Most oil hedging contracts are also in the form of options, ie. they give you the right to buy not the obligation to buy. If oil falls below the contract price, you can let the option fall away unused and buy at the market price on the day. Of course, you have to pay a price (like a premium) for writing the option in the first place, but it's not an unreasonable price to pay - risk versus reward.
We have no way of knowing what the contract says, but if it was an option then MOL might have called it an option not a hedge because all hedging is not as an option. Obviously the cheapest insurance would be in the form of a guaranteed delivery not an option. Do you think MOL would got for the cheapest insurance?