Serbia’s NIS plans $1 bln investment in 2017–2019

PANCEVO, Serbia, Oct 14 (PRIME) -- Naftna Industrija Srbije (NIS), 56.15% owned by Russian oil company Gazprom Neft will cut its investment in upstream 40% in a U.S. $1 billion investment program for 2017-2019, NIS CEO Kirill Kravchenko told reporters on Friday.

“The investment program is planned at $1 billion for next three years,” he said, adding that investment in upstream will be cut by about 40% as the company based its previous strategy on higher oil prices.

Deputy CEO for Economics Anton Fyodorov pointed out that about $400–450 million will be invested in upstream in 2017–2019, including foreign projects, while about $400 million will be invested in refining, $150 million in the development of the retail network, and $50–70 million in power and other directions.

Kravchenko also said that investment in upgrading of oil refinery Pancevo will amount to $303 million in the period, which will allow the company to increase the depth of refining to 98% from 87% under the Russian classification.

NIS also plans to increase the share of power in its earnings before interest, taxes, depreciation and amortization (EBITDA) to 30% by 2020 from the current 7–8%. The company plans to implement projects for construction of the Pancevo thermal power plant and the Plandiste wind power plant park, he said.

Investments in the Pancevo plant’s first stage amount to $140 million, and the plant’s launch is scheduled for 2019. The capacity will amount to 140 megawatts with a possibility to increase it to 208 megawatts. Investments in the Plandiste park will also amount to $140 million, and its launch is scheduled for 2017.

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