Naftna Industrija Srbije AD (NIS), the Serbian company controlled by the Russian group OAO Gazprom Neft, wants to open 40 new petrol stations in Romania and another 40 in Bulgaria by the end of this year and aims to extend the network to 120 units by 2014, according to the investment plan released by the company.

The Serbian company will invest  EUR 500 million per year over the next three years and 40 percent of the funds will go to network modernization of 250 petrol stations in Serbia and to extend the operations in Bulgaria, Bosnia-Herzegovina and Romania, said NIS general director Kirill KravchenkoBloomberg, quoted by Bloomberg.

“We will soon complete reconstruction of our main refinery in Pancevo [Serbia] and we want to make sure that our retail sector supports placement of products from the refinery, which will be making less-polluting Euro-5-quality fuel,” Kravchenko said.

From 2016, NIS will double investments and focus on finding new sources of oil and gas in Romania, Hungary and Bosnia Herzegovina. NIS already operates oil and gas fields in northern Serbia, but will also develop new potential sites.

The company formed a partnership last year with East West Petroleum (Canada) for exploration in Romania. NIS followed similar strategies in Bosnia and Hungary, via partnerships with Neftegazinkor and Rohoel Aufsuchungs (Austria).

Investment plans could be revised if the debts owed to NIS by Srbijagas, the state gas company in Serbia are delayed. The state company owes NIS EUR 120 million for supplied gas.

In March, NIS announced that it has a budget of USD 588 million dollars this year for oil and gas exploration in Serbia, Romania, Hungary and Bosnia-Herzegovina.

NIS was privatized in 2008, taken over by the Russian company OAO Gazprom Neft for EUR 400 million, with an investment commitment of EUR 550 million.

Ioana Toader, ioana.toader@romania-insider.com