The Hungarian state-owned energy company MVM Group has been actively expanding its international presence in recent years, including in strategic energy projects in Azerbaijan. One of the key steps was the acquisition of a 5% stake in the Shah Deniz gas project, the largest foreign investment in the company's history. In an interview with Report, the CEO of MVM Group, Károly Mátrai, discussed the prospects of business development in Azerbaijan, the company's interest in solar energy, and MVM's strategic plans.
We present the interview to our readers:
- Your company acquired a 5% stake in the Shah Deniz field development project. How much did this investment cost?
- It is indeed a very large investment. I cannot disclose the exact amount, but it is the largest foreign deal in MVM's history. It involves a significant volume of funds.
- What sources of financing were used for this deal? Was it company funds, or was there government support?
- These are entirely Hungarian investments in the Azerbaijani economy. Our financial balance was stable enough to carry out such a deal. Additionally, about a year ago, we issued bonds and raised capital from international investors. These two sources—our own resources and bond financing—formed the basis of the funding.
- How has participation in Shah Deniz affected the company's gas production indicators?
- This is a qualitative leap for us. In Hungary, we produce about 100 million cubic meters of gas per year. Shah Deniz is capable of producing up to 30 billion cubic meters annually, and our 5% share is approximately 1.5 billion cubic meters. For MVM, this is an entirely different scale.
- Are you planning to participate in other gas projects in Azerbaijan?
- At the moment, we don't have specific projects, but we are open to new opportunities. Currently, our focus is shifting towards renewable energy. We have started negotiations about possible investments in solar power plants in Azerbaijan—this could be our next step. In the future, we do not rule out further investments in upstream projects.
- How do you assess the prospects for MVM's business development in Azerbaijan?
- We are very pleased with our presence here. Azerbaijan offers a favorable business environment. When we say we represent Hungary, we are always met with smiles. This makes doing business comfortable and enjoyable. I visit Baku almost every other month and always look forward to coming back—here we have many friends, and it is truly inspiring to see Azerbaijan's economic development.
- Do you have any additional forecasts for the Shah Deniz project?
- Here, I can only repeat the official information provided by the project operator, BP. The forecast for this year is 27 billion cubic meters. We hope that these volumes will be reached.
