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MOL Plc. ( hu, Magyar OLaj- és Gázipari Részvénytársaság, lit=Hungarian Oil and Gas Public Limited Company), also commonly known as MOL Group, is a Hungarian multinational oil and gas company headquartered in
Budapest Budapest (, ; ) is the capital and most populous city of Hungary. It is the ninth-largest city in the European Union by population within city limits and the second-largest city on the Danube river; the city has an estimated population o ...
,
Hungary Hungary ( hu, Magyarország ) is a landlocked country in Central Europe. Spanning of the Carpathian Basin, it is bordered by Slovakia to the north, Ukraine to the northeast, Romania to the east and southeast, Serbia to the south, Cr ...
. Members of MOL Group include among others the Croatian and Slovak formerly state-owned oil and gas companies, INA and
Slovnaft Slovnaft is an oil refining company in Slovakia. The company, located in Bratislava, is a subsidiary of MOL Group. History Slovnaft is the successor of the Apollo company. Apollo was established in 1895 in Bratislava Bratislava (, als ...
. MOL is Hungary's most profitable enterprise, with net profits of $770 million in 2019. The company is also the third most valuable company in
Central and Eastern Europe Central and Eastern Europe is a term encompassing the countries in the Baltics, Central Europe, Eastern Europe and Southeast Europe (mostly the Balkans), usually meaning former communist states from the Eastern Bloc and Warsaw Pact in Europ ...
and placed 402 on the Fortune Global 500 list of the world's largest companies in 2013 with a revenue equal to one fifth of Hungary's GDP at the time. As of October 2021, the largest shareholder is the Mol New Europe Foundation with 10.49% ahead of Maecenas Universitatis Corvini Foundation and Mathias Corvinus Collegium Foundation, both with 10%, OmanOil Budapest with 7.14% and OTP and ING Bank with 4.9% and 4.48% respectively. Nearly 45% of shares are free floated. MOL is
vertically integrated In microeconomics, management and international political economy, vertical integration is a term that describes the arrangement in which the supply chain of a company is integrated and owned by that company. Usually each member of the supply ...
and is active in every area of the oil and gas industry, including
exploration Exploration refers to the historical practice of discovering remote lands. It is studied by geographers and historians. Two major eras of exploration occurred in human history: one of convergence, and one of divergence. The first, covering most ...
and production, refining, distribution and marketing,
petrochemical Petrochemicals (sometimes abbreviated as petchems) are the chemical products obtained from petroleum by refining. Some chemical compounds made from petroleum are also obtained from other fossil fuels, such as coal or natural gas, or renewabl ...
s, power generation, trading and retail. As of 2021, MOL has operations in over 30 countries worldwide, employs 25,000 people, has 2,000 service stations in nine countries (mainly in
Central and Eastern Europe Central and Eastern Europe is a term encompassing the countries in the Baltics, Central Europe, Eastern Europe and Southeast Europe (mostly the Balkans), usually meaning former communist states from the Eastern Bloc and Warsaw Pact in Europ ...
) under six brands, and is a market leader in
Hungary Hungary ( hu, Magyarország ) is a landlocked country in Central Europe. Spanning of the Carpathian Basin, it is bordered by Slovakia to the north, Ukraine to the northeast, Romania to the east and southeast, Serbia to the south, Cr ...
,
Slovakia Slovakia (; sk, Slovensko ), officially the Slovak Republic ( sk, Slovenská republika, links=no ), is a landlocked country in Central Europe. It is bordered by Poland to the north, Ukraine to the east, Hungary to the south, Austria to the ...
,
Croatia , image_flag = Flag of Croatia.svg , image_coat = Coat of arms of Croatia.svg , anthem = " Lijepa naša domovino"("Our Beautiful Homeland") , image_map = , map_caption = , capi ...
and Bosnia Herzegovina. MOL's downstream operations in Central Eastern Europe manufacture and sell products such as
fuel A fuel is any material that can be made to react with other substances so that it releases energy as thermal energy or to be used for work. The concept was originally applied solely to those materials capable of releasing chemical energy b ...
s, lubricants, additives and
petrochemical Petrochemicals (sometimes abbreviated as petchems) are the chemical products obtained from petroleum by refining. Some chemical compounds made from petroleum are also obtained from other fossil fuels, such as coal or natural gas, or renewabl ...
s. The company's most significant areas of operations are
Central and Eastern Europe Central and Eastern Europe is a term encompassing the countries in the Baltics, Central Europe, Eastern Europe and Southeast Europe (mostly the Balkans), usually meaning former communist states from the Eastern Bloc and Warsaw Pact in Europ ...
,
Southern Europe Southern Europe is the southern region of Europe. It is also known as Mediterranean Europe, as its geography is essentially marked by the Mediterranean Sea. Definitions of Southern Europe include some or all of these countries and regions: Alb ...
,
North Sea The North Sea lies between Great Britain, Norway, Denmark, Germany, the Netherlands and Belgium. An epeiric sea on the European continental shelf, it connects to the Atlantic Ocean through the English Channel in the south and the Norwegian ...
,
Middle East The Middle East ( ar, الشرق الأوسط, ISO 233: ) is a geopolitical region commonly encompassing Arabian Peninsula, Arabia (including the Arabian Peninsula and Bahrain), Anatolia, Asia Minor (Asian part of Turkey except Hatay Pro ...
,
Africa Africa is the world's second-largest and second-most populous continent, after Asia in both cases. At about 30.3 million km2 (11.7 million square miles) including adjacent islands, it covers 6% of Earth's total surface area ...
,
Pakistan Pakistan ( ur, ), officially the Islamic Republic of Pakistan ( ur, , label=none), is a country in South Asia. It is the world's List of countries and dependencies by population, fifth-most populous country, with a population of almost 24 ...
,
Russia Russia (, , ), or the Russian Federation, is a transcontinental country spanning Eastern Europe and Northern Asia. It is the largest country in the world, with its internationally recognised territory covering , and encompassing one-ei ...
and
Kazakhstan Kazakhstan, officially the Republic of Kazakhstan, is a transcontinental country located mainly in Central Asia and partly in Eastern Europe. It borders Russia to the north and west, China to the east, Kyrgyzstan to the southeast, Uzbeki ...
. MOL has a primary listing on the Budapest Stock Exchange and is a constituent of the BUX Index. As of October 2021, it has a market capitalization of $6 billion and is the second largest company listed on the Budapest Stock Exchange. MOL also has a secondary listing on the Warsaw Stock Exchange.


