Are you sure?

MOL set to import oil from Iran after talks

Following talks in Iran, Hungarian oil and gas company MOL is prepared to import oil from the country via the Adriatic pipeline, should the opportunity present itself, MOL’s downstream chief Ferenc Horváth said in an interview with Reuters yesterday.

“If Iran starts exporting crude officially ... we will be very pleased and we will try to use that opportunity,” Horváth said, according to Reuters.

MOL acquires most of its crude from Russia, however, it purchased 20% of this year’s supply from other sources delivered via the recently expanded Adriatic pipeline, Reuters reported.

The company anticipates crude prices to be anywhere between $30 and $50 this year and in 2017, and this should help boost the company’s refining business but could hurt upstream assets, Horváth reportedly said.

Horváth told the news service that he expects refining margins to be in the region of $4-5 per barrel of crude for the next two years, adding that this would be “fairly positive” for the company’s downstream business. He also anticipated a strong growth this year in MOL’s petrochemicals branch, which accounts for 20-30% of the groups’ profits.