RussNeft will Invest 1.5 Bln Dollars into Oil Production during 2007-2012
Oil and Gas Company RussNeft will invest $1.5 bln into resource base development, oil production and geologic exploration during 2007-2012. This was announced to journalists by company’s president Mikhail Gutseriev. Mr. Gutseriev says that during a few forthcoming years the company expects to increase oil production to 20 mln tons – against 17 mln tons at present. He also singled it out that the company has been preparing investment projects that will be carried out during a few years. The increase of oil production, as Mr. Gutseriev puts it, will be a result of putting into operation new fields of Shapshinskaya Group, Novo-Valuninskoye field, Novo-Aganskoye field.
Moreover, RussNeft’s president says the company plans to issue Eurobonds. In future the company plans IPO as well. Now RussNeft is adjusting corporate and internal processes. M. Gutseriev also stated that the company will have prepared financial records in accordance with IFRS (International Financial Reporting Standards) for 2005 by the mid-autumn.
RussNeft comprises 30 producing entities, 3 oil refineries and 2 transporting entities and a modern distribution network of 300 gasoline filling complexes in 17 Russian regions and CIS. Total recoverable reserves of RussNeft exceed 630 mln tons. Annual production for 2005 was 17 mln tons of oil.