In a significant move for the Serbian energy sector, oil company NIS has allocated €41.8 million towards its oil and gas exploration and production initiatives during the first quarter of 2026. This investment constitutes nearly four-fifths of the company’s total capital expenditures for the period, underscoring its commitment to enhancing upstream operations.
The funding will primarily support drilling operations, geological assessments, technical works, infrastructure improvements, equipment acquisition, and maintenance projects. These efforts are designed to bolster production capacity and enhance operational efficiency within the company’s portfolio.
As a result of these initiatives, NIS reported an increase of approximately 13,500 tons of crude oil production due to newly commissioned oil wells and various geological interventions executed between January and March. This uptick reflects a positive trend in output performance within the upstream segment.
A notable contributor to this production boost has been the development of new horizontal wells at the Velebit oil field, where NIS has ramped up drilling activities. Following successful outcomes at Velebit, the company intends to broaden its application of horizontal drilling technology across other oil fields in its operational framework.
In total, NIS achieved approximately 280,000 conditional tons of oil and gas production across its asset base during Q1 2026. This figure indicates stable operational performance amid a challenging market landscape.
Predrag Radanović, head of Exploration and Production at NIS, remarked on the significance of these results not only for Serbia but also for the broader regional context, especially given current market complexities. He noted that this latest investment cycle is crucial for reinforcing production capabilities and enhancing long-term operational efficiency.
The company has reiterated its focus on further investments aimed at productivity enhancement and operational optimization, which remain integral to its long-term strategic objectives.
NIS stands as Serbia’s sole entity engaged in both oil and gas exploration and hydrocarbon production. Beyond domestic operations, it also oversees upstream assets in Romania and Bosnia and Herzegovina, with its oldest international concession located in Angola, where production activities have been ongoing since 1985.
