Investments in NIS in 2009 - 118m EUR

The investments in "Petroleum Industry of Serbia" (NIS) will reach projected amount of 118m EUR in 2009 - the representatives of the company's new management said yesterday (May 18, 2009).

The Deputy Director General of NIS in charge of investments, Nikolas Petri, said to the press in Belgrade that the money would be invested in refineries in Pančevo and Novi Sad, network of gas stations, warehouses and regular maintenance.

He pointed out that "Gazpromneft", the majority owner of NIS, had provided funds for investments and added that 68m EUR worth of investments in the hydrocracking unit in Pančevo-based refinery and 50m EUR worth of investments in environment protection had been in the pipeline, but the projects had not been completely ready.

For example, he said that the equipment for refurbishment of the pier in Pančevo had been bought, but the project dossier had not been finished and the permit for refurbishment had not been issued yet.

The Management of NIS said that the company had registered losses in the oil refining sector, and added that the real price of refining of one ton of oil was 52 USD, and not 29 USD, at it was determined in 2005.

The Director General of NIS, Kiril Kravčenko, estimated that the increase in price of oil refining would increase the price of fuel by 2.5%.

Kravčenko said that the representatives of "Gazpromneft" had been aware of the condition of NIS when they had been buying the company, but the situation was bit more complicated than they expected.

He repeated that the audit report on the business results of NIS in 2008 was expected to be finished by the end of May.

- Our aim is to get clean report on operations, without auditors' notes about discords in the financial report - said he, adding that that was not the case in the last three years.

Kravčenko estimated that NIS had ended last year with losses.

The Director General of NIS pointed out that the aim of the management in 2009 was to reduce expenses, start restructuring of the company and prepare the business strategy for the next five years.

The representatives of the management of NIS said that the state of Serbia owed 22 billion RSD to that company through public companies and various institutions.