Hungarian oil and gas group MOL, aiming to become the market leader in Central Europe

Hungarian oil and gas group MOL, aiming to become the market leader in Central Europe, took control of two board seats at Croatia's INA yesterday and said it wanted to make INA a major player in the Balkans. MOL this week paid $505 million for 25 per cent in Croatia's largest state utility, completing a sell-off tender that started in spring 2002. In July, MOL outbid its regional rival, OMV of Austria, which offered $420 million. INA has drilling, refining and retail segments and plans to invest $1.5 billion in the next four years, mostly in oil exploration and an upgrade of its two dated refineries. MOL Chief Executive Zsolt Hernadi said the company had proposed to invest another $500 million "into retail and environment protection. INA needs a stronger and faster programme, and it's now up to the board to approve it". The two MOL members on INA's seven-member management board are in charge of financial management and corporate services and can veto any strategic decision related to changes in budget, business plan, issue of shares or debt notes or sale of valuable assets. MOL, which also owns Slovakia's Slovnaft, said the three companies now have a joint refining capacity of 450,000 bpd.