MOL asks for this in NIS negotiations: Minister Djedovic speaks after conversation with Gazprom Neft chief

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The fate of Petroleum Industry of Serbia (NIS) remains one of the most important economic and energy issues in the country, but the latest information from St. Petersburg indicates that negotiations are not yet over and that all parties involved are trying to find a sustainable, long-term solution.

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Minister of Mining and Energy Dubravka Djedovic Handanovic said after a meeting in Saint Petersburg with Gazprom Neft CEO Aleksandr Dyukov that the negotiations between Gazprom Neft and the Hungarian MOL Group are continuing, and that the Hungarian company has requested an additional 30 days for their completion.

"We just spoke with the first man of Gazprom Neft Dyukov. We discussed the current situation regarding NIS. He confirmed that the negotiations between Gazprom Neft and MOL continue and that MOL asked for additional time to complete the negotiations. We know that the (US) deadline expires on June 6, and they asked for an additional 30 days to complete the negotiations," said the minister.

According to her, the president and CEO of MOL Group, Zsolt Hernadi, confirmed the same information the day before.

"It's clear that there is a will to find a solution and to make it sustainable in the long term," said Djedovic Handanovic.

During the meeting, they also discussed the business of NIS in the conditions of increased uncertainty because of license issues and international circumstances affecting the energy sector.

The minister pointed out that the company continues its regular activities and that the Pancevo refinery is working without interruption, while the director of Gazprom Neft confirmed that NIS will submit a request (to OFAC) for a new extension of the operating license that expires on June 16.

"We remain committed to finding solutions for NIS, especially in the complex global circumstances concerning crude oil supply and energy price movements," the minister said.

Additional pressure on the energy market comes from the global stock markets, where the price of Brent rose to almost 98 dollars per barrel. The minister assessed that this represents a challenge not only for Serbia, but also for the whole of Europe.

In order to protect the domestic market from major disruptions, the state has taken a number of measures in recent months, including reducing excise duties and releasing part of strategic reserves to the market.

"We managed to preserve supply and price stability. We have not had major price shocks or shortages such as in certain countries in the region," the minister pointed out.

She recalled that the ban on the export of oil derivatives from Serbia is in force in order to increase domestic supplies and ensure market stability in the event of additional global disturbances.

Serbia now faces two important dates - June 6, when the deadline for the current negotiations between Gazprom Neft and MOL expires, and June 16, when the NIS operating license expires. The developments in one of the most important energy stories in the region will depend on the decisions made in the coming weeks.

(Telegraf Biznis)