MOL Ready to Speed Up INA Talks With Croatian Govt

Hungary's MOL said on Thursday it is prepared to continue and speed up the negotiations with the Croatian government over the co-management of Zagreb-based oil and gas company INA [ZSE:INA-R-A].

On Thursday, the two sides held the third round of the talks to renegotiate the terms for INA's management that were launched back in September.

"Today we were able to address the urgent need for relevant permits. According to our business plan, if we receive the relevant permits in time, INA will be able to produce additional 4,300 barrels per day [bbl/day] in short term, which can be increased to 9,000 bbl/day in mid-term," MOL Group chief executive officer Jozsef Molnar said in a statement.

This 10% and 20% additional production would mean several hundred million kuna additional direct or indirect contribution to the Croatian economy, Molnar said.

In a separate statement issued after the meeting, the Croatian economy ministry said the government in Zagreb is not backing off from its demands but is willing to see the talks move beyond the deadlock.

"[..] I reiterate that no item from the negotiating agenda can be checked off before agreement is reached on corporate governance," economy minister Ivan Vrdoljak, who heads the Croatian negotiating team, said in the statement.

In November, MOL's chief executive and chairman Zsolt Hernadi said the Hungarian group was not ready to negotiate with the Croatian government about INA's corporate governance.

The Croatian side is now expecting from MOL to present its vision for INA's strategic development, including a new model for corporate governance, Vrdoljak added.

MOL owns 49.08% of INA and the Croatian government controls a further 44.84%.

On November 8, MOL said after the completion of the second round of talks its executive board had been authorized to start the preparations for the sale of the company’s stake in INA.

In August, the Croatian government said the talks with MOL were prompted by the deterioration in INA's performance over the past few years, among other issues.

Source: SeeNews