"Refinery no sooner than 2012"

Even if the municipal assembly in Smederevo were to allow construction of a new oil refinery, this could not happen before 2012.

Izvor: Beta

Wednesday, 11.08.2010.

13:19

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Even if the municipal assembly in Smederevo were to allow construction of a new oil refinery, this could not happen before 2012. This is according to Serbian Minister for Energy and Mining Petar Skundric, who made the comments after Sunday's failed referendum in the town on the Danube River, downstream from Belgrade. "Refinery no sooner than 2012" The condition for the refinery to be built is for the Oil Industry of Serbia (NIS) to finish work on modernizing its facilities in the town of Pancevo, Skundric explained. NIS is now owned by Gazprom, and the condition is part of the inter-state energy agreement which has the force of law, and which Serbia must abide by, the minister said. Comico Oil, the Dutch-American consortium that hopes to build a refinery in Smederevo, has already been informed about this, and according to Skundric, there is no sound basis to build the facility, "since there is a surplus of such capacities in Serbia". Asked whether he was aware of the reasons behind the consortium's strong push to build a refinery in Serbia, Skundric said that investors find this part of Europe interesting, and that he "believed Comico knew where they'd place their products". According to earlier announcements, the crude oil processing refinery should employ 700 people, while 2,000 would work on the construction. The overall investment was evaluated at USD 250mn. Comico Oil offered USD 4.5mn to lease building land in Smederevo's industrial zone, and singed a memorandum worth USD 15mn with the Transnafta company on building a pipeline stretch from Pancevo to Smederevo.

"Refinery no sooner than 2012"

The condition for the refinery to be built is for the Oil Industry of Serbia (NIS) to finish work on modernizing its facilities in the town of Pančevo, Škundrić explained.

NIS is now owned by Gazprom, and the condition is part of the inter-state energy agreement which has the force of law, and which Serbia must abide by, the minister said.

Comico Oil, the Dutch-American consortium that hopes to build a refinery in Smederevo, has already been informed about this, and according to Škundrić, there is no sound basis to build the facility, "since there is a surplus of such capacities in Serbia".

Asked whether he was aware of the reasons behind the consortium's strong push to build a refinery in Serbia, Škundrić said that investors find this part of Europe interesting, and that he "believed Comico knew where they'd place their products".

According to earlier announcements, the crude oil processing refinery should employ 700 people, while 2,000 would work on the construction. The overall investment was evaluated at USD 250mn.

Comico Oil offered USD 4.5mn to lease building land in Smederevo's industrial zone, and singed a memorandum worth USD 15mn with the Transnafta company on building a pipeline stretch from Pančevo to Smederevo.

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