• 5 minutes Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 11 minutes Saudi Fund Wants to Take Tesla Private?
  • 17 minutes Starvation, horror in Venezuela
  • 2 hours WTI @ 67.50, charts show $62.50 next
  • 11 hours Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 2 mins Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 54 mins Venezuela set to raise gasoline prices to international levels.
  • 12 hours Mike Shellman's musings on "Cartoon of the Week"
  • 7 hours WTI @ 69.33 headed for $70s - $80s end of August
  • 36 mins The Discount Airline Model Is Coming for Europe’s Railways
  • 16 hours Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 1 hour Pakistan: "Heart" Of Terrorism and Global Threat
  • 22 hours Corporations Are Buying More Renewables Than Ever
  • 11 hours Batteries Could Be a Small Dotcom-Style Bubble
  • 23 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 12 hours Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
  • 13 hours France Will Close All Coal Fired Power Stations By 2021

Breaking News:

SEC Tesla Probe Not New: Report

Oil Prices Jump As Saudis Cap Oil Supply

Oil Prices Jump As Saudis Cap Oil Supply

Oil prices rose on Tuesday…

Why China Will Continue To Buy Iranian Crude

Why China Will Continue To Buy Iranian Crude

While the United States sanctions…

Croatia Plans To Retake Control Of Its State Oil Company

Croatia INA gas station

The Croatian government has intensified its plans to take full control over oil group INA, setting up a model to buy out Hungarian state-owned MOL’s 49-percent share in the company whose sale has been a major political scandal.

MOL, one of the largest foreign investors in Croatia, became the largest shareholder in INA in October 2008, and has invested over US$1.49 billion (€1.4 billion) in the Croatian oil company since 2003. The Croatian Government holds a 45 percent stake in INA.

The sale of the 49-percent stake in INA has been the undoing of governments and the background to a debilitating corruption scandal. The scandal erupted when it was revealed that the wife of the then-deputy prime minister had received some US$60,000 as a ‘consulting fee’ from a lobbyist working for MOL.

In June 2016, the issue led to the collapse of the government, with a no-confidence vote that ousted then-Prime Minister Tihomir Oreskovic, who claimed he was targeted precisely because he had tried to resolve the ongoing dispute over managing rights between INA and MOL.

Croatia now wants more influence in decision-making at INA, while MOL is fighting to retain the management rights that come with a larger share in the company.

This special committee formed on Thursday to create a model for buying the INA shares back is chaired by Prime Minister Andrej Plenkovic.

Related: $25 Trillion Investment Needed To Meet Future Oil Demand

INA's current market capitalization would value MOL's stake at about 2 billion euros (US$2.13 billion), but it’s a price tag that will be hard for the Croatian government to meet considering the hefty public debt.

“I call upon those who believe they have a good model for this operation to present it publicly,” said Plenkovic. “We will consider all the options and choose the most efficient one, taking into account that we do not want to raise the public debt,” he said, adding that he expects to hold talks with MOL next week.

Croatia is in the midst of a strenuous battle with public debt, which sits at 85 percent of gross domestic product (GDP). The government was considering an initial public offering to help to fund an INA buyout by selling 25 percent of state power board HEP.

“I see it [the HEP sale] as a suitable model for buying out INA shares, but as a responsible premier I want to hear other ideas coming from experts in the energy and financial sector, including those from other political parties,” Plenkovic was quoted as saying Thursday.

By Damir Kaletovic for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Tim on January 20 2017 said:
    I understand writer of this article is from Croatia, but seriously who cares about Croatia? Their government was stupid to enter the agreement and now they will pay the price, end of story.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News