MOL, Hungary's largest oil company, gets an extension from the U.S. for its talks to purchase Serbia's NIS

Serbia's energy ministry said that MOL, Hungary's largest oil and gas company, had received a two-week delay from the U.S. government to finish talks on buying a majority stake of Serbia's NIS, an oil company controlled by Russia.

Dubravka Djedovic Handanovic, in an Instagram post, said that the?extension' gives MOL until 6 June to finalise its negotiations with Russia’s Gazprom NEFt regarding its planned purchase of 56.16% in NIS. The previous deadline expired last Friday.

The deal is under scrutiny as NIS was subject to U.S. sanction imposed on October due to its Russian ownership. This was part of broader U.S. measures aimed at?Moscow’s energy sector after its invasion of Ukraine. Washington has called for the divestment.

MOL's Chief Executive Zsolt Hernadi stated that the company remains optimistic but "certain terms and Conditions remain to be finalised in the coming weeks."

He said that he still believed the transaction would be beneficial to all parties involved and contribute to the long-term security of supply in the region, and Serbia in particular.

MOL announced on January 19, that it had signed an agreement binding with Gazprom and Gazprom for the purchase of their combined stake. However, it did not reveal the price.

Serbia owns 29.9% of NIS. The rest is owned by minority shareholders.

Before the deal can be completed, MOL and Belgrade must also agree to the future operations of the company. NIS is Serbia's sole oil refinery and therefore a key player in the country's energy supply.

Djedovic handanovic said, "The Serbian government... continues talks with MOL... Our aim is to protect Serbia's interest and find a solution that will last a long time."

Last week, she said that the refinery’s future operations as well as its role in supplying the local market were still major sticking points.

NIS also obtained a number of waivers, allowing them to continue to import and process crude oil in spite of sanctions. The current waiver expires June 16.

MOL, the dominant energy company in Central and Eastern Europe, seeks to expand its regional presence through this deal.

(source: Reuters)