June 9 (SeeNews) - Serbian president Aleksandar Vucic said on Friday a Kazakh company has expressed interest in the privatisation of petrochemicals producer HIP Petrohemija.
"The biggest Kazakh oil and gas company has sent a letter of interest in the privatisation of Petrohemija and this is of enormous importance for us," Vucic said in a video file posted on the website of Serbian public broadcaster Radio Televizija Srbije (RTS).
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Two large oil and gas companies are based in Kazakhstan, namely the state-owned KazMunayGas and TengizChevroil, a joint venture of ChevronTexaco, ExxonMobil, the Government of Kazakhstan, and Russia's Lukarco.
The only viable solution for HIP Petrohemija is to find a buyer that has access to cheaper natural gas and oil than Serbia, Vucic said following a meeting with Kazakhstan's prime minister in Astana.
"Those who can purchase naphtha and gas at lower prices can manage the chemical complex much easier in the future," Vucic said.
HIP Petrohemija currently has cash reserves worth 60 million euro ($67 million) and has no problems given the current oil prices. However, in the future, when the oil price rises, the state will again need to subsidise it, he noted.
In March, Serbia invited expressions of interest in the privatisation of chemicals group MSK Kikinda, HIP Petrohemija and chemical fertiliser producer HIP Azotara Pancevo.