Djedovic Handanovic, IMF mission discuss energy, oil and gas sector

BELGRADE- Serbian Minister of Mining and Energy Dubravka Djedovic Handanovic met on Wednesday with an International Monetary Fund (IMF) mission headed by Annette Kyobe to discuss energy security, the situation in the oil and gas sector and investments in the mining and energy sector.

The minister said the Pancevo oil refinery would continue to work for nearly a month and that Serbia had reserves of oil and oil derivatives that were sufficient to ensure market stability, an official statement said.

"The Pancevo oil refinery will continue to work without obstructions until November 25. We continue to monitor the market situation. Our storage facilities with compulsory and commodity reserves are full, as are those of (the oil company) NIS, to prevent any market disruptions," Djedovic Handanovic said.

The Russian-majority owned NIS is under US sanctions.

The minister said the situation was made more complex by the sanctions on the Russian oil company Lukoil - which is operating in Serbia and is licenced until November 21 - as well as by a fire at a MOL refinery in Hungary.

"On a daily basis, we are talking to oil companies that have a presence in our market about the market situation, challenges and the security of supplies. We are increasing imports of oil derivatives even though we face many restrictions regarding transport and logistics concerning derivatives," she said.

Djedovic Handanovic said talks were underway about a long-term agreement on supplies of Russian natural gas and that there would be no supply disruptions.

She also said boosting production capacities remained the investment priority for the future, based, above all, on renewables, diversification of supply sources and routes and construction of storage facilities and bolstering transmission capabilities.

"Solar and wind power capacities have nearly doubled in the past two years, we have completed a gas interconnection with Bulgaria, we have continued to build a trans-Balkan corridor and completed a new thermal power unit at Kostolac (coal-fired power plant), which meant the most for energy stability last winter. Of all the projects that are in the final stage, the Bistrica reversible hydropower plant, where preparation works will start soon, is the most important one. At the same time, we are preparing to build gas-fired power plants and considering introducing nuclear power, as we need base energy in order to have secure supplies in the years ahead. As far as nuclear energy is concerned, we are talking to various partners right now and we are committed, above all, to building our own institutional capacities," the minister said.