History


Foundation (1994–1995)

On 1 October 1991, MOL was established as a legal successor, merging nine former members of the National Oil and Gas Trust, which had been established in 1957. By 1995, the actual integration of companies was completed, and the previously separated entities started to operate within one joint organization. MOL decided on a privatization strategy, in order to respond to international market, political and legal challenges, which the company was facing following the turmoil of the end of the
Soviet Union The Soviet Union,. officially the Union of Soviet Socialist Republics. (USSR),. was a transcontinental country that spanned much of Eurasia from 1922 to 1991. A flagship communist state, it was nominally a federal union of fifteen nationa ...
. It thus became a pioneer in the regional consolidation of the oil and gas industry.


Regional expansion (1995–2001)

In 1995, the company first expanded across national borders, opening filling stations in
Transylvania Transylvania ( ro, Ardeal or ; hu, Erdély; german: Siebenbürgen) is a historical and cultural region in Central Europe, encompassing central Romania. To the east and south its natural border is the Carpathian Mountains, and to the west the A ...
,
Romania Romania ( ; ro, România ) is a country located at the crossroads of Central Europe, Central, Eastern Europe, Eastern, and Southeast Europe, Southeastern Europe. It borders Bulgaria to the south, Ukraine to the north, Hungary to the west, S ...
. In the following years MOL continued to expand, and in 2000 acquired a 36% stake in
Slovnaft Slovnaft is an oil refining company in Slovakia. The company, located in Bratislava, is a subsidiary of MOL Group. History Slovnaft is the successor of the Apollo company. Apollo was established in 1895 in Bratislava Bratislava (, als ...
, Slovakia's national oil company. The company thus became the first oil company in Central Europe to establish a cross-border partnership and also launched a new business branch by procuring 32.9% of Hungary's petrochemical company TVK. In 1999, MOL entered Pakistan, becoming the operator of TAL Block (with 8.42% stake in production), one of the largest hydrocarbon producing blocks of the country.


