Gazpromneft to exhaust Serbian oil reserves by 2021

The fact that the share that Serbian crude oil has in total oil production of Gazpromneft has grown threefold since 2008 just shows how ruthless is Gazpromneft’s exploitation of Serbian oil fields.

Experts say that this information alone would be a huge red flag for any government because it is quite evident that a foreign company, which has the exploitation right, has chosen to ignore fair play and global standards which specifically state that natural resources should be treated rationally, all with the view of making the biggest profit possible. This practically means that NIS (Gazpromneft) has misused Serbian mineral resources especially during the period when the global price of crude oil plummeted.

A source of the Blic daily says that that was the reason why NIS continued to generate big profit at the time when most oil companies were recording losses.

“The state of Serbia is keeping mum about its natural resources being ruthlessly exploited, and it even doesn’t control what is going on in NIS. Before the Russians took over a part of NIS, the annual share of domestic oil in overall consumption of oil was between 20% and 22%. This was written in the state’s strategy with the view of preserving domestic resources. After Gazpromneft came to Serbia, the destruction of Serbian oil wells started with the aforementioned share jumping to 31% in 2010, and subsequently to 57% last year. By doing so, NIS has generated an enormous profit since the barrel of Serbian crude oil retails at around 20 USD, while in Russia it is several times more due to the fact that the mineral rent there is 7.5 times higher than in Serbia. The difference in price between Serbian and imported oil is 730 USD per tonne, so you can only imagine how much money did they make”, one of the NIS executives says.

Our source also says that the time has come for the Serbian government to change the intergovernmental agreement with Russia (Gazpromneft) since the main prerequisite for it was that a leg of the South Stream gas pipeline would run through Serbia which is no longer the case. Experts fully agree with this.

(Blic, 08.05.2017)


This post is also available in: Italiano

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One Reply to “Gazpromneft to exhaust Serbian oil reserves by 2021”

  1. jj says:

    “since the main prerequisite for it was that a leg of the South Stream gas pipeline would run through Serbia which is no longer the case”

    But South Stream is being replaced by Turkish Stream, so if Turkish Stream works as well as South Stream would have then it could be substituted.
    But this exploitation of Serbian oil reserves shows the Serbian government is foolish, incompetent and/or uncaring of Serbia’s resources.
    If this continues and violates the contract or leads to damage then there should be lawsuits against it. But doesn’t Serbia get some share of Gazpromneft profit since it does own a fair percentage of it itself?

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