Photo: MOL Group
The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury approved an extension until May 22 of the negotiations on MOL Group’s proposal to buy from Gazprom the majority stake that it holds in Serbian NIS.
More than two months after agreeing a term sheet, Hungary-based MOL Group is continuing its talks with Gazprom. Both the Russian state-owned energy giant and its NIS subsidiary in Serbia are under US sanctions. The ones against NIS have been suspended amid the acquisition negotiations.
MOL Group is eager to take over the country’s only oil refinery and the largest service station chain. NIS also operates small oil and gas fields, mostly in Serbia’s northeast.
Per earlier announcements, the plan is for MOL to purchase NIS and manage it via a joint venture with Abu Dhabi National Oil Co. (ADNOC). At the same time, Serbia proposed to buy 5% of its former government-controlled company. It would lift its stake to almost 35%.
The US initially allowed talks until March 24. Right on the deadline expiry day, MOL said the Department of the Treasury’s Office of Foreign Assets Control (OFAC) approved an extension until May 22 “to finalize the sales and purchase agreement” alongside other documents.
A transaction would be subject to approvals from the Government of Serbia and OFAC.
Gazprom holds 56.2% of the Serbian company through two firms. Gazprom Neft has 44.9%, and Intelligence controls 11.3%. Of note, ADNOC owns 24.9% of Austrian OMV.
NIS said a week ago that the US Treasury issued it a new specific license to operate until April 17.
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