Hungary's MOL Group has signed the main provisions of a binding framework agreement with Gazprom Neft to purchase a 56,15 percent stake in the Serbian Oil Industry (NIS), MOL Serbia announced.
As announced, MOL Group is in negotiations with ADNOC from the United Arab Emirates, regarding its entry into the ownership structure of NIS as a minority shareholder.
Upon completion of the transaction, MOL will, as stated, assume significant shareholder responsibilities and management rights in the company that operates the only refinery in Serbia, thereby further strengthening its presence in the energy market of Central and Southeastern Europe, the statement said.
In addition to the oil refinery in Pančevo, NIS also owns a retail network, as well as a portfolio in the field of exploration and production.
The transaction, which will be implemented after fulfilling the conditions stipulated in the framework agreement, including obtaining the necessary regulatory approvals, can, it is said, ensure the long-term and stable operations of the Pančevo Refinery and related business units, as well as the uninterrupted supply of regional energy markets, reports N1.
"As a reliable regional energy supplier, we want to contribute to the development of Central and Southeastern Europe. We have had excellent professional cooperation with our partners in Serbia for many years. MOL is committed to working together with the Government of the Republic of Serbia to further strengthen the security of supply in Serbia and the region. The energy sovereignty of landlocked countries requires the cooperation of strong local refineries that operate predictably and successfully, as well as the involvement of strong partners. Therefore, MOL Group is in negotiations with ADNOC, the national oil company of the United Arab Emirates, about its entry into the ownership structure of NIS as a minority shareholder, while retaining the majority ownership and management rights of MOL. We are ready for this task and will continue discussions with our partners," said Zsolt Hernady, President and CEO of MOL Group.
The transaction is subject to, among other things, the approval of OFAC (Office of Foreign Assets Control of the United States Department of the Treasury), as well as other government and regulatory authorities in Serbia. The Framework Agreement defines the key terms of the purchase agreement, including the timeframe for conducting a due diligence of NIS's business and submitting applications for regulatory approvals, N1 reports.
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