OREANDA-NEWS. On 29 July 2008 was announced, that a group of the representatives from Zarubezhneft JSC headed by the General Director Nikolai Brunich made a working trip to the Republica Serbska (Bosnia and Herzegovina). As is known, the company is one of the shareholders of the company Neftegazinkor, which possesses control packet of shares of the oil refinery Bosanski Brod, the factory in Modrich producing engine oil and also of the distributor company Petrol, owning 78 service stations. Therefore it was decided to take a look at the enterprise and study the situation. By the way, lately in mass media information appeared that in the reconstructed after known events oil refinery there was unhealthy team spirit between the staff, that people demanded salary increase, collective agreement and prompt capacity start-up and that protest actions were possible. That’s why the delegation began its work with a meeting with the leaders of trade unions. Their opinions and wishes, which mainly were coming down to wage rise, were heard out. In greater degree conversation was about oil refinery.

During discussion Mr. Brunich noted, that there were objective causes, preventing realization of production plans. Today the situation cardinally changed. General contract and subcontracts were concluded and a letter of credit was received from an investor bank. Staff get their wage in due time, and since July it will increase by 17% (adjusted for inflation). But about essential wage increase one can talk about only after the refinery startup and profit-making. Meanwhile fixed assets are invested in its repair. Mr. Brunich expressed readiness to sign collective agreements taking into account proposals of the trade unions and called their leaders to support the stable working climate. He underlined, that he reckons on complete mutual understanding for the good of the cause.

Later that day the Prime Minister of the Republica Serbska Milorad Dodik had a meeting with the representatives of Zarubezhneft and vice-president of Vnesheconombank (investor of the project) Mr. Ballo A.B., also participating in the trip. During the meeting exchange of views on the basic questions of cooperation took place. While speaking on the subject of oil refinery in Bosanski Brod, Mr. Dodik expressed satisfaction that repair works are being conducted there and that the main task is to hasten this process. On his side the Prime Minister promised all possible help and support. In reply Mr. Brunich informed Mr. Dodik, that it was planned to launch the first oil refining line with annual production capacity of 1,2 million tons in October. Then repair work on the second line will begin. After its startup the refinery will be able to refine annually 4,2 million tons of oil. He also mentioned, that funds can be already now invested into reconstruction Petrol of service station.

In conclusion of the meeting the Prime Minister supported expansion of further cooperation and wished all guests success in realizations of the projects.

Following the results of the meeting there was held press conference.

During the working trip the representatives of Zarubezhneft and Vneshekonombank have visited the engine oil factory in Modrich and the oil refinery Bosanski Brod, where they have looked over production capacities and have met with directors and leading specialists of the enterprises. There they have discussed preliminary results of work and have defined problems for the near-term prospect.