Pressemitteilungen

Budapest/Baku,20/09/2024: MOL Group and its Joint Venture (JV) partners signed commercial agreements for the development of gas reserves in Azerbaijan. After SOCAR and BP, MOL is thethirdlargest shareholder in the giant ACG field, where non-associated gas reservoirs were identified beneath and above the producing oil reservoirs. The partners have now agreed on the development and commercial exploitation of these reserves. MOL has also signed a Memorandum of Understanding with SOCAR to evaluate further potential cooperation opportunities in the area of hydrocarbon exploration in Azerbaijan.

MOL Group and its JV partners signed commercial agreements for the development of gas reserves in Azerbaijan. After the State Oil Company of the Republic of Azerbaijan (SOCAR) and BP, operator of the JV, MOL is the third largest shareholder in the giant Azeri-Chirag-Deepwater Gunashli (ACG) field, where non-associated gas (NAG) reservoirs were identified beneath and above the oil producing reservoirs.

The commercial agreements amend the existing ACG production sharing agreement (PSA) framework, enabling the parties to progress the exploration, appraisal, development of and production from the gas reservoirs of the ACG field. ACG non-associated gas resources are believed to be significant, with up to 4 trillion cubic feet (ca. 112 billion cubic meters) in place.

Drilling of the initial producing well has already started from the West Chirag Platform, with first gas expected in 2025. The well is important as it will deliver appraisal through production which is expected to underpin future development plans.

The signing ceremony was held in Baku on the 30th anniversary of the signing of the ACG Production Sharing Agreement in 1994.

In addition, MOL Group Chairman and CEO Zsolt Hernádi and SOCAR CEO Rovshan Najaf signed a Memorandum of Understanding in Baku to evaluate potential exploration opportunities in the Shamakhi-Gobustan region. Under the Memorandum of Understanding, MOL Group expressed intention to contribute their experience, technical and commercial knowledge, and financial resources to further develop Azerbaijan’s hydrocarbon extraction. 

“Todayisan importantmilestonefor MOL Group asafter years of developing and producing oil fields in Azerbaijan, we extend our footprint by entering into gas reservoir development.This is thanks to the outstanding cooperation with SOCAR and the partners of the ACG project.”– said Zsolt Hernádi, Chairman and CEO of the MOL Group.

“This is also a great day for the economic cooperation between Azerbaijan and Hungary and thanks to the excellent governmental relations between our countries, we have been able to further deepen our business cooperation. ACG is our crown jewel as it is the largest international contributor to our hydrocarbon production. Also, MOL’s participation in the project is the flagship economic connection of the two countries. Moreover, ACG also plays a key role in the security of energy supply of Central Europe. The production of the field gives us crude oil sourcing flexibility for our refineries both in Slovakia and Croatia so the whole region benefits from this partnership.

In light of this, I am very honored to sign an additional memorandum of understanding with our valued partner, SOCAR. It clearly shows that this partnership hasgreat future and I am looking forward to furtherexploration successes in Azerbaijanonshore in addition to the ongoing offshore ACGdevelopment. We are very much open to go beyond and leverage this even further.”- he added.

MOL Group entered Azerbaijan in 2020 by acquiring a 9.57% stake in the Azeri-Chirag-Gunashli (“ACG”), one of the world’s largest oil fields, and an effective 8.9% stake in the Baku-Tbilisi-Ceyhan (“BTC”) pipeline that transports the crude to the Mediterranean port of Ceyhan. This share represents 15% of MOL's total production and 25% of total reserves as of 2023. The BTC pipeline plays an important role in MOL's supply of oil to MOL Group's refineries in Central and Eastern Europe, including Slovnaft’s Bratislava and INA’s Rijeka Refinery.

The Azeri asset gives MOL the flexibility to decide whether to sell the share of the oil produced at ACG in Ceyhan port to third parties, or to use it within MOL Group in its CEE core region to contribute to the European energy supply security and to improve the company’s crude sourcing flexibility. Despite being a minority shareholder, MOL actively contributes to the development of ACG with its 8 decades-long reservoir management, subsurface and production optimization knowledge.

