Kojcic: Pancevo refinery is a pillar of Serbia's energy security, it will survive regardless of NIS ownership

Photo: Tanjug/Zoran Zestic

Former Assistant Minister of Energy Rasa Kojcic said today that the Pancevo refinery represents one of the pillars of Serbia's energy security and that its uninterrupted operation is important not only for the domestic market, but also for the wider region.

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"The Pancevo refinery is the heart of the Petroleum Industry of Serbia (NIS) system, because it processes crude oil and ensures security of supply to the domestic market," said Kojcic.

He told RTS that the key advantage of the refinery is reflected in the high level of technological development and deep oil processing.

"So much has been invested in it, it's at a high technological level, that it is hard to imagine anyone would not want to use it," said Kojcic.

He added that the operation of the refinery allows for greater independence from external factors, such as the water level of the Danube or import restrictions.

That is why, he stressed, its survival is not being brought into question regardless of the possible changes in NIS ownership.

Current discussions about the possible takeover of NIS, as well as the role of international institutions make the sale process complex, and Kojcic explained that the process is multi-layered because it requires approvals from foreign and domestic authorities.

"Once the negotiations are over, the decision goes before the relevant institutions who need to greenlight it, followed by confirmations from domestic authorities," explained Kojcic.

At the same time, developments on the global oil market - starting with problems in transportation to rising prices - directly affect the region, and the stability of operations of refineries in Europe is especially important, he said.

"There is greater security for the entire region when the refineries work in a stable regime, because this ensures the supply of derivatives for both local and neighboring markets," Kojcic said.

He added that alternative supply routes and strategic reserves are key mechanisms in crisis situations, which has been shown in the past.

Despite numerous challenges, he concluded, the Pancevo refinery remains an irreplaceable energy resource for Serbia - both economically and geopolitically.

(Telegraf Biznis/Tanjug)