Hungarian economy, policy and the Hungarian American Oil Co. (MAORT)

The history of implementing commercial oil mining in Hungary is the story of long and thorny endeavours. The result for this small country of becoming an oil producer had been achieved by the steadfastness of purpose and the thorough grounding in the profession of its specialists.

They succeeded in discovering the first major hydrocarbon field in 1937 after many failures in the country left without known raw material sources after the Trianon (Versailles) Treaty. The events starting in the following year, 1938 – when the first major Hungarian oil company, MAORT, was founded – have led to the foundation of the present national oil company, MOL Plc. The Hungarian-American Oil Co (MAORT) was founded on July 15,
1938 – with one hundred percent American share capital – for the exploitation of the petroleum and natural gas fields dis-covered by its predecessor, the European Gas and Electric Company, and the exploration
of additional production sites. MAORT had developed into one of the most important companies of the country due to its organization, outstanding performance and ever increasing capital stock and profits by 1941. It was the only significant oil producing company of Hungary till 1949 – its nationalisation. The role played in the national economy was emphasized by the major share of hydrocarbons, primarily by crude oil, in the Second World War as well as in the post-war restoration and damage compensation. This publication provides – in addition to the numerous references – an overview about the state actions brought against MAORT in the years 1947-48, the MAORT lawsuit and the conviction of the MAORT management on the basis of malicious prosecution. It also describes the path leading to the settlement in 1978 of the MAORT case saddling the Hungarian-American relations.

Srágli Lajos