International expansion (2002–2007)

As a result of the 2002 INA Privatization Act, the open public tender for the privatization of a 25%+1 share stake in INA,
Croatia , image_flag = Flag of Croatia.svg , image_coat = Coat of arms of Croatia.svg , anthem = " Lijepa naša domovino"("Our Beautiful Homeland") , image_map = , map_caption = , capi ...
's national oil company, was launched in May 2002. MOL won the tender with a bid of $505 million against OMV's offer of $420 million. By 2004, MOL had fully acquired, in several steps,
Slovakia Slovakia (; sk, Slovensko ), officially the Slovak Republic ( sk, Slovenská republika, links=no ), is a landlocked country in Central Europe. It is bordered by Poland to the north, Ukraine to the east, Hungary to the south, Austria to the ...
's national
refiner A refinery is a production facility composed of a group of chemical engineering unit processes and unit operations refining certain materials or converting raw material into products of value. Types of refineries Different types of refineries a ...
Slovnaft Slovnaft is an oil refining company in Slovakia. The company, located in Bratislava, is a subsidiary of MOL Group. History Slovnaft is the successor of the Apollo company. Apollo was established in 1895 in Bratislava Bratislava (, als ...
, and Hungary's leading producer of
ethylene Ethylene (IUPAC name: ethene) is a hydrocarbon which has the formula or . It is a colourless, flammable gas with a faint "sweet and musky" odour when pure. It is the simplest alkene (a hydrocarbon with carbon-carbon double bonds). Ethylene ...
and
polypropylene Polypropylene (PP), also known as polypropene, is a thermoplastic polymer used in a wide variety of applications. It is produced via chain-growth polymerization from the monomer propylene. Polypropylene belongs to the group of polyolefins a ...
TVK, over which MOL gained control with increasing their stake to 34.5% in 2001. Subsequently, MOL further increased its stake in TVK to 86.56% in 2006. In 2015, MOL then raised its shareholding in TVK to 100%. Between 2003 and 2005, MOL had acquired all Shell filling stations in Romania. In 2004, MOL entered the
Austria Austria, , bar, Östareich officially the Republic of Austria, is a country in the southern part of Central Europe, lying in the Eastern Alps. It is a federation of nine states, one of which is the capital, Vienna, the most populous ...
n market by purchasing a fuel storage facility in Korneuburg, and a year later acquired the Roth
filling station A filling station, also known as a gas station () or petrol station (), is a facility that sells fuel and engine lubricants for motor vehicles. The most common fuels sold in the 2010s were gasoline (or petrol) and diesel fuel. Ga ...
chain. In August 2007, MOL purchased Italiana Energia e Servizi S.p.A. (IES), owner of the
Mantua Mantua ( ; it, Mantova ; Lombard and la, Mantua) is a city and '' comune'' in Lombardy, Italy, and capital of the province of the same name. In 2016, Mantua was designated as the Italian Capital of Culture. In 2017, it was named as the Eur ...
refinery and a chain of 165 retail stations in
Italy Italy ( it, Italia ), officially the Italian Republic, ) or the Republic of Italy, is a country in Southern Europe. It is located in the middle of the Mediterranean Sea, and its territory largely coincides with the homonymous geographical ...
.


International expansion II (2007–2016)

