Gazprom in Serbia: Mining rent fee increase for NIS is possible says Minister Mihajlovic

, Mining

Minister of Energy, Zorana Mihajlovic stated that there is a possibility for mining rent fee increase for NIS to be 7% . Mihajlovic stressed that it is the lowest mining rent in Europe.

Oil exploitation is much faster in Serbia than in other regional countries, Mihajlovic said and added that there is a possibility for mining rent fee to be higher.

“I’m not saying that because I want NIS to do bad business. We want NIS to do good business and to have enough oil amounts and oil derivates, and us to be safe as a state, because Serbia has 27% of shares in NIS. On the other side, I believe that there must be a mutual joint interest and that both sides should be satisfied”, Mihajlovic stressed.

“Mixed Serbian-Russian Committee headed by Milan Bacevic made a decision that says the analysis of GazpromNeft’s investment profitability must be done. I expect making a final decision about higher rent fee after the analysis”, Minister said but she didn’t precised when the decision will be made.

She stressed that mining rent fee is not fixed in some countries like Hungary. It is progressive and it means that refund grows with faster oil research and exploitation.

Contract on investment in NIS and major ownership to GazpromNeft, made between Russia and Serbia 2009 says that mining rent fee that amounted 3% for NIS at the time shouldn’t be changed until accomplishing investment projects’ profitability of the company.
Mining rent fee for oil and gas exploitation increased from 3 to 7% in Serbia in the mean time, but that did not apply on NIS because of the international agreement order according to which NIS was sold and it has advantage comparing to Serbian laws.

Mihajlovic emphasized that relations between Serbia and Russia are good, especially in energy area and that there are many new common projects in front of us, and we should solve every problem together.

“That means that our relations can be even better. When the relations are so good and friendly in economy, finance and energy, we should sit and solve all of the problems together”, she said and repeated that interests from both sides should be satisfied.
She reminded that Serbia still has 27% of ownership in NIS and announced that Serbia will act differently toward ownership in future.
We’ll take care for decisions NIS makes and we’ll offer some projects for joint work, to help NIS to function better, Mihajlovic stressed and named Petar Skundric for Chairman of Shareholders’ Parliament instead of former Minister of Energy.

“I can promise, as a Serbian Government Representative in NIS, that all articles from the list in NIS Shareholders’ Parliament will all respect refer to 27% of shareholders Serbia owns in this company which includes research, exploitation, processing and trade of oil derivates in Serbia and plans expansion on other countries in the region. We are want NIS to do good business, to be profitable, to develop and to be the company with regional significance, so we’ll act in accordance with our wishes”, Mihajlovic said and pointed out that we should have an oil company that would function and make a profit.

Source Serbia Energy Magazine