The modernization of our refinery complex and the implementation of new management standards are underway, companys press service told Lube Report last week. The company declined to estimate when the project is expected to reach full capacity, saying it was too early in the project.

According to the plan, raffinate output of the plant in Novi Sad could reach 100,000 metric tons per year. Ninety seven percent of the production should be exported to the Asian markets, and the remaining three is meant for the domestic market, NIS CEO Kirill Kravchenko said. Higher demand for these oil refining products let us refocus our commitments and maximize both the Novi Sad and Pancevo refineries capacities.

The refinery in Novi Sad last year started with production of its new lube brand Nisotek. It tripled the lubes production output in 2010 compared to the year before, the company said.

Currently the Novi Sad refinery is working to establish a unit for production of naphthenic base oils as well. The Gazprom Neft subsidiary said it would like to attract foreign investors with the project.

The Russian oil major bought a 51 percent stake in NIS for $545 million in 2009 and in January offered to buy another 19 percent of the companys shares from smaller shareholders. It committed to invest another $675 million in NIS in the following years.