Putin announces new investments in NIS

BELGRADE Vladimir Putin has sent a letter to the participants of a ceremony that saw the official launch of the modernized NIS Oil Refinery in Pancevo, near Belgrade. In it, the Russian president announced new investments in NIS, that would reach EUR 1.5bn. Putin announces new investments in NIS NIS is Serbia's former state oil monopoly, now majority owned by Russia's Gazprom Neft. Putin wrote that more than EUR 500mn have so far been invested in the renewal of the company's technological capacities, while the overall volume of development investments surpassed EUR 1.5bn. "That is only the beginning - in the shortest term, another EUR 1.5bn will be invested," the president stressed in the letter that was read during the ceremony on Thursday. "I send my cordial regards to all the participants in the ceremony of the opening of the new production complex in the town of Pancevo," Putin further stated, and wished continued success in the joint endeavor that benefited the people of both countries, "with the goal of strengthening the Russo-Serb cooperation". A huge modernization program has been completed, realized with the participation of Gazprom Neft, he noted. According to him, NIS has turned into a modern energy holding in just a few years, through the joint effort of the Russian and Serbian side. "The company, that employs citizens of both countries, is increasing its profits steadily, increasing its payments toward the Serbian budget, and is ready to conquer new markets in the Balkan region. The harmonious work in the realization of this project - that is proof positive that the business circles of Russia and Serbia are capable of together turning into reality the most ambitious of plans," Putin concluded. A view of the refinery (Beta) "New phase of relations" The revamped mild hydrotreating and hydrocracking (MHC/DHT) unit, whose reconstruction cost EUR 547 million, was officially launched in the presence of Serbian President Tomislav Nikolic, PM Ivica Dacic, NIS Director General Kirill Kravchenko - and Gazprom Neft President Alexander Dyukov, among others. Nikolic addressed the gathering to say that the launch of the modernized refinery marked the start of a new phase in relations between Serbia and Russia. Nikolic told reporters afterwards that he "voted in favor of this agreement a few years ago", while his party was the opposition, because he was convinced that it would bring benefit to Serbia in the long term. The president also congratulated all those who worked on the project, and said that they should now "be ready", as Serbia would have "many similar projects in the future". During the ceremony, Dacic said NIS' success was all the greater given that the company had managed to pull off a half a billion euros investment in times of economic crisis. The successful completion of the works to revamp the Pancevo refinery is a confirmation that Gazprom Neft fully met the investment obligations arising from the agreement with the Serbian government, said Dyukov. He pointed out that NIS' efficiency would be significantly increased, which would make it a market leader in the Balkan region. Kravchenko stated that NIS was ready for the next phase of investment in Serbia over the next two to three years that should bring the company the best refinery in southeastern Europe. More photos L-R: Dyukov, Nikolic, Kravchenko (Tanjug) Euro-quality fuel from Pancevo Speaking earlier this week, NIS' Kirill Kravchenko explained that the new plant in Pancevo would make it possible for Euro-standards quality fuel to be produced in Serbia. Kravchenko told Belgrade's daily Vecernje Novosti that the program of modernization of the refining facilities was the biggest investment project in the modern history of the Serbian economy. "We have fulfilled the promise we made in 2009. The modernization of this refining complex that lasted for more than two years and cost over EUR 500 million, is completed," Kravchenko said, pointing out that development investments were a priority for NIS. The NIS director general stressed that the fuel produced at the Pancevo Oil Refinery was in keeping with all the norms laid down in Serbia, but added that, once the new plant is put in operation, NIS would completely switch to the production of fuel that will meet all the strictest standards - Euro 5. "I am confident that we will get the European certificate by year's end," he stated. According to Kravchenko, Serbia will fromnow on be able to independently provide the national market with high-quality fuel, but also to export its products to regional countries, primarily Bosnia-Herzegovina, Bulgaria and Romania. Pointing out that the modernization of the Pancevo refinery would continue, Kravchenko added that a feasibility study for the second phase of modernization was coming to an end, within which a plant for processing of heavy residues should be built, and that the construction of a plant for base oil production, worth around EUR 100 million, will start at the Novi Sad Oil Refinery in 2013. B92 Tanjug Vecernje novosti

Putin announces new investments in NIS

NIS is Serbia's former state oil monopoly, now majority owned by Russia's Gazprom Neft.

