MOL Tells Forbes Srbija: Will Retain Refinery in the Long Term if It Becomes Owner of Oil Industry

Pancevo oil refinery (BetaPhoto/Ministry of Mining and Energy of Republic of Serbia/Emilija Jovanovic)

If a transaction for buying Russia's stake in the Oil Industry of Serbia (NIS) is successfully realized, MOL plans on managing the refinery in the long term, the Hungarian company told Forbes Srbija on April 23.

"The refinery in Pancevo has a very important strategic role in securing stable and smooth energy supply. MOL's objective is to additionally bolster the safety of supply in Serbia and the region, while using the synergy between refineries at the same time," MOL said in response to Forbes Srbija's questions.

The company said that "negotiations are continuing in accordance with the basic agreement signed earlier." It added that the negotiations were harmonized with the U.S.'s and EU's rules on sanctions. "To complete the transaction, OFAC's consent is needed among other things as well as that of the Republic of Serbia's relevant bodies," MOL said.

MOL is leading negotiations simultaneously with the oil industry's Russian owners on purchasing a majority stake in the industry and Serbia on the rights and obligations that the new majority owner will assume when the time comes to sign a purchase and sale agreement.