The Hungarian oil and gas company MOL has secured a crucial extension from the US Treasury Department, allowing it to continue negotiations for a controlling stake in the Serbian oil firm NIS. This extension alleviates immediate pressures associated with a previously set ownership deadline.
The revised deadline is now established for 22 May, following an earlier deadline of 24 March, which was tied to the necessary restructuring of NIS’s ownership structure. The scrutiny surrounding NIS stems from its majority stake being held by Russian entities, placing it under the purview of US sanctions aimed at Russia’s energy sector.
Under the sanctions framework overseen by the US Office of Foreign Assets Control (OFAC), NIS must address the future of shares owned by Gazprom and GazpromNeft, which collectively hold a majority stake in the Serbian energy company. Earlier this year, MOL entered into a binding agreement with these Russian shareholders to acquire their combined stake, with ADNOC from the UAE expected to participate as a minority partner. The recent decision by the US provides additional time for all parties involved to finalize the sale agreement and complete requisite transaction documents.
This extension also permits participation from US financial institutions in the transaction, which is a significant step toward completing a deal of this magnitude.
If successfully concluded, this acquisition would see 56.15% of NIS transferred from Gazprom to MOL, thereby granting MOL substantial ownership and management influence over NIS. The Serbian firm holds a strategically vital position in the regional energy landscape, notably owning Serbia’s only oil refinery.
However, completion of this transaction still hinges on approvals from both the US Treasury and the Serbian Government.
