The Serbian energy ministry announced that the Abu Dhabi National Oil Company (ADNOC) is anticipated to acquire a substantial minority share in the Serbian oil firm Naftna industrija Srbije (NIS) as part of a transaction involving the purchase of Russian Gazprom Neft's stake.
In January, Russia's Gazprom and its oil subsidiary Gazprom Neft agreed to sell their total 56.15 percent share in NIS to MOL, a decision that may permit the lifting of US sanctions on the firm pending Washington's approval. ADNOC is anticipated to acquire a minority stake in a joint venture with MOL, which would emerge as the majority stakeholder of NIS.
Energy Minister Dubravka Dedovic Handanovic met with ADNOC executives in Abu Dhabi on February 5 to talk about future collaboration in Serbia’s oil industry, as the UAE state-owned firm is engaged in advanced negotiations with Hungary’s MOL to acquire a portion of Gazprom Neft’s share in NIS.
“ADNOC's status as a state-owned enterprise with significant oil industry experience and knowledge of national interests is crucial for us,” Dedovic Handanovic stated, as per a release from the ministry.
NIS, the owner of Serbia’s sole oil refinery in Pancevo, was penalized by the US Treasury’s Office of Foreign Assets Control (OFAC) in October as part of actions aimed at Russia’s energy industry due to Moscow’s conflict in Ukraine. The sanctions interrupted oil deliveries and led to a short-term closure of the refinery, increasing worries about fuel shortages.
The United States has since issued a sanctions waiver permitting NIS to keep functioning until February 20, following Russia's commitment to sell off its majority share.
Dedovic Handanovic stated that ADNOC had affirmed its objective of maintaining the Pancevo refinery's operations and increasing capacity according to market demand. She mentioned that a thorough analysis concerning the transaction would be finished by the end of February, intending to finalize the purchase agreement by March 24, the deadline established by OFAC.