The Balkans region has total proven oil reserves of approximately 345 million barrels, with 198 million barrels of that located in Albania. Croatia has proven reserves of 69 million barrels, while Serbia and Montenegro (ex-Yugoslavia) holds the remaining 78 million barrels. Although a number of companies are active in the region and exploration is picking up, especially in Albania and offshore areas in the Adriatic Sea, oil production in the Balkans remains low. In 2005, the entire region produced only 41,000 barrels per day (bbl/d). Croatia produced 28,000 bbl/d. Serbia and Montenegro produced 13,000 bbl/d.

As a result of this low level of production, each of the countries in the Balkans remains a net oil importer. EIA estimates that regional oil consumption in the Balkans in 2005 totaled 237,000 bbl/d, leaving the region dependent on imports for roughly 80% of its oil needs. The region is well supplied with oil via pipeline links with Russia and Greece, as well as port facilities on the Adriatic Sea.

Privatization efforts are continuing in each of the Balkan region's three oil producers, Albania, Croatia, and Serbia and Montenegro.

In September, 2003, Russia's LUKoil acquired 79.5 percent of Serbia's oil company, Beopetrol. In November 2003, Hungarian oil and gas firm MOL completed the purchase of a 25 percent+1 share in Croatia's oil company, INA. In September 2005, Croatia selected Merrill Lynch as its advisor in planning to sell an additional 15 percent of INA. In October 2005, Croatia approved the distribution of 7 percent of INA to war veterans, as called for in the Croatian law covering this privatization. This law also allocates 7 percent to INA employees. In 2003, Albania had announced privatization plans for the state-owned oil company, ARMO. Albania called for expressions of interest in purchasing shares in 2004 and several firms responded. The schedule for the potential sale of shares in ARMO is still unclear.