• The 10 megawatt electrolysis unit entered into production at MOL’s plant inSzázhalombatta

• MOL produces 1600 tonnes of green hydrogen per year using electricity from renewable sources

• MOL will use the green hydrogen primarily in its own network for fuel production

• The plant will reduce carbon dioxide emissions of the Danube Refinery by 25 000 tonnes

Százhalombatta, 04/09/2024: At the Százhalombatta refinery of MOL, a 10 megawatt capacity green hydrogen plant, the largest in Central and Eastern Europe has started producing. The facility produces 1,600 tonnes of clean, carbon-neutral green hydrogen per year which is used for fuel production reducing the Danube Refinery's carbon dioxide emissions by 25 000 tonnes, as much as the annual carbon dioxide emissions of roughly 5400 typical cars. The step is in line with MOL Group's SHAPE TOMORROW corporate strategy to make the region more sustainable, competitive and self-sufficient.

MOL Group handed over its new Százhalombatta plant in April, where it produces around 1,600 tonnes of clean, carbon-neutral green hydrogen per year with a 10 megawatt electrolysis unit created by Plug Power. Necessary tasks to start production were carried out, including necessary pressure tests, inspection of the process control system, insertion and connection of the electrolytic cells into the system, and the water treatment system was put into operation as well.

Plug Power's electrolysis equipment uses electricity from renewable sources to break down water into hydrogen and oxygen. This means that no polluting by-products are generated and, in fact, the plant produces 8-9 tonnes of pure oxygen per tonne of hydrogen. The US company has offered MOL an innovative and reliable technology: the hydrogen generators, optimized to produce pure hydrogen, have almost 50 years of operational experience.

“Green hydrogen is a clean and versatile energy source that we currently use for fuel production to reduce our carbon dioxide footprint, and according to our plans, soon it can be directly used in the transportation sector as well. Production and use of green hydrogen helps the green energy transition in an innovative way, which is a fundamental goal of MOL’s strategy. After Százhalombatta, we are planning similar plants in Bratislava and Rijeka of which the latter can commence operations in 2026”- said Ádám Horváth, New and Sustainable Businesses Vice President of MOL Group.

The EUR 22 million new plant will reduce the carbon footprint of the Danube Refinery by more than 25,000 tonnes of carbon dioxide per year. The new technology will gradually replace the natural gas-based production process, which currently accounts for one sixth of MOL Group's total carbon dioxide emissions.

Come with us into the world of green hydrogen! (youtube.com)

Budapest/Islamabad, 16/08/2024 : MOL Pakistan has made 3 significant gas discoveries in the TAL Block, where the company has operated for 25 years and produced hydrocarbons for 19 years. The Razgir-1 exploratory well was spudded on 9 January 2024, and drilled to 3,950 meters. Three successful well tests have been performed so far in 3 separate geological formations. MOL is the operator of the TAL Block and its share is 8.4 % of the volumes produced.

MOL spudded the Razgir-1 well in January 2024 and completed it ahead of the target date while testing operations are in progress to ascertain the full potential of the well.

MOL profit before tax reached USD 534 mn in Q2 2024 and USD 916 mn in H1 2024, 19% increase year-on-year, as a result of robust demand in Downstream, strong production in Upstream and further retail expansion

• Upstream’s production remains above guidance of 90 mboepd
• In Downstream’s R&M segment, demand remained robust and strong sales and year-on-year increase in refining margins countered the negative effects of the decrease in Brent-Ural spread
• Consumer Services’ results increased predominantly thanks to higher fuel sales volumes and the improvement in non-fuel margin
• Circular Economy Services marks negative profits and EBITDA as Deposit Refund System (DRS) is initiated

Budapest, 9 August 2024 – Today MOL Group announced its financial results for Q2 and H1 2024. In the first six months MOL Group delivered USD 916 mn profit before tax, marking a 19% increase year-on-year while in Q2 it reached USD 534 mn. Both Downstream and Upstream generated stable and reliable financial results thanks to steady demand on refining side and slightly higher hydrocarbon prices. Consumer Services’ performance has been driven by fuel sales volumes and the further strengthening non-fuel margin.

