MOL signs heads of agreement to acquire majority ownership of NIS

BUDAPEST - Hungary's MOL Group announced on Monday it had signed a binding heads of agreement with Russia's Gazprom neft to acquire its 56.15 pct stake in the Serbian oil firm NIS.

"Once the transaction is completed, MOL will assume significant shareholder responsibilities and control rights in the company operating Serbia’s only refinery, this way further strengthening its presence in the Central and Southeastern European energy market. Besides the oil refinery in Pancevo NIS also has a retail network and holds an exploration and production portfolio.

The transaction, to be completed after the fulfilment of conditions set out in the Heads of Agreement including obtaining the necessary regulatory approvals, can ensure the long-term, stable operation of the Pancevo refinery and the related business units, as well as the uninterrupted supply of the region’s energy markets," it said in a statement.

“As a reliable regional energy provider, we would like to contribute to the development of Central and Southeastern Europe. We have maintained excellent professional cooperation with our Serbian partners for many years. MOL is committed to working together with the Serbian government to further strengthen the security of supply in Serbia and in the region. The energy sovereignty of landlocked countries requires the cooperation of strong local refineries that operate predictably and successfully and the involvement of strong partners. Therefore, the MOL Group is in negotiations with ADNOC, the national oil company of the United Arab Emirates, to join the owners of NIS as a minority shareholder, while retaining MOL's majority ownership and control. We are ready for the task and will continue discussions with our partners," said MOL Group Chairman and CEO Zsolt Hernadi.

"The completion of the transaction requires, among others, the approval of the OFAC (US Office of Foreign Assets Control) and other governmental and state approvals in Serbia. The Heads of Agreement set out the key terms of the sale and purchase agreement, including the timeline for the due diligence of NIS and the application for regulatory approvals. The parties aim to sign the sales and purchase agreement by March 31 2026," MOL also said.