Hungary's MOL reportedly targets Lukoil's Romanian assets

Hungarian state-controlled energy company MOL reportedly discussed with the Russian company Lukoil the option of purchasing some of the latter's assets in Romania, including the participation in an offshore project in the Black Sea (Trident perimeter) and the oil refinery Petrotel located near Ploiesti, sources familiar with the negotiations told Economedia.ro and G4media.ro.

However, the sources said the deal was "strongly discouraged" by the representatives of the Romanian state. The reason is reportedly related to the suspicions regarding the control the government in Budapest would have gained on both a strategic concession in the Black Sea and a significant slice of the refining market in Romania (around 20%).

It is not clear at the moment if the talks between MOL Romania and Lukoil are continuing or have been stopped.

In a similar case in the past, the National Bank of Romania (BNR) officially denied the Hungarian bank OTP Bank's attempt to buy a Romanian bank (Banca Românească), although the reasons were never officially disclosed.

The representatives of MOL Romania told Economedia.ro that they are "exploring both organic and inorganic development opportunities."

Lukoil holds the concession of the Trident gas perimeter in the Black Sea, with yet unconfirmed estimated reserves of 30 billion cubic meters. Last year, the National Agency for Mineral Resources (ANRM), which concessions hydrocarbon perimeters on behalf of the Romanian state, approved the continuation of the exploration program.

The perimeter concessioned by Lukoil, in which Romgaz is a 12% partner, is located between the one concessioned by the Americans from BSOG and the one concessioned by OMV Petrom and Romgaz.

Romgaz has the right of preemption if Lukoil decides to give up the Black Sea concession.

(Photo source: Petrotel.lukoil.com)