MOL Group is on the verge of a historic expansion. The Hungarian company has signed a binding Heads of Agreement with Russia’s Gazprom Neft to acquire its 56.15% stake in Serbia’s Naftna Industrija Srbije (NIS). Upon completion of the transaction, MOL will assume significant shareholder responsibilities and control rights in the company operating Serbia’s only refinery, the Budapest-based oil and gas company announced on the stock exchange’s website on Monday afternoon.
Once the conditions set out in the framework agreement have been met, including obtaining the necessary regulatory approvals, the transaction will ensure the long-term, stable operation of the Pančevo refinery and related business units, as well as the uninterrupted supply of energy markets in the region. In accordance with the preliminary document, the transaction extends beyond the Pančevo oil refinery to include NIS’s retail network and hydrocarbon exploration and production portfolio.
They announced that the transaction requires approval from OFAC (Office of Foreign Assets Control of the U.S. Department of the Treasury) and other Serbian government and state authorities.
The parties are aiming to sign the sale and purchase agreement by March 31, 2026,
they added.
According to the announcement, Zsolt Hernádi, Chairman and CEO of MOL Group, said that as a reliable regional energy supplier, they would like to contribute to the development of Central and southeastern Europe. The company has enjoyed excellent professional cooperation with their Serbian partners for many years, he noted.
“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,” the announcement quotes the MOL Group CEO as saying.
Fact
The Pančevo oil refinery has a history dating back over half a century: the plant began operations in 1968, and has since played a key role in Serbia’s energy supply. In addition to the refinery’s technological sophistication and product structure, NIS’s wholesale, logistics and retail network fits well into the MOL Group’s regional portfolio.The company operates nearly 400 filling stations in Serbia, Romania, and Bosnia-Herzegovina, thus the transaction could further strengthen Mol’s consumer-focused strategy.
NIS also has a significant asset portfolio in the field of hydrocarbon exploration and production: the company has approximately 173 million barrels of oil equivalent in 2P reserves, and Serbian oil and gas production exceeds 20,000 barrels of oil equivalent per day, and it also holds exploration licenses in Romania and Bosnia and Herzegovina.
MOL shares reacted positively to the news and consolidated their position with a trading volume of 3.7 billion forints (9.6 million euros). If the deal goes through as planned, the MOL Group will gain a huge regional strategic advantage in the oil market, becoming the undisputed energy giant of Central and southeastern Europe.
Via MTI, bet.hu; Featured image: MTI/Hegedüs Róbert
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