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Lukoil and MOl signed MoU, resolve consequences of oil supply incident of April 2019

Lukoil and MOl signed MoU, resolve consequences of oil supply incident of April 2019

Budapest, October 31 - Neftegaz.RU. President of LUKOIL Vagit Alekperov and General Director of Hungarian oil & gas company MOL Zsolt Hernádi have signed a Memorandum of Understanding in Hungary.   

LUKOIL and MOL have been cooperating in the area of oil and petroleum product supplies since 2003.  The document confirms obligations of the parties under the existing long-term contract concluded in 2017. In addition, 2 companies have agreed to extend the term of the contract for Russian oil supplies via the Druzhba pipeline to Hungary and Slovakia through June 30, 2025.

In Budapest have been signed bilateral Declarations of Understanding between LUKOIL and Transneft as well as between LUKOIL and Hungarian MOL to acknowledge the resolution of consequences of the incident that took place in April 2019 when crude oil containing excessive levels of organic chlorides was introduced in the Druzhba trunk pipeline through the fault and as a result of wrongful acts of third parties.   

Efforts to settle the incident involved many parties and resulted in the signing of the respective Declarations of Understanding preceded by a number of related agreements on the incident resolution between LUKOIL and Transneft as well as between LUKOIL and MOL.  

By signing the Declarations of Understanding the parties confirmed that the incident with LUKOIL's oil supplies to Hungary and Slovakia has been resolved on the terms of earlier concluded agreements as well as expressed their willingness to continue the mutually beneficial cooperation.   

"The continuation of cooperation between our companies serves common interests. LUKOIL has been supplying its oil to MOL for more than 15 years. Over this time we have proved the reliability of Russian energy supplies", President of LUKOIL Vagit Alekperovsaid.

LUKOIL is the main supplier of crude oil to MOL refineries via the Druzhba pipeline. In 2018 the Hungarian company purchased more than 4 million tonnes of oil from LUKOIL.