By authorisation granted by the Government, on 22 March 2013, Minister of National Development Zsuzsa Németh, the Hungarian Association for the Stockpiling of Hydrocarbons (MSZKSZ) and the representatives of MOL Hungarian Oil and Gas Company Plc. signed a letter of intent to launch negotiations on the transfer of the title of MMBF Zrt., which operates the Szőreg-1 natural gas safety reserve storage facility in Algyő.

Pursuant to the letter of intent, the Hungarian State will acquire a 51 percent majority stake in MMBF through the Hungarian State Holding Company (MNV) Ltd. The current minority shareholder, MSZKSZ, will purchase the remaining 21.46 percent share of the current 72.46 percent MOL stake. Thus, the planned ownership structure of MMBF Zrt. is as follows: MNV and MSZKSZ will hold a share package of 51 percent and 49 percent, respectively.

The Parties agreed to conclude the share transfer contracts within 90 days from the execution of the necessary asset appraisals.

MMBF operates the 1.9 billion cubic metre capacity natural gas storage facility in Algyő, established in 2009, which also stores trade reserves in addition to Hungary's natural gas security reserves. With the availability of the Szőreg-1 natural gas safety reserve storage facility, the state can guarantee the lowest possible price of natural gas for households even in the winter months, thereby supporting efforts to reduce public utility costs.

The signing of the letter of intent is in harmony with the intention of the Government, according to which a state-owned storage facility should perform the stockpiling of natural gas security reserves as a state-operated activity. By way of the above measure, the state will acquire a majority stake in a company that operates modern technology and is a successful business entity.The purchase of MMBF does not affect the balance of the central budget, as it is transacted outside the scope of general government. The agreement is also effectively adapted to the clear portfolio-cleaning strategy of MOL.

(Ministry of National Development Communications Department)