Listen to the audio version of this article (generated by AI).
Listen to the audio version of this article (generated by AI).
MOL signed a heads of terms agreement in January on the acquisition of a 56.15% stake in NIS from Russia’s Gazprom Neft which was targeted by United States sanctions. The state of Serbia holds a 29.87% stake in NIS.
The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury recently extended a deadline for winding up talks on the acquisition of the NIS stake until June 16.
The agreement signed on Tuesday enables MOL to “take responsibility for the professional management, stable operations, and value-creating investments of NIS”, MOL said in an announcement posted on the website of the Budapest Stock Exchange.
“Upon successful completion of the transaction, MOL will ensure the supply of the Serbian market and the operation of the Pancevo refinery, while further strengthening the network and logistics connections of MOL Group’s energy facilities,” it added.
“I look forward with confidence to working together with the Serbian government. We will do everything we can to make NIS stronger and more profitable, and to ensure that Serbia sees us as a reliable partner,” MOL chairman-CEO Zsolt Hernádi said.
“It is important to emphasize that this agreement does not yet mark the end of the sale process. An agreement must still be reached with the seller, and approval from the United States must also be obtained,” he added.
Dubravka Dedovic Handanovic, Serbia’s energy minister, said in the announcement that the government of Serbia would purchase an additional 5% of NIS shares under the agreement and that the the Pancevo refinery would continue to operate for at least another ten years at capacity levels before the introduction of the U.S. sanctions.
She added that the agreement ensured there would be no disruption in the operations of NIS subsidiaries, including Petrohemija, and that the government’s representatives on the board would would have greater influence on decisions.
MOL has taken the necessary steps to obtain an extension of OFAC’s negotiation license, the announcement said. OFAC could extend the negotiation licence for a further 15 days, Serbian President Aleksandar Vucic told Serbian public television on Tuesday.
Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
