NIS to invest USD 100 million in Novi Sad refinery

BELGRADE Oil Industry of Serbia (NIS) will invest over USD 100 million in modernization of the Novi Sad-based oil refinery, which is to start producing base oils. This is according to NIS Director General Kirill Kravchenko. NIS to invest USD 100 million in Novi Sad refinery The former Serbian state monopoly is now majority owned by Russia's Gazprom. Upon completion of modernization, the Novi Sad oil refinery will be able to produce 180,000 tons of two types of high-quality base oils, considerable amount of which will be exported, Kravchenko said on Wednesday, while presenting the strategy for the development of production of base oils in the Novi Sad refinery. The final decision on the investment is to be made early next year, construction works in the refinery are to start in the first quarter of 2012, while new production lines will be launched in first half of 2015. The base oils will be produced from Velebit crude oil, which is produced in Serbia and has unique chemical characteristics suitable for production of base oils, and hydrocracking heavy residues from the Pancevo refinery, Kravchenko said, adding that this will enable economic and production synergy of the two NIS refineries. The construction of five facilities for production of base oils in the Novi Sad refinery is the next phase of modernization of NIS production complexes, Kravchenko underlined. The draft of the basic project has been started by Chevron Lummus Global USA, and the modernization will engage cutting-edge technological and ecological solutions. Kirill Kravchenko (Tanjug) "NIS to do all to maintain affordable prices" Kirill Kravchenko stated on Wednesday that fuel prices in Serbia are lower than the average ones in the region, and announced that NIS will continue to do everything in its might to keep the price most affordable in the region. "We will respect the rules of the state and market practice, and we will do all in our might to keep the price most affordable in the region," Kravchenko told journalists in Belgrade. He said that he does not know whether it is possible to implement France's model for decrease of fuel prices, but that this should be considered. With a view to a decrease in oil derivatives prices, France decided that the state and fuel companies should cede equal parts of their gains. He said that there is enough space for negotiations on the prices of oil derivatives with all stakeholders in the domestic market, stressing that the all figures in the market have an impact on fuel prices, including the state and its excise policy, and not only NIS, which covers 35 percent of the retail market. We respect market rules and social responsibility, he said, adding that the fuel prices are competent, and that NIS will continue with such strategy. He noted that the prices of euro diesel are lower than the average ones in the region, and that it is only in Macedonia that the excise on oil derivatives is 50 percent lower than in Serbia. Kravchenko underlined that it is important not to change rules in the oil derivatives market, and free formation of prices since that is a precondition for, as he put it, good competence and good market prices. Tanjug

NIS to invest USD 100 million in Novi Sad refinery

The former Serbian state monopoly is now majority owned by Russia's Gazprom.

Upon completion of modernization, the Novi Sad oil refinery will be able to produce 180,000 tons of two types of high-quality base oils, considerable amount of which will be exported, Kravchenko said on Wednesday, while presenting the strategy for the development of production of base oils in the Novi Sad refinery.

The final decision on the investment is to be made early next year, construction works in the refinery are to start in the first quarter of 2012, while new production lines will be launched in first half of 2015.

The base oils will be produced from Velebit crude oil, which is produced in Serbia and has unique chemical characteristics suitable for production of base oils, and hydrocracking heavy residues from the Pancevo refinery, Kravchenko said, adding that this will enable economic and production synergy of the two NIS refineries.

The construction of five facilities for production of base oils in the Novi Sad refinery is the next phase of modernization of NIS production complexes, Kravchenko underlined. The draft of the basic project has been started by Chevron Lummus Global USA, and the modernization will engage cutting-edge technological and ecological solutions.

"NIS to do all to maintain affordable prices"

Kirill Kravchenko stated on Wednesday that fuel prices in Serbia are lower than the average ones in the region, and announced that NIS will continue to do everything in its might to keep the price most affordable in the region.

"We will respect the rules of the state and market practice, and we will do all in our might to keep the price most affordable in the region," Kravchenko told journalists in Belgrade.
He said that he does not know whether it is possible to implement France's model for decrease of fuel prices, but that this should be considered.

With a view to a decrease in oil derivatives prices, France decided that the state and fuel companies should cede equal parts of their gains.

He said that there is enough space for negotiations on the prices of oil derivatives with all stakeholders in the domestic market, stressing that the all figures in the market have an impact on fuel prices, including the state and its excise policy, and not only NIS, which covers 35 percent of the retail market.

We respect market rules and social responsibility, he said, adding that the fuel prices are competent, and that NIS will continue with such strategy.

He noted that the prices of euro diesel are lower than the average ones in the region, and that it is only in Macedonia that the excise on oil derivatives is 50 percent lower than in Serbia.

Kravchenko underlined that it is important not to change rules in the oil derivatives market, and free formation of prices since that is a precondition for, as he put it, good competence and good market prices.