NIS participated at Serbia’s National Oil Committee Session

June 16, 2016

Srđan Bošnjaković, NIS Deputy CEO, Director of Strategy and Investments, has participated in the National Petroleum Committee of Serbia Experts Workshop Bošnjaković spoke at the panel “Global Oil Industry Trends between 2030 and 2050: a business view“, elaborating the current situation and challenges that would face oil companies in the coming decades. In his speech, he asserted that the forthcoming period will not bring any clarity in the crude oil prices fluctuations on the world market. Having this in mind, he stressed, the oil industry representatives ought to focus on drafting a strategy boosting their companies’ flexibility to prepare them to rise to the challenges of the ever changing business environment. Concluding his talk, Bošnjaković pointed out that, in the future oil companies ought to respond swiftly to challenges, by boosting its efficiency, while reducing costs and abandon low profit projects, and be ready to vigorously spring into action and attract additional capacities should the crude prices go up. Other than NIS representatives, this panel was also attended by Mehmet Ogutcu, Chairman of the “Partnership for Global Resources“, and Ali Rahneshin of the Iranian petrochemical company BPC. The panel was moderated by Tor Fjaeran, chairman of the Programme Council of the World Oil Committee. National Petroleum Committee of Serbia Experts Workshop was dedicated to the perspectives of the petroleum industry in the future energy mix Vuk Rajović, Specialist for Energy Blocks and Exploitation, Energy, NIS j.s.c., also participated in the activities within the gathering of the NPCS, presenting the results of the study published in the renowned international magazine "Energy Conversion and Management".  Collaboration between NIS and the Faculty of Technology in Novi Sad brought the results which demonstrate environmental sustainability of co-generation units in oil fields. In the panel discussion titled "Perspectives of Young Leaders:  Best Works", Rajović spoke about the method in which, by constructing co-generation modules, NIS successfully resolves the problem of dissolved petroleum gas which, until now, was burned on the flare and partially used in boiler rooms.  It was concluded that, apart from the production of electricity and thermal energy, NIS is trying to ensure, in addition to economic profitability, that the projects are also acceptable in terms of environmental protection. The workshop of the National Petroleum Committee of Serbia (NNKS) in Belgrade was attended by representatives of the international and regional oil companies and associations. The list of participants included the representatives of the International Energy Agency, the Energy Charter Secretariat and the Energy Community. The  expert workshop was opened by Dr. Joseph Toth, President of the World Petroleum Council and Prof. Dr. Petar Škundrić, President of the NNKS, while the conference participants had an opportunity, within the scope of several panel discussions, to hear the opinions of the renowned world experts  on the current and projected global trends in the oil industry, their estimates regarding the sources of energy which will prevail in the energy mix in the future, with the focus on the period between 2030 and 2050, as well as the proposed solutions to the challenges faced by the oil sector. After the first panel discussion on global energy trends observed from the perspective of the industry and leading international companies, which was also attended by Srđan Bošnjaković, Director of the Function for Strategy and Investments at NIS, the topic of the institutional perspective of the oil sector was discussed by Kristine Petrosyan from the International Energy Agency, Adrian Jasimi from the   Energy Community Secretariat and Dmitry Mordovenko from the consulting firm PwC, while the discussion was moderated by Marat Terterov, Chief Coordinator of the Energy Charter Secretariat from Brussels. The last panel discussion “Perspectives of Young Leaders – Best Works” was dedicated to the presentation of the selected works by young professionals, among whom the representatives of NIS, the University of Novi Sad and the National Institute of Chemistry of Slovenia, and was moderated by the Presidents of the Committee of Youth of Serbia and Hungary. According to Dr. Goran Radosavljević, General Secretary of NNKS and advisor to the Director of the Function for External and Governmental Relations of NIS, overproduction of oil and the fall in world demand have led to a significant drop in prices, which can have long-term consequences on the oil sector due to the reduced investments. While the issues like climate changes and lack of human capital have becoming increasingly important in the establishment of the energy mix, there are real indicators that fossil fuels will be gradually losing their market share, even though they will retain their primacy in the distant future. Dr. Radosavljević also emphasized that, just because of these reasons, it is necessary to make a joint effort to improve the response of oil companies to new challenges, where primary importance should be attached to the increased efficiency and greater flexibility, as well as to faster response mechanisms to changes in the environment, which will be future topics in the focus of the national committees and the global agenda of the World Petroleum Council. Presentations and official conclusions of the expert workshop will be available on the website of the National Petroleum Committee of Serbia.