Acquired 51% stake.
Russian company Gazprom Neft has acquired a 51% stake in Serbian integrated oil company Petroleum Industry of Serbia (NIS) for 400 million euros (US$503.7 million). The agreement provides for the reconstruction and upgrade of NIS process facilities by 2012 with an investment of at least 500 million euros. As part of the upgrade, the quality of oil products will be improved to meet European standards (Euro-5) as well as improving environmental safety of production processes. Gazprom Neft executive board chairman Alexander Dyukov says, "We aim to enhance the efficiency of NIS and transform the company into an oil industry leader in Southeast Europe." NIS refines oil, sells oil products and produces hydrocarbons in Serbia and Angola with production of 1 million tons of oil per year.