Gazprom Neft and the Serbian Government have signed an agreement for a 51% acquisition of NIS

JSC Gazprom Neft Board Chairman Alexander Dyukov and Serbia’s Energy Minister Petar Skundric signed an agreement for a 51% acquisition of NIS in Moscow today. The agreement was signed in the presence of Russian President Dmitry Medvedev and Serbian President Boris Tadic.

The terms and conditions of the agreement are in line with the Governmental Agreement on Cooperation in the Oil and Gas Industry and the Memorandum of Agreement on the Principal Conditions of Gazprom Neft’s 51% Acquisition of NIS, which were signed January 25, 2008.

JSC Gazprom Neft Board Chairman Alexander Dyukov said: “Gazprom Neft’s 51% acquisition of NIS is one of the components of a broader energy agreement between Serbia and Russia. A stake in NIS will enable Gazprom Neft to naturally expand its business in Southeast Europe. Today Gazprom Neft has sufficient resources to upgrade Serbia’s entire refining industry and ensure its long-term efficiency”.

Notes for editors

Petroleum Industry of Serbia (NIS) is one of the largest vertically integrated oil companies in Central Europe. The company refines oil, sells oil products, and produces hydrocarbons in Serbia and Angola. Production reaches 1 million tonnes of oil/year.

The company owns refineries in Pancevo and Novi Sad with a total capacity of 7.3 million tonnes/year.

NIS has its own distribution chain of approx. 500 gas stations and oil tank farms. A leading supplier of oil products in the Serbian market, the company produces about 85% of domestically consumed oil products.