Gov't and MOL negotiators discuss exploration and production by INA

Negotiators of the Croatian government and the Hungarian oil company MOL met in Zagreb on Thursday for a third round of talks on the future of the oil company INA, saying afterwards that the talks were marked by a much more cooperative attitude than had been the case with the previous two rounds and focused on exploration and production.
 

Economy Minister Ivan Vrdoljak, who was heading the government's negotiating team, said today's talks were much more optimistic than the previous ones. The head of MOL's negotiating team, Jozef Molnar, too, expressed satisfaction with the meeting, saying the attitude was much more cooperative than before.

Molnar said that the Hungarian negotiators underlined today as well as at the previous meetings that INA's success was in MOL's interest.

The Hungarian executive said today's meeting focused on INA's upstream strategy. In line with business plans, INA will be able to increase its daily production by 4,300 barrels in the short term, and by 9,000 in the medium term if it obtains the necessary permits on time, he said.

Molnar stressed that this meant an additional several hundred million kuna that would flow directly or indirectly into the national economy.

INA is ready for new exploration projects in Croatia and abroad, said Molnar.

MOL is ready to continue the talks and expedite them, he added.

Economy Minister Vrdoljak said the Croatian side had expressed readiness to discuss all items set for negotiation by the government, including corporate management. It will not be possible to conclude talks on any item before agreement is reached on corporate management, he said, adding that this would mean that agreement would be reached on the entire set of items, instead of on item by item as agreed at the first meeting.

"We also expect that teams of experts, which we will form in the next few days, will present their proposal for a strategy of INA's development as a regional company and for a new model of corporate management so that we can have a solid foundation for the next negotiating rounds," said Vrdoljak.

The minister said he welcomed the decision on INA's increasing investments in exploration and production in Croatia.

"That is what we demanded at the beginning of the talks. It was the government's wish that was made known several times, not only at the negotiating table but in public as well, and colleagues from MOL are ready for much greater upstream investments. I congratulate them on that."

The Hungarian oil company holds a 49.1% stake in INA, while the Croatian government holds a 44.84% interest.
 

News