OREANDA-NEWS. February 01, 2011. Gazprom Neft has today submitted an offer to buy out the free float shares in NIS, the Serbian oil company. The offer period will expire in 45 days. A maximum of 31,180,000 shares with voting rights (19.12 per cent of the equity) currently held by Serbian citizens, may become available for purchase. Gazprom Neft obtained approval to initiate the NIS share purchase procedure from the Republic of Serbia's Securities Commission on January 28, 2011.

The offer price is €4.8 per share. This valuation has been carried out in accordance with Serbian legislation and the terms of the agreement on the purchase and sale of 51 per cent of NIS shares, signed by the Government of Serbia and Gazprom Neft in 2009. Gazprom Neft acquired NIS shares at a similar price.

"In making an offer to purchase shares from NIS's minority shareholders, Gazprom Neft is meeting its obligations under its agreement with the Government of Serbia. Since NIS came under the management of Gazprom Neft, the Company has delivered improvements in terms of production and financial targets, making the company profitable and reviving investment in all areas across the business. Oil and gas production has risen for the first time in 20 years – over the past year it has increased by more than 30 per cent, and in 2010 processing volumes rose by 7.7 per cent. NIS plants have increased their eurodiesel output capacity by 25 per cent and are delivering approximately 50 per cent of Serbia's eurodiesel requirements. By 2020 NIS intends to achieveits strategic goals – firstly to double the amount of oil products it refines and sells, and secondly to treble the amount of oil and gas it produces. The Company will continue to work and develop in the best interest of all its shareholders," said Gazprom Neft Deputy CEO and Chairman of the NIS Board Vadim Yakovlev.