A refinery upgrade is slated for the Serbian Novi Sad plant to boost base oil production.
The refinery overhaul, with an estimated price tag upwards of $100m, is being planned by Naftna Industrija Srbije AD (NIS the Serbian-based oil and gas operation controlled by Russia’s Gazprom Neft. The refinery will produce base oils and lubricants using feedstock from NIIS' oil fields in the Vojvodina province of North Serbia.
Funding will come directly from NIS' own cash reserves and the plant is expected to reach an annual 180,000 capacity, of which 105,000 tons will be paraffinic oils and the remainder napthenic oils. The target market is mostly south eastern Europe. Work is likely to start next year, subject to a feasibility study and shareholder approval, and will use Chevron-based technology.
NIS produces a wide range of lubricating oils under the NISOTEC brand, as well as distributing Gazprom-branded oil and lubricant product under the G-Energy name. Gazprom holds a 51% controlling stage in NIS, which in bought in 2009 and is committed to investing some €500m ($645m) in the Serbian operation.