Djedovic Handanovic, Tyurdenev discuss NIS operations

BELGRADE - Serbian Minister of Mining and Energy Dubravka Djedovic Handanovic met with NIS CEO Kirill Tyurdenev on Wednesday to discuss the oil company's operations and plans for oil derivatives production and processing in August.

"The government's goal is that all petrol stations - large and small - are regularly supplied and that, as until now, NIS's buyers and all other oil companies operating in Serbia have enough fuel, that NIS keeps its production at the maximum level to meet the demand, which has been record-high in August, at an estimated 200,000 t of diesel, which is being consumed the most," Djedovic Handanovic said.

She said that, with the current production volumes, crude oil quantities available to NIS and the quantities its refinery can process, supply would remain stable and regular this month, until an August 28 expiry of a licence issued to the company by the US Office of Foreign Assets Control.

NIS is under US sanctions due to its Russian majority ownership.

"The government also has its own reserves to intervene if necessary, as we have done earlier," the minister said.

Djedovic Handanovic said the situation regarding oil derivative imports remained very challenging as planned quantities of derivatives could not arrive at the expected time due to low water levels on the Danube River, which she noted hampered transport logistics, also leading to disruptions and price hikes, as well as to high quotes in the Mediterranean.

"Imports were reduced to the minimum in July, and we expect a similar situation in August. The lacking imports are supplemented by the Pancevo refinery and by NIS, through its operational reserves," the minister said.

Tyurdenev said that, for its part, NIS was doing everything to help to maintain the stability of market supply, the Ministry of Mining and Energy said in a statement.