The national oil company INA is considering possibilities to complete the process in 2009, company officials said at Tuesday's ceremony marking the start of construction of a Claus desulfurizing plant in Sisak.
Time terms bind INA as well as the owners, i.e. the government and strategic partners, who must respect their commitments, Prime Minister Ivo Sanader said on this occasion.
During the ceremony, Sanader and INA CEO Tomislav Dragicevic resolutely refuted allegations published on a web portal about the Hungarian oil company MOL, which is INA's strategic partner, being against the streamlining of the two Croatian refineries.
"This is an absolute untruth. INA must invest so as to remain in this business," Dragicevic said.
PM Sanader announced more activities in the coming months regarding plans for the further privatisation of INA, and called on Croatian citizens to join in the process.
The modernisation of the two refineries requires funds of about 750 million euros, with the Rijeka refinery to receive 404 million, and the Sisak refinery 340 million.
Once streamlined, the refinery in Rijeka will produce annually 4.5 million tonnes of fuel that will meet European quality standards, and the Sisak refinery will produce 3.2 million tonnes.
In addition, the Claus plant in Sisak will help environmental protection efforts.
A total of 24 million euros will be invested in this plant.
Sanader pointed out the importance of ensuring Croatia's independence in the energy sector.
He reiterated that Croatia would build a terminal for liquefied natural gas, adding that the site of the LNG plant will be chosen by the end of this year.