Hungary's MOL seen receiving state-controlled Russian partner in ZMB - First strike?

http://www.portfolio.hu/en/cikkek.td...

Monday, April 27, 2009 08:52:00 AM

It seems Hungarian oil and gas group MOL will have a new partner at its largest hydrocarbon field ZMB, at least this is what a report by local newswire MTI about a labyrinthine legal case implies.

MOL's original partner in the joint venture controlling ZMB was Russia's Yukos, with a 50% stake in their hands each. As a result of attacks launched by the government on Yukos, Rosneft bought the 50% ZMB stake from the subsidiaries of Yukos, thus becoming MOL's new partner.

In 2007, Rosneft got tangled in a web of tax law woven by the Russian state. According to Russian paper Kommersant, the attack was launched against it simply because it had acquired assets from Yukos.

As a consequence of the litigation, Rosneft Chairman Mihail Guseriev stepped down and left the country, while Rosneft was taken over by Russia's wealthiest man Oleg Deripaska.

On Friday, a Moscow court ruled that Rosneft acquired the ZMB stake from Yukos unlawfully therefore the package entitles the legal successor of Yukos, state-controlled Rosneft (or more precisely its subsidiary called Samaraneftegas).

We find it possible that the ruling is the first strike dealt on MOL for its “impolite" manner it welcomed Surgutneftegas among its shareholders. Surgut (i.e. Russia) can put pressure on MOL two ways. Firstly, via the ZMB field and secondly via its oil pipelines. Surgut bought a 21.2% stake in MOL from Austria's OMV for EUR 1.4 bn, but it was not able to vote at MOL's annual general meeting last week for the Hungarian Energy Office (MEH) did not register its shareholding.