Budapest has hosted today a meeting of Alexey Miller, Chairman of Gazprom’s Management Committee, Zsolt Hernadi, Chairman – Chief Executive Officer of MOL Group and Ferenc Gyurcsany, Hungarian Prime Minister. Attending the meeting were also Janos Koka, Hungarian Economy & Transport Minister and Janos Veres, Hungarian Finance Minister. The parties addressed matters in relation to cooperation deepening in the oil & gas sector.

On finalization of the meeting the talks continued at the company level and ended up with Gazprom and MOL Group entering into an Agreement on cooperation.

In pursuance of the Agreement, the parties will set up a Project Company to be responsible for preparing a feasibility study for a project aimed at creating new transnational gas transmission capacities and an underground gas storage system on the Hungarian territory.

The Agreement also contemplates deepening cooperation between the companies in regional investment projects in South, East and Central Europe.

The Project Company will be established on a parity basis, on the Hungarian territory and in accordance with the Hungarian legislation.

“Entering into the Agreement fosters further development of a stable and reliable partnership between Gazprom and MOL Group and gives additional opportunities for long-term supply of Russian gas to European gas markets,” noted Alexey Miller.

“Successful business ties between MOL Group and Gazprom have a multi-decade history. We consider founding a joint venture as taking a natural step towards deeper cooperation between our firms. This step will help us find extra ways for business development that will hinge on Gazprom and MOL Group’s integrated assets and technology,” stressed Zsolt Hernadi.

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With first deliveries launched in 1975, some 165.4 bcm of Russian natural gas has been piped to Hungary over a 30-year period.

Russia supplies about 80 per cent of Hungary’s total natural gas imports. Over 2005 Gazprom provided Hungary with 9 bcm of gas.

MOL Group is a leading integrated group of oil & gas companies in Central and East Europe. With retail outlets located in 10 countries of the region, MOL Group operates on the territory from Germany and Austria to the Russian Federation, Kazakhstan and Pakistan. MOL Group’s shares are listed on stock markets of Budapest, Warsaw and Luxembourg.