MOL: Negotiations with Serbian Cabinet on Transactions for Oil Industry of Serbia End Successfully

Dubravka Djedovic Handanovic (BETAPHOTO/MILOS MISKOV)

The Hungarian MOL company said on June 11 that it has successfully wrapped up negotiations with the Serbian government with regard to concluding a shareholders' agreement that pertains to acquiring a majority stake in Naftna Industrija Srbije (NIS).

Negotiations with the seller and relevant institutions are still in progress to finalize the transaction, a statement said. Serbian Minister of Mining and Energy Dubravka Djedovic Handanovic wrote on Instagram that Serbia has closed all open issues with MOL and achieved a compromise on the Shareholders' Agreement with regard to Hungary's purchase of a majority stake in the oil company, which is under U.S. sanctions.

The minister said that Serbia, if Gazprom Neft reaches a deal with MOL on selling 56.15 percent of Naftna Industrija Srbije, and the U.S. OFAC approves the transaction, will buy an additional five percent of Naftna Industrija Srbije. According to her this will "give Serbia additional rights where the adoption or blocking of important decisions for our country is concerned."

"As for the operation of the Pancevo Refinery, the Hungarian side has assumed the obligation of having it continue operating as before, at a minimum capacity of the same average annual capacity as in the last four years preceding U.S. sanctions, when Naftna Industrija Srbije had excellent business results," the minister said, adding that the operation of the facility was one of the key points for the Serbian side.