Chairman-CEO Zsolt Hernádi commented the results:

“Our company is under pressure in many ways. First, we need to ensure security of supply in the region in the long run. For that we are working day-in-and-out on securing all transportation options and maximizing our oil feedstock diversity and refinery flexibility. Second, we continue delivering our transformation agenda relying solely on our own resources as these diversity and transformation programs do not receive any kind of community funding. Third, we remain committed to delivering our long-term strategy to create value and provide return for our shareholders.

It is not easy to reach these goals especially as Government takes and regulatory burden in CEE add an extra stress on us. This is reflected by the fact that the contribution of our main Hungarian businesses has been marginal to the financial performance of MOL Group in 2024 so far. 

Despite all of these, I am very proud of MOL Group as our company continues to deliver stable and reliable performance in this unpredictable and volatile market environment. This demonstrates the resilience and strength of our company and our people.”

In Upstream, oil and gas production volume remained above guidance, totaling 92.1 mboepd in Q2 2024 thanks to higher international production in KRI Shaikan and Kazakhstan, supported also by the increase in both Hungarian and Croatian production quarter-on-quarter. Group unit OPEX stayed flat quarter-on-quarter at 5. 8 USD/boe due to strict cost control and favourable evolution of energy prices.

Downstream’s results were driven by robust demand while the increase in refining margin countered the negative effects of the decrease in Brent-Ural spread. Petrochemicals’ margin was slightly up quarter-on-quarter in line with lower energy prices. In Tiszaújváros, MOL has achieved two major milestones: the inauguration of the company's €1.3 billion polyol complex in May and the initiation of the design phase for a 40 ktpa chemical recycling unit.

In Consumer Services, stronger fuel sales volume and the improvement in non-fuel margin were the main drivers of the higher results, counterbalancing the effect of decreasing fuel unit margins. The accounting gain on the remedy handover of fuel stations also had a positive impact. Non-fuel margin represents 37.5% of the total margin in Q2 2024, up 3.9% points in comparison with the same period last year, supported by growth in gastro and grocery sales. The number of Fresh Corner sites rose to 1,270 in Q2 2024 from 1,180 in the same period last year.

Circular Economy Services marked a negative profit performance due to the conservative approach in cost accruals especially with regards to Depository Refund System (DRS) ramping up during the quarter and first time inclusion of MOHU Budapest JV’s consolidated results. The DRS system is in operation since 1 January, with ~3,100 Reverse Vending Machine units installed and available at retail networks. As of 1 July, the DRS system started to operate countrywide, every day ~3 million beverage packaging is returned to circulation through the system.

Gas Midstream’s performance was marked by the combined effect of milder weather conditions, changing demand in regional transmission services and unfavourable FX changes.

About MOL Group

MOL Group is an international, integrated oil, gas, petrochemicals and consumer retail company, headquartered in Budapest, Hungary. It is active in over 30 countries with a dynamic international workforce of 25,000 people and a track record of more than 100 years. MOL Group operates three refineries and two petrochemical plants under integrated supply chain-management in Hungary, Slovakia and Croatia, and owns a network of almost 2400 service stations across 10 countries in Central & South-Eastern Europe. MOL’s exploration and production activities are supported by more than 85 years’ experience in the field of hydrocarbons and 30 years in the injection of CO2. At the moment, there are production activities in 8 countries and exploration assets in 10 countries.

MOL is committed to transform its traditional fossil-fuel-based operations into a low-carbon, sustainable business model and aspires to become net carbon neutral by 2050 while shaping the low-carbon circular economy in Central and Eastern Europe.

Press contact:

@: internationalpress@mol.hu

Budapest, July 8, 2024 - The first informal meeting of the Competitiveness Council, held under the Hungarian presidency of the Council of the European Union, was taken place at MOL Group’s headquarters. EU ministers and state secretaries responsible for competitiveness convened in MOL Campus to discuss the continent's challenges. Industrial stakeholders emphasized that maintaining Europe's competitiveness is crucial for the success of the green energy transition, requiring collaboration and a conducive environment for industrial development. The event was addressed by Zoltán Áldott, Chairman of the Supervisory Board of MOL Group, and Marco Mensink, Director General of the European Chemical Industry Council (CEFIC). Following the discussions, participants engaged in an interactive exhibition featuring various demonstration tools, product samples, and videos showcasing MOL Group's strategic areas.

