MOL gains access to Adriatic gas via Croatian unit

Deals

Croatian oil and gas company INA, a subsidiary of Hungarian peer MOL, will purchase Eni Croatia BV from the Italian Eni Group, thus becoming sole owner and operator of the Northern Adriatic and Marica offshore gas fields, according to a MOL announcement on the website of the Budapest Stock Exchange (BÉT).

INA has agreed to buy Eni Croatia BV, a wholly owned member of Eni Group, through which Eni participated in the joint project of gas production in Croatia’s Northern Adriatic and Marica offshore areas, noted the announcement.

MOL holds just under half (49.1%) of INAʼs shares, but has management rights in the company. The other big stakeholder is the state of Croatia (44.84%).

As a result of the transaction, INA will become the 100% owner and sole operator of the Northern Adriatic and Marica fields after all conditions are fulfilled, including receiving clearance from antitrust authorities, which is expected in the coming months, the announcement noted. It added that INA will become the sole operator of offshore fields for the first time in its history.

The transaction covers 4.3 million barrels of oil equivalent (BOE) proven and probable reserves, and would increase hydrocarbon production by around 2,500 barrels of oil equivalent per day (BOE/D), a step towards meeting the groupʼs reserves replacement targets.   

Following the transaction, all gas produced in the Northern Adriatic
concession area will be directed towards the Croatian supply system, while gas produced in the Marica area will continue to be transported to Italy, under a gas sales contract signed by INA and Eni.

MOL noted that the acquisition will allow it to carry out further investments in the Northern Adriatic area.

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