NIS ramps up upstream spending with €41.8m investment in Q1 2026

Serbia’s only integrated oil and gas producer is leaning further into upstream growth as it seeks to sustain output amid a difficult market backdrop. NIS said it spent €41.8 million on its exploration and production segment in the first quarter of 2026, underscoring how capital allocation remains focused on boosting production capacity and operational efficiency.

Upstream-focused capex drives output gains

In the period, upstream activities accounted for nearly four-fifths of NIS’s total capital expenditures. The company directed the investment program primarily toward drilling operations, geological and technical work, infrastructure upgrades, equipment procurement, and maintenance projects—measures intended to strengthen production capability while improving how efficiently assets are run.

NIS attributed part of its performance to newly commissioned oil wells and geological interventions carried out between January and March. Those activities resulted in an additional 13,500 tons of crude oil production, contributing to improved output in the upstream segment.

Velebit horizontal wells point to broader drilling plans

A central element of the quarter’s results came from development work at the Velebit oil field. NIS said it intensified drilling there through new horizontal wells, and that following the results achieved at Velebit it plans to expand the use of horizontal drilling technology to other fields within its portfolio.

Production remains steady across the asset base

Across its entire asset base, NIS reported total production of approximately 280,000 conditional tons of oil and gas during the first quarter of 2026. The company framed this as steady operational performance despite challenging market conditions.

Predrag Radanović, head of NIS’s Exploration and Production division, said the outcomes matter not only for Serbia but also regionally given the complexity of current market conditions. He added that the latest investment cycle is an important step toward strengthening production capabilities and improving long-term efficiency.

Long-term strategy centers on productivity and optimization

NIS also emphasized that further investments aimed at enhancing productivity and optimizing operations remain core to its long-term strategy.

The company remains Serbia’s only firm actively involved in both oil and gas exploration and hydrocarbon production. Beyond domestic operations, it manages upstream assets in Romania and Bosnia and Herzegovina, with its oldest international concession located in Angola where production has been ongoing since 1985.