Oil market in Serbia and Montenegro - World Petroleum · PDF fileOil market in Serbia and...

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Oil market in Serbia and Montenegro

General Manager General Manager NISNIS -- Petroleum Petroleum IIndustry of Serbiandustry of Serbia

Dimitri VuVukkccevicc

1010th th -- 1111th th April,April, 20032003Hotel EmonaEmona, , PortorožPortorož

WPC -The Slovenian National CommitteeWorkshop in Portorož

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Objective 1

Integration of the national market with

the EU market

– harmonization of laws and

regulations with the EU legislation

– modernization of petroleum

processing to meet EU standards

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The BalkansThe BalkansEuropean CrossroadsEuropean Crossroads

l Pan-European Corridor 10• Roads E-70, E-75• Railway routes

l Pan-European Corridor 7• Danube river

Objective imposed by geographic position

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National integration

One country – three crude oil and oil product markets

• Serbia• Kosovo (under UN protectorate)• Montenegro

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Montenegro Market

1. Out of 87 petrol stations in Montenegro 37, or 42%, belong to Hellenic-petroleum (Jugopetrol Kotor)

2. Oil product sales in Montenegro amount to 331,881 t

3. Liberalized oil product import

4. Oil products prices adjusted every 14 days

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Serbian Market

• Only NIS integrates within itself all respective aspects

of the petroleum industry

• Other market participants engage solely in oil product

marketing and dispose only of petrol station outlets,

with the exception of Beopetrol that also has storage

facilitiese

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Serbian Market, wholesale and retail

In the overall oil product sales in

Serbia of 3,118,251 t/y

NIS share is 78 %, or 2,428,382 t/y

In the overall motor fuel sales

(gasoline and diesel) of 1,796,639 t/y

NIS share is 1,482,356 t ili 82.5%

OtherNIS

NISOther

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Serbian Market - retail

In the overall motor fuel sales at the

pump stations NIS share is 53% or 948,146 t

Out of 1236 petrol stations in Serbia NIS

owns 522, or 42%

NISOther

NISOther

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Serbian Market II

• Oil product prices are determined by the Government

• Current regulations allow only for crude oil import, while

oil product import requires special permit

• Development of the overall oil market in Serbia is largely

dependant upon development of NIS-Petroleum Industry of

Serbia

• Therefore ...

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NIS – Company profile & investment opportunities

E&P

Processing

Gas Trade & Distribution

Retail & Marketing

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NIS in 2002

• Sales - $$ 33 blnbln• Natural gas -2 2 blnbln mm33

• Crude Oil - 3.5 3.5 mlnmln tt

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Organisational Chart

•NIS-Naftagas Novi Sad

Exploration and Productionof Oil and Gas

•NIS-Gas Novi Sad

•NIS-Energogas Beograd

Trade and Distribution of Natural Gas

•NIS-Jugopetrol Beograd

•NIS-Naftagas promet Novi Sad

Retail & Marketing•NIS-Oil Refinery Pancevo•NIS-Oil Refinery Novi Sad•NIS-Lube Refinery Belgrade

•NIS-Lube Refinery Kruševac

Processing

•NIS-Inžinjering Novi Sad

Engineering

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Exploration and Production

l NIS crude oil production meets 23% of the Serbian marketneeds (813,000 / 3,476,000 t)

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•Equipment for oil and gasexploration and production

IInvestment nvestment -- USDUSD 4242 mlnmln

RevitalisationMajor Major OilOil ProjectsProjects

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Exploration and production of oil and gas abroad

•• Plan: CPlan: Concessiononcessions fors fornew sites abroadnew sites abroad

•• Goal: Additional oil Goal: Additional oil production of production of 2 million tons2 million tons per yearper year

Major Major OilOil ProjectsProjects

Investment Investment –– USD 10USD 1000--200 200 mlnmln

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Processing

l Crude oil refineries capacity is 6.5 mln tons annually

l Lube refineries capacity is 200,000 tons of finished products annually

l The output exceeds local demand

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CONSULTANTS

®Shell Global Solutions

Hollden Consultants R I C O B G

Major Major RafineryRafinery ProjectsProjects

§ABB Lumus§JGC

§AMEC

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Modernisation and integration of oil refineries

Refinery Integration Plan Refinery Integration Plan

•• OOil il RRefinefineerriesies of of PancevoPancevo && Novi SadNovi Sad


GoalsGoals by 2007by 2007--20082008

•• European Standard 2005+European Standard 2005+

•• Major regional supplierMajor regional supplier

Total Total InvestmentInvestment .......................................... USD 3USD 30000 mlnmln

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Product Pipeline Pancevo – Novi Sad

•• Connecting two refineriesConnecting two refineries-- 90 km length / 10 90 km length / 10 ″″

diameter product pipeline,diameter product pipeline,alongalong with the supporting with the supporting facilities and installationsfacilities and installations


Investment Investment –– USD 18 USD 18 mlnmln

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Product Pipeline Pancevo - Niš

•• Length 250 kmLength 250 km

•• NiNišš –– regional hubregional hub



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Transport and Distribution of Natural Gas

l Capacities are over 6 billion m³ of gas annually

l Natural gas is supplied to app.1000 industrial consumers, and150,000 households

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Underground Gas Storage

•• Continuous and even gas Continuous and even gas

supplysupply

•• Several locations/optionsSeveral locations/options

•• Capacity 500Capacity 500--880000 milmil mm33

Major Gas ProjectsMajor Gas Projects

Investment Investment –– USD 40USD 40--220 220 mlnmln

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Demand To be stored

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Expanding Gas Transmission Network

•• Plan Plan –– expand gas expand gas distribution network in distribution network in SerbiaSerbia

•• Goal Goal -- another 400another 400,,000 000 consumers by 2010 !consumers by 2010 !


InvestmeInvestmennt t USD USD 140140--280280 mlnmln

Beograd

Novi Sad

Niš

§Horgoš

Loznica

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Revitalisation of existing gas pipeline system

•• Reconstruction of Reconstruction of damaged and dilapidated damaged and dilapidated partsparts

•• Modernization of Modernization of measuring & control measuring & control facilitiesfacilities


InvestmeInvestmennt t -- USD 30 mlnUSD 30 mln

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Expansion of main and municipalgas pipeline system

•• Vojvodina & Western SerbiaVojvodina & Western Serbia

InvestmentInvestment -- USD 114 USD 114 mlnmln

•• Projects for some towns in Projects for some towns in Serbia are readySerbia are ready

Investment Investment -- USD USD 130130 mlnmln


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Retail & Marketing

l 2002 oil product sales - 2.3 mln t

l Number of petrol stations:522 public1600 internal (companies)

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Reconstruction of petrol stations

•• EU standards and EU standards and requirementsrequirements

•• Business Business automation automation

DistributionDistribution ProjectsProjects


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New petrol stations

Along the transit roads



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Reconstruction of tank farms

• Crude oil and oil product tank farms

• Novi Sad, Sombor, Smederevo, Prahovo, Niš, Bor, Požega



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Retail Projects ˜ USD 195 mln 28 mln

Rafinery Projects ˜ USD 385 mln 64 mln

E&P Projects ˜ USD 140 mln 48 mln

Gas Projects ˜ USD 775 mln 39 mln

Total IInvestmentnvestmentby 2007. 2003.

Total Total Investment Investment -- ˜ USDUSD 1.5 1.5 blnbln 179 179 mlnmln

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