Uncertainties Cloud MOL's Nabucco Position

Hungary’s MOL has yet to approve the 2012 budget of the Nabucco International Company (NIC) and also confirmed that concerns still exist and there hasn’t been any satisfactory solution from NIC thus far. "Both the financing background and the gas source are uncertain" said MOL in an emailed statement.

Hungarian Prime Minister Viktor Orban said on Monday that MOL was leaving the Nabucco project, reported Bloomberg, however MOL has not confirmed the report of its withdrawal, according to European Commision energy spokespoerson Marlene Holzner.  

"The Nabucco shareholder in Hungary is FGSZ, a MOL subsidiary, and we have not had any indication that this will change," commented Nabucco spokesman Christian Dolezal. "The negotiations between the Nabucco shareholders and the Shah Deniz II Consortium for gas supply are progressing."

MOL has voiced doubts over the Nabucco project several times in the past 18 months due to the uncertain costs and gas sources and concerns over the structure and management of the project.

MOL did say it remains committed to cutting Europe's supply dependence on Russia, and that it believed "in the South Corridor-concept, that could eventually also include a re-considered Nabucco".