In 2007, MOL entered the Kurdistan Region of Iraq, where its subsidiary MOL Kalegran owns 20% in Shaikan PSC. Further in 2009, MOL acquired a 10% stake in the Pearl Petroleum consortium (Pearl) from Crescent Petroleum and Dana Gas PJSC. In November 2007, MOL reported a new regional initiative to create a joint regional gas pipeline system called New European Transmission System (NETS). On 20 December 2007, MOL announced a strategic cooperation with Czech power utility CEZ. The
joint venture A joint venture (JV) is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance. Companies typically pursue joint ventures for one of four reasons: to acces ...
with CEZ focuses on gas-fired power generation and related gas infrastructure in Central and Southeastern Europe, first launching two 800 MW power plants in
Hungary Hungary ( hu, Magyarország ) is a landlocked country in Central Europe. Spanning of the Carpathian Basin, it is bordered by Slovakia to the north, Ukraine to the northeast, Romania to the east and southeast, Serbia to the south, Cr ...
and
Slovakia Slovakia (; sk, Slovensko ), officially the Slovak Republic ( sk, Slovenská republika, links=no ), is a landlocked country in Central Europe. It is bordered by Poland to the north, Ukraine to the east, Hungary to the south, Austria to the ...
. After selling 7% of its shares to CEZ within the scopes of a strategic partnership, MOL announced on 10 March 2008 the sale of an 8% stake to the
Oman Oil Company OQ, formerly known as Oman Oil Company, is an energy investment company headquartered in Muscat, Oman. It is a wholly owned subsidiary of the Government of Oman through the Oman Investment Authority. OQ is involved in sectors such as infrastructu ...
for the same reason. On 9 May 2008, MOL signed an agreement to acquire a 35% interest in a block in India operated by the Indian ONGC. In the same year MOL further acquired 22.16% of INA's shares through its general public offer on the Zagreb Stock Exchange. On 24 May 2011, the second Orbán-cabinet bought the Russian Surgutneftegas's shares, thus the Hungarian state acquired 21.2% of the shares within the company. In late 2013, MOL entered the
North Sea The North Sea lies between Great Britain, Norway, Denmark, Germany, the Netherlands and Belgium. An epeiric sea on the European continental shelf, it connects to the Atlantic Ocean through the English Channel in the south and the Norwegian ...
by acquiring Wintershall’s portfolio, which included a mix of producing fields and undeveloped projects. It also acquired a position in the Scott hub in the central North Sea. MOL further expanded its exploration portfolio by entering
Norway Norway, officially the Kingdom of Norway, is a Nordic countries, Nordic country in Northern Europe, the mainland territory of which comprises the western and northernmost portion of the Scandinavian Peninsula. The remote Arctic island of ...
in 2015, after acquiring Ithaca Petroleum Norge. On May 8, 2014, MOL announced the acquisition of the Italian Eni’s subsidiaries in the Czech Republic, Slovakia and Romania, including the retail network of 208 petrol stations previously operated under the Agip brand. The transaction also included the takeover of Eni's wholesale interests in the Czech Republic, Slovakia and Romania. In the Czech Republic, MOL's retail market share exceeded 10 percent thanks to 125 new gas stations and 24 Slovnaft and 125 PAP Oil filling stations, also belonging to the group. With 274 service stations, the MOL Group is the second largest retailer of fuel in the country. In Slovakia, 253 petrol stations were already part of the entire network, with 41 filling stations purchased at the time. In Romania, the existing network expanded by 42 wells, adding 189 items, accounting for 12% of retail sales.


Diversification (2016–2021)

