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Naftna Industrija Srbije AD (NIIS), the Serbian oil and gas company controlled by OAO Gazprom Neft (GAZP), said it may invest more than 1 billion euros ($1.3 billion) in upgrades at in its main refinery in Pancevo.
The company has ploughed 547 million euros into the facility east of Belgrade and may expand the amount by as much as 500 million euros to improve “refining depth” and efficiency, NIS Chief Executive Officer Kirill Kravchenko said today. He didn’t provide a time frame for the new investment.
The upgrade will enable NIS to produce Euro-5-quality fuels with lower sulfur content. Output capacity is at 638,000 tons of gasoline and more than 1.5 million tons of diesel annually, according to a statement NIS released at today’s reopening of the Pancevo refinery following the first upgrade.
Gazprom Neft, the oil arm of Russia’s state-controlled gas producer, bought a majority stake in NIS for 400 million euros in 2009, with a commitment to invest at least 500 million euros. Its plans include a $100 million upgrade of another NIS refinery in Novi Sad which produces lubricants and base oils.
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