The Competitiveness Council's inaugural informal meeting, part of Hungary's EU Presidency program, brought together ministers and state secretaries responsible for competitiveness from member states. The primary focus of the event was on preserving and enhancing Europe’s competitiveness.

“It is in all of our interests that Europe remains strong and competitive. This requires extensive collaboration between industry and policymakers. We ask the leadership of the European Union to offer a predictable and realistic future vision for key market players, rather than excessive regulation and administrative burdens. The 'Fit for 55' climate package is a great vision, but Europe actually needs a 'Fit for Reality' plan to tackle real-world challenges. We are committed to accelerating the green energy transition through our investments, but a supportive environment is essential for success in all strategic areas. It is crucial for us as MOL Group not only complies with the EU’s green targets but plays an important in ensuring energy security in the CEE region,” stated Zoltán Áldott, Chairman of the Supervisory Board of MOL Group, in his welcome address.

Concerns about the continent's competitiveness were highlighted earlier this year in February by European industrial stakeholders: 73 leaders from nearly 20 industries issued a joint declaration, known as the "Antwerp Declaration," to Belgian Prime Minister Alexander De Croo, then-President of the European Council, and Ursula von der Leyen, President of the European Commission. The participants of the Antwerp Industrial Summit agreed that successful green energy transition hinges on competitiveness. Since then, over 1,200 organizations have signed the declaration, and work continues within the framework of the "Antwerp Dialogues" to elaborate on the declaration's topics and establish a consensus to support future decision-making.

Following the meeting, attendees participated in an interactive exhibition where MOL Group showcased its sustainable strategic areas using various demonstration tools, product samples, and videos. The exhibits covered topics such as green hydrogen, biogas, various synthetic and biofuels, waste management, and plastic recycling, as well as petrochemical raw materials necessary for the production of everyday products. The company set up a lithium lab for the event, and its experts also presented opportunities MOL sees in geothermal energy and carbon capture and storage (CCS).

5 points on how industrial policies can enable the energy transition and support European competitiveness

• The €1.3 billion project is MOL's largest organic investment to date, for which it has also received support from the Hungarian state
• The complex will produce raw materials for durable plastic consumer goods such as bed mattresses, moulded car seats, insulation for houses and elastic rubber soles for sports shoes
• Thanks to the innovative technology of Germany's thyssenkrupp Uhde and Evonik, the plant is operating with the most advanced technology available

Tiszaújváros, May 14, 2024 - MOL's EUR 1.3 billion polyol complex in Tiszaújváros, boasting a capacity of around 200,000 tonnes of polyol per year, has been inaugurated. The ceremony, addressed by Prime Minister of Hungary Viktor Orbán, MOL's Chairman-CEO, Zsolt Hernádi, and thyssenkrupp Board member Ilse Henne, marks a significant milestone for the company. MOL Group stands as the sole entity in Hungary and in Central and Eastern Europe to cover the entire value chain, from petroleum processing to polyol production (a widely used plastic raw material).

MOL Group held an inauguration ceremony in Tiszaújváros to celebrate the completion of its largest organic investment, the polyol complex. MOL, thyssenkrupp and Evonik IP signed the licence agreement in summer 2017, and the foundation stone of the complex was laid in September 2019.

The main units were transported to Tiszaújváros between 2019 and 2020, mainly by water, and were followed by the completion of the complex's hydrogen peroxide, propylene oxide, polyol and propylene glycol plants. In addition to the four main plants, a pilot polyol plant, a quality assurance laboratory and, in Százhalombatta, a Research and Development Center were also built.

"I am proud that we have completed the polyol complex. It was a true international team effort, a great collaboration involving thousands of people over the past six years that enabled us to deliver MOL Group's largest investment ever, perhaps the biggest development in modern Hungarian history. We have come a long way, but the road ahead is even longer. The polyol complex will significantly strengthen our company's position and competitiveness, with the entire value chain from petroleum processing to polyol production. This investment has put Tiszaújváros back on the map of the European chemical industry, making it one of the most important industrial centers in the region. It will enhance the industrial competitiveness of our country and could catalyze economic growth as well. Through this investment, Hungary will be stronger, as MOL's success is the success of the whole country," said Zsolt Hernádi, Chairman and CEO of MOL Group.

