EU Probes Hungarian Oil,Gas Co MOL Over Mining Fee Exemption
January 13 2009 - 10:10AM
Dow Jones News
The Hungarian government's agreement with domestic oil and gas
company MOL Nyrt. (MOL.BU) to exempt it from a recent increase in
hydrocarbon mining fees may be against the European law on
competition, the European Commission said Tuesday.
"The commission is concerned that MOL may be favored vis-a-vis
its competitors," Competition Commissioner Neelie Kroes said.
The commission added that it has begun an in-depth investigation
into the exemption, dating back to 2005, which allows MOL's royalty
payments to remain fixed for the majority of its hydrocarbon mining
fields until 2020, whereas the mining fee for other market players
was increased considerably in early 2008.
The commission is concerned that this agreement gives MOL an
unfair advantage over its competitors in Hungary.
-By Peppi Kiviniemi, Dow Jones Newswires; +32 (0)2 741 1483;
peppi.kiviniemi@dowjones.com
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