Energy minister: Oil product supply situation challenging, domestic refining key to supply security

The minister was quoted as saying that the extension of NIS’s operating license until August 28 has allowed the company to continue production, which is currently vital for market stability given the difficulties faced by companies that rely on fuel imports. NIS, which is majority Russian-owned, remains under sanctions by the US Department of the Treasury’s Office of Foreign Assets Control (OFAC).

“NIS has announced that in the second half of the month, once previously ordered shipments of crude oil arrive, they will be able to increase refining from the current 9,500 tons per day to approximately 13,000 tons,” Djedovic Handanovic said.

She explained that as an emergency measure, the government will allow NIS to make roughly 23,000 tons of its operational reserves available to other oil companies currently facing high demand. This move is intended to ensure that the market can meet the significant demand expected in August, which is projected to reach approximately 200,000 tons of petroleum products, the minister explained.