Conditional EU Commission approval for the gas business transaction between MOL and E.ON-Ruhrgas International

The EU Commission announced on 21 December 2005, that they have granted conditional approval for the agreement between MOL Hungarian Oil and Gas Rt. (MOL) and E.ON Ruhrgas International AG (ERI) on the partial sale and associated option agreements relating to MOL's Hungarian midstream gas assets: MOL Földgázellátó Rt. (wholesale, marketing and trading, "WMT"); MOL Földgáztároló Rt. ("Storage"); MOL Földgázszállító Rt. ("Transmission") and Panrusgaz Magyar-Orosz Gázipari Rt, signed in November 2004.

According to the conditions set by the EU Commission, MOL should fully divest its stake in WMT and Storage, and is not allowed to exercise its put option for a portion of 25% plus one stake in Transmission. In addition, exercising the put option for 75% minus one share stake in Transmission requires additional approval by the EU Commission. Furthermore, ERI should release 50% of the gas, subject to the supply contract concluded previously between WMT and MOL, and additionally it should also sell further 1 billion m3 natural gas in an auction program. These together correspond to approximately 14% of total gas consumption.

In order to close the transaction, MOL and ERI have to agree on the final terms of the transaction, taking into consideration changes in the industry environment and the conditions set by the EU Commission.