Suspension of operations at Pancevo oil refinery could last for several days

BELGRADE - A suspension of the operation of production units at Serbia's oil refinery in Pancevo, which began on Tuesday, could last for several days, Tanjug learns.

Following a full halt of operations, the refinery would need at least two weeks to restart production in case the US Office of Foreign Asset Control (OFAC) grants a new operating licence to Serbia's oil company NIS, which has been under US sanctions since October 9 due to its Russian-majority ownership.

A hot circulation mode - which would have enabled a quicker and easier resumption of production at the refinery - was introduced on November 25 and ended on Tuesday.

NIS announced on Tuesday the Pancevo refinery had begun "suspending the operation of its production units due to the lack of crude oil for processing purposes as a result of the sanctions."

"The operation of the process units is being suspended according to the principle applied in case of scheduled overhauls, observing the laws of the Republic of Serbia, internal regulations of the Company, and the most demanding environmental standards and occupational health and safety rules," it said in a statement.

"NIS is continuing to supply the domestic market with petroleum products without interruption, owing to the stocks secured earlier," it also said.

Earlier in the day, Serbian President Aleksandar Vucic said Serbian authorities had granted permission for a halt of operations at the refinery after receiving no US response about a new licence for NIS.