In 2016, MOL announced its new long-term strategy MOL 2030 in response to expected fossil fuel peak demand. According to the company, its integrated upstream-downstream business model would continue to provide stable and robust profitability for the next 10-15 years, but new investments are seen to be essential for MOL’s future. As part of the strategy, the company intends to diversify the classical Oil & Gas business and develop into the region’s leading chemical and consumer goods and services company. According to Wall Street Journal, "MOL has a transformation plan that is among the most explicit responses to the trend, indicating how the landscape may change for big energy providers over the next decade." Through 2030, MOL scheduled investments of US$4.5 billion to expand its petrochemical business and to extend away from the commodity segment into higher value-added chemical products. One of the first projects following the new strategy was the Polyol chemical project. In September 2018, MOL reached final investment on the project and signed engineering, procurement and construction (EPC) contracts with
ThyssenKrupp ThyssenKrupp AG (, ; stylized as thyssenkrupp) is a German industrial engineering and steel production multinational conglomerate. It is the result of the 1999 merger of Thyssen AG and Krupp and has its operational headquarters in Duisburg a ...
. In October 2019, the foundation stone for the complex in Tiszaújváros, Hungary, was laid by Zsolt Hernádi, Ferenc Koncz, Sami Pelkonen and Mihály Varga. The plant is scheduled to be fully operational by 2021. As part of MOL 2030, the company has also begun to build up its recycling capabilities and formed a partnership for plastic recycling with German APK in 2018, and in 2019 acquired Aurora, a German recycled plastic compounding company. As part of its retail strategy, MOL aims to become a fast-moving consumer goods (FMCG) retailer and reshape the transportation in Central Eastern Europe. By 2030, the company's goal is to double its consumer services EBITDA (comparing to 2017) from 15% to 30%. In 2017, MOL launched fleet management, e-mobility and car sharing ventures. In September 2019, MOL Serbia opened a new fuel storage depot in Sremski Karlovci. With total investments in Serbia exceeding €500 million, the facility will be used to store and process fuels for the currently 62 gas stations in the country. The compound is MOL's largest investment into
Serbia Serbia (, ; Serbian: , , ), officially the Republic of Serbia ( Serbian: , , ), is a landlocked country in Southeastern and Central Europe, situated at the crossroads of the Pannonian Basin and the Balkans. It shares land borders with Hu ...
over the last 15 years. In the same month, more than 100 recently graduated young professionals from 18 nationalities started their career at MOL Group's Growww program. In November 2019, MOL signed an agreement with Chevron, acquiring their 9.57% interest in the Azeri-Chirag-Gunashli (ACG) oil field, one of the world's largest oil fields that is located in the
Caspian Sea The Caspian Sea is the world's largest inland body of water, often described as the world's largest lake or a full-fledged sea. An endorheic basin, it lies between Europe and Asia; east of the Caucasus, west of the broad steppe of Central A ...
, and an 8.9% stake in the Baku-Tbilisi-Ceyhan (BTC) pipeline. The pipeline transports crude oil from ACG to the Mediterranean port of Ceyhan. The total transaction was valued at $1.57 billion. In November 2019, MOL Group announced it had acquired 100% shareholding in German plastic compounder company Aurora. At the start of the pandemic in March 2020, MOL shifted production of windshield washer at its Almásfüzitő plant to hand and surface sanitizers to offer protection against the coronavirus. In 2014 as a strategic goal, MOL started investigating the solutions of diversifying its crude oil supply and to adapt its refineries to process non-Russian alternative crude oil, in order to reach greater flexibility. Until 2022 MOL invested more than USD 170 million on building up the alternative logistic solution on the Adria pipeline. This allows more seaborne deliveries to supply the Duna and Slovnaft refineries in Hungary and Slovakia. Due to the crude diversification efforts, Duna refinery can currently process about 35% of non-REB feedstock, mixed in with Urals crude. The war in Ukraine has accelerated this process of planning. MOL needs an investment-cycle of up to $700million and at least 2-4 years to be able to switch to 100% alternative crude processing.


MOL Group 2030+ (2021-present)

In February 2021, The Board of Directors reviewed and approved "Shape Tomorrow" MOL Group 2030+, an update of the company’s long-term strategy, and sustainability strategy. The 2030+ strategy also laid out the plans for the Group’s downstream, upstream and consumer services operations. MOL started to implement the updated strategy right after the publication. In June 2021, MOL Group reached an agreement to acquire OMV’s 92.25% stake in OMV Slovenija d.o.o., the Slovenian arm of Austrian oil and gas giant OMV AG for €301million.


Corporate affairs


Organizational structure

MOL has many subsidiaries across all areas of its business operations. Its most important subsidiaries include
Slovnaft Slovnaft is an oil refining company in Slovakia. The company, located in Bratislava, is a subsidiary of MOL Group. History Slovnaft is the successor of the Apollo company. Apollo was established in 1895 in Bratislava Bratislava (, als ...
, INA and MOL Group Italy.


Leadership structure

MOL Group's chief governing body is the board of directors, which has 10 members, out of which three are executive and seven are non-executive. The three executive members of the board are its Chairman Zsolt Hernádi, who serves as chief executive officer, József Molnár, Group Chief Executive Officer and Oszkár Világi, Group Innovative Businesses and Services Executive Vice President. The supervisory board is led by Zoltán Áldott, who is also the chairman of the supervisory board of Slovnaft.


