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MOL buys into Iraqi project

Hungarian oil and gas major MOL announced in a press release that it signed an agreement to acquire 10% stake in Pearl Petroleum Company Limited from the Crescent Petroleum and Dana Gas PJSC.

Pearl holds all of the companies’ legal rights in Khor Mor and Chemchemal gas-condensate fields in the Kurdistan Region of Iraq. In exchange for a 10% ownership package of Pearl MOL paid 6,271,142 “A” series MOL shares, representing 6% of its current registered capital and as a result Crescent Petroleum and Dana Gas will each become 3% shareholders in MOL.

The parties also signed a strategic co-operation agreement to jointly develop future business opportunities in Middle-East, Central Asia and in other regions. In due course, this project will establish Iraq as one of the region’s major gas exporters towards Europe, once local requirements have been met. Based on its stake in Pearl Petroleum Company Limited, MOL will be enabled to supply the Nabucco pipeline (or one of its alternatives) with significant amount of natural gas.

OMV, another Nabucco consortium member, on the same day in a separate transaction also acquired 10% stake in Pearl from Crescent Petroleum and Dana Gas. (press release)