NIS taps ChevronLummus Global for base oil project in Novi Sad

Serbian oil and gas company NIS said it has picked ChevronLummus Global to develop a project for a base oil production unit at its Novi Sad refinery. The job was awarded after a public tender. The project cost is estimated at more than US$100 million.
Annual production, most of which will be destined for the export market, is 180,000 tons. Serbian crude oil will be used as raw material, due to its unique physical and chemical properties, which are optimal for the production of naphthenic base oils. Heavy residues from hydrocracking at NIS’ refinery in Pancevo will also be used as feedstock.
The start of construction is planned for the first half of 2013, with commissioning seen by 2015.
The project is part of a drive to diversify NIS’ product portfolio. NIS, which is 56.15%-owned by Russia’s Gazprom Neft, is one of the largest vertically integrated energy companies in Southeast Europe.