NIS in negotiations for geological exploration in Hungary and Greece's offshore, considering assets in Albania and Angola
MOSCOW. March 5 (Interfax) - Serbian oil company NIS, which is controlled by Russia's Gazprom Neft, is in negotiations with international company Falcon Oil & Gas Ltd for joint geological exploration in Hungary, Gazprom Neft said in its corporate magazine, Siberian Oil.
Falcon holds the rights for geological survey at a section in Hungary. Both sides are looking at the option of forming a joint venture (JV) on a parity basis. Falcon would work as the project's operator. Gazprom Neft hopes that the new JV will start operations in March-April 2012 and post its first commercial natural gas production by year's end.
NIS already has a similar JV in Hungary. The company signed an agreement with RAG Hungary Kft in 2011, according to which RAG is the project operator. Exploration drilling at the Kiskunhalas section, which is located in southern Hungary, started on January 31, 2012. At least two exploration wells will be drilled this year. Commercial production at this section might start in 2013.
In addition, NIS is in negotiations in Greece with Hellenic Petroleum for possible involvement in offshore exploration.
Furthermore, NIS plans to take part in a tender for geological exploration and development at several fields in Croatia. The tender for these fields should be announced in the coming months.
NIS and Canada's East West Petroleum signed documents for partnership in Romania. Licenses for NIS subsidiary operations in the country are now being reformed. The company plans to drill two exploration wells and start the drilling of another two. The first oil output in Romania should appear at the end of 2012. At the same time, NIS has no plans to limit its partnership only to East West Petroleum and is now in negotiations for partnership with several companies with operations in Romania.
Zarubezhneft's JV in Bosnia and Herzegovina, Jadran-Naftagas, is now carrying out seismic surveys and preparing exploration wells. The first well will be drilled in 2013. First oil output should appear around this time.
"In the framework of its foreign operations, NIS is very much interested not only in JVs but acquiring a production asset in the region. An option of acquiring one such asset in Albania is under consideration for this area of operations with Gazprom Neft," the magazine reported.
In addition, NIS and Gazprom Neft specialists plan to visit Angola in the near future in order to evaluate several projects with potential interest for both companies.