OREANDA-NEWS. On 09 February 2009 was announced, that JSC Gazprom Neft completed the acquisition of 51% of shares in Serbia’s NIS at a price of 400 million euros. The acquisition was made in accordance with the purchase agreement between Gazprom Neft and the Serbian government, which Gazprom Neft Executive Board Chairman Alexander Dyukov and Serbian Energy Minister Petar Skundric signed in Moscow on December 24, 2008.

The agreement also provides for the reconstruction and upgrade of NIS process facilities by 2012; investment will amount to at least 500 million euros. As part of the upgrade, measures will be taken to improve the quality of oil products so that they meet European standards (Euro-5). Besides, substantial investment will be aimed toward improving the environmental safety of production processes.

JSC Gazprom Neft Executive Board Chairman Alexander Dyukov said: "Gazprom Neft will strictly follow all agreements documented in the purchase agreement. We aim to enhance the efficiency of NIS and transform the company into an oil industry leader in Southeast Europe".

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 oil tank farms and 470 gas stations. A leading supplier of oil products in the Serbian market, the company produces about 85% of all domestically consumed oil products.