Hungary has announced a new initiative to enhance its upstream energy sector by inviting companies to apply for hydrocarbon concessions in several previously unlicensed areas. The designated zones for this exploration and production opportunity include Baracska, Bacsalmas, Bekescsaba, Kiskore, Nagylengyel-West, Tiszacsege, and Tiszalok. This move reflects the country’s commitment to expand its domestic energy resources amid growing production levels.
The Ministry of Energy has outlined that the concessions will be issued for a standard term of 20 years. Furthermore, operators who meet their contractual and regulatory obligations will have the option to extend their licenses for up to an additional ten years without undergoing a new tender process. This regulatory framework aims to provide stability and encourage long-term investment in Hungary’s energy landscape.
This latest concession round follows the government’s decision to resume awarding such rights after a five-year hiatus, which was marked by contracts signed in 2024 that initiated exploration activities at six sites including Buzsak, Csongrad, Hatvan, Kiskoros, Kiskunhalas, and Tamasi. Prior to 2019, Hungary had successfully conducted seven concession rounds that resulted in hydrocarbon and geothermal agreements across over 30 locations nationwide, significantly contributing to state revenues through fees and royalties associated with these concessions.
The renewed focus on licensing comes at a time when Hungary’s domestic production is experiencing robust growth. In 2025, the country’s crude oil output is projected to reach approximately 1.17 million tons—the highest level recorded this century. Additionally, natural gas production is expected to approach 2 billion cubic meters, a milestone not achieved since 2013. These developments underscore Hungary’s strategic efforts to strengthen its energy independence while maximizing resource utilization within its borders.
