"Both parties agreed on the course and models for conducting the negotiations, and reached agreement in principle of holding a negotiating round once a month, with materials being forwarded to them prior to the talks," according to the press release.

Every proposed conclusion will be deemed hammered out upon its delivery in writing and upon its adjustment with regulations and organisation of each of the two negotiating sides, according to the press release.

"Every new negotiation issue will be tabled upon the conclusion of the previously considered one."

The two negotiating parties are agreed that the negotiations will cover the future of corporate management, cost controlling, investment and profit distribution, research and development, the development and production of hydrocarbons, crude oil and petroleum products and their wholesale and retail sale, and the gas business.

The teams are agreed on the common goals for INA -- increasing investments, business efficiency and raising INA's contribution to Croatia's economy, the press release concluded.

The government's negotiating team consists of Economy Minister Ivan Vrdoljak and the head of the State Property Management Office, Mladen Pejnovic. The Hungarian company is represented by MOL's deputy CEO Sandor Csanyi and INA's CEO Zoltan Aldott.

The government, which holds 44.84% of shares in INA, said last month it expected INA to be run in accordance with Croatian laws as well as its development as Croatia's leading energy company.

MOL, which owns 49.08% of shares in INA, said recently that it did not want to give up management control of INA and expected a resolution of the gas business problem. It stressed it was ready to sue Croatia and demand at least 2 billion kuna ($351 million) in damages for Croatia's failure to take over INA's loss-making gas business or apply market prices, which it agreed to do in 2009.