167 million USD for modernization of refinery in Pančevo

Due to increase in prices of oil on the world market, which was not followed by appropriate correction of prices of derivatives on the domestic market, Oil Refinery Pančevo operated in very aggravated conditions. “Business year will be ended with the positive result of 824 million CSD, although financial result will still be negative due to negative differences in exchange rates, as well as because of ‘Chinese’ debt of 94 million USD, which is again transferred to Petroleum Industry of Serbia, i.e. Refinery Pančevo”, said Kosta Ilić, director of Refinery Pančevo.

The representatives of management pointed out that about 360 million USD are needed for modernization of refinery and they announced that about 167 million USD would be invested in modernization in 2006. This year about 18 million USD were invested in the investment projects, but the technological lagging behind European standards is still the basic problem. The refinery plans to start production of unleaded gasoline of 92 octane, which would make automobile driving cheaper.

Speaking of ecology and plans of refinery in the field of environment protection, the representatives of the refinery reminded that 14 of total of 17 reservoirs had been reconstructed. Besides, reconstruction of gas stations and piers started, the unit for aroma extraction has been revived and the application of ISO 14001 standard will start until the end of the year.