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Exports

Kazakhstan Expands Energy Partnership with Hungary through Crude Oil Supply

Strategic Insights

— 1 min read

Kazakhstan's national oil and gas company, KazMunayGas (KMG), has taken a significant step in deepening its energy partnership with Hungary's MOL Group by shipping its first batch of crude oil. The 85,000 tons of crude were transported by sea from the Russian port of Novorossiysk to the Croatian port of Omisalj, before being transported to Hungary's Szazhalombatta refinery via the Adriatic pipeline. This development broadens the scope of Kazakhstan's oil exports to the European Union, with the country already supplying crude to Germany through the Druzhba pipeline.

Key Takeaways:

  • Kazakhstan has shipped its first batch of crude oil to Hungary through the Adriatic pipeline, marking a significant step in the country's deepening energy partnership with MOL Group.
  • The 85,000 tons of crude were transported by sea from the Russian port of Novorossiysk to the Croatian port of Omisalj, and then via the Adriatic pipeline to Hungary's Szazhalombatta refinery.
  • The deal broadens the scope of Kazakhstan's oil exports to the European Union, with the country already supplying crude to Germany through the Druzhba pipeline.
  • MOL Group has invested $200 million in the development of the Rozhkovskoye gas condensate field in western Kazakhstan.
  • KMG and MOL Group have signed a framework agreement outlining future oil supply arrangements, which was concluded following a meeting between the two companies in Croatia.
  • This development is part of a broader agreement between Kazakhstan and Hungary to supply Kazakh oil to Hungary through the Druzhba pipeline, which was reached in February during a meeting in Astana.
  • MOL Group has been active in Kazakhstan for over two decades, with operations dating back to the early 2000s.

Statistics:

  • 85,000 tons of crude oil were transported from the Russian port of Novorossiysk to the Croatian port of Omisalj.
  • $200 million invested by MOL Group in the development of the Rozhkovskoye gas condensate field.
  • 20 years of MOL Group's presence in Kazakhstan, with operations dating back to the early 2000s.

Sources:

  • "Kazakhstan has shipped its first batch of crude oil to Hungary", KazMunayGas (KMG) press release
  • "MOL Group active in Kazakhstan for over two decades", MOL Group website
  • "Kazakhstan and Hungary sign oil supply agreement", The Times of Central Asia
  • "Rozhkovskoye gas condensate field development", MOL Group website

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