Shareholder structure

As of August 2021, MOL's current shareholder structure is: * 26.16% - Foreign investors (mainly institutional) *10.49% - MOL New Europe Foundation *10.00% - Maecenas Universitatis Corvini Foundation *10.00% - Mathias Corvinus Collegium Foundation *7.14% - OmanOil (Budapest) Limited *4.90% - OTP Bank Plc. *1.32% - OTP Fund Management *4.48% - ING Bank N.V. *3.37% - UniCredit Bank AG *1.20% - Commerzbank AG *10.63% - Domestic institutional investors *7.76% - Domestic private investors *2.55% - MOL Plc. (treasury shares)


MOL campus

In 2017, MOL announced the relocation of their corporate headquarters, which are currently based in various buildings throughout Budapest. The complex consists of a 120m tower, connected podium, buildings and outside spaces, which are designed by Foster + Partners. The campus also entails a public "sky deck" and has state-of-the-art sustainability features, including responsive lighting, heating and ventilation systems, low-carbon energy sources and rainwater harvesting and storage facilities. The campus spans 86,000 sqm at the bank of the Danube and accommodate up to 2,500 people. The tower is the Budapest's highest building and make it the second city in the CEE region to display a building by the British studio. In June 2019, MOL revealed first interior design visualizations, that were created by the Berlin-based interior design company KINZO. In December 2022, MOL Campus was opened.


Operations


International upstream operations

MOL Group has a current Upstream presence in 13 countries with production activities in 8. Besides Central and Eastern Europe (Hungary and Croatia), its core regions, MOL has a presence and partnerships in the CIS region (Russia, Kazakhstan), the Middle East, Africa and Pakistan as well as the North Sea region (UK, Norway). The group's total oil and gas reserves stood at of oil equivalent at the end of 2017 and the daily average hydrocarbon production is per day of oil equivalent. MOL derives nearly three-quarters of its oil and gas production from Hungary and Croatia. Despite the fact that the fields in the CEE are mature, the company has managed to reverse a production decline, with oil production growing by 20% in 2016 thanks to optimization measures (Enhanced Oil Recovery). The company has a 20% interest in the Catcher area oil and gas block in the North Sea, in company with Premier Oil (50%) and Cairn Energy (30%). In June 2014, the UK Department of Energy and Climate Change gave final approval for the £1 billion development. First oil was achieved from the field's FPSO (Floating Production Storage and Offloading) in December 2017. Norway plays an important role in MOL Group's international exploration portfolio. The company entered Norway in 2015, after acquiring Ithaca Petroleum Norge, and is present in three of the North Sea's core areas (Central Graben South, South Viking Graben and Northern North Sea). In late 2018, MOL Norge started its first operated drilling in the Oppdal/Driva prospect. MOL has foreign exploration licences in (with date of announcement): *
Yemen Yemen (; ar, ٱلْيَمَن, al-Yaman), officially the Republic of Yemen,, ) is a country in Western Asia. It is situated on the southern end of the Arabian Peninsula, and borders Saudi Arabia to the north and Oman to the northeast and ...
, Exploration Blocks ’48’ and ’49’, 2002 *
Kazakhstan Kazakhstan, officially the Republic of Kazakhstan, is a transcontinental country located mainly in Central Asia and partly in Eastern Europe. It borders Russia to the north and west, China to the east, Kyrgyzstan to the southeast, Uzbeki ...
, Federovskoye Block, 2004 ; North Karpovsky, 2012 *
Croatia , image_flag = Flag of Croatia.svg , image_coat = Coat of arms of Croatia.svg , anthem = " Lijepa naša domovino"("Our Beautiful Homeland") , image_map = , map_caption = , capi ...
and
Hungary Hungary ( hu, Magyarország ) is a landlocked country in Central Europe. Spanning of the Carpathian Basin, it is bordered by Slovakia to the north, Ukraine to the northeast, Romania to the east and southeast, Serbia to the south, Cr ...
, Slatina and Zaláta, 2006 *
Russia Russia (, , ), or the Russian Federation, is a transcontinental country spanning Eastern Europe and Northern Asia. It is the largest country in the world, with its internationally recognised territory covering , and encompassing one-ei ...
, Baituganskoe Oilfield, Surgut-7 block and Matjushkinsky block 2006–2007 *
Cameroon Cameroon (; french: Cameroun, ff, Kamerun), officially the Republic of Cameroon (french: République du Cameroun, links=no), is a country in west-central Africa. It is bordered by Nigeria to the west and north; Chad to the northeast; the ...
, Ngosso Permit Block, 2007 *
Iraq Iraq,; ku, عێراق, translit=Êraq officially the Republic of Iraq, '; ku, کۆماری عێراق, translit=Komarî Êraq is a country in Western Asia. It is bordered by Turkey to Iraq–Turkey border, the north, Iran to Iran–Iraq ...
, Akri Bijeel Block, 2007 MOL has foreign production facilities in (with date of announcement): *
Russia Russia (, , ), or the Russian Federation, is a transcontinental country spanning Eastern Europe and Northern Asia. It is the largest country in the world, with its internationally recognised territory covering , and encompassing one-ei ...
, Zapadno-Malobalyk oil field (with Yukos, later Russneft) 2002 *
Pakistan Pakistan ( ur, ), officially the Islamic Republic of Pakistan ( ur, , label=none), is a country in South Asia. It is the world's List of countries and dependencies by population, fifth-most populous country, with a population of almost 24 ...
, Tal Block, 2004


