Oil market of Serbia, for beginners

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The company Naftna industrija Srbije, a.d. Novi Sad performs the activity of research and exploitation of crude oil and natural gas in Serbia, and the activity of oil derivatives production, which takes place in two refineries in Pancevo and Novi Sad. Major shareholder of NIS is GazpromNeft, Russian FDI who managed to increase the efficiency and in the same time working on investment which will manage the environmental issues.

Their nominal annual capacity originally amounted to 4.8 million and 2.3 million tones respectively, which used to exceed the demands of domestic market. Presently, less than 50% of capacities are used.

The Republic of Serbia has a developed retail network. In the territory of the Republic of Serbia, there are presently 1441 retail facilities. There are six oil company brands known in Serbia (NIS Petrol, Lukoil, OMV, AVIA, EKO YU, MOL and Petrol).

Public enterprise Transnafta performs the activity of oil pipeline transport and oil products pipeline transport. The oil pipelines are 154 km long (Sotin-Pancevo); presently there are no oil products pipelines.

Serbia uses the oil supplies from domestic and imported sources. The domestic oil production covers some 25% of total demand.

The following oil related projects are being developed:

– Modernization of existing refinery capacities

– Building an oil products pipeline system through the Republic of Serbia
– Building the Pan-European oil pipeline and
– Building necessary storage capacities

Despite the obligations from Energy community, area covering oil market liberalization, the market prices are highest in the region as competition still did not created expected effects.

Source Serbia-energy.com