Conditions for third refinery - "Transnafta" and "Comico oil" to sign letter of intent in Smederevo

Public company "Transnafta" will sign the letter of intent today (September 25, 2009) with company "Comico oil", which wants to build a new oil refinery in Smederevo - Bratislav Čeperković, the President of the Administrative Board of "Transnafta", told "Politika" yesterday.

– It is the letter of intent that will be signed with this investor, and it will enable extension of the oil pipeline from Pančevo to Smederevo in order for this company to ensure easier and safer supply of oil – Čeperković explained.

When asked if Serbia needed another refinery since even the capacities of NIS were not completely exploited, Čeperković said that the new refinery in Smederevo can be built before the modernization of existing capacities in Pančevo was over, and Serbia could get the most modern refinery in the region in two years, with the refining potential of about 4m tons per year.

Investment in construction of new refinery in Smedervo will be smaller than the investment of "Gazpromneft"and the state in the refurbishment of already existing capacities in Pančevo.

According to Čeperković, the Ministry of Energy has already issued energy permit to new investor "Comico oil", while the consent for construction of the refinery must be given by the Republic Directorate for Construction, that is, the Ministry of Spatial Planning.

– It is in the interest of "Transnafta" to participate in this business to the extent stipulated by the Law. Although "Transnafta", as a state-owned company, has the right to monopoly in oil transport, that does not mean that it wants to be selective and enable one company to transport oil, and disable the other, but to ensure equal treatment of all participants in the market – said Čeperković.

(Note: complete text is taken over from newspaper "Politika" of September 25th, 2009)