NIS Seeks to Extract More Oil from Serbia’s Largest Field – Advanced Recovery Method Planned at "Velebit" Oil Site

Naftna industrija Srbije (NIS) has launched a tender for the construction of a system to test the feasibility of implementing an enhanced oil recovery method, aiming to boost production at the "Velebit" exploitation field (EP "Velebit").

The tender is open until August 4.

Located in the municipality of Kanjiza, the "Velebit" oil and gas field is the largest oil deposit in Serbia. It was discovered in 1968, and production began in 1985.

The goal of this pilot project is to increase oil output by injecting a surfactant-polymer (SP) blend into three new injection wells. The expected outcome is enhanced oil production from seven adjacent producing wells, according to the Environmental Impact Assessment (EIA) Scope and Content Request that NIS submitted in April to the Provincial Secretariat for Urban Planning and Environmental Protection.

The planned surfactant-polymer method is considered an advanced enhanced oil recovery (EOR) technique, commonly used to extract additional oil from mature reservoirs.

This approach involves injecting surfactants—surface-active agents that reduce interfacial tension between oil and water—to help release oil trapped in rock pores, along with polymers that increase the viscosity of the injected water. This improves sweep efficiency by pushing oil more uniformly toward the production wells and reduces the so-called "water breakthrough" effect.

The aim is to boost oil recovery efficiency by extracting oil that would otherwise remain trapped following conventional water flooding.

According to the EIA request submitted by NIS—based on which the Secretariat has already issued a decision on the scope and content of the EIA study—current production at EP "Velebit" stands at 592 tonnes of oil per day, with a water cut of 85%, and daily dissolved gas production of 15,497 cubic meters.

The project includes the installation of equipment for preparing the surfactant-polymer blend, as well as the construction of supporting infrastructure such as a water tank, filtration plant, surfactant storage tank, truck unloading station, and pipeline network connecting to the injection wells.

The initiative is structured in two phases. The second phase, running through 2041, targets a 7.5% increase in the oil recovery factor and overall production. The first phase, scheduled for completion by December 2026, focuses on identifying optimal injection parameters.

Notably, media reports from eight years ago suggested that the "Velebit" field’s reserves were "nearing depletion," particularly after NIS underwent privatization and accelerated extraction efforts were implemented.

Yesterday, NIS reported in its H1 2025 financial results that oil and gas production totaled 556,000 tonnes of oil equivalent—a 3% decline compared to the same period last year.

As previously announced, due to complex circumstances, most notably the impact of U.S. sanctions and a drop in global oil prices, the Group ended the first half of the year with a net loss of RSD 3.6 billion.

B. P.

NIS a.d. Novi Sad

Pokrajinski sekretarijat za urbanizam i zaštitu životne sredine Novi Sad

Naftna industrija Srbije

Oil Industry of Serbia

NIS

Provincial Secretariat for Urban Planning and Environmental Protection

Velebit exploitation field

the largest oil deposit in Serbia

advanced oil exploitation method

surfactant polymer oil extraction system

pilot project