NIS obtained certificates for operations of its services in the European Union

July 16, 2013

NIS' subsidiary company, NAFTAGAS Naftni servisi d.o.o., obtained the certificate for conducting business operations in the European Union, as well as national certificates for operation in the territory of Romania and Hungary. The priority of NIS' oilfield services is to ensure as high quality of rendered services as possible, increase technical-technological efficiency and employment rate in NIS j.s.c. and its affiliated companies. NIS aims at increasing the presence of its oilfield services in the neighbouring countries and at the international market and ensuring the support of such services to NIS research and production projects abroad. NIS service capacities include all the required equipment, plants and means of transport necessary for provision of services to third parties in the area of explorations and production of crude oil and gas. These services include geophysical explorations, development, work-over and equipping of oil, gas and hydrothermal wells, performance of special operations and measurements in oil. gas and water wells, as well as maintenance and work-over of facilities and equipment, pipeline construction, installation of technological systems for oil and gas, preparatory construction works for well drilling and work-over. Two work-over plants and well services have been certified in Romania. The procedure for establishing the representative office of NAFTAGAS Naftni servisi d.o.o. is currently in place in this country, and the Company’s services might be engaged in near future. The certification of the drilling plant “National-3” and well service plants for operation in Hungary has been completed recently. Apart from the European Union, NIS’ oilfield services have been also employed in Bosnia and Herzegovina, and/or the Republic of Srpska in relation to drilling the first exploratory well for "Jadran-Naftagas” needs, a joint-venture company of NIS j.s.c. Novi Sad and the Russian Company "Neftegazinkor”. Moreover, NIS’ oilfield services operations have been conducted in Turkmenistan since 1997 and with minor interruptions. At the time of the most intensive works when the activities were conducted simultaneously based on six signed agreements, more than 200 employees from Serbia were engaged in Turkmenistan and almost two-times more local employees. The following companies were NIS’ partners during the previous period: Burren (ENI), Dragon Oil, consortium “Hazar” (Mitro), Calik Enerјi and Turkmenneft. Moreover, oilfield service activities are conducted in Turkmenistan based on the agreements entered into with the Company Dragon Oil for drilling within the oil platform. The companies agreed on the extension of the agreement by June 2014, with the possibility for prolongation of works for the additional period of one year.