Refinery in Serbian town Smederevo to open in about 4 years: Jobs for 700 people, owner is Chinese oil company

Photo: MRE/Emilija Jovanovic

Minister of Mining and Energy Dubravka Djedovic Handanovic has stated that the Framework Agreement to build an oil refinery in Smederevo between the Government of Serbia and China Energy International Group was signed for a period of two years, while the time required for construction and commissioning of the new refinery is estimated to be about four years from the date of obtaining the construction permit.

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In an interview given to Politika, the minister pointed out that the total investment is worth close to 2.4 billion euros.

"The plan is for the refinery to directly employ 700 permanent workers, and indirectly 2,400. The owner and operator will be a Chinese oil company," said Djedovic Handanovic.

According to her, these are completely new facilities and equipment, rather than overhauled existing ones.

"As for the refinery in Novi Sad, it is in the property portfolio of NIS, so it was not considered. On the other hand, the fact that we had two refineries until 25 years ago speaks in favor of the need to realize this project," said Djedovic Handanovic.

She added that the new refinery will process both heavy and light crude oil.

"The implementation of all projects from the energy sector is above all viewed from the perspective of the deficit, as well as all other macro and micro economic indicators," stressed Djedovic Handanovic.

She added that the claim that the project will contribute to our country's debt is not based on any analysis.

"China is Serbia's strategic partner, and on the other hand, the EU has been the biggest donor to the energy sector of our country with more than one billion euros in grants since 2000," stated Djedovic Handanovic.

The minister stressed that the Russian Federation remains a stable partner of Serbia, but that this project is in no way connected with (NIS owner) Gazprom Neft.

"This is supported by the fact that the project is being implemented by one of the largest Chinese companies," said Djedovic Handanovic.

The agreement to build the refinery, with a capacity of up to 100,000 barrels per day, was signed on May 9.

(Telegraf Biznis/Tanjug)