Russians to raise NIS bid to EUR 2bn

[radovic]

Russians to raise NIS bid to EUR 2bn?
9 January 2008 | 16:14 | Source: B92, Beta, Tanjug
BELGRADE -- Talks between government representatives and Russia are intensifying over a lucrative oil and natural gas agreement.

According to the Energy Ministry, all aspects of the contract are under review.

B92 understands from unofficial sources that the Russians are prepared to improve their initial offer both for the Serbian Oil Industry (NIS), as well as in the area relating to the passage of the Southern Stream pipeline through Serbia.

Government officials are negotiating the improved terms offered by the Russian side for a majority holding in NIS and the construction of the pipeline.

According to today’s edition of daily Blic, Serbia would accept Gasprom’s offer to construct a natural gas transport route known as the Southern Stream pipeline through Serbia, if the price of the deal was raised to EUR 2 bn. According to the paper, in question would not merely be one branch of the pipeline, but indeed the main artery, from which Serbia would have the right to all transit taxes. B92 understands that the Russians are prepared to meet Serbia’s demands, though it is still not clear how much they are ready to pay.

Referring to unnamed sources in the government, Blic said that the Gasprom delegation would most probably make a new offer to the Serbian authorities on Wednesday or Thursday.

Meanwhile, the Energy Ministry would only say that talks had intensified and that a Russian delegation and Gasprom executives were expected in Belgrade for further talks.

[Novi Pazar]

Just award them with the company for christs sake.

[cando4u]

"Serbia"

The new Eastern block country.


whats history tell you guys about Russia?

[radovic]

cando4u said:

"Serbia"

The new Eastern block country.


whats history tell you guys about Russia?

Oh yes. Another comparison between russia and the USSR. When will you face the fact that the situations are entirely different, NIS while being a strategic company is not a huge sector of our company and that tgheir deal makes more economic sense then what westerners have offered.

[Beach Police]

that tgheir deal makes more economic sense then what westerners have offered.

Radovic,
Correct. Hungarian MOL and Austrian OMV are not offering what Gazprom is. West wants open bidding driven by objective, commercial and economic interests but unlike its European competitors, Gazprom has linked its offer for NIS to an extension of its South Stream pipeline into Serbia. Serbia relies on Russian gas 91%.
I say we sign on Jan 28th.

[Fender]

^^the West are crying because they can't get a foot into the Serbian economy. This is what the West wanted all along. Serbia is now denying them in everyway possible. You see, if the EU played it smart with Kosovo, then they would have had a chance at purchesing the Company. Now they get nothing and Serbia gets to control the gas going into Europe. This is what Germany Britain and France have wanted all along.

[radovic]

beachpolice said:

that tgheir deal makes more economic sense then what westerners have offered.

Radovic,
Correct. Hungarian MOL and Austrian OMV are not offering what Gazprom is. West wants open bidding driven by objective, commercial and economic interests but unlike its European competitors, Gazprom has linked its offer for NIS to an extension of its South Stream pipeline into Serbia. Serbia relies on Russian gas 91%.
I say we sign on Jan 28th.

Not only that but people Russia has offered the following:
- To also have South Stream go through RS.
- A possibly extension to go through Serbia to Montenegro and from their to southern Italy.
- At least one planned oil pipelines also to Italy and to expand the capacity of NIS refineries to process the oil on it's way to Italy.
- To allow Serbia to have higher transit fees for Russian hydrocarbons.
- To build the underground gas storage facility at Banatski Dvor (a project not mentioned in the above 2 billion, that would cost 300 million and greatly reduce the economic power of several oligarchs in Serbia)
- To start production of a natural gas deposit in Vojvodina, which our governments have failed to do since the early 90s. This deposit would significantly reduce our dependance on Russian natural gas and would cause us to benefit since russia would then export more to Italy and have us earn more through our higher transit fees.

all the OMV/MOL offer is basically NIS to be part of some planned merger of OMV/MOL/PKN Orlen (Austrian/Hungarian/Polish NIS equivalents) which is unlikely to happen.

[vinjak]

Hehehehehe

EU Concerned over NIS sale

BRUSSELS -- The European Commission said Friday it was worried over Belgrade's intention to sell NIS to Russia's Gazprom.

The Serbian oil monopoly, NIS, is slated to be privatized, with the government abandoning its original decision to sell a minority share of the public enterprise.

At the end of 2007, Economy Minister Mlaðan Dinkiæ confirmed for the media that Gazprom has offered a package deal that includes EUR 400mn for 51 percent of NIS, and the construction of a branch of the South Stream pipeline through Serbia.

