Naftna Industrija Srbije AD, a Serbian oil company controlled by OAO Gazprom Neft, agreed with Rohoel Aufsuchungs AG of Austria on joint oil and gas exploration and production in Hungary.
The partners agreed to split costs and expected profits from the 2,255 square kilometer (870 square-mile) area in the Kiskunhalas area in southern Hungary, the Belgrade-based company, also known as NIS, said in an e-mailed statement. Drilling is to begin in 2012 and NIS will get 50 percent of any output from the field for which RAG holds the license, it said.
“The aim of the cooperation is to bring together investments and share the risks and profits from gas and oil resources,” NIS said after the agreement was signed in Vienna today.
Vertically integrated NIS already operates fields across the border, in Serbia, and the agreement with RAG is part of its regional expansion aimed at increasing production “as well as resource base and level of secured reserves,” Chief Executive Officer Kirill Krachenko said in the statement.
Source businessweek.com
