MOL and Libya’s NOC Sign Strategic Energy Cooperation

MOL Group has signed a memorandum of understanding with Libya’s National Oil Corporation (NOC) to explore cooperation in hydrocarbon exploration and production, technological innovation, and crude supply and trading, strengthening MOL’s international upstream portfolio.

Scope of the partnership
The memorandum of understanding, signed in Budapest by MOL Group Chairman and CEO Zsolt Hernádi and NOC Chairman Masoud Suleman, establishes a non-binding framework for information exchange and joint evaluation of potential business opportunities.

Areas of cooperation outlined in the agreement include upstream exploration and production activities, field development and technology innovation, oilfield services opportunities in Libya, and crude oil supply and trading. The framework allows both parties to assess specific projects and commercial structures before committing to individual investments.

Strategic relevance for MOL Group
For MOL Group, the agreement aligns with its long-term upstream strategy to maintain a production level of at least 90 thousand barrels of oil equivalent per day over the next five years under its SHAPE TOMORROW strategy. Diversification of supply sources and geographic exposure is a key element of this approach, particularly for a company headquartered in a landlocked European country.

MOL currently holds exploration and production assets in nine countries, with active production in eight, including Croatia, Azerbaijan, Iraq, Kazakhstan, Russia, Pakistan, Egypt, and Hungary. Expanding cooperation with national oil companies is a central mechanism for sustaining and growing this international portfolio.

Libya’s upstream context
Libya holds some of Africa’s largest proven oil and gas reserves, and its hydrocarbon sector remains a cornerstone of the national economy. Cooperation with international partners is viewed as a way to support exploration, enhance field development efficiency, and introduce new technologies into existing and future assets.

The agreement with MOL provides a platform to evaluate how international operating experience and technical capabilities can be applied within Libya’s upstream sector, subject to regulatory and commercial conditions.

Technology, services, and knowledge exchange
Beyond exploration and crude trading, the memorandum includes provisions for cooperation in technological and field development innovation, as well as oilfield services. This reflects an increasing focus on improving recovery rates, operational efficiency, and cost control in mature and new fields.

The partners have also agreed to explore the re-establishment of educational, scientific, and university ties. This element extends the collaboration beyond commercial activity, supporting longer-term capability development and technical knowledge exchange.

Broader partnership strategy
The agreement with Libya’s NOC follows a series of similar cooperation arrangements signed by MOL with other national oil companies, including KazMunayGas, SOCAR, and Turkish Petroleum.

As a result of these partnerships, MOL has begun onshore exploration activities in Azerbaijan’s Samakhi-Gobustan region and joint exploration projects in Hungary with Turkish Petroleum. These agreements illustrate MOL’s preference for partnership-based entry into new or expanding upstream opportunities.

Application perspective
For integrated energy companies, memoranda of understanding with national oil companies serve as an initial mechanism to manage geopolitical, technical, and commercial risk while identifying long-term resource opportunities. In MOL’s case, the Libya agreement supports portfolio diversification, security of supply considerations, and access to large-scale hydrocarbon potential.

The partnership also reflects a broader trend toward cooperation models that combine upstream activity with technology transfer, services, and knowledge development, rather than focusing solely on asset acquisition.