Serbian Base oil plant begins operation
Naftna Industrija Srbije AD has begun base oil production at it's plant in Serbia.
The site, in the city of Novi Sad, will focus on base oil production, leaving gasoline and diesel output to NIS' recently upgraded refinery in Pancevo.
Base oil volumes from the Novi Sad plant will be up to 100,000 tons annually with the majority being exported to Asia and other overseas markets. The remaining three percent of output will be for domestic use.
NIS, majority-owned by OAO Gazprom Neft since 2009, is maximising its opportunities to exploit increasing demand for base oils and motor lubes abroad. The move comes after the Serbian government ended NIS' oil import monopoly at the beginning of 2011, as well as lifting price caps on gasoline, diesel and heating oils. The company recently launched Nisotek, its own auto lube brand.
Gazprom Neft continues to invest in the company with a commitment for further expenditure and further share purchases.