Downstream operations

MOL Group operates assets with a total of 20.9 mtpa refining and 2.2 mtpa petrochemicals capacity. Its downstream asset base includes 6 production units: 4 refineries and 2 petrochemical sites, and an extended regional logistics and wholesales network as an integrated value chain. Its refineries at Százhalombatta, Hungary and Bratislava, Slovakia, are among the most profitable ones in Europe, with Nelson complexity indexes of 10,6 and 11,5 respectively. MOL also produces and sells petrochemicals worldwide and is a leading petrochemical company in the Central Eastern Europe region. Its products are sold in more than 40 countries. MOL's petrochemical portfolio consists of high-quality polyolefin products (high- and low-density polyethylene, polypropylene) as well as butadiene. As part of its 2030 strategy, MOL targets a gradual increase of the share of valuable non-motor fuel products to above 50% by 2030 from below 30% currently. MOL intends to increase the feedstock for its petrochemical plants, whilst also taking advantage of the growing demand for profitable products as jet fuel, lubricants and base oils. As MOL aims to expand its petrochemical business, the company has earmarked EUR 1.2bn for investment in propylene-oxide based polyols, a high-value product applied in the automotive industry, packaging and furniture manufacturing. In 2018, it made a final investment decision on its Polyol Project, the biggest single investment of the company until 2021. To expand their petrochemical portfolio, MOL has signed a partnership with German APK in 2018, supporting the completion of APK's plastic-recycling plant in Merseburg. As part of circular-economy and sustainability endeavors, the plant pilots a process dubbed "Newcycling", recovering high-quality materials from plastic waste. For the
natural gas Natural gas (also called fossil gas or simply gas) is a naturally occurring mixture of gaseous hydrocarbons consisting primarily of methane in addition to various smaller amounts of other higher alkanes. Low levels of trace gases like carbon d ...
division, the main focus is gas transmission via an extensive high
pressure Pressure (symbol: ''p'' or ''P'') is the force applied perpendicular to the surface of an object per unit area over which that force is distributed. Gauge pressure (also spelled ''gage'' pressure)The preferred spelling varies by country a ...
gas pipeline, which length exceeds . MOL is a member of the Nabucco Pipeline project. In the field of renewable energy MOL develops geothermal power production through the, CEGE Central European Geothermal Energy Production, a partnership with
Australia Australia, officially the Commonwealth of Australia, is a sovereign country comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands. With an area of , Australia is the largest country by ...
n-based Green Rock Energy Limited. The company supports the research of
second generation biofuels Second-generation biofuels, also known as advanced biofuels, are fuels that can be manufactured from various types of non-food biomass. Biomass in this context means plant materials and animal waste used especially as a source of fuel. First-gener ...
at the University of Pannonia.


