Zagreb, December 12, 2019 – Today, INA Supervisory Board granted its prior approval for the Residue Upgrade Project implementation in the Rijeka Refinery, and the Management Board has made a unanimous decision on the investment. This decision is fully supported both by the Croatian Government and MOL as the two major shareholders and it will provide for the future of INA Downstream.
Due to Residue Upgrade unit, the product structure of Rijeka Refinery will improve by increasing the share of profitable white products, i.e. motor fuels. Our production will cover all market demand and eliminate import. Works on the new unit are expected to start soon, while commission is planned for 2023.
Due to the investment in the Residue Upgrade project, reconstruction of existing units, a new port with closed petro-coke storage and increased overall complexity, the Rijeka Refinery will become a modern European refinery. The total investments are worth around HRK 4bn, thus representing the single largest investment project in the history of the company in Croatia.
Mr. Sándor Fasimon, President of INA Management Board, said: “The decision on the Residue Upgrade project marks an important milestone in the implementation of the INA Downstream 2023 New Course program, as well as in the company’s history. It will transform the Rijeka Refinery into a modern refinery in Europe and will ensure INA keeps a strong position on the market. It’s a major investment that will significantly affect the company’s business in the future.”
Mr. Tomislav Ćorić, Croatian Minister of Environment and Energy said: ”With today’s decision to launch the Rijeka Refinery modernization project, INA is making a major step forward. This is one of the biggest investments in our energy sector and I am pleased that it was realized during the term of this Government. This investment will improve Rijeka’s product structure, increase profitability and improve INA’s environmental competitiveness by significantly reducing CO2 and other harmful gases.”
Mr. József Molnár, MOL Group CEO and Vice President of INA Supervisory Board, said: “This decision proves MOL Group’s commitment to INA. By completing the Residue Upgrade project, we will substantially increase the complexity and the efficiency of the Rijeka Refinery. I firmly believe that the competitiveness of INA’s Refining & Marketing business will further improve once the unit is commissioned and the investment will have a significant positive impact on the company’s profitability in the future.”
The decision on the Residue upgrade Project came a year after the announcement of INA Downstream 2023 New Course program, aimed to transform INA’s refinery system from making losses to gaining profit. The program includes the concentration of the crude refining activity within the Republic of Croatia in the Rijeka Refinery and, as a part of this move, the conversion of the Sisak Refinery to an industrial site which will include bitumen production, approved in March this year, to be commissioned in 2021, a logistic hub, and, potentially, lubricant production and bio-component refinery. With the implementation of all the activities covered by the INA Downstream 2023 New Course after 2023, INA expects an average yearly EBITDA to increase by HRK 1+ bn.
The company will continue to inform the public on all developments.
About INA Group
INA Group plays a leading role in Croatia’s oil business and a significant regional role in hydrocarbon exploration and production, oil processing, and the distribution of oil and oil products. INA Group consists of several affiliated entities, entirely or partially owned by INA, d.d. The Group is based in Zagreb, Croatia. INA has hydrocarbon exploration and production operations in Croatia, Angola, and Egypt. The oil is processed at INA’s oil refineries – RN Rijeka and RN Sisak, while INA’s regional retail network includes more than 500 retail sites in Croatia and the neighbouring countries. INA Group is a member of MOL Group.
Avenija Većeslava Holjevca 10, Zagreb
Tel: 01 6450 552|Fax: 01 6452 406| @: firstname.lastname@example.org