Russian-Serbian JV won concession for exploration of potential oil deposit in Srpska

Russian-Serbian JV Jadran Naftagas won a concession for exploration of potential oil deposits in  Srpska. This was reported by representatives of Naftna Industrija Srbije (NIS, Serbian subsidiary of Gazprom Neft Plc). They noted that the decision was made by the government at the end of June 2011.

This means that oil and gas exploration can be started and deposits of industrial importance can be discovered in the region.

On June 23 General Director of NIS Kirill Kravchenko reported that in 2014 Naftna Industrija Srbije expected to start commercial oil recovery in the framework of Jadran Naftagas - JV with Zarubezhneft – at two sectors inRepublicofSrpska.

Kravchenko noted that in 2011 it was planned to lead 2D and 3D seismic exploration in the framework of the JV with Zarubezhneft. “We plan to obtain a preliminary picture of reserves by the end of 2011. Next year we hope to start drilling of the first exploratory wells using results of our exploration and in 2014 we can start commercial extraction. According to our preliminary assessments the reserves make up approximately 10 million tons”, he said.

In 2010 a subsidiary of Zarubezhneft – NeftegazInKora and NIS founded  JV Jadran Naftagas for exploration and extraction of oil and gas at the territory of Srpska. NIS share in the JV makes up 66% and NeftegazInKora – 34%. Total investments are valued in $63-300 million, initial geological exploration investments – $17 million . Geologists of both companies expect the discovery of a deposit with more than 10 million tons of extractable reserves. Maximum extraction can make up 700-750 thousand tons per year.The drilling of the first exploratory wells is planned for the end of 2012.

Source: http://www.oilru.com/news/265189/

Translated by Alexandra Utyasheva