Preparations Start for a Shutdown of Oil Refinery in Pancevo

Pancevo oil refinery (BetaPhoto/Ministry of Mining and Energy of Republic of Serbia/Emilija Jovanovic)

Oil and gas company Naftna Industrija Srbije (NIS) on Nov. 25 announced that due to the lack of crude oil supplies amid the US sanctions, the company had begun preparations for a shutdown of its Oil Refinery in Pancevo. 

The refinery has been placed on a so-called hot standby, in accordance with Serbian legislation, the company’s internal rules of procedure and highest environmental standards, as well occupational safety and health standards, it is said in the announcement. While on hot standby, allows a restart of the refinery once crude oil becomes available, according to the statement. 

For now, NIS continues to supply the domestic market with oil derivatives without interruption, thanks to the stocks, it is said in the announcement. NIS hopes that the Pancevo Oil Refinery, which is important for the supply of Serbia and also the neighboring countries, will return to normal regime as soon as possible.

The Oil Refinery in Pancevo is one of the most modern in the region, with more than EUR900 million invested in the facility since 2009. It is also vital for operation of petrochemical company HIP Petrohemija, which will also begin preparations for a shutdown. NIS stressed that they had done nothing to cause the US to impose sanctions, which jeopardize the company’s operation and its more than 13,500 employees.