Interest in Serbia Rises

Russia?s Lukoil has expressed interest in the Pancevo refinery, one of the largest in Serbia. The refinery is part of the structure of NIS, Serbia?s oil and gas company, but the official privatisation strategy allows that the refinery could be sold separately. Lukoil has entered the Serbian market through the acquisition of Beopetrol, the largest petroleum retailer in the country, during the summer.

Quite expectedly, Lukoil would like to add an oil refinery to its assets, given that it already has one in Bulgaria. Lukoil?s investment programme this year reads that the company is going to spend EUR 85mn for expanding its activities in Serbia, which includes the construction of 40 to 50 oil pumps nationwide. Nevertheless, Lukoil will not rush into new acquisitions, as it might fall under the articles of competition protection legislation.