MOL-INA: strategic partnership

As a result of the successful voluntary public offer for INA shares MOL has become the largest shareholder of INA in October, 2008.

The MOL-INA strategic partnership enjoys a unique position in Central European oil product markets along the strategic Baltic-Adriatic corridor, with leading market shares in Croatia, Hungary, Slovakia, as well as strong positions in Bosnia-Herzegovina and Czech Republic, and is strategically positioned to expand further across Central Europe.

MOL, INA and Slovnaft have a combined refining capacity of 450,000 bbl/day and more than 1,200 retail stations across nine countries.

MOL and INA have already identified a number of areas of co-operation. Proactive work of MOL representatives at INA is contributing to significant efficiency improvements in the Croatian company.

As a first major step, MOL is sharing lessons learned in transforming a company from a state-owned enterprise into an efficient, market-oriented one.

Coordination of market activities, exchange of knowledge and experience, and the implementation of joint projects will help realize MOL Group’s growth potential in the region’s oil and gas markets.

The strategic partners have launched a comprehensive refinery modernisation project. This US$ 900 million development programme will bring INA refinery technology up to the technically advanced standards of Slovnaft and MOL.

By modernising the Sisak and Rijeka refineries, INA’s product quality will meet the highest European standards.

MOL is providing knowledge transfer to INA to install a SAP Business Management System - the same type that MOL uses today. The SAP system launch will coincide with the process of bringing a fundamentally new corporate culture to the Croatian company, and will create further synergies within MOL Group.

In the upstream business, MOL and INA are working together on field operations along the Hungarian-Croatian border, and are also jointly addressing forthcoming opportunities in the international upstream business, to spread risk and combine financial and human resources.

In 2005, MOL and INA introduced mutual acceptance of each other’s branded fuel payment cards at their respective filling station networks. Thus card acceptance in Hungary and Croatia will extend the advantages of deferred payment right down to the Croatian coast line for Hungarians, and throughout Hungary for Croatians. Cardholders will receive an aggregated invoice which they may then pay in their home currency. Mutual acceptance of MOL and INA fuel cards is an important part of MOL Group’s steadily expanding fuel payment card system.