Naftna Industrija Srbije : Investor Day_2023_Dugoročni razvoj Bloka istraživanje i proizvodnja

Investor Day 2023

LONG-TERM DEVELOPMENT OF UPSTREAM BLOCK

The Main Directions of Development

PRODUCTION OF HYDROCARBONS

• Maintaining HC from 2024 in order to preserve the volume of business, engagement in refining and the reduction of the share of imports.
• Filling the reserves.

TECHNOLOGY

• Increasing drilling technology

((horizontal wells, horizontal wells with

multitrack, re-entry drilling, lateral drilling) to

increase efficiency

• Development of chemical methods for

production to increase the coefficient of

recovery.

NEW BUSINESS DIRECTIONS AND EXIT TO FOREIGN MARKETS

• Diversification of the business portfolio in conditions of high market instability and the creation of reserves (EBITDA from non-profile business projects).
• Development of renewable energy source and
  integration of the green agenda (30% of SO2 emissions by 2030)
• Monetisation of acquired competences on the external market.

Operation with

potential and

increasing operational efficiency

• Development of gas with a high content of

CO2 - development of e/e (projects B.

Miloševo, S. Crnja) for the introduction of gas

reserves in development

DEVELOPMENT OF CONCESSIONS

• Angola: Extending the sharing agreement until 2040 with the improvement of fiscal conditions
• B&H: further development in E. Herzegovina
• Romania: Focus on the central asset Teremija Sever, (North) completion of permitting and transition to infrastructure construction.

2

Upstream Projects

Project objective: The monetization of geothermal resources on NIS assets and development of renewable energy sources

Up to 10 МW of Thermal energy

Project objective: Decarbonization of production processes and support of the emission reduction strategy

3 Up to 30 %	Reduction of СО2
emissions by 2030.

Project objective: Increasing sour gas production and monetization through electricity generation

4,8 МW of electricity

BANATSKO

MILOŠEVO

SRPSKA

CRNJA

BEČEJ

VRBAS		ELEMIR

NOVI SAD

PANČEVO

Project objective: Production of low- carbon hydrogen within the production complex Elemir / Pancevo

The Project of Chemical Methods for Production Increase

Production with extrusion of surfactant polymer mixture

Production well

Injection well

Injection well

	Injection of
	Surfactant
	Movement of		Polymer	The remaining
Oil left after	surfactant-
releases	additional oil		displaces the	oil after
washing	polymer
additional oil	through the layer		oil	extrusion
	mixture

Кључне информације о пројекту

• EOR (enhanced oil recovery) technologies are used by leading oil companies in order to extend the life of mature fields; they are based on the injection of surfactant and polymer solutions into oil reservoirs with the aim of starting trapped oil and thus increasing the oil production

• program of EOR project is one of the key ones for maintaining production. The technology is implemented at NIS with the scientific support of NIS Scientific Technical Centre, as well as the participation of Russian and European partners

Potential effect

Up to 5-10% increasing the coefficient of bearing utilization

Work in progress and completed

• The desk work on assessing the applicability of technology and design for application in priority fields has been completed.
• Currently, field tests of the effectiveness of pressing surfactant polymer mixture on individual wells are underway.
• It is planned to start pilot permanent injection at the end of 2024 on 3 wells, and the complete implementation of injection is planned from 2028.

4

New Technologies Aimed at Efficient Use of Domestic Oil and Gas Resources

TECHNOLOGICAL POTENTIAL CONVERSION STAGES

CHALLENGES

HYPOTHESES

SOLUTIONS

REPLICATING

Transforming a problem

Assessment of the

Ranking of technologies

into a challenge

applicability of

technologies to assets

Investigating the

Demand for technology to

Calcualtion of Financial

Request for funding

problem

overcome challenges

Ecoomic model

CONE OF VALUE CREATION FROM NEW TECHNOLOGIES 2023

Technological limit of new

technologies of Upstream

Covered with

Technological solutions

Replication potential (EMV

Block

hypotheses and

portfolio (technology

business challenges

projects and pilot projects)

across the horizon)

in Upstream Block

40

21

10

11

technological challenges

hypotheses

draft decisions

technology, ready for

replication

PORTFOLIO OF PILOT PROJECTS 2024

Pipeline relining

Relining involves the use of a structure, which is a flexible hose that is used to insert into an existing steel pipeline. Multi-layer polyethylene and Kevlar structure creates a resistant, flexible and strong hose, which is resistant to chemical influences and mechanical loads.

