“RussNeft” gets back to growth strategy

In 2010 “RussNeft” increased oil production output by 3 %. Due to considerable growth of its resource base production was filled up and the stock was increased. The company has been developing strategic production projects in Western Siberia, Udmurtiya, Tomsk Oblast. In 2010 at oilfields of the holding massive drilling programs were carried out, 123 new wells were put into operation.  
Mikhail Gutseriev also managed to stabilize and consolidate the financial situation of “Russneft”. This was made possible primarily due to arrangements that could reach the head of “RussNeft” with the major creditors of the company. Interest rate was lowered, significantly increased the timeframe for the implementation of financial commitments. As a result the company could substantially reduce the financial burden on current cash flows, the released means in amount of about $200 million were sent to the realization of current and new investment projects. Only in 2010 “RussNeft” increased the volume of investments by 60% as compared with 2009. In 2011 the company is considering the possibility of even more serious growth of financing of this direction up to 14 billion rubles from 8.7 billion rubles in 2010.    
The company has a clear vision of the future of the holding. The head of “RussNeft” has clearly formulated the development strategy. It includes in seven-year term 30% increase in oil production, the realization of the projects of effective use of associated petroleum gas and the programs of proprietary gas processing and gas energy operations, extensive geologic exploration operations. Experts and analysts of oil and gas sector assessing these plans, state that they are quite real. In April 2011 the holding of Mikhail Gutseriev became the winner of the all-Russian competition “The enterprise of the year”. Presentation of the prestigious prize to “RussNeft” defining the high reputation of the awardee, clearly demonstrates success of oil and gas holding and its President.