Page 14 - EurOil Week 49 2022

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Orban invited to MOL’s board from the abolition of the scheme. gas, electricity and indeed there are
The windfall tax paid by MOL on gains
new possibilities and opportunities for
meeting as company opens new from the Ural-Brent spread was raised from cooperation,” the Azerbaijani president said.
He pointed out that Azerbaijan has rich gas
40% to 95%, an additional HUF120-130bn
HQ (€292-316) burden, lifting the total levy resources and plays an important role in the
paid by MOL to close to HUF470bn-480bn,
energy security of many countries.
Hungarian Prime Minister Viktor Orban was according to analysts. “Our role will grow, and we will cooperate
invited to participate in MOL’s board meeting MOL shares shed 2.6% on Wednesday with friendly countries in the first place, not
in its new HQ, which was officially opened and 5.4% on Thursday to end trading at only when it comes to energy, but in all areas,”
on December 8. The prime minister was HUF2,596. Aliyev said.
accompanied by Minister of Energy Affairs Vucic announced that in the next 20 days,
Csaba Lantos and Economic Development he will pay a working visit to Baku with a
Minister Marton Nagy. Orlen Lithuania posts delegation of several ministers to continue
At the meeting, MOL’s long-term business talks on further cooperation.
strategy was discussed and the economic and €26.8mn in Q3 profit,
energy crisis was on the agenda, the PM’s
press office announced in a short statement. revenue up 32% y/y Estonia threatens to use veto in
Construction of the MOL Campus began
in October 2018 and topped out in 2021. Orlen Lietuva (Orlen Lithuania), the Russian oil price cap dispute
The 28-storey high HQ at 143 metres is the Lithuanian branch of Poland’s oil group Orlen,
tallest building in Hungary. The construction posted €26.8mn in net profit for the third Estonia is after an agreement in the EU for
required special government permission. quarter of this year, BNS, a Baltic newswire, a lower price cap on Russian oil than what
The building was designed by London’s reported. has been proposed by the G7. Minister of
Foster+Partners in collaboration with In July-September, Orlen Lietuva earned Foreign Affairs Urmas Reinsalu hinted that
Hungary’s Finta Studio. Berlin-based Kinzo $2.242bn (€2.16bn) in revenue. Estonia could resort to its veto right, ERR.
and Hungarian partner Minusplus were in A favorable macroeconomic situation was ee, an Estonian news website, reported on
charge of interior design. behind the company’s better third-quarter November 24.
MOL covered the cost of the HQ from financial results, the company said in a Reuters reported on November 24 that
its own resources, but declined to reveal the statement. European Union governments failed to agree
amount, citing business confidentiality. The Ebitda halved to $119.6mn (around on whether to support the G7’s $65-70 per
building is heated and cooled with geothermal €115.4mn) during the period. barrel price cap proposal.
energy and outfitted with 900 sqm of solar Orlen Lietuva ended the second quarter “Estonia finds that the price horizon’s
panels. in the red as it incurred a loss of $209mn ambition is too low, considering that the
The opening ceremony came days after (€204.4mn based on the exchange rate of EU has also failed to agree on a ninth
the worst fuel crisis in Hungary since the August 5). sanctions package. The cap seems too high,”
1970s, which forced the government, on the Minister of Foreign Affairs Urmas Reinsalu
recommendation of the oil company, to scrap (Isamaa party) said at the government press
a price cap on motor fuels late Tuesday after Serbia and Azerbaijan deepen conference on November 24.
13 months. “It is a critical moment where all member
The government blamed European Union co-operationr states have an equal vote,” the foreign minister
sanctions affecting Russian crude that came added, pointing to EU foreign policy rules on
into effect on Monday. The lack of imports Serbian President Aleksandar Vucic met consensual decision-making or countries’ de
and the supply problems at MOL’s refinery President of Azerbaijan Ilham Aliyev in facto veto rights.
led to a situation where the company, as the Belgrade on November 23, discussing “Expressing our position clearly in a life
only wholesaler, was not able to fulfil surging cooperation in the field of energy and the or death situation such as this war is surely
demand, a situation aggravated by panic deepening of their partnership. justified. Therefore, these discussions are
buying. Amid the energy crisis, Serbia plans to ongoing,” Reinsalu said.
The European Commission spokesman secure at least 30-40% of gas supplies from Reuters wrote that Poland, Estonia and
Eric Mamer said on Thursday that the alternative suppliers to Russia, including from Latvia remain opposed to the proposed cap,
Hungarian government was using the Azerbaijan. which they find too high in a situation where
European Union as a scapegoat for the fuel Seven bilateral documents were signed the cost price of Russian oil is around $20.
shortage in the country and the elimination during the meeting including a memorandum This would leave Moscow with plenty of
of the price cap on motor fuels, but Hungary of understanding (MoU) to establish the oil income. Politico and Reuters report that
is exempt from the seaborne oil embargo as it Strategic Partnership Council between Serbia Poland asked for the ceiling to be set at $30
relies on Russian oil brought by pipeline. and Azerbaijan. per barrel.
The government decree approved on late “Azerbaijan is a reliable partner of Serbia, Lithuania is not either satisfied with the
Tuesday was titled “On certain provisions and the two countries persistently protect European Commission’s proposed price cap
relating to the price of fuel due to the entry territorial integrity and support each other in on wholesale natural gas, President Gitanas
into force of EU sanctions”. international organizations,” Vucic was cited Nauseda said on November 24.
The retail price cap of HUF480 per litre by broadcaster RTS. “The proposed solution is unsatisfactory
was introduced in November 2021, and Aliyev said that Serbia and Azerbaijan because it would not help to protect ourselves
extended to the wholesale prices in February are strategic partners that cooperate in many even against the peak we had in the past,”
2022, which led to the dry-up of imports areas, and indicated that the cooperation he said at a joint news conference with
because of unprofitable operations. documents represent the legal basis for Romanian President Klaus Iohannis in Vilnius
A day after the phase-out of the price cap, further development of relations. on November 24.
the government decided to take away almost “We talked about energy and we U.S. Secretary of the Treasury Janet Yellen
all the profits to be realised by MOL resulting will continue those talks about natural has proposed the cap at $60, Politico wrote on

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