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Russia's Surgutneftegas to pay $1.8bln for 21% of Hungary's MOL

Russian oil firm Surgutneftegas will pay 1.4 billion euros ($1.8 billion) to buy a 21.2% stake in Hungary's oil and gas group MOL from the Austrian OMV Group, the Vienna stock exchange said on Monday. "The acquisition of the MOL shares is an important step in implementing Surgutneftegas' strategy to further strengthen the vertically integrated business, and ensure maximum proximity to end-users," the Russian company said in a statement. Surgutneftegas CEO Vladimir Bogdanov said that the deal would establish a firm foothold to start long-term beneficial cooperation, and promote energy security in Europe. After the deal is closed, OMV Group will entirely quit MOL's equity capital. Surgutneftegas is Russia's fourth largest oil producer, and is based in Surgut in the Tyumen Region of West Siberia. The company's operations include exploration, facilities construction, the development of oil and gas fields, and the production and sale of crude oil, gas, oil products and petrochemicals.
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