Lukoil, MOL settle over Druzhba pipeline incident

Wednesday, 30. October 2019 12:37

Russian oil companies PJSC Lukoil and Transneft agreed with the Hungarian MOL Group in Budapest on Wednesday on compensation for damages by contaminated crude oil.

CEO of Lukoil Vagit Alexperov, MOL's CEO Zsolt Hernádi and Nikolay Tokarev, CEO of Transneft agreed to compensate the MOL Group for damages made by the Druzhba Pipeline contamination incident earlier this year. All three parties signed a letter of intent in order to increase the supply contract between MOL and Lukoil until 2025. The Russian side has promised to compensate MOL Group’s financial damages caused by the incident, which will encompass purification costs of the crude oil received. As per reports, the contamination has not caused any interruption anywhere in fuel production.

Hernadi noted that Hungary is the first country to close this case of crude oil contamination. "Our Hungarian supply security system and our good partnership with Russian company have both stood the test excellently. Our Russian partners have assured us that they will reimburse our costs incurred in managing the situation. We have a good relationship with our Russian partner companies and are interested in preserving it," added Hernady.

Related Links: TransneftMOL NYRTLUKOIL (Open Joint Stock Company)
Author:
Breaking the News / TF