Türkiye secures oil exploration rights in Hungary in first European energy venture

Türkiye’s national oil company, Turkish Petroleum (TPAO), and Hungary’s MOL signed an agreement Wednesday to begin oil exploration and production at two sites in Hungary, marking the first Turkish gas investment in Europe.

Within the scope of the “Joint Bidding Agreement” signed in 2024 between Turkish Petroleum Corporation (TPAO) and MOL Group, the bidding process was successfully concluded, granting TPAO the right to explore hydrocarbons in Hungary’s onshore Buzsak and Tamasi blocks.

The partnership was formalized through a “Concession Agreement” signed by TPAO General Manager Ahmet Turkoglu and MOL Chairman of the Board Zsolt Hernadi, with Turkish Energy and Natural Resources Minister Alparslan Bayraktar and Hungarian Foreign Affairs and Trade Minister Peter Szijjarto in attendance.

Speaking at the signing ceremony in Budapest, Minister Alparslan Bayraktar emphasized the strength of bilateral ties between Türkiye and Hungary, particularly in the energy sector, which he said has become one of the most important areas of cooperation.

He noted that the energy partnership between the two countries has been ongoing for years and that this new initiative represents a key milestone in deepening that collaboration.

He noted that cooperation between TPAO and MOL is expected not only to strengthen in Hungary but also to expand into third countries across a range of regions.

“The cooperation between TPAO and Hungary’s MOL is set to grow stronger in Hungary and, hopefully, continue in the years ahead,” Bayraktar said.

“It is also expected to expand further in third countries across various regions, from Africa to Asia and the Middle East.”

Highlighting shared challenges, Bayraktar pointed out that both Türkiye and Hungary rely heavily on imported energy resources.

He also referred to the widespread blackout in Western Europe earlier in the week to underline the urgency of securing a stable energy supply.

“To ensure energy security, we must continue strengthening and expanding our cooperation,” he said, adding that energy security is “more vital” than ever in today’s world of shifting trade policies and rising customs tariffs.

Bayraktar also highlighted that Türkiye exported natural gas to a non-neighboring country for the first time in 2023.

The shipment was made possible through an agreement between Turkish Petroleum Pipeline Corporation (BOTAS) and Hungary’s state energy company MVM.

“In line with the strategic decision we made together, we believe BOTAS and MVM can play a significant role in gas trade and supply not only in Hungary but also across Europe,” he said.

He also highlighted the participation of a Turkish company in the consortium to build a natural gas power plant in Hungary and reaffirmed Türkiye’s commitment to enhancing cooperation in oil and gas, electricity, and nuclear energy.

‘Hungary’s energy security is no longer possible without Türkiye’

Peter Szijjarto described the agreement as a new milestone in energy relations between the two countries. “Today, Hungary’s energy security is no longer possible without Türkiye,” he said.

Szijjarto explained that over 20 million cubic meters of natural gas flow through the TurkStream pipeline, which connects Russia to Europe via Türkiye.

“This year alone, we received a total of 2.5 bcm of natural gas. If TurkStream hadn’t been built in time, we would have faced serious problems after the Ukraine crisis,” he said.

TurkStream, launched in 2020 under a Türkiye-Russia agreement, has delivered 44.4 billion cubic meters of gas to Türkiye and 59.8 billion cubic meters to Europe between 2020 and 2024.

The Hungarian minister concluded by saying that the TPAO-MOL partnership would mark the beginning of broader oil production cooperation, not just in Hungary but also in other countries.