Hungary is taking significant steps to enhance its upstream energy sector by initiating a new round of hydrocarbon concessions in previously unlicensed areas. This initiative invites companies to seek rights for the exploration, development, and production of oil and natural gas across several zones, including Baracska, Bacsalmas, Bekescsaba, Kiskore, Nagylengyel-West, Tiszacsege, and Tiszalok.
The Ministry of Energy has outlined that these concessions will be awarded for a standard term of 20 years. Furthermore, operators adhering to contractual and regulatory standards may extend their licenses for an additional ten years without undergoing a new tender process. This regulatory framework is designed to encourage sustained investment and operational stability in Hungary’s energy landscape.
This latest concession round follows the government’s decision to resume granting concessions after a five-year hiatus. The contracts established in 2024 have already prompted exploration activities at six sites, which include Buzsak, Csongrad, Hatvan, Kiskoros, Kiskunhalas, and Tamasi. Prior to the pause in concession awards, seven rounds had successfully resulted in hydrocarbon and geothermal agreements spanning over 30 locations nationwide, contributing significantly to state revenue through concession fees and royalties from mining operations.
The renewed push for licensing coincides with a robust performance in Hungary’s domestic energy production. In 2025, crude oil output reached approximately 1.17 million tons, marking the highest production level observed this century. Additionally, natural gas production has seen a resurgence, nearing 2 billion cubic meters—figures not seen since 2013—indicating a revitalization of Hungary’s energy capabilities.
