NIS has submitted a request to OFAC, specifically to the American administration, to allow it to continue its operational work while talks are being held so that the agreed transaction between Gazprom Neft and MOL can be successfully completed, the Minister of Energy and Mining, Dubravka Đedović Handanović, told RTS.
Explaining how far the resolution of the NIS problem has come, the minister said that a sales agreement has not yet been reached, but that we are currently at the basic provisions of future contracts.
“There is still a lot of work to be done to agree on the entire contract. However, what is important is that the Russian majority owners, meaning Gazprom Neft and MOL, have agreed on the basic principles and that NIS has submitted requests to OFAC,” Minister Dubravka Đedović Handanović told RTS.
Whether the American administration will approve this 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 they agreed upon. If the American administration approves it, then MOL can buy the shares. What is important is that Serbia is an equal participant in those negotiations, and most importantly, conditions have been created for the refinery to continue its work,” said the Minister of Energy and Mining.
Serbia had the goal of improving its position in NIS, and according to the minister, it succeeded in that, at least in this preliminary part.
“Serbia signed a memorandum of understanding with MOL, according to which Serbia will be able to increase its stake in NIS by 5 percent. MOL has committed to maintaining the level of refinery operations from previous years, as well as increasing it if needs increase,” said Đedović Handanović.
MOL is interested in buying 56.15 percent, and when that transaction occurs, then Serbia could increase its share by 5 percent, and within that framework, Arab partners could also take part.
“ADNOC is a large successful company and that would be beneficial for us in every sense. It is important that they even agreed to talk and take part in these negotiations. If OFAC approves the transaction, they will be interested in taking a smaller part,” the minister said.
The minister also emphasized that the market and supply in Serbia are stable despite the sanctions, with high levels of derivative reserves. At the same time, the state continues work on strategic energy projects, including the construction of an oil pipeline to Hungary, solar power plants, and preparations for the “Bistrica” reversible hydroelectric power plant.
According to her, NIS remains a priority, but the goal is to simultaneously strengthen the overall energy security of Serbia and ensure the stable development of the sector in the coming years.
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Source: RTS; Photo: Naftna Industrija Srbije