Serbia has formally initiated the drafting of a new law that will specifically regulate the exploration and production of hydrocarbons, marking a significant shift in sector governance. The initiative was announced by the Ministry of Mining and Energy at the end of last year.
According to the policy outline, the proposed legislation is designed to become a central regulatory pillar for the hydrocarbons sector. It will cover exploration, extraction, processing, and transport of oil, natural gas, condensates, and other hydrocarbon resources, including activities conducted during both exploration and production phases.
Currently, hydrocarbons in Serbia fall under the broader Law on Mining and Geological Exploration, where they are classified as energy mineral resources. Authorities argue that this framework no longer reflects the technical and operational realities of hydrocarbon projects, which differ significantly from other types of mineral extraction. The move toward a standalone law also aims to align national rules with European Union legislation.
The draft law seeks to establish a unified legal and institutional framework, covering hydrocarbon exploration and production, the assessment of geological formations for underground natural gas storage, and the permanent storage of carbon dioxide in depleted reservoirs. All activities will be regulated under strict safety and environmental standards, consistent with EU practices.
A key priority of the new legislation will be modernizing licensing and tender procedures, ensuring alignment with EU directives on hydrocarbon authorizations, geological CO2 storage, and offshore oil and gas safety. Beyond regulatory compliance, the framework aims to enhance transparency, predictability, and accountability, supporting energy security, investment in new reserves, and Serbia’s broader energy transition goals.
Environmental protection will play a central role. The law is expected to introduce binding standards at every stage, define investor obligations for land rehabilitation, remediation, and long-term monitoring, and strengthen oversight of hydrocarbon operations. Fiscal and economic provisions will be updated to ensure a fairer distribution of revenues while maintaining investment incentives.
The legislation also emphasizes the strategic use of geological formations for gas and CO2 storage as part of efforts to reduce greenhouse gas emissions. Additionally, digitalization will be promoted through electronic procedures and a centralized information system for managing hydrocarbon-related data.
Officials anticipate that the new law will significantly improve legal certainty and procedural efficiency, creating conditions for increased domestic and foreign investment while bringing Serbia closer to European regulatory standards.