Russian gas company Gazprom’s integrated oil subsidiary Gazprom Neft has acquired 51% of shares in the Serbian national oil company Naftna Industrija Srbije at a price of E400 million.
Gazprom Neft said that the agreement also provides for the reconstruction and upgrade of Naftna Industrija Srbije (NIS) process facilities by 2012.
According to the company, investment will amount to at least E500 million. As part of the upgrade, measures will be taken to improve the quality of oil products so that they meet Euro-5 standards.
Alexander Dyukov, executive board chairman of Gazprom Neft, said: “Gazprom Neft will follow all agreements documented in the purchase agreement. We aim to enhance the efficiency of NIS and transform the company into a good service provider in southeast Europe.”
Earlier in the last week of December 2008, JSC Gazprom Neft Board Chairman Alexander Dyukov and Serbia’s Energy Minister Petar Skundric signed an agreement for a 51% acquisition of NIS.
The terms and conditions of the agreement are in line with the Governmental Agreement on Cooperation in the Oil and Gas Industry and the Memorandum of Agreement on the Principal Conditions of Gazprom Neft’s 51% Acquisition of NIS, which were signed January 25, 2008.
Petroleum Industry of Serbia (NIS) is a vertically integrated oil company in Central Europe. The company refines oil, sells oil products, and produces hydrocarbons in Serbia and Angola. The company owns refineries in Pancevo and Novi Sad with a total capacity of 7.3 million tonnes/year.