Intelectual diagnostic of pipelines

Intelligent diagnostics implies the use of a small-diameterin-pipe diagnostic tool, which ensures the implementation of preventive diagnostics of risky sections of the pipeline. The method includes the preparation of launch and acceptance ramps for the launch and reception of the intra-pipeline diagnostic tool, as well as the interpretation of the obtained data for the purpose of creating plans for reconstruction and / or determining the deadlines for the safe exploitation of the pipeline.

Mechanical cleaning of pipelines

Use of flexible inner-tube hoses and jet nozzles to clean pipelines. It is necessary to make transition pieces and adapt the entrances to the pipe so that the flexible connections can be drawn into the pipeline and perform the removal of deposits by applying fluids under high pressure.

Working fluids for reservoirs with abnormaly low formation pressure

The technology involves the application of a block composition, which represents a fluid of high density and viscosity, which is pumped into the well by means of aggregates. Upon contact with the perforation, a filtration cake is created, which ensures the complete hermeticity of the well.

KEY RESULTS OF STM IN 2023.

1. Standards on the formation of Technology Asset Plans and work with New Technologies elaborated and implemented
2. Portfolio formed and the potential of New technology replication on Upstream Block assets.

CONCLUSIONS:

Within the last cycle, technological plan of assets (TPA) was formed and defended for the first time on the Technical Committee the portfolio of 4 OPI (trial test) implementation projects. The next step is to present a package of documents to the Investment Committee, conduct field tests with monitoring of the achievement of the planned effects and further circulation on Upstream Block assets.

5

Increasing the Efficiency of Domestic Reservoirs

Latteral drilling using Mini Coil Tubing

• Lateral drilling is an alternative to hydraulic fracturing
• The technology involves opening lateral holes with a diameter of up to 50 mm in the casing and drilling up to 6 lateral channels through the production formations in the length of 30 to 100 m.
• In this way, it is possible to obtain residual oil reserves between wells.
• After drilling the lateral, stimulation with near wellbore zone acid solution is possible through the same equipment used for drilling the lateral.
• The application of this technology before conventional fracturing significantly increases the chances of controlling fracture formation in the desired direction.

Drilling optimization

• The optimization of drilling costs by over 20% through modification of the well structure and increase in technological efficiency.
• The reduction of deadlines for the construction of new wells by over 10%.
• Implementation of the process of complete well construction cycle, in order to improve and effectiveness
• The production of the outwash mud base and the optimization of the total amount of use and depositing of the working fluid for drilling.

"SandWedge"

Formation Pressure Maintenance

Goal: increase in MRP and production of wells with sand drift problem.

Assignments:

• Preventing production reduction over a long period of time.
• Increasing the efficiency of the Gravel Pack system in terms of fine sand removal.
• A water-based chemical technology that chemically modifies the surface of the formation's sand grains in the well, resulting in increased permeability and stabilization of the near-wellbore zone

Oil well

water injection wells

oil reservoir

The drop in reservoir pressure can be the cause of loss of oil production from the reservoir by injecting water under pressure into the reservoir, this loss can be compensated.

Achieved		Base production		The effect of water injection

200

150

100

50

0

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

2015

2017

2019

2021

2023

2025

2027

2029

2031

2033

2035

2037

2039

2041

2043

2045

2047

2049

6

Investor Day 2023

THANK YOU FOR THE ATTENTION!