The Minister of National Development has signed contracts for a total of eight areas with the four companies which were awarded permits following the tender invitations for hydrocarbon extraction concessions published in April 2015.

In November 2015 the Minister made a decision on the successful respondents to the third round of hydrocarbon extraction concession tender invitations, according to the provisions of legal regulations and on the basis of the evaluation and recommendation by the Evaluation Committees. Contracts for the research, exploration and extraction of hydrocarbons were signed with the following: O&GD Central Kft. for the areas of Berettyóújfalu, Mogyoród, Nagykáta and Ócsa; MOL Magyar Olaj és Gázipari Nyrt. for the areas of Battonya-Pusztaföldvár North and Dány; HHE GROUP Kft. for Lakócsa; and Panbridge Hungary Zrt. – which participated in a domestic concession tender for the first time – for the area of Püspökladány. The duration of the hydrocarbon concessions is twenty years from the entry into force of contracts; this may be extended once – for a maximum of ten years – without a further call for tenders.

Based on the contracts signed, the winning applicants have agreed to pay net concession fees totalling HUF 2.86 billion.

Bearing in mind generally reduced international investment activity, the increased interest in Hungarian hydrocarbon concession opportunities is an important achievement. More tenders were received in the third round of tender invitations than in the first two rounds combined. The bidders included companies with huge industrial and hydrocarbon exploration and production experience, but with no previous interests in Hungary.

The Ministry of National Development is planning to publish invitations for new extraction concessions in the first half of 2016.

(Ministry of National Development)