Serbia and Montenegro has total proven oil reserves totaling 78 million barrels, oil production though is very low and averaged 14,000 bbl/d in 2003 making the country a net oil importer. Proven natural gas reserves total 1.7 Tcf.
In September, 2003, Russia's LUKoil acquired 79.5% of Serbia's oil company, Beopetrol. The overall bid included investment commitments of EUR 85mn over the next five years and a social programme for the company’s employees of EUR 5mn, making the entire value of the bid EUR 207mn. The only other bid was filed by Hungary’s MOL, which come up with a purchase price of EUR 101mn, investment commitments of EUR 84mn and a social programme for EUR 2.35mn.
Beopetrol is engaged in trading of oil, refined petroleum products, lubricant oils, lubricants, derivative processing, including commercial and retail marketing of convenience goods. Up to 1990. "Beopetrol" Beograd had operated as an affiliation of INA, oil and petroleum company from Zagreb, to become a stand-alone company afterwards.
The Serbian Energy Agency was founded in consequence to the Energy Law, entered in force on 1st August 2004. The main tasks of this body are enhancing and directing the energy market development, monitoring the implementation of regulations and energy systems operation codes, harmonization activities of energy entities on providing regular supply of energy and services to customer as well as their protection. In order to cope with those tasks, it has been envisaged for the Agency to be an independent legal subject. It will have operational independence from any governmental body, energy subjects, their users, as well as all other legal or physical persons. This body will define the whole set of tariff systems (approved from Government), as well as methodologies that will enable energy sector regulation. To be more precise, this group of instruments comprises tariff systems for electricity and gas pricing, and methodologies upon which the elements of those tariff system will be calculated. This body has also the authority to approve the grid codes of the relevant energy undertakings, as well as to decide upon lodged appeal on access and connection refusal by the energy undertakings. It is authorized to decide upon the level of market opening.
