MGYOY Mol Magyar Olay Es Gazipari Rt (PK)

The Hungarian oil and gas firm MOL Nyrt (MOL.BU) remains an important consortium partner in the Nabucco pipeline project, Austrian oil and gas company OMV AG's (OMV.VI) Chief Executive Officer Gerhard Roiss said Wednesday in an interview with Austrian economic newspaper Wirtschaftsblatt.

"I welcome MOL as an important partner in the consortium. There is no written communication that indicates it is leaving (the consortium)," said Roiss. Last month, MOL's CEO Zsolt Hernadi said MOL is ready to sell its share in the Nabucco implementing company if necessary and will withhold funding from the project firm.

The Nabucco pipeline, originally designed as a 3,300-kilometer-long project, is one of several proposed pipelines designed to bring gas from the Caspian region to Austria, with the aim of easing the region's dependence on imports from Russia by opening up a "corridor" from Central Asia to the European Union.

However, should MOL leave the consortium (which includes OMV, Romania Trans S.A., Bulgaria's Bulgargaz EAD, Turkey's Botas, and Germany's RWE AG (RWE.XE)), Roiss remains sanguine about the implications for the pipeline, which is planned to run partly through Hungary.

"There is an intergovernmental agreement that has been signed by all of the countries in the consortium. It binds them to construction of the pipeline. I assume that in Europe what has been signed is respected," said Roiss.

It may not be just Caspian gas that Nabucco carries, but also gas from the Black Sea, where OMV's Romanian subsidiary found a potentially large source of the commodity in February.

Production from the Black Sea could start in 2020, said Roiss.

Newspaper Web site: http://www.wirtschaftsblatt.at/archiv/517589/index.do

-By Vienna Bureau, Dow Jones Newswires; +43 1 513 69 22-11

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