The agreement provides for Tyumen Oil to deliver 660,000 metric tons of oil to Yugoslavia over 6 months, beginning January 2002. The agreement contains an option to make further deliveries through the end of 2002.
This is the first time NIS, which meets a large part of the Yugoslav market's crude oil needs with annual domestic production of 600,000 metric tons, has directly negotiated such a contract with another oil producer.
NIS has two refineries, Panchevo, which processes 280,000 metric tons of oil per month, and Novi-Sad. The company operates approximately 500 gasoline stations. Its annual gas production amounts to 700 million cubic meters.
Raiffeisenbank (Austria) financed the deal with a $45 million line of credit to NIS.
The two companies reached a separate agreement whereby Tyumen Oil will employ NIS specialists to take part in Tyumen Oil's effort to modernize and increase production in its Siberian oil fields.
"This contract helps to expand Tyumen Oil's presence in the East European market," said Davor Stern, a Tyumen Oil first vice president. "It also lays the foundation for a mutually beneficial strategic partnership with NIS."
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