NIS submits request to OFAC for extension of operating license

Naftna industrija Srbije (NIS) has submitted a request to OFAC, that is, the US administration, to allow it to continue operating while talks are underway on the sale and purchase between Gazpromneft and MOL, said Minister of Mining and Energy Dubravka Djedovic Handanovic.

She explained to RTS that a sale and purchase agreement had not yet been reached, but that the basic provisions of future agreements regarding the change of ownership of NIS had been reached at that moment.

– There is still a lot of work to be done to arrange the entire agreement. However, what is important is that the Russian majority owners, meaning Gazpromneft, have agreed with MOL on the basic principles and that NIS has submitted requests to OFAC – said Djedovic Handanovic.

As she stated, whether the US administration will approve it remains to be seen by the end of the week.

– We can say that there is an intention and that the parties have signed certain conditions on which they have agreed. If the US administration approves it, then MOL can buy the shares. What is important is that Serbia is an equal participant in these negotiations, and the most important thing is that the conditions have been created for the refinery to continue operating – said the minister.

Serbia had the goal of improving its position in NIS and, according to the minister, it has succeeded in doing so, at least in this preliminary part.

– Serbia has signed a memorandum of understanding with MOL according to which Serbia will be able to increase its participation in NIS by 5%. MOL has committed to maintaining the level of operation of the refinery from previous years, as well as to increasing it if the needs increase – said Djedovic Handanovic.

MOL is interested in buying 56.15% and when that transaction takes place, Serbia could increase its share by 5%, and within that, Arab partners could also take part.

– ADNOC is a large, successful company and this would be beneficial for us in every sense. It is important that they have agreed to talk and participate in these negotiations. If OFAC approves the transaction, they will be interested in taking a smaller share – said the minister.

Djedovic Handanovic also emphasized that the market and supply in Serbia were stable despite the sanctions, with high levels of derivatives reserves. According to her, NIS remains a priority, but the goal is to simultaneously strengthen Serbia’s overall energy security and ensure stable development of the sector in the coming years.

NIS a.d. Novi Sad

Ministarstvo rudarstva i energetike Republike Srbije

Naftna industrija Srbije ad Beograd

MOL

ADNOC

OFAC

Ministry of Mining and Energy

Dubravka Đedović Handanović

sale of NIS

NIS license