Djedovic Handanovic: ADNOC stake in NIS will not be insignificant

BELGRADE - Serbian Minister of Mining and Energy Dubravka Djedovic Handanovic said on Wednesday that, under a deal reached by Russia's Gazprom neft and Hungary's MOL, MOL was to acquire a 56 pct stake in the Serbian oil company NIS and that Serbia would then buy an additional 5 pct stake in the company from MOL, and that a joint company to be set up by MOL and UAE-based ADNOC would have slightly over 51 pct of shares in NIS.

In an appearance on K1 TV, Djedovic Handanovic said MOL would certainly be the majority owner in the new company and that Serbia was in talks primarily with MOL.

"Gazprom neft will sell to MOL as the main buyer and, behind that, there should be a joint company set up by MOL and ADNOC. They will arrange their relationship - their percentages, that is. The talks on that are still not over, so I have no accurate information to tell you, but ADNOC's stake will not be insignificant," Djedovic Handanovic said.

"In any case, we are currently in talks with MOL, but we know that, in the background, of course, we are also talking to ADNOC. They are setting up a joint firm. The idea is for the joint firm to have a 56 pct stake and for Serbia to get an additional 5 pct," she said.

"But MOL will be the majority owner in that firm, and we are in talks with MOL - as the majority owner, it will be the one making decisions," the minister noted.

Djedovic Handanovic: NIS issue to be resolved once Gazprom neft-MOL deal is signed

BELGRADE - Serbian Minister of Mining and Energy Dubravka Djedovic Handanovic said on Wednesday the issue of the Serbian oil company NIS would be resolved only after the official signing of a sales and purchase agreement between its majority owner Gazprom neft and Hungary's MOL, and that acquiring an additional 5 pct stake in NIS would put Serbia in control of some of the decision-making in the company.

NIS is under US sanctions due to its Russian majority ownership.

Speaking to K1 TV, Djedovic Handanovic said that, after being signed, the agreement would have to be approved by the US Office of Foreign Assets Control (OFAC) and that Serbia and Hungary would have to sign an interstate agreement.

"It is not over until it is over," Djedovic Handanovic noted.

She denied allegations the Russian side had not considered Serbia as a potential buyer for NIS and said the problem had not been money, but "certain interests."

"We had set aside budget funds that were above a known, anticipated market value, to put it that way. We were prepared but there were certain interests and certain things we cannot speak about publicly. What we did not want at any time is to irritate either side," the minister said.

On January 19, Gazprom neft and MOL agreed the fundamental provisions of a future sales and purchase agreement, to be reviewed by the OFAC.

Djedovic Handanovic: Talks on Russian gas to be continued, I do not expect long-term deals

BELGRADE - Serbian Minister of Mining and Energy Dubravka Djedovic Handanovic said on Wednesday Serbia would continue talks with Russia about gas supplies and that it had always had more favourable prices compared to market prices, but noted that she did not expect long-term deals in the future due to the current geopolitical and market situation.

Speaking to K1 TV, Djedovic Handanovic said discussions with the Russian side would definitely be continued.

"With the Russian Federation, we always have competitive prices compared to the market. The oil formula is primary, depending on oil price trends in the global market, while a smaller part is associated with stock market prices. Our package has always been significantly more favourable than the stock market gas price," the minister said when asked whether a new arrangement would alter the gas price.

She said that, in talks about gas arrangements, Serbia had always had the same starting price and that, in the past, the Russian side had always accepted that.

Djedovic Handanovic said Serbia had done everything in its power to show respect for the traditional friendship with Russia, and that Serbia had treated Russia in a "fair, transparent and more than patient manner", respecting the friendship and the good political and economic relations, and added that she believed the Russian side would appreciate that.

Commenting on media reports that Croatia was planning to build a gas interconnection with Serbia, the minister said Serbia was potentially considering that project as an additional supply route but that there was a degree of caution due to past experiences.

In view of those experiences, that supply source and route are somewhat insecure for Serbia as a result of Croatia's conduct in certain circumstances, she said, pointing out problems with crude oil deliveries via Croatia's JANAF pipeline.