The BBC Friday quoted EU officials who said sale of NIS should be "open and transparent."

"The commission hopes that the sale of an important asset such as the Serbian oil company will be open and driven by objective, commercial and economic interests," spokeswoman Krisztina Nagy was quoted.

Some analysts have said the NIS sell-off to Moscow might be politically motivated, the BBC said, and quoted the commission sources who would not speculate on the reason for the deal, although they were "keen to stress that Belgrade should be prompted by objective interests."

The negotiations between Gazprom and official Belgrade continue. The details of the deal will be made public, and will have to be confirmed by the parliament.

www.b92.net/eng/news/business-article.php?yyyy=2008&mm=01&dd=12&nav_id=46867

[Fender]

^^The worst scenario for the West is now playing out. They bombed Serbia so they would "open" up their markets, instead, they have allowed the Russians first choice on prime companies leaving the West with the scraps. All that bombing for nothing, while Serbia now gets to make money on the transit of gas and the EU must now pay, instead of controlling it.

[radovic]

fender666 said:

^^The worst scenario for the West is now playing out. They bombed Serbia so they would "open" up their markets, instead, they have allowed the Russians first choice on prime companies leaving the West with the scraps. All that bombing for nothing, while Serbia now gets to make money on the transit of gas and the EU must now pay, instead of controlling it.

A recent poll (a few months ago) conducted in Serbia shows that this is thwe case, it asked which countries would you like to invest most in Serbia. the result as shown on a RTS program:
1. Russia.
2. Japan.
3. Greece.
4. Italy.
5. Spain.
6. China.
7. India.
8. Spain.
9. Switzerland.
10. France.

Based on this list one can say that Serbia will try to not be dependant on the west for trade. I also fact how U.S., U.K., germany did not appear on the list.

[Fender]

Now I just want the Croat government to stick it up the EU for a double whammey.

[Fender]

I suppose this could be viewed from a Serbian point of view, a guarantee that Russiawill be involved if a new war broke out. NATO would be a bit hesitant to bomb the refinery this time around if half owned by the Russians. this would almost guarantee some form of retaliation from Russia. The West have lost big time in this area, it almost makes Kosovo irelevant for them now.

[Fender]

cando4u said:

"Serbia"

The new Eastern block country.


whats history tell you guys about Russia?

When you construct a sentence that makes sense, come back and we will discuss.

[radovic]

cando4u said:

"Serbia"

The new Eastern block country.


whats history tell you guys about Russia?

Ever heard of sopmething called the "washington Consensus."

America has been worst for countries then Russia. I mean look at the America's America has raped all those countries. Or better yet, look at Cuba after everything that's happenned since Castro came to power they have a better living standard then the majority of countries in the Americas.

[Beach Police]

Radovic, Begjet Pacolli owns OMV.

[Beach Police]

Gazprom": gas pipeline guarantees Serbia the status of a transit country
12. January 2008. 18:58 (Izvor Tanjug)

The construction of the gas pipeline ‘Southern Stream’ through Serbian territory would guarantee to Serbia the status of a transit country, and the privatization of the Serbian Oil Industry is a good business opportunity for ‘Gazprom’, but the decision about whether there will be a sale and in what manner, is completely up to the Serbian government, ‘Gazprom’ announced. As regards the offer of the Russian government to conclude an Agreement on Cooperation in the area of energy, ‘Gazprom’ said that the completion of the project ‘South Stream’ and the building of a plant for gas transportation can provide necessary conditions for stable gas delivery, not just for Serbia, but other European countries as well. The Russian energy giant pointed out that after the implementation of the necessary modernization of facilities, the Serbian Oil Industry has the potential to become a competitive company that can count on a certain delivery of supplies. The advantage of cooperation with Gazprom and Gazpromnjeft is the fact that it has its own resources. Gazprom confirmed that it was interested in building and later use of an underground gas warehouse in Banatski Dvor and that Gazprom and Srbijagas were negotiating on different forms of cooperation in this context, but that at this phase agreement has still not been reached.

[radovic]

beachpolice said:

Radovic, Begjet Pacolli owns OMV.

Who is he. how much does he own. All I could find on their ownership structure is 31.5% state-owned Austrian fund, 17.6% dubai state-owned fund, 50.9% free floating shares.

[albaniansoul]

radovic, that poll..

Spain is in it twice, I think you're lying. Back it up

[radovic]

albaniansoul said:

radovic, that poll..

Spain is in it twice, I think you're lying. Back it up

Mistake I made. #8 should say Cyprus.