Strategic cooperation between MOL and MVM: Oil Trading Agreement

MOL Group has had access to Azerbaijani crude oil for several years. In 2020, it acquired a stake in the Azeri-Chirag-Gunashli (ACG) oil field, from which it supplied 5 million barrels of crude oil to the region last year. MVM Group entered the Azerbaijani region as an investor in 2024, when it acquired a 5 % stake in shared oil and natural gas production at the Shah Deniz field. 

To diversify energy supplies in the region, MOL Group purchases an average of 100 000 barrels of crude oil per month from the deepwater Shah Deniz production field in Azerbaijan. The commercial cooperation between MOL and MVM represents an annual volume equivalent to approximately two tankers of Azerbaijani crude oil for the region - in addition to the volume of one tanker that MOL Group has already imported. 

MOL Group has been working for several years to diversify the region's energy supply portfolio. Before 2022, the company invested 170 million USD in developing the Adria pipeline and related infrastructure to strengthen the region's energy security by using at least two viable supply routes. Since then, MOL Group has tested 14 different alternative grades of crude oil and continues to work on increasing technological flexibility at its refineries.

"MOL Group's position is clear. The more crude oil from different sources we can deliver to the region's landlocked countries, the more secure and affordable fuel supplies will be. For years, we have been working not only on modernising our refining technologies and infrastructure, but also on building a diversified portfolio of sources. The commercial agreement with MVM represents an important step in our efforts and provides us with a predictable and controlled solution. There is still work to be done, because the region's energy security requires at least two operational and commercially competitive oil pipelines. The Adria pipeline cannot currently be considered a fully viable supply route.," said Gabriel Szabó, Vice President for Downstream at MOL Group.

MOL Group has been processing Azerbaijani crude oil at its refineries for several years. In March 2023, the company delivered Azeri light crude oil to its Slovnaft refinery from the Azeri-Chirag-Gunashli (ACG) oil field in Azerbaijan, where it acquired a stake in 2020. A tanker carrying 80 000 - 90 000 tonnes of crude oil sailed from the port of Ceyhan in Turkey, and the crude oil reached Bratislava via the Adria pipeline. Even before 2023, the Slovnaft refinery had successfully tested various grades of crude oil from the Middle East and the Caspian region. However, processing crude oil from its own field marked a significant milestone for the company. 

In addition to the financial benefits, international cooperation between the two largest Hungarian energy companies is also of strategic importance, as jointly chartered tankers contribute directly to Hungary's energy security.