RAG Austria: New subsidiary RAG Hungary to start up in October

01.10.2009 | Pressrelease

Austrian oil and gas company RAG acquires Toreador Hungary as of October 2009. EU member Hungary offers an attractive, untapped oil and gas potential, reliable framework conditions and an active market for exploration licences

Vienna, 1st October 2009 – As of October 2009, Austria's longest-standing exploration, production and gas storage company RAG acquires Toreador Hungary. Prior to the acquisition, RAG was intensively cooperating with Toreador Hungary under an exploration licence for two years. The decision by Toreador Resources to sell its subsidiary Toreador Hungary in the wake of restructuring its European interests is an opportunity for RAG to acquire a company to intensify its oil and gas exploration and production activities in Hungary.

Building cooperation networks

"Successful cooperation with the Hungarian employees of Toreador Hungary in the past two years, their in-depth knowledge of local requirements and general conditions as well as their professional expertise were further incentives to buy the company. We believe that Hungary holds great potential to support our strategy to go international. The country is a traditional consumer of natural gas, which covers 50% of its energy demand", underlines Markus Mitteregger, Managing Director of RAG. As cooperation with Toreador Hungary is close, the time span needed for integration will be rather short.

Expanding exploration activities in Europe

Apart from exploration and production activities in Austria and Bavaria, RAG aims to develop new oil and gas reserves in neighbouring countries. The company's expertise gained in Austria will provide valuable support for the corporate strategy of RAG.
RAG believes that Hungary still holds untapped oil and gas reserves and, as a member of the EU, offers reliable overall business conditions and an active market for exploration licences. Its well developed infrastructure and a liberalised gas market are further incentives for investors.

RAG – A specialist in oil and gas exploration, production and storage

RAG is the longest-standing exploration and production company in Austria. Since the discovery of oil and gas by RAG in the Vienna Basin in 1937, the company has produced over 14 million tons of crude oil and over 23 billion cubic meters of natural gas. Today, RAG sells around 750 million cubic meters of natural gas and 120,000 tons of crude oil per year. In recent years, the concession fields of RAG were extended to cover in excess of 8200 square kilometres, of which approx. 60 percent is located in Austria and around 40 percent in neighbouring Bavaria. RAG has been active in the field of gas storage for almost 30 years and operates both Central Europe's second-largest gas storage facility at Haidach/Straßwalchen (to be completed in 2011) and the Puchkirchen/Haag storage facility near the city of Vöcklabruck.

Further large gas storage facilities are currently under construction or in the planning stage and will provide even more security of supply for Austria and Central Europe. When completed, these facilities will make RAG one of Europe's largest gas storage facility operators. Projects in the field of renewable energies, such as geothermal projects, complete the portfolio of RAG. The headcount of the company currently stands at 400 employees in Vienna, Lower Austria, Upper Austria and Salzburg, the annual investment in new projects amounts to approx. 180 million Euros.

Further inquiry note:
Elisabeth Kolm
Press officer / Corporate Communications
Schwarzenbergplatz 16, 1015 Wien
T +43 (0)50 724-5448; F +43 (0)50 724-5238
elisabeth.kolm@rag-austria.at