Putin wrote that more than EUR 500mn have so far been invested in the renewal of the company's technological capacities, while the overall volume of development investments surpassed EUR 1.5bn.

"That is only the beginning - in the shortest term, another EUR 1.5bn will be invested," the president stressed in the letter that was read during the ceremony on Thursday.

"I send my cordial regards to all the participants in the ceremony of the opening of the new production complex in the town of Pančevo," Putin further stated, and wished continued success in the joint endeavor that benefited the people of both countries, "with the goal of strengthening the Russo-Serb cooperation".

A huge modernization program has been completed, realized with the participation of Gazprom Neft, he noted.

According to him, NIS has turned into a modern energy holding in just a few years, through the joint effort of the Russian and Serbian side.

"The company, that employs citizens of both countries, is increasing its profits steadily, increasing its payments toward the Serbian budget, and is ready to conquer new markets in the Balkan region. The harmonious work in the realization of this project - that is proof positive that the business circles of Russia and Serbia are capable of together turning into reality the most ambitious of plans," Putin concluded.

"New phase of relations"

The revamped mild hydrotreating and hydrocracking (MHC/DHT) unit, whose reconstruction cost EUR 547 million, was officially launched in the presence of Serbian President Tomislav Nikolić, PM Ivica Dačić, NIS Director General Kirill Kravchenko - and Gazprom Neft President Alexander Dyukov, among others.

Nikolić addressed the gathering to say that the launch of the modernized refinery marked the start of a new phase in relations between Serbia and Russia.

Nikolić told reporters afterwards that he "voted in favor of this agreement a few years ago", while his party was the opposition, because he was convinced that it would bring benefit to Serbia in the long term.

The president also congratulated all those who worked on the project, and said that they should now "be ready", as Serbia would have "many similar projects in the future".

During the ceremony, Dačić said NIS' success was all the greater given that the company had managed to pull off a half a billion euros investment in times of economic crisis.

The successful completion of the works to revamp the Pančevo refinery is a confirmation that Gazprom Neft fully met the investment obligations arising from the agreement with the Serbian government, said Dyukov.

He pointed out that NIS' efficiency would be significantly increased, which would make it a market leader in the Balkan region.

Kravchenko stated that NIS was ready for the next phase of investment in Serbia over the next two to three years that should bring the company the best refinery in southeastern Europe.

More photos

Euro-quality fuel from Pančevo

Speaking earlier this week, NIS' Kirill Kravchenko explained that the new plant in Pančevo would make it possible for Euro-standards quality fuel to be produced in Serbia.

Kravchenko told Belgrade's daily Večernje Novosti that the program of modernization of the refining facilities was the biggest investment project in the modern history of the Serbian economy.

"We have fulfilled the promise we made in 2009. The modernization of this refining complex that lasted for more than two years and cost over EUR 500 million, is completed," Kravchenko said, pointing out that development investments were a priority for NIS.

The NIS director general stressed that the fuel produced at the Pančevo Oil Refinery was in keeping with all the norms laid down in Serbia, but added that, once the new plant is put in operation, NIS would completely switch to the production of fuel that will meet all the strictest standards - Euro 5.

"I am confident that we will get the European certificate by year's end," he stated.

According to Kravchenko, Serbia will fromnow on be able to independently provide the national market with high-quality fuel, but also to export its products to regional countries, primarily Bosnia-Herzegovina, Bulgaria and Romania.

Pointing out that the modernization of the Pančevo refinery would continue, Kravchenko added that a feasibility study for the second phase of modernization was coming to an end, within which a plant for processing of heavy residues should be built, and that the construction of a plant for base oil production, worth around EUR 100 million, will start at the Novi Sad Oil Refinery in 2013.