Hungary to back MOL's initiative to buy Lukoil's foreign assets, but talks depend solely on company - FM Szijjarto
MOSCOW. Dec 9 (Interfax) - Hungary will welcome MOL's efforts to expand its asset portfolio by acquiring new assets, such as Lukoil's foreign business, but the course of the negotiations depends solely on the company, Hungarian Foreign Minister Peter Szijjarto told reporters.
Szijjarto said Hungary was pleased that MOL was strong enough as a company to act as a potential buyer in such cases. It generally supported MOL's efforts to strengthen its regional and global standing. So in this case, Hungary would be happy if the company were successful, but they themselves must conduct the negotiations. The government has nothing to do with it, he said, when asked whether the company would ask OFAC for a license to negotiate with Lukoil.
Hungary's MOL has told U.S. officials it is interested in buying international assets of sanctioned Russian oil major Lukoil, Reuters reported on December 4, quoting three sources.
MOL would like to buy Lukoil's refineries and fuel stations in Europe as well as stakes in producing assets in Kazakhstan and Azerbaijan, one of the sources said.
Lukoil owns refineries and filling stations in Romania and Bulgaria, as well as a 45% stake in a Dutch refinery. It has a 19.99% stake in the Shah Deniz gas field project in Azerbaijan and holds stakes in the Karachaganak gas field and the Tengiz oil field in Kazakhstan, as well as a stake in the Caspian Pipeline Consortium. Lukoil's Kazakh projects are exempt from U.S. and UK sanctions.
One of the Reuters sources said Hungarian Prime Minister Viktor Orban discussed MOL's plans with U.S. President Donald Trump in November. The visit provided Hungary with a one-year waiver from U.S. sanctions to continue using Russian oil and gas. The landlocked Hungary has obtained an exemption from European sanctions banning the purchase of Russian oil, and continues to import it.
The UK imposed sanctions on Lukoil on October 15 and the U.S. followed with sanctions of its own on October 22. Shortly after this, Lukoil announced plans to sell its international assets and said on October 30 that it had received and accepted an offer to buy its international arm, Lukoil International GmbH, from commodities trader Gunvor. But the U.S. Treasury Department refused to give its approval and Gunvor pulled out of the race.
Potential investors then formed a queue for Lukoil International. There were media reports of interest from U.S. majors Chevron Corp. and ExxonMobil , Abu Dhabi National Oil Company, private equity group Carlyle, Emirati conglomerate International Holding Company (IHC), billionaire Todd Boehly with a group of investors from the United Arab Emirates, as well as from Austrian businessman Bernd Bergmair.
The U.S. Office of Foreign Assets Control (OFAC) issued a license for the sale of Lukoil's international assets until December 13, but warned it could revoke it if it finds insufficient efforts are being made to reach a deal.
