Rus News Journal

Zarubezhneft it will be enclosed to the Eastern Europe

Zarubezhneft will enclose in modernisation of the processing capacities and a gas station network in Bosnia and Herzegovina of $800 million within five years. Also she plans to create joint venture (joint venture) with affiliated oil Gazprom Serbian NIS for working out of two oil and gas deposits in Bosnia and to expand a network of the gas station at the expense of stations Energopetrol which can be withdrawn the authorities of the country at MOL and INA.
On Friday the assistant to the general director Zarubezhnefti Yury Smirnov has told to Interfax that the company plans to invest $800 million to Bosnia and Herzegovina within five years. On this money Zarubezhneft modernises NPZ Ford (under control to affiliated company Zarubezhnefti Open Society neftegazinkor ) Creamery in Modriche and a network of gas station Petrol.

Zarubezhneft has already spent modernisation of first line NPZ by capacity of 1,2 million tons. Within the limits of the five years` program the company is going to carry out reconstruction of other lines of factory on 3 million tons that will allow to provide release of gasolines of standards Euro - 4 and Euro - 5 . Their manufacture can begin in the end of 2011. By 2013 Zarubezhneft plans to finish also a rebrending of a network of gas station Petrol (78 stations) under sign Nestro. Now under this brand 12 gas stations already work.

as Yury Smirnov, " has noted; Zarubezhneft yet has not taken up a quota on possession of refuellings in territory of Bosnia and Herzegovina and is going to expand the network taking into account possibility of delivery to the gas station of production NPZ. In particular, the company is interested in purchase of network Energopetrol under control Croatian INA and Hungarian MOL if that is exposed on sale. In Energopetrol 65 stations enter. In November, 2009 of premieres of Bosnia and Herzegovina Mustafa Muzhezunovich has informed that the companies can terminate the agreement on possession Energopetrol from - for a lack of investments.

thus Zarubezhneft plans to begin oil recovery in region together with the Serbian affiliated structure oil Gazprom company NIS. The companies have already signed the memorandum assuming creation for it the joint venture to which sites in Bosnia will be transferred. As shares in the joint venture will be distributed, is not defined yet. we with NIS should define, what sites are interesting and after that to go to the government of Bosnia and Herzegovina. It already should accept the final decision - mister Smirnov has explained.

Now NPZ Ford Two sites on which it is necessary to spend geological prospecting and which the Bosnian government is ready to give in concession belong. but geological prospecting in that region - the big risk. These are very serious investments - has specified a top - the manager. Sites of bowels are located on border with Croatia, their total resources - 50 million tons. In a press - service NIS have confirmed the information on memorandum signing, having noticed that the working group which structure will include experts of both companies in the near future will be generated. preparation tehnichesko - the economic analysis of the project then possibility of creation of the joint venture " will be considered becomes the primary goal; - have explained in NIS.

Besides, Zarubezhneft is going to participate actively in competitions and auctions on deposits in Russia. In particular, on sites of the Russian shelf, and also a deposit in the Nenets autonomous region, located near to sites belonging to it It is central - the Horevejsky raising. Also Zarubezhneft and NGK Itera have directed on the coordination to the government of Turkmenia documents to obtain the permit to participation Zarubezhnefti in development of block N 21 on a shelf of Caspian sea. The agreement on its working out of the company have concluded in the end of the last year.

Vitaly Krjukov from IFD Kapital considers that vertical integration of business will allow Zarubezhnefti to maximise profit. But, the analyst adds, market condition of oil products in the Eastern Europe remains weak: surplus of the offer and a low margin of realisation is observed. Therefore, mister Krjukov believes, now to stake on oil business in region risky. However Dmitry Ljutjagin from IK Veles the Capital considers the Eastern Europe as the growing market and in the long term favourable for Zarubezhnefti .