22 August 2022

Council President meets China Energy and Ors Oil Gaz company representatives

The offices of the National Council for Coordination of Cooperation with the Russian Federation and People’s Republic of China provided venue today for a meeting between the Council President, representatives of China Energy, a China-based company, and the delegates of Ors Oil Gaz Ltd.

On behalf of China Energy, the meeting was attended by General Manager of China Energy Serbia Office Wang Xuan, Marketing Director of China Energy Serbia Office Iva Čepić, Zhang Wei Wei and Kristian Tucaković, China Energy’s partner.

Managing Director of Ors Oil Gaz Ltd. Radomir Radivojević and interpreter Tanja Grahovac attended the meeting on behalf of the company.

Apart from Council President Tomislav Nikolić, the meeting was attended by Acting Director of the Office of the National Council Nedeljko Tenjović, Acting Assistant Director Ivona Katić and Associate Natalija Mitić.

In his opening remarks, Council President Nikolić expressed his satisfaction with the participation of China Energy in the Smederevo Oil Refinery construction project.

“The project at hand has been in the pipeline for the past ten years. Potential investors have changed over the period due to various reasons. In order for the new Spatial Plan of the Special Purpose Area (PPPPN) development to commence, it is necessary for the sides to enter into a Framework Agreement and for the Government to adopt it. If we are to officially sign the Framework Agreement in October, this will require us to harmonize it through coordinated action. China Energy and the partner it chooses to cooperate with on this project will enjoy the support of the National Council, Serbian Government and the Chinese leadership. Serbia offers favourable conditions such as the Free Trade Area, exemption from customs duties on imports of the construction equipment, 10 years’ exemption from the corporate income tax, but all the issues will be elaborated at length in the Framework Agreement and the final contract.”

Council President Nikolić called on China Energy to maintain an unimpeded and open communication with the Embassy of the People’s Republic of China in Belgrade.

Mr. Radivojević highlighted that Ors Oil Gaz Limited and China Energy had signed a Memorandum of Understanding and that the technical and technological documentation, the business plan, the feasibility study and other accompanying documents necessary for the project were submitted.

Mr. Wang Xuan underlined the great attention devoted to the project by China Energy following the receipt of a Letter of Endorsement from the National Council and that the company leadership in China is fully in favour of the project.

They have started working on the Framework Agreement and with minor technical amendments to the draft version, they expect the signing to take place in late September or early October. Having in mind the complexity and size of the project and the volume of investment, China Energy is seeking an adequate partner, in parallel with the work on the Framework Agreement.

The interlocutors agreed to accelerate the harmonization of the Framework Agreement in order for its signing to be staged within the timeline proposed by China Energy, whose representative Wang Xuan underscored on the occasion that the signing of the Framework Agreement is not predicated on the search for an adequate partner and that China Energy will be the main signatory.