The MOL Group and MVM Group have entered into a new oil trading agreement aimed at diversifying Central Europe’s energy supply, with a focus on enhancing security for landlocked countries such as Hungary and Slovakia. Under the partnership, MOL will increase the volume of alternative crude oil processed in its refineries by up to 160,000 tonnes annually.
The agreement will see crude oil sourced from the Caspian region transported via the Baku-Tbilisi-Ceyhan pipeline to the Ceyhan terminal in Türkiye. From there, it will be distributed to MOL’s regional markets. This builds on MOL’s existing use of Azeri crude, which it began leveraging more significantly after acquiring a stake in the Azeri-Chirag-Gunashli oil field in 2020. In 2023, the company supplied 5 million barrels of crude from the field to its operations.
In 2024, the MVM Group also established a foothold in the Azeri energy sector by acquiring a 5 percent stake in the production sharing agreement for the Shah Deniz gas and condensate field. As part of the new agreement, MOL will purchase around 100,000 barrels of crude oil per month from Shah Deniz—adding approximately two full tanker shipments annually to the company’s current Azeri crude imports.
Réka Martini, director of strategy and transactions at MVM Group, commented:
“MVM Group has already taken major steps to diversify natural gas supply for Hungary and the region. We are now proud to contribute to regional oil supply security as well. MVM’s investment in Shah Deniz is not only financially sound but strategically significant, ensuring that part of the crude oil produced will reach Central Europe. This agreement is a prime example of mutually beneficial logistics cooperation between Hungary’s two largest energy companies and fully supports our national and corporate energy security goals.”
MOL has invested significantly over the years to enhance the region’s energy supply flexibility. Prior to 2022, the company allocated USD 170 million to upgrade the Adria pipeline and supporting infrastructure to enable alternative supply routes. Since then, MOL has tested 14 different types of crude oil and continues to increase technological flexibility in its refining operations.
Gabriel Szabó, executive vice president of downstream at MOL Group, added:
“Our position has always been clear: diversifying supply sources is key to affordable and secure fuel for landlocked countries in the region. We’ve worked for years on upgrading our refinery infrastructure and building a broader supply portfolio. This commercial agreement with MVM is a milestone in those efforts, giving us a reliable and scalable solution. However, regional energy security still depends on having at least two commercially viable and fully operational oil pipeline routes. Currently, the Adria pipeline does not yet meet that standard.”
In March 2023, MOL delivered a shipment of Azeri Light crude from the ACG oil field to its Slovnaft refinery in Bratislava. The 80,000–90,000-tonne shipment was transported from Ceyhan and routed via the Adria pipeline. This was the first time Slovnaft processed crude oil from a field in which MOL held an ownership stake—an important development in the company’s broader strategy.
Beyond financial gains, the collaboration between MOL and MVM enhances national and regional energy resilience. Jointly chartered tankers and a streamlined logistics framework offer tangible support for Hungary’s long-term energy security goals.
For more information visit www.molgroup.info/en
