RussNeft Plans Consolidation of Oil Producing Assets Area-Wise.
Oil Company RussNeft OAO is making plans for area-wise consolidation of its oil producing assets. It was announced at a presentation by the company’s Corporate Relations Vice-President Dmitry Romanov.
As of today in the structure of the company there are enterprises located in 15 regions of Russian Federation. According to the results of the current year, the oil output of the company is expected at a level of 14.5-15 million tons, and in 2006 at 20-25 million tons at the expense of organic and inorganic growth. The organic growth is expected at 11-17 per cent provided 450-500 rubles are invested per one ton of crude oil. For today the company’s enterprises in Western Siberia produce nearly 60 per cent of the total oil output of the company.
Moreover RussNeft is going to expand the structure of its refining business and refine more crude oil; specifically in Belarus there are plans to pass over from 1 million tons to 2 millions in 2006. The company is also going to increase the number of petrol stations in Moscow and its province bringing it to 300.