In a strategic move to enhance its operational capabilities, Serbian oil company NIS has allocated €41.8 million for its oil and gas exploration and production activities during the first quarter of 2026. This substantial investment represents nearly four-fifths of the company’s total capital expenditures, highlighting a focused effort on upstream operations.
The funding is primarily directed towards critical areas such as drilling operations, geological and technical works, infrastructure improvements, equipment procurement, and maintenance projects. These initiatives are designed to bolster production capacity and increase operational efficiency across NIS’s asset base.
As a result of these efforts, NIS has successfully commissioned new oil wells and implemented various geological interventions that contributed an additional 13,500 tons of crude oil production from January to March 2026. This uptick in output underscores the effectiveness of the company’s enhanced operational strategies.
A significant aspect of this expansion is the development of new horizontal wells at the Velebit oil field, where drilling activities have been intensified. The promising results from Velebit are expected to encourage NIS to adopt horizontal drilling technology in other fields within its portfolio, potentially increasing overall production efficiency.
Throughout the first quarter of 2026, NIS reported total production figures nearing 280,000 conditional tons of oil and gas across its entire asset base. This performance reflects a steady operational standing despite ongoing challenges in the broader market environment.
Predrag Radanović, head of NIS’s Exploration and Production division, emphasized that these results are not only vital for Serbia but also hold significance at a regional level amid complex market conditions. He noted that this latest investment cycle is crucial for enhancing production capabilities and improving long-term operational efficiency.
NIS remains committed to further investments aimed at productivity enhancement and operational optimization as part of its long-term strategic objectives. As Serbia’s sole entity engaged in both oil and gas exploration and hydrocarbon production, NIS plays a pivotal role in the regional energy landscape.
In addition to its domestic endeavors, NIS manages upstream assets in Romania and Bosnia and Herzegovina while maintaining a longstanding international concession in Angola that has been operational since 1985. This diverse portfolio positions NIS uniquely within both domestic and international markets.
