New operating license for NIS – Negotiations with MOL in final phase

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) has issued a new operating license to Naftna industrija Srbije (NIS), which has been extended until September 30, RTS has learned.

Continued operations of Pancevo Refinery

This has enabled the continuation of the company’s operations and the operation of the Pancevo Oil Refinery.

Minister of Mining and Energy Dubravka Djedovic Handanovic stated that in an unstable international environment it was important that Serbia could rely on the domestic refinery to the greatest extent possible.

Dubravka Djedovic Handanovic said that attacks on refineries in Russia and Saudi Arabia affected the availability and prices of diesel, which further showed how important the regular operation of the Pancevo refinery was for Serbia.

– The extended license allows us to continue supplies, while at the same time working on a long-term solution for NIS. The priority is that citizens and the economy have enough fuel and that Serbia’s energy security is not at any time put in question, just as the state has so far ensured that citizens do not lack fuel at any time, regardless of all the challenges in the last 18 months – the minister emphasized.

NIS, in the meantime, announced that the new license allowed for the continuation of business, the implementation of contracts and other agreements involving NIS or its operating subsidiaries, including refinery processing, crude oil import, carrying out transactions necessary for security of supply and technical maintenance, as well as financial settlements.

NIS’s priority remains maintaining uninterrupted business operations, regularly supplying the domestic market with petroleum products and preserving the social stability of employees, according to an announcement on the NIS website.

Increased oil processing

The minister noted that the demand for diesel in August had been around 200,000 tons, and that the Pancevo Refinery had therefore further increased production.

– The refinery increased oil processing to around 13,000 tons per day in August to meet the increased demand for fuel. This is especially important in conditions when import options are further limited due to the low water level of the Danube. Without the NIS operating license, we would not be able to meet demand, and the harvest is also underway – the minister stated.

She also added that negotiations on the sale of NIS between the Hungarian MOL, as a potential buyer, and the majority owner of Gazpromneft were in the final phase.

– The new license extension is a signal that there is progress and a willingness to ensure the additional time needed to complete this complex transaction. The license extension is important news for Serbia’s energy security – the minister said.

According to her, at a time when global oil flows are strongly influenced by geopolitical developments, with a huge increase in prices on world stock exchanges and threatened or interrupted supply chains, it is of utmost importance to ensure the operation of Serbia’s refinery and continuous supply of the domestic market.

On August 21, NIS submitted a new request to the U.S. Treasury Department for the issuance of a special license, so that it could continue its operational activities without hindrance.

OFAC also extended the license of the Hungarian company MOL for negotiations with Gazpromneft on the sale of the Russian majority stake in NIS, as well as the Adriatic Oil Pipeline (JANAF), until August 28.

The license for negotiations on NIS was also extended to the Hungarian MOL for the next 30 days.

NIS a.d. Novi Sad

Naftna industrija Srbije

NIS

US Treasury Department Office of Foreign Assets Control

OFAC

MOL

Pančevo Oil Refinery

Gazpromneft

Dubravka Đedović Handanović

Adriatic Oil Pipeline

JANAF

license