TPAO set to acquire Hungarian oil firm

BUDAPEST / ISTANBUL

Turkish Petroleum Corporation (TPAO) chief executive Besim Şişman adresses participants of the Oil and Gas Summit in Istanbul Feb 19. AA photo

Hungarian oil and gas group MOL has announced that it is preparing to sell its 49-percent stakes in its oil search and production unit BaiTex to the Turkish Petroleum Corporation (TPAO).

According to a written statement released by the MOL yesterday, the final completion of the deal is expected to occur within the next month.

BaiTex is the holder of the hydrocarbon licenses for Baituganskoye field and Yerilkinsky block in the Volga-Ural region of Russia. “The divestiture is in line with MOL’s long term portfolio management and risk-sharing strategies, as the company looked for a strong partner in BaiTex,” MOL said.

“Besides TPAO’s investment in BaiTex, TPAO and MOL are in active discussions to identify other potential upstream co-operation opportunities and lay the foundations for a future strategic partnership, which could utilize TPAO’s and MOL Group’s well-established presence in the international oil industry,” the statement also read.

Speaking to reporters on Feb. 19, TPAO chief executive Besim Şişman had said the Turkish company was in talks with foreign oil companies, including MOL, for joint drilling operations at Yassihöyük block at Black Sea.

Şişman said the TPAO will drill two more wells at Yassıhöyük, probably with its partners. “We are having negotiations with ExxonMobil, MOL and OMV, and with other companies,” he said.