NIS BECOMES ONE OF THE LARGEST INVESTORS IN BOSNIA AND HERZEGOVINA

“The market of Bosnia and Herzegovina is one of the most important ones for the development of NIS’s business in the Balkans region“, says Branko Radujko, regional manager at the company. He speaks for Euro Blic about the plans on the market here, investment volume and benefits the consumers will have with the entrance of a new player on the market of oil product retail sales.

Why did you decide to enter this market?

As part of its development and transformation strategy from a petroleum-gas company into and energy holding, NIS is expanding its business throughout the Balkan region territory. One of the Company main strategic objectives is not only the expansion of the retail network, but oil and gas exploration as well. In accordance with this, the market of the Republic of Srpska or Bosnia and Herzegovina is one of the most important ones for the development of our business along with Romania and Bulgaria which are members of the EU. Following the modernization of the Oil Refinery in Pančevo in the second half of last year, NIS is planning a production of five million tons of oil products by 2020 which is sufficient to supply the domestic market of Serbia and to provide NIS exports to neighboring countries.

What are NIS’s plans when it comes to expanding the retail network?

We are developing our retail network as two brands – NIS Petrol and GAZPROM. We started the purchased network of OMV petrol stations under the brand name GAZPROM in Banja Luka, Bijeljina, Šamac, Doboj, Brčko, Tuzla, Bosnia and Herzegovina and Sarajevo.
Currently 27 petrol stations are operating by the brand name GAZPROM, and by the end of the summer, we will start with a few more. This is an internationally renowned brand which offers customers high quality products and services. Besides this, NIS is developing its own network of petrol stations by the name NIS Petrol, we already own eight stations in Banja Luka and Bijeljina.

Why is NIS operating with two brands?

Firstly, NIS Petrol is a mass, consumer brand intended for customers whose priority is, besides service and product quality, affordable prices. The second is the premium brand GAZPROM, intended for consumers whose priority is, along with quality fuel, service and who can take a break from the long journey and use some of the additional services such as Wi-Fi, currency exchange offices etc. This practice is known worldwide and these two brands present no competition to each other because they are directed at different consumer groups.

What are your plans in the field of exploration and production?

Recently the joint company of NIS and Nаftegаzinkor – „Jаdrаn-Nаftаgаs“, initiated the first exploratory drilling in Obudovac, with plans to drill another exploratory well in the eastern part of the Republic of Srpska, on the territory of the Municipality of Bijeljinа. The dynamics of further oil and gas exploration in this area will depend on the drilling results. I must stress that the beginning of the exploratory wells does not automatically imply oil discovery. According to international oil and exploration practice, the percentage of successful exploration is around 30 percent. As part of our plans, we will invest 40.7 million dollars in oil and gas exploration by the end of 2014 and hundreds of millions of dollars will be invested in the exploitation phase, if, of course, commercial reserves are proven.

What is NIS’s planned investment volume in Bosnia and Herzegovina?

The Gazprom and NIS Petrol network in Bosnia and Herzegovina have 36 petrol stations with planned investments amounting to 90 million euro by the end of the year. By the end of 2015, GAZPROM’s retail network will consist of around 250 facilities in the Balkans region, with around 40 stations located on the territory of Bosnia and Herzegovina. During this period, NIS plans to invest about 400 million euro in the development of petrol stations in Romania, Bulgaria, and Bosnia and Herzegovina. With regards to oil and gas exploration, 10 million euro has been invested in the last two years in seismic activities in Bosnia and Herzegovina, with planned investments this year of over 10 million euro for drilling the first well and continued seismic activities.

energjia.al, 10.07.2013