"RussNeft is going in 2009 to cut oil production costs by 30%".
Moscow. Oil and Gas Company "RussNeft" (RTC RUSN) is going in 2009 to reduce cost of production of 1 ton of oil by 30%, says the press-release of the company.
Processing production cost is planned to be reduced by 23%.
These figures, as the press-release points out, are the target determinants of the anti-crisis program which is being implemented by the Company.
The main measures provided by the program are production costs and disbursements reduction, strict control over expenses and optimization of financial and commodity flows of the Company with account of the situation at the market.
The aim RussNeft has set is to reach in 2009 the average annual level of controlled production costs for producing plants of 1285 rubles/ton; for refineries – 566 rubles/ ton.
In the first half year of 2009 the Company reduced the cost of production of 1 ton of oil to 1378 rubl./ton, target figure being 1419 rub./ton, the cost of processing of 1 ton of oil amounted to 591 rub./ton, the target figure being 614 rub.//ton.
Reduction of costs of oil production and oil processing is effected by “RussNeft” at the account of profits growth, reduction of disbursements, priority realization of investment projects with medium repay period, as well as more efficient organization of power supply, logistics, and using the services of contractor companies, says the press-release.
For example, in the first half of the year 2009 the Company held repeated tender for rendering services, and the result of it was that the cost of the services was 12-17% lower as compared with the previous year.