TPAO, T眉rkiye鈥檚 national oil company, and Hungarian MOL will launch oil and natural gas exploration and production at 2 sites in Hungary, according to a new deal between Ankara and Budapest on Wednesday.
"Bilateral cooperation between T眉rkiye and Hungary continues at a very high level across many sectors, with energy standing out as one of the most significant areas of partnership鈥�, said Turkish Energy and Natural Resources Minister Alparslan Bayraktar during a press conference along with Hungarian Foreign Minister Peter Szijjarto following the signing ceremony in Budapest.
Noting that this partnership spans many years, Bayraktar said: "Today marked a particularly important milestone. We witnessed the signing of what could be described as Turkish Petroleum鈥檚 (TPAO) first investment in Europe."
"The cooperation between TPAO and Hungary鈥檚 MOL is set to grow stronger in Hungary and, hopefully, continue in the years ahead," Bayraktar said, adding it is also expected to expand further in third countries across various regions, from Africa to Asia and the Middle East.
Both countries face similar challenges, as T眉rkiye and Hungary rely heavily on imported energy resources, the Turkish minister noted.
Referring to Monday鈥檚 blackout in Western Europe, Bayraktar highlighted the critical importance of energy security.
鈥淭o ensure energy security, we must continue strengthening and expanding our cooperation,鈥� he said.
In an increasingly uncertain world marked by shifting trade policies and rising customs tariffs, energy security is "more vital" than ever, he added.
Bayraktar also highlighted T眉rkiye鈥檚 first gas export to a non-neighboring country through a deal between Turkish Petroleum Pipeline Corporation (BOTAS) and Hungary鈥檚 MVM in 2023.
鈥淚n 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,鈥� Bayraktar added.
Hailing the recent deal involving a Turkish company in the consortium to build a natural gas power plant in Hungary, Bayraktar said T眉rkiye remains fully committed to strengthening cooperation in oil and gas, electricity, and nuclear energy.
- 'Hungary鈥檚 energy security is no longer possible without T眉rkiye'
Hungarian Foreign Affairs and Trade Minister Peter Szijjarto said the two countries have reached a new milestone in energy cooperation.
鈥淭oday, Hungary鈥檚 energy security is no longer possible without T眉rkiye,鈥� he added.
More than 20 million cubic meters (mcm) of gas flow through TurkStream pipeline, he explained.
鈥淭his year alone, we received a total of 2.5 bcm of natural gas. If TurkStream hadn鈥檛 been built in time, we would have faced serious problems after the Ukraine crisis,鈥� he added.
TurkStream, the pipeline commissioned in 2020 under a T眉rkiye-Russia deal, has transported 44.4 bcm of gas to T眉rkiye and 59.8 bcm to Europe between 2020 and 2024.
The Hungarian minister added that the deal between TPAO and MOL would mark the beginning of oil production cooperation not only in Hungary but also in third countries.
Meanwhile, the Turkish energy minister said in a post on X that TPAO and MOL "gained the right to explore hydrocarbons in the Buzsak and Tamasi onshore blocks of Hungary."
"With the 'Concession Agreement' we signed in Budapest today, we formalized our partnership," Bayraktar added.
"We wish that the signatures will open the door to new opportunities and be beneficial for both countries," he added.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr