Türkiye's state-run energy company, Turkish Petroleum Corporation (TPAO), and Hungary's MOL Group signed a concession agreement granting rights for joint hydrocarbon exploration in two Hungarian sites, the countries' top officials announced on Wednesday.
Energy and Natural Resources Minister Alparslan Bayraktar visited Budapest on Wednesday, where he met with Hungarian Minister of Foreign Affairs and Foreign Trade Peter Szijjarto.
"During the meetings, we made evaluations regarding cooperation in both our countries and third countries, especially in oil and natural gas exploration and production," the minister said in a post on X.
"As a result of this cooperation, the tender process we participated in within the scope of the 'Joint Bidding Agreement' signed between our national company TPAO and Hungary's national oil company MOL Group in 2024 was successfully concluded," he added.
"In doing so, we gained the right to explore for hydrocarbons in the Buzsak and Tamasi onshore blocks of Hungary," Bayraktar noted.
MOL and TPAO signed a memorandum of understanding (MoU) last October, in which the two companies expressed their intention to jointly participate in exploration, field development and production projects.
"With the 'Concession Agreement' we signed in Budapest today, we formalized our partnership. We wish that the signatures will open the door to new opportunities and be beneficial for both countries," the minister said.
Speaking after the concession agreement was signed between the two firms, Bayraktar stated that the cooperation between the two countries is set to continue to grow, after what could be described as Turkish Petroleum’s "first investment in Europe."
"The relations between the two countries will hopefully develop further in many countries from Africa to Asia and the Middle East," he said.
Both countries face similar challenges, as Türkiye and Hungary rely heavily on imported energy resources, the minister noted.
"In particular, the power outage in Western Europe two days ago showed us once again how important energy security is," he maintained, referring to the blackout that particularly affected Spain and Portugal.
In an increasingly uncertain world marked by shifting trade policies and rising customs tariffs, energy security is "more vital" than ever, he added.
Türkiye and Hungary enjoy strong trade and energy cooperation, which has been intensified in recent years amid positive momentum in bilateral ties and as many European countries sought to diversify their energy sources and ensure security in the face of the Russia-Ukraine conflict.
Bayraktar also recalled that the first phase of production in the vast Sakarya Gas Field on Türkiye's northern coast has been completed, reiterating that it meets the natural gas needs for 4 million households.
"Now we aim to complete the other legs of this project in 2026 and 2028," he added.
The minister also stated that there may be new work between the two companies (TPAO and MOL) in the near future and said they supported MOL's interest in the fields in the Black Sea and its work with TPAO.
"Hopefully, MOL and TPAO can develop a partnership in the Black Sea fields in the coming period. We aim to take this even further by developing cooperation both in Hungary and Türkiye, but especially in third countries."
Bayraktar also highlighted Türkiye’s first gas export to a non-neighboring country through a deal between Turkish Petroleum Pipeline Corporation (BOTAŞ) and Hungary’s MVM in 2023.
"In line with the strategic decision we made together, we believe Türkiye can play a significant role in gas trade and supply not only in Hungary but also across Europe," Bayraktar added.
Szijjarto, for his part, also stated that they have reached a new milestone in energy cooperation.
"We have achieved great success in the recent period. Today, Hungary's energy security is no longer possible without Türkiye," he said.
"More than 20 million cubic meters (mcm) of gas comes through TurkStream. A total of 2.5 billion cubic meters (bcm) of natural gas came this year. If TurkStream had not been built in time, we would have faced serious problems after the Ukraine crisis," he suggested.
Szijjarto also mentioned that Wednesday's agreement will be a start in oil production not only in Hungary but also in third countries.
The concession agreements were signed by Zsolt Hernadi, chairperson and CEO of the MOL Group and Ahmet Türkoğlu, chairperson and CEO of Turkish Petroleum, in the presence of ministers.
"I am proud to be signing this concession agreement along with our respected partner, Turkish Petroleum. Today’s ceremony is the culmination of months of hard work in which we have taken MOL and TPAO’s cooperation to a new strategic level," Hernadi said.
"I am also confident that this is only the first step in our enhanced partnership with TPAO – I am hoping we can announce similarly key instances of cooperation soon, including in Türkiye and in third countries."
"We have enjoyed a strong and long-standing partnership with MOL in Azerbaijan. Strengthened by our joint investments, this collaboration has inspired us to pursue further opportunities together. With this confidence, we took our first concrete step by signing a joint exploration agreement with MOL at two sites in Hungary. Looking ahead, we plan to leverage this positive momentum to launch new joint ventures with MOL in various regions," Türkoğlu said.
MOL and Turkish Petroleum are also said to be exploring further joint opportunities in the Caspian region, the Black Sea area, North Africa and Central and Eastern Europe, the Hungarian company stated in a press release.
The firms have already been cooperating in hydrocarbons exploration and production projects as joint venture partners in Azerbaijan and Russia.
