Hungary’s MVM Group expands energy presence in Azerbaijan with new branch

Hungary's MVM Upstream Private Limited Company, a subsidiary of MVM Group, has officially established a branch in Azerbaijan, marking a significant expansion of Hungary’s energy interests in the region.

Registered on August 30, 2024, this branch will be legally represented by Hungarian national Istvan Nemeth, Caliber.Az reports referencing the State Tax Service (STS) under Azerbaijan's Ministry of Economy.

This new branch comes on the heels of a major acquisition deal signed earlier this year. On June 5, 2024, MVM Group reached an agreement to acquire a 5% stake in the Shah Deniz natural gas project from Cenub Qaz Dehlizi CJSC (CQD) and a 4% stake in the South Caucasus Pipeline Company (SCPC) from the Azerbaijan Gas Supply Company Limited (AGSC). 

This transaction, finalized on August 30, reflects MVM Group’s strategic commitment to diversifying its energy portfolio and strengthening its involvement in Azerbaijan’s gas and condensate production.

The Shah Deniz field, one of the largest natural gas fields in the world, has been operational since December 2006. Gas and condensate production takes place from the Alpha platform as part of Stage-1 and from the Bravo platform as part of Stage-2.

The project’s equity structure currently includes major players such as BP (project operator) with 29.99%, LUKOIL with 19.99%, Türkiye's TPAO with 19%, Azerbaijan’s Cenub Qaz Dehlizi with 16.02%, Iran’s Nico with 10%, and Hungary’s MVM Group holding a 5% stake.

By Tamilla Hasanova