“With this new MOL polyol-complex we establish new standards in terms of efficiency, environmental friendliness and automation by combining proven technologies with innovative solutions” , said Nadja Håkansson, CEO of thyssenkrupp Uhde. “We are grateful for the deep and trustful partnership with MOL. This polyol plant is a true landmark project and a great demonstration of how we at thyssenkrupp Uhde enable the industrial green transformation. With fully integrated and highly automated plant units, the valuable polyol chemicals will be produced in a highly efficient and sustainable way.”

The project involved an international team of thousands of experts, with engineering design work carried out in Germany, Thailand, India and Hungary. The plant equipment came from 24 countries. The construction of the complex involved 75 000 cubic metres of concrete, 13 000 tonnes of steel, 2 500 kilometres of cable and 700 km of pipelines laid in more than 18 million working-hours. The Hungarian government contributed with €131.5 million to the project: a €93.6 million corporate tax credit, which can be claimed once the investment is operational, and a €37.9 million investment grant based on an individual government decision.

Polyol is one of the most sought-after plastics raw materials, used in a wide range of industries from car manufacturing to clothing and insulation. Polyurethane is made from polyol and is the base material for many of the durable consumer goods that everyone encounters in their everyday lives.

Polyurethane made from polyol is needed:

• for the production of foam mattresses, bed mattresses, foam for comfortable seating on sofas and armchairs, and rigid foams for insulating refrigerators;
• for the production of insulating materials used in the construction industry, whether for the insulation of the facade of a building or a pipeline;
• for the production of sealants and adhesives familiar from DIY stores, and the elastic rubber soles of running shoes.

The Tiszaújváros plant will produce polyol using one of the most efficient and environmentally friendly methods available today. According to MOL's calculations, the plant will contribute nearly EUR 150 million annually to the MOL Group's financial results and will provide long-term employment for nearly 300 people.

MOL Group has been strengthening its chemical business for almost ten years: the new butadiene extraction plant was completed in 2015 with a HUF 35 billion investment, followed by the synthetic rubber (S-SBR) plant in 2018 with a HUF 100 billion investment. In 2016, the company announced a major strategic shift to prepare for the energy transition and the post-fossil fuel world by expanding its portfolio. As part of the third and largest wave of investment in the petrochemicals business, next to the polyol complex, the polypropylene plant is the most important element, which is a HUF 65 billion investment, and there are nearly EUR 2 billion of life cycle investments that will secure the long-term future of the chemicals business.

About MOL Group

MOL Group is an international, integrated oil, gas, petrochemicals and consumer retail company, headquartered in Budapest, Hungary. It is active in over 30 countries with a dynamic international workforce of 24,000 people and a track record of more than 100 years. MOL Group operates three refineries and two petrochemicals plants under integrated supply chain-management in Hungary, Slovakia and Croatia, and owns a network of almost 2400 service stations across 10 countries in Central & South Eastern Europe. MOL’s exploration and production activities are supported by more than 85 years’ experience in the field of hydrocarbons and 30 years in the injection of CO2. At the moment, there are production activities in 8 countries and exploration assets in 10 countries.

MOL is committed to transform its traditional fossil-fuel-based operations into a low-carbon, sustainable business model and aspires to become net carbon neutral by 2050 while shaping the low-carbon circular economy in Central-and Eastern Europe.

About thyssenkrupp Uhde

thyssenkrupp Uhde combines unique technological expertise and decades of global experience in the engineering, procurement, construction and service of chemical plants. We develop innovative processes and products for a more sustainable future and thus contribute to the long-term success of our customers in almost all areas of the chemical industry. Our portfolio includes leading technologies for the production of base chemicals, fertilizers and polymers as well as complete value-chains for green hydrogen and sustainable chemicals. www.thyssenkrupp-uhde.com

Press contact: internationalpress@mol.hu

thyssenkrupp Uhde
Christian Dill
Press Spokesperson
Phone: +49 231 547 3334
E-mail: christian.dill@thyssenkrupp.com