Crude Refining Owing to constant innovations and investment in our refineries, we provide Serbia and the region with high-quality fuels. A key element in the modernization program is the construction at the Pančevo Refinery of facilities for the secondary refining of crude oil, known as light hydro-cracking and hydro-treating, or MHT/DHT. The NIS refining complex consists of refining facilities in two locations — in Pančevo and Novi Sad. NIS refineries are engaged in the production of a broad range of petroleum and natural gas products, meeting international quality standards and refinery production specifications. Their products include motor and aviation fuel, liquid petroleum gas (LPG), oils and lubricants, fuel oils, bitumen, petro-chemical and other products. We modernize refining operations and ensure energy stability Owing to a constant modernization of refining operations, NIS produces European quality fuels due to which the Company may take strategically important position of a leader in the regional market of petroleum products, while ensuring energy stability in the Republic of Serbia. The first phase of Pančevo Oil Refinery modernization included the construction of new plants and the reconstruction of the existing ones. The key element of the modernization program was the construction of a complex for mild hydrocracking and MHT/DHT hydro-processing, which is the process of secondary refining of crude oil. Owing to the complex oil refining depth has been increased to 84 per cent, the output of light petroleum products has been increased to 75 per cent, with the maximum possible removal of sulphur and other chemical compounds that negatively affect the quality of finished products. The new complex was officially put into operation in November 2012, after which NIS completely turned to producing Euro-5 standard fuels. With this, Gazprom Neft has, as a strategic partner, fulfilled its commitment according to the International Strategic Cooperation Agreement in the field of energy, signed between Russia and Serbia in 2008. Based on this agreement, over 540 million euros has been invested in the modernization of NIS refining capacity. A series of other projects with ecological effects were implemented during the first phase of the refinery modernization, of which the most important include: the construction of the unit for sulphuric acid regeneration, reconstruction of process furnaces and boilers in order to reduce NOx emissions, as well as the reconstruction of the catalytic cracking complex. To date investments in the reconstruction of storage facilities and modernization of filling stations, railway filling stations and the wharf in the Refinery directly affected the reduction of the emission of volatile hydrocarbons in the atmosphere in handling petroleum products. The reconstruction of the catalytic cracking unit and the use of natural gas as energy product instead of heavy fuel considerably reduced the emission of harmful matters. We continue with modernization and implementation of ecology projects The last three investments implemented since the beginning of this year in Pančevo represent a new step forward in the overall modernization of NIS refining operations and have an enormous ecological significance. The largest environmental project this year in Pančevo Oil Refinery was the closed drainage system within the processing equipment. The essence of this process is that petroleum products that are periodically drained into the production process are collected in special airtight containers and returned to the production process. During the spring, the closed sampling system project was successfully completed in Pančevo Oil Refinery. Modern panels in which raw materials and products are sampled several times during a day have been installed in 160 places in 24 technological facilities, and their quality is then controlled in the Refinery laboratory. This investment primarily has an ecological significance, because samples that are taken do not come into contact with the atmosphere, which is a significant contribution to environmental protection. Upon completion of the third phase of the filling station modernization, the safest method of loading petroleum products into tank cars in terms of environmental protection has been implemented. It implies bottom loading of tank cars, which is now being applied to two-thirds of all loading spots for tank cars in the refinery. This investment has practically eliminated polluting particles vaporization while loading tank cars at Pančevo filling station. And this is not the end, as the activities initiated in the last phase of the filling station modernization include the plans for complete replacement of the control system as well as a number of technical improvements, which will further improve technical safety and environmental safety. The total value of these investments exceeds nine million Euros and represent a new step in the long-term environmental strategy of NIS. NIS has successfully completed further modernization of two refinery units in Pančevo during the autumn and thus has ensured their reliable operation and a higher volume of petroleum products production. One-month works were carried out in the largest refinery unit for the production of gasoline components and gases (FCC complex) and in the alkylation unit where high-octane components for high-quality gasoline production are made. NIS has invested more than three million Euros in this phase of modernization of Pančevo Oil Refinery. The next step is the second phase of modernization of the refining capacities, and/or the implementation of the deep refining project aimed at further improving and increasing the efficiency of the refining process. By implementing its development plans, which primarily imply the modernization and implementation of new clean technologies, NIS confirms its status as a socially responsible company.