Serbian oil company NIS invested €41.8 million in its oil and gas exploration and production segment during the first quarter of 2026, with upstream activities accounting for nearly four-fifths of total capital expenditures in the period.
The investment program was primarily directed toward drilling operations, geological and technical works, infrastructure upgrades, equipment procurement, and maintenance projects, all aimed at strengthening production capacity and improving operational efficiency.
According to the company, newly commissioned oil wells and various geological interventions carried out between January and March resulted in an additional 13,500 tons of crude oil production, contributing to improved output performance in the upstream segment.
A key contribution came from the development of new horizontal wells at the Velebit oil field, where NIS has intensified drilling activity. Following the results achieved at Velebit, the company plans to expand the use of horizontal drilling technology to other oil fields within its portfolio.
During the first quarter of 2026, NIS recorded total production of approximately 280,000 conditional tons of oil and gas across its entire asset base, reflecting steady operational performance despite a challenging market environment.
Predrag Radanović, head of the company’s Exploration and Production division, stated that the results achieved are significant not only for Serbia but also at the regional level, particularly given the complexity of current market conditions. He added that the latest investment cycle represents an important step toward strengthening production capabilities and improving long-term efficiency.
The company also emphasized that further investments in productivity enhancement and operational optimization remain a core part of its long-term strategy.
NIS remains Serbia’s only company actively engaged in both oil and gas exploration and hydrocarbon production. In addition to its domestic operations, the company also manages upstream assets in Romania and Bosnia and Herzegovina, while its oldest international concession is located in Angola, where production has been ongoing since 1985.
