Hungary official says MOL could buy stake in Serbia's NIS, talks ongoing

BUDAPEST, Nov 27 (Reuters) - Hungary's MOL MOLB.BU could buy a stake in Serbia's Russian-owned NIS refinery and talks are ongoing about the possibility, Prime Minister Viktor Orban's chief of staff said on Thursday.

Serbia needs to find a buyer for NIS, which is under U.S. sanctions because of its Russian ownership. These have halted supplies of crude oil from Croatia's JANAF JANF.ZA pipeline.

Belgrade has warned that Serbia's only oil refinery will have to shut this week, unless the sanctions are postponed.

Hungary's Orban, who met President Aleksandar Vucic during a visit to Serbia on Thursday, said he would conduct talks on Friday to ensure that Hungary gets enough Russian crude and gas supplies, which would also allow it to provide crude for neighbouring Serbia.

Orban did not say where the talks would take place or with whom, following media reports he would be meeting Russian President Vladimir Putin in Moscow on Friday.

The Hungarian leader is an ally of both Putin and U.S. President Donald Trump and has ensured that Hungary continues to receive Russian crude and gas despite efforts by its fellow European Union members to reduce reliance on Russian energy.

Orban also said Hungary would be "pleased" to take a role in Serbia's NIS but it was up to Serbia to decide about the future of its refinery hit by U.S. sanctions.

His chief of staff Gergely Gulyas told a briefing earlier in the day that "there could be an opportunity for a normal market transaction, but these talks are currently underway. Let me say again, it is in the interest of ... NIS that Russian ownership should end".

"One option here is for MOL to take on a greater role," said Gulyas, adding that Hungary is "willing to consider" helping with the transaction if it was needed.

Vucic said on Tuesday that Belgrade would give the Russian owners of NIS - Gazprom Neft SIBN.MM and Gazprom GAZP.MM - 50 days to sell their stake in NIS or the government would take over operations and make an offer to buy them out.

Gazprom Neft holds 44.9% of NIS and Gazprom 11.3%. Serbia owns 29.9%, with the rest held by small shareholders.

Hungary's Foreign Minister Peter Szijjarto said on Wednesday that MOL would deliver two and a half times more crude oil and fuel than usual in December to Serbia.