Agreement on the extension of production licences for 12 mining sites and future royalty obligations

MOL Hungarian Oil and Gas Company hereby announces, that on 22 December 2005, in line with Act XLVIII of 2003 on Mining, it signed an agreement with the Minister of Economy and Transport on the extension of production licences for 12 mining sites until 2010.

According to the agreement, MOL will pay between 1.02 and 1.05 times the present royalty rate for all hydrocarbon produced at the current mining sites until 2020. The rate of mining royalty for natural gas put into development before 1998 will continue to decline gradually.

Given that the multiple applied in the agreement is less than the maximum 1.2 multiple set in the Mining Act, MOL will make a one-off payment of HUF 20 billion in 2005. As a result of the agreement, MOL will operate its Hungarian Upstream business in a more transparent regulatory environment, and will make an appropriate return on its investments.