The National Petroleum Company of Greece and the Austrian OMV are collaborating
in order to take part in the major privatization of the Serbian Naftna
Industrija Srbije. In October it is assumed that the first part of the
offers are going to be considered by the Serbian’s government consultant-Merill
Lynch- and by the end of the year management would be handed out to the
company offering presumably the best value for the Serbian company.
The
Serbian minister associated with the privatization process-Pedrak Bubalo-
recently in a visit to Athens mentioned the Greek interest in front of
an audience attending the Greek- Serbian Business Council. The Greek Petroleum
Company-ELPE- is already based in Serbia and has established 15 gas stations,
throughout the country. It views a future expansion in Serbia as a crucial
element of its overall strategy that up to now includes investments in
Montenegro, FYR Macedonia, and Egypt.
There are also other significant antagonists, such as Lukoil, the Russian
colossus that exerts significant business presence in Serbia through its
investment in the commercial network of Beopetrol. Moreover the Russian
company has cultivated strong ties with leading Serbian industrials such
as the Lazarevic and the Yanikovic families, as well as with political
and administrative officials. Up to now Lukoil can be considered as the
main favorite for the privatization.
Other corporations rushing to become involved in NIS are the likes of
TOTAL-ELF, Shell, ENDESA, and Iberdrola. These are world players as far
as energy affairs are concerned and their recent interest for the Serbian
market relates to the high expectations for the Serbian economy over the
next years. Furthermore the geopolitical placement of the country in the
centre of the Balkans and the main point of contact between Central Europe
and the Mediterranean Sea, furthers accelerates the business temper of
investing in the Serbian energy sector.
The NIS Company is actually a fully diversified petroleum conglomerate
composed of 10 companies and a chain of 500 gas stations across the state.
Its two oil refineries in Novisad and Panchevo are capable-with a proper
modernization- to fulfill at least half of the needs for the whole Balkan
region. The latter oil refinery has also a strategic value since it will
be centered along the future pipeline from Kostanja-Romania to Trieste
Italy. For all the above reasons a fierce battle is expected to begin amongst
the energy corporations that find the Serbian market extremely important
for their future plans in the Balkans. It is logical to assume that decision
by the Serbian administration will to some extent pin-point the affiliation
preferred by the country in relation to its foreign policy as well.
The Greek company now, is eager to obtain a controlling stake in NIS
so as to combine its efforts in constructing a large peripheral energy
network. It has established operations in Egypt and currently is about
to obtain rights for oil exploration in Libya. In addition it controls
an oil refinery in FYR Macedonia and energy related installations in Montenegro.
Along with its predominance in the internal Greek market the strategy unfolded
is the one of connecting the Northern African rich oil fields with the
existing Balkan refinery capabilities, and up to the energy demanding markets
of Central Europe. Lastly the proposed Burgas-Alexandroupoli pipeline will
create another energy strategic area in the Balkans, with a Greek interest,
and therefore further boosting any future plans.
On overall the NIS privatizations presents a golden opportunity for
the Greek petroleum company as well as the most important privatization
ever being held in Serbia, and one with wider regional ramifications.
Sources:
1) Greek petroleum company- www.hellenic-petroleum.gr
2) NIS – www.nis.yu
3) OMV – www.omv.com
4) Beopetrol – www.beopetrol.co.yu
5) Lucoil - www.lukoil.com
6) Burgas- Alexandroupoli proposed pipeline – www.en.wikipedia.org/wiki/Burgas-Alexandroupoli_pipeline
