Republika Srpska (Bosnia and Herzegovina)

In 2007 JSC “Zarubezhneft” purchased oil refinery “Bosanski Brod” (now "Brod"), motor oil plant in Modrica and crude marketing company “Petrol”, which owns 79 filling stations. JSC “Zarubezhneft” was given a task to rehabilitate and upgrade these enterprises.

Project realization was started on 02.02.07 after signing of the Agreement with the Government of Republika Srpska.

In these projects’ implementation Vnesheconombank of Russia has been involved.

The main asset – oil refinery “Brod” with capacity of 4,2 million tons of oil per year – one of the largest and important enterprise for crude oil refining on the territory of former Yugoslavia. The plant was built and commissioned in 1968. Because of mechanical destructions, inflicted by war activities during 1992-1995, it has been in non-operating state since 2005. Main production line for manufacturing hydrocracked base oils and paraffines at the motor oil plant in Modrice with designed capacity about 77 thousand tons per year has been also idling.

In 2008 “Zarubezhneft” completed overhaul and in November, 2008, the first train of the oil refinery “Brod” with capacity of 1,2 million tons of oil per year was put into operation. Currently, the plant produces diesel, gasoline of A-95 and A-98 grades, fuel oil, liquefied gas, bitumen and base oil (BUS) – feedstock for manufacturing of hydrocracked oils and paraffines at Modrica plant. Its production covers 60% of oil products market in Bosnia and Herzegovina. Oil products sales are partially realized through the owned filling stations network and through local companies. Investments amounted to 40 million Euro. After completion of all rehabilitation works capacity of “Bosanski Brod” oil refinery shall reach 4,2 million tons.

On April, 2d, 2009, the main production line for manufacturing of hydrocracked base oils and paraffines at the motor oil plant in Modrica was put into operation.

On September 27^th, 2011 the second line of oil refinery "Brod" was put into operation. Taking this, the first stage of reconstruction of the plant was completed. Operation of the new production line allows to increase the processing capacity of the plant from 1.2 mln tonnes to 3.0 mln tonnes per year and produce gasoline and liquefied gas with very low sulfur content. In the next few years (until 2014) oil refinery "Brod" will produce all petroleum products in compliance with Euro 5 quality standart.

Since 2008 Zarubezhneft has invested in the reconstruction of oil refinery "Brod" about 100 mln euros, in the reconstruction of motor oil plant "Modrica" - more than 5.5 mln euros. In the period from 2011 to 2014 Zarubezhneft plans to invest in oil refinery more than 500 mln euros, in motor oil plant - 10 mln euros.

Zarubezhneft holds on the realization of the project of expanding the network of filling stations. Zarubezhneft modernized and rebranded 56 filling stations of the company "Petrol" (now "Nestro Petrol"), having invested 16 mln euros in this project.

After the rebranding and renovation the filling stations became modern, the range of goods and services was significantly expanded.

Russian company bought the network of 79 filling stations in the Republic of Srpska (BiH), which, in general, were in poor condition as a result of warfare.

In 2011, the company's retail network was expanded due to the purchase of 10 petrol stations in the Federation of Bosnia and Herzegovina. Today "Nestro Petrol" is one of the largest retail network in the region. The Company intends to continue the modernization of the filling stations and also to expand its retail network in Bosnia and Herzegovina and neighboring countries - Croatia and Serbia.

The present day the project of reconstruction and modernization of the oil and gas industry facilities provides additional revenue to the budget of the Republic of Srpska and the whole of Bosnia and Herzegovina, and provides workplaces and stable income for the residents. For the period from 2008 trough 2010 the budget of Bosnia and Herzegovina collected 438 mln euros in the form of taxes and dues.