NIS’s Bosnian Venture May Start Exploratory Drilling Next Year

Naftna Industrija Srbije AD (NIIS), majority-owned by Russia’s OAO Gazprom Neft (GAZP), said its joint venture with a unit of OAO Zarubezhneft may start drilling for oil and gas in Bosnia-Herzegovina next year.

The first exploratory drill is planned for the first quarter of 2013, based on seismic surveys by Jadran-Naftagas d.o.o, the NIS’s venture with Neftegazinkor, the company said today in an e-mailed statement. The location of the drill will be determined after the seismic data is processed, the Novi Sad, Serbia-based company said.

The companies secured a 28-year oil and gas concession last year from Republika Srpska, the Serb half of Bosnia, and pledged $40.7 million for exploration and $188.3 million for possible production, if commercial reserves are found, NIS said.

To contact the reporter on this story: Misha Savic in Belgrade at msavic2@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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