MOL announces new move: Here's what will happen with Pancevo Refinery if MOL buys NIS

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The Hungarian oil company MOL announced that it will keep the Pancevo refinery working in the long term, if it becomes the majority owner of the Petroleum Industry of Serbia, NIS.

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MOL's representatives stated that the Pancevo refinery has a very important strategic role in ensuring a stable and continuous supply of energy.

"MOL's goal is to further strengthen the security of supply in Serbia and the region, while at the same time making use of synergies between refineries. If the transaction is successful, we plan to manage the plant in the long term," the Hungarian company told Forbes.

MOL added that the negotiations regarding NIS are continuing in line with the previously signed basic agreement and reminded that consent in needed from the US Treasury Department's OFAC and from the competent authorities of the Republic of Serbia, in order to complete the transaction.

Minister of Mining and Energy Dubravka Djedovic Handanovic said yesterday that there have been meetings with MOL's operational and legal teams in connection with the takeover of the Russian share in NIS and that a number of issues were closed.

Djedovic Handanovic also said that it is important to continue the talks with MOL and that she had a meeting with the executive director of MOL Group on Saturday.

"I expect that by the end of the week we will agree on about 90 percent of positions. I assume there will be a few more open issues for talks at a higher level," Djedovic Handanovic told RTS and added that MOL Group representatives held talks in St. Petersburg as well.

(Telegraf Biznis/Tanjug)