Naftna Industrija Srbije AD, Serbia’s largest oil company majority owned by OAO Gazprom Neft, will triple production and nearly double sales by 2020 under a proposed long-term plan.
The vertically integrated company active in Serbia, Bosnia- Herzegovina and Angola is to increase production by 306 percent to nearly 3.7 million tons of crude by the end of the decade and plans to boost sales 91 percent to almost 5 million tons as its two refineries are also expected to increase processing volume by 75 percent, the company said in an e-mailed statement today.
“Last year was a turnaround for the company and the achieved results created a base for further development,” Vadim Yakovlev, deputy chairman of the management board, said in the statement.
Nis lost its monopoly on oil imports to Serbia this year while it remains the sole refiner in the Balkan country where it also operates several oil fields and a retail network. Last month, it reported 2010 net income before extraordinary items of 16.5 billion dinars ($219 million), compared with a loss of 37.7 billion dinars in 2009.
OAO Gazprom Neft, the oil arm of Russia’s state-controlled gas producer, has approved the long-term plan, the company said in the statement released a day after Russia’s Prime Minister Vladimir Putin visited Serbia for talks with the government.
Gazprom Neft bought 51 percent of NIS for 400 million euros ($567 million) in early 2009 with a commitment to invest another 500 million euros. It recently raised the stake to 56.15 percent, paying 40.3 million euros to small shareholders for 5.15 percent of the company.
Source Balkans.com
