Serbiagas doesn’t owe to a Serbian affiliate of Gazprom Neft

The Government of Serbia has taken on the debts of Serbiagas before Naftna Industrija Srbije (NIS) controlled by Gazprom Neft.

Previously the PM of Serbia, A. Vuchich, that the total debt of the Government before NIS is 23 bln dinars (188 mln euro). In late December 2015 the affiliate of Gazprom Neft received the first tranche from the Government at the volume of 4.7 bln dinars (38.5 mln euro). Serbia is to make further payments until 2018.

So there is no more debt of Serbiagas before NIS.

In its report for 2015 Gazprom Neft said that it had recovered the reserve of 4.4 bln roubles due to the successful negotiations with the Government of Serbia upon the settlement of the debt of Serbian state corporations. Moreover NIS plans to hold the IPO and it will allow the company to finance its investment programs on its own.

NIS is one of the largest in the South-Eastern Europe vertically integrated oil companies. The major shareholders are Gazprom Neft (56.15%) and the Government of Serbia. The extraction volume makes up about 1 mln tons of oil a year. The company holds 2 oil refineries in Panchevo and Novi-Sa with the total capacity of processing of 7.3 mln tons of oil a year, a network of 350 fuel stations under NIS Petrol brand and oil bases.