased and we will try to use that opportunity,” he said.

MOL imports most of the crude it needs from Russia, but is also buying about 20% from other sources via the newly expanded Adriatic pipeline this year, Reuters said. MOL expects crude prices between 30 dollars and 50 dollars as the main scenario for this year and next, which should boost its refining business but hurt upstream assets, Horváth said. He said he expected refining margins of 4-5 dollars per barrel of crude in the next two years, which he called “fairly positive” for the downstream business.

Ferenc Horváth also said that MOL’s petrochemicals business, which accounts for 20-30% of the group’s profits, would again enjoy strong growth this year thanks to better margins. “In the past months these margins were at a level of 750 euros per tonne, and I believe they won’t drop below 500 euros per tonne in the next one year,” he said.

MOL Group is a leading integrated oil and gas corporation headquartered in Budapest, Hungary. It has operations in over 40 countries and employs almost 30,000 people worldwide with production activities in 8 countries and exploration assets in 13 countries, including Iraq. MOL operates four refineries and two petrochemicals plants a network of over 1,700 service stations across 12 countries in Central & South Eastern Europe.

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