Hungary's MOL confirms that talks about the acquisition of NIS are 'ongoing.'

Hungarian oil company?MOL announced on Monday that talks are underway about the purchase of a Russian stake in Serbian oil group NIS, as per a framework contract signed earlier.

MOL and Gazprom signed a deal on January 19, to purchase a combined 56% stake of?NIS which is subject to U.S. sanctions. The Office of Foreign Assets Control in the United States gave companies until May 22, 2012 to complete the sale.

MOL responded to a question by email that "OFAC extended MOL's negotiation licence until May 22, so the talks are continuing in accordance with the framework agreement signed earlier."

It said that in order to complete the transaction, additional licenses, the approval of OFAC, and the Serbian Government Authorities will also be required.

MOL stated that it was in compliance with all the regulations and conditions. The goal of the purchase was to "strengthen the long-term supply security for Serbia and region."

OFAC imposed sanctions against NIS as part of broader measures targeting Russia's energy sector due to the conflict in Ukraine. They also demanded that the Russian majority owners, Gazprom Neft, and Gazprom divest from the company.

NIS was granted a waiver of 60 days from the United States, which will last until June 16, earlier this month. (Reporting and editing by Alexander Smith; Krisztina than)

(source: Reuters)