Gazprom Neft Finalizes Serbian Oil Deal

February 4, 2009

(RBC News) - Gazprom Neft has finalized a deal for the acquisition of a 51-percent stake in Serbia's national oil company Naftna Industrija Srbije (NIS), the press office of the Russian gas monopoly's oil arm has announced. The EUR 400m deal was completed in accordance with a sale and purchase contract between Gazprom Neft and the Serbian government.

The agreement on NIS's sale includes the reconstruction and modernization of the Serbian company's production facilities through 2012, worth at least EUR 500m. The modernization program also stipulates that the quality of NIS's oil products will be upgraded to Euro 5 standards. Furthermore, significant investment will be made to increase the environmental safety of NIS's production processes. Gazprom Neft intends to make the Serbian company "a leader in southeastern Europe's oil sector," Gazprom Neft chief Alexander Dyukov stated.

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