Consumer Services (Retail)

As of 2018, MOL Group owns a network of nearly 2,000 service stations under six brands across ten countries in Central Eastern Europe: Hungary, Slovakia, Croatia, Romania, Czech Republic, Poland, Serbia, Slovenia, Bosnia and Herzegovina and Montenegro. In reaction to advancements in technology and new consumer habits, and to prepare the company for times beyond the fuel age, the company has set the goal to become a broader goods and services provider. To reach these goals, MOL has already ventured into new businesses, including e-mobility, car sharing and fleet management, leveraging its 10 million retail customer base. As part of their 2030 strategy, MOL also focuses on e-mobility and alternative fuels. In 2018, the company launched a new car-sharing service in Budapest, MOL Limo.


Awards

At the 2016 Petroleum Economist Awards, MOL Group was named the Downstream Company of the Year and in 2018, it was awarded the Energy Company of the Year – Mid Cap prize.


Controversies


Takeover attempt by OMV

In June 2007,
Austria Austria, , bar, Östareich officially the Republic of Austria, is a country in the southern part of Central Europe, lying in the Eastern Alps. It is a federation of nine states, one of which is the capital, Vienna, the most populous ...
n energy company
OMV OMV (formerly abbreviation for Österreichische Mineralölverwaltung Aktiengesellschaft ('' en, Austrian Mineral Oil Administration Stock Company'')) is an Austrian multinational integrated oil, gas and petrochemical company which is headquart ...
made an unsolicited bid to take over MOL, which has been rejected by the Hungarian company. On 6 March 2008, the
European Commission The European Commission (EC) is the executive of the European Union (EU). It operates as a cabinet government, with 27 members of the Commission (informally known as "Commissioners") headed by a President. It includes an administrative body ...
launched an in-depth investigation of OMV's unsolicited bid to take over MOL. On 24 June 2008, OMV received a 'Statement of Objections' from the European Commission regarding the company's attempted takeover of MOL. In March 2009, OMV sold its 21% stake in MOL to Surgutneftegas. MOL called this move "unfriendly" and claimed OMV had acted as a front for Russian interests.


Surgutneftegas shares

Following the OMV's sale of its 21% stake of MOL to Surgutneftgas in 2009, MOL refused to register the Russian company as a shareholder with full rights, due to non-transparent ownership structure of Surgutneftegas. As a result, Surgutneftegas did not have its representatives in the board and the right to vote at general assemblies of shareholders. MOL defended its decision to block Surgut by arguing that the Russian company had not made its intentions towards the company clear. In May 2011, the Hungarian government bought the Russian Surgutneftegas's shares, thus the Hungarian state acquired 21.2% of the shares of MOL.


Legal dispute over INA

In 2011, Croatia started an investigation of ex-prime minister Ivo Sanader for allegedly accepting a €10 million bribe from MOL, in exchange for the Croatian Government approving the First Amendment to the Shareholders Agreement and thus MOL securing management rights, accusing also the company's chairman, Zsolt Hernádi. MOL repeatedly denied all the accusations. Soon after, the Hungarian prosecution launched investigation on suspicion of bribery and in 2012 dismissed allegations of criminal activity in this matter.


Operations in Russia

According to a list maintained by the
Yale School of Management The Yale School of Management (also known as Yale SOM) is the graduate business school of Yale University, a private research university in New Haven, Connecticut. The school awards the Master of Business Administration (MBA), MBA for Executive ...
, as of March 2022, the company continues to do business in Russia despite a widespread boycott after the Russian invasion of Ukraine.


See also

* List of oil exploration and production companies * List of companies based in Budapest


References


External links


Official website molgroup.info
{{DEFAULTSORT:Mol (Company) Companies based in Budapest Non-renewable resource companies established in 1957 Companies listed on the Budapest Stock Exchange Companies listed on the Warsaw Stock Exchange Hungarian brands Oil and gas companies of Hungary Oil pipeline companies Natural gas pipeline companies Economy of Hungary Petrochemical companies Oil traders Energy companies established in 1957 1957 establishments in Hungary Multinational companies headquartered in Hungary