RussNeft adopted development strategy until 2017 with annual investment amount up to $ 500 million.
Bethlehem, Palestine. ОАО RussNeft, ranking 10th among largest oil companies of Russia, has adopted the development strategy until 2017 with annual investment amount no greater than $ 500 million, said Mikhail Gutseriev, the President and the co-owner of the Company.
"The year 2017 – annual oil output of 18 million tons, all debts repaid, annual investments of at least $ 500 million", - Gutseriev said.
The strategy of the Company, he added, implies: “individual oilfields, high-productive wells, minimal CAPEX, maximal production growth, 1 million tons extra (gain in yield this year – editorial note)”.
Gutseriev has also noted that the Company is not going to purchase new assets in Russia or abroad until 2015.
"There are no financial possibilities to buy assets till 2015, when we plan to pay off all debts to Sberbank. Later on, perhaps, we’ll be able to borrow more from Sberbank", - he said adding that those successful projects, which are being implemented in Kazakhstan and Azerbaijan, have nothing to do with RussNeft.
ОАО NK RussNeft is a vertically integrated oil holding having 24 production subsidiaries. The Company operates in 11 regions of Russia and CIS: Yugra, Yamalo-Nenets Autonomous District, Tomsk region, Ulyanovsk region, Penza region, Bryansk region, Saratov region, Kirov region, the Republic of Udmurtia and the Republic of Belarus. The Company develops 167 oil and gas fields. Net effective pay of OAO NK RussNeft exceed 600 mln tons. In 2011 the Company managed to increase oil production volume by 5.6% as compared with the prior year - up to 13.6 million tons.
Gutseriev and Sistema JSFC hold 49% of RussNeft shares each, another 2% of the securities are transferred to Sberbank, which is the Company’s major creditor.