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NIS a.d. Novi Sad (NIS)

Company name: NIS a.d. Novi Sad (NIS)

Industry: Energy sector - oil and gas

Introduction:

NIS a.d. is one of the largest vertically integrated oil and gas companies in the region with 10 000 employees approximately. It deals with exploration, production and refining of crude oil as well as the sale of petroleum products. The company has the status of open joint stock company and its headquarters is in the Republic of Serbia. In accordance with long-term perspective, NIS tends to transform itself from the national company into the leader in the region and in that respect expands its business to the countries in the region.

In 2009, on the basis of an international agreement between Russia and Serbia, legislation and Regulation of the Government of the Republic of Serbia, the Russian company Gazprom Neft became the majority owner of the company. By the decision of the Government of the Republic of Serbia on the transfer of free of charge shares to the citizens - holders and former employees in NIS a.d. Novi Sad, the package of shares of the company of 1.08 %, is transferred on 06.01.2010 to the citizens, former and current employees, while 29,92 % remained in the ownership of the Republic of Serbia and the number of shareholders was 4.831.948. After the takeover bid - which ended on 16 March 2011 Gazprom Neft possesses 56,15 % of NIS share capital and the number of shareholder is reduced to three million (3.204.325).

Services:

NIS is the only company dealing with exploration, exploitation of crude oil and gas, as well as production of geothermal energy. Exploration and production of hydrocarbons is managed by the structural branch of the company - Exploration and Production Block.

Majority of NIS oil fields are located at the territory of Vojvodina.

The refining complex of NIS, as a part of the Process Block, consists of two refineries in Novi Sad and Pančevo and it produces the entire range of petroleum products - from motor gasoline and diesel fuels to mechanical oils and raw materials for petrochemical industry. The maximum capacity of the two production lines is 7.3 million tons of crude oil per year. Within NIS, there is a facility for the production of liquefied gas oil (LPG) in Elemir.

Block Services deals with geophysical explorations, drilling, overhauling and testing of wells hydroprobing, provision of transportation overhaul and construction services.

Within the Turnover Block, the company possesses 509 active retail facilities (pump stations, filling stations for LPG, stores of bottled LPG), 7 large installations, 31 storages at the territory of Serbia and 6 storages for LPG. It is the leading supplier of petroleum products of the Serbian market, providing 85 % of the production of the total needs of the Serbian market for petroleum products. NIS exports motor fuels, benzene, toluene, bitumen for asphalting and industrial bitumen to the EU countries, Ukraine, Croatia, Montenegro, Bosnia and Herzegovina as well as kerosene to the countries in the region.

NIS possesses concession for the production capacities in Angola and oil services in Turkmenistan, as well as Jadran Naftagas in the Republika Srpska, jointly established with the company Neftegazinkor.


Contacts: Narodnog fronta 12, 21000 Novi Sad; phone: +381 21 481 1111; fax: +381 21 481 3037; e-mail: office@nis.rs; web: www.nis.rs

Company team:

According to the Statute, the structure of management bodies of NIS includes: Shareholders' Assembly, Board of Directors, collective executive management body (Executive Board)and individual executive management body (General Director).

Chairman of NIS Shareholders Assembly is Petar Škunrdić, Member of SPS Main Committee, Deputy to NIS Shareholders Assembly - Aleksandar Dykov, President of the Executive Board of JSC Gazprom Neft.

Chairman of Board of Directors is Vadim Jakovljev, Deputy Chairman of Executive Board, First Deputy of CEO -CFO of JSC Gazprom Neft .

General Director of the company is Kiril Kravčenko, Member of Executive Board, and Deputy CEO for Foreign Assets Management in JSC Gazprom Neft


A word from Kirill Kravchenko, Managing Director of Naftna industrija Srbije a.d. Novi Sad (NIS)

1. What are the core values of NIS business philosophy?

We are building NIS to become a modern company which applies the world best practice in business. Our philosophy of success is based on the principles such as: international team of experts, high professionalism, efficiency, knowledge and experience, competitiveness, innovation, investment use of contemporary technologies, achievement of the highest standards and transparency in business.

2. How do you perceive NIS strategy for further growth on this market?

Our goal is to become a leader in efficiency in the Balkans and precisely elaborate business plans that lead to that goal. This means balanced development of all areas of business and balance between financial, environmental and social activities. Therefore, our strategy until 2010 "5 fives" means five million tons in production, five million tons in processing, five million tons in trade, the management system that corresponds to the Euro 5 quality and the value of a share of 5.000 dinars. Also, we will develop not only the oil and gas company but energy company that can meet all challenges in this area.

3. What is in your view the role of the FIC and what are your expectations?

FIC has a very important role in helping Serbia to overcome problems of transition and easily enter the European market, as well as stimulate foreign investments, and the number of members of this body tells us that FIC operates professionally and well. I expect that the positive trend of foreign investments will continue and that Serbia will operate according to the EU principles before its official accession.