Jadran Naftagas has spudded the Obudovac exploratory well near the village of Obudovac, located in the Samac municipality in Republika Srpska, an autonomous region within Bosnia and Herzegovina (see map, OGJ, Jan. 9, 2012, p. 67).
Jadran Naftagas is a joint venture between the Serbian company NIS, a subsidiary of Gazprom Neft, and the Russian company NeftegazInKor, a subsidiary of JSC Zarubezhneft.
The well is the first that Jadran Naftagas will drill in Republika Srpska under a concession agreement executed in 2011 with the Republika Srpska Ministry of Industry, Electric Power Generation, and Mining for the geological exploration and production of hydrocarbons on the territory of the republic.
Interpretation of 2D seismic data obtained in the Republika Srpska in 2011-2012 led to the choice of location. Naftagas Oilfield Services D.O.O., an oilfield services company and NIS subsidiary, is the drilling contractor.
The project includes plans to drill another exploration well in 2013 in the municipality of Bijeljina in eastern Republika Srpska. The results of the drilling will shape the next steps.
Historical seismic data have been reinterpreted and two existing wells have been reactivated and put on pilot production in Republika Srpska. More data have been obtained through seismic studies conducted on the 210 line-km Novi Grad-Doboj section as well as in the Semberija (516 line-km) and Posavina (310 line-km) areas and also on the Banja Luka-Zvornik (303 line-km) and Banja Luka-Majevica (100 line-km) sections.
Jadran Naftagas invested $13 million in geological exploration in Republika Srpska in 2011-12. The studies looked at geologic structure in order to produce detailed analysis and the geological model needed to identify the best production areas and to schedule further studies. The results obtained testify to the potential of discovering oil and gas fields in the territory. Investment in 2013 will reach $19.5 million.
The extant seismic data were processed and interpreted at the NIS Naftagas Research & Development Center. The best locations for initial drilling have been identified as a result of joint efforts by NIS Naftagas R&D Center, Gazprom Neft, and Zarubezhneft geoscientists.
Total investment in geological exploration operations in Republika Srpska in 2014 will reach $40.7 million. If commercial hydrocarbon reserves are discovered, at least $188 million more will be invested.
Jadran Naftagas and the Republika Srpska Ministry of Industry, Electric Power Generation, and Mining executed the concession agreement for hydrocarbon exploration and production in 2011. The concession agreement will be effective for 28 years, including 3 years for geological exploration and 25 years for production. The total investment may reach $229 million.
NIS is one of the largest vertically integrated oil and gas companies in southeastern Europe, and its principal operations consist of the exploration, production, processing, and refining of oil and gas, as well as the sale of petroleum products. The company's main shareholders are Gazprom Neft 56.5% and the government of the Republic of Serbia. The company owns two refineries in Pancevo and Novi Sad and a network of 350 filling stations.
NIS operates in the Balkan region, in particular, in such countries as Serbia, Hungary, Romania, Bosnia and Herzegovina, Montenegro, Bulgaria, and Macedonia. It is also participating in a production project in Angola. In 2012, the company produced 1.69 million tons of hydrocarbons and refined 2.142 million tons of oil.
