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MOL excited about Nabucco participation

A deal sealed by oil and gas company MOL a weak earlier to be part of a consortium that will pump gas from Iraq's Kurdistan region to supply the planned Nabucco pipeline is one of the company's most exciting projects, MOL Chairman-CEO Zsolt Hernádi said in an interview with MTI.

MOL is joining forces with Austrian peer OMV, and Crescent Petroleum and Dana Gas, both based in the United Arab Emirates, for the project, which could solve the problem of supplying the planned pipeline, which aims to reduce Europe's energy dependency on Russia.

The project company for the project in Kurdistan could supply not only the Nabucco pipeline, but the local region as well, Hernádi said. The question is whether the Nabucco pipeline would be supplied exclusively from the field, he added.

MOL did not have any agreement with OMV on the deal before it was made, Hernádi said. It was an invited tender, and it was only after the winners were announced that it was revealed OMV would be part of the project.

Hernái expressed his confidence that domestic differences over the project in Iraq would be cleared up. It is in all parties' interests to see the start of the gas exports, as revenue from these could mean the beginning of dynamic development in the country.

Hernádi said he was dissatisfied with the degree of assistance for the Nabucco project from Brussels, both in terms of its investment allocation and energy policy.

Hungary's Nabucco envoy Mihály Bayer told Parliament's ad hoc committee for the pipeline on Thursday that an inter-government agreement on the construction of the Nabucco could be signed in June, though much depends on Turkey. As Turkey is not a member of the EU, there is the question of what court to turn to in the case of a dispute between the project's participants, he said. (MTI – Econews)