Gazprom said the measures are to bring 109 billion rubles in net revenue between 2006 and 2015.
Photo: Pavel Smertin
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Gazprom to Put In $4 Bln to boost Production
Gazprom’s BOD has endorsed a program of reconstruction and refurbishing units of gas production. The Russian gas monopoly has earmarked 106 billion rubles to curb its falling gas extraction. The decision means that the company is no longer able to make up for the depletion of core resources by buying producing assets or putting small deposits in operation. Analysts predict that the measures will bring domestic gas prices up to $80 per 1,000 cu. meters in 2010.
Gazprom’s board endorsed Monday night the company’s first-ever program to refurbish units of production. The strategy is scaled up to 2010. Russia’s gas monopolist is to spend 106 billion rubles to break the downward trend of gas production at major deposits such as the Urengoiskoe, Medvezhye and Yamburgskoe which account for 65 percent of Gazprom’s production.
Gazprom said the measures are to bring 109 billion rubles in net revenue between 2006 and 2015. The steps are expected to pay off in five years. The program is to ensure 560 billion cu. meters of extracted gas by 2010.
Extraction at Gazprom’s four largest deposits is falling 7 percent every year during the last six years, according to UBS’s analytical report. The extraction went down the record-breaking 8.7 percent.
Experts note that cost of the program will mostly be passed on to Russian consumers. UBS’s report predicts gas prices to grow from the present $30-45 to $80 per 1,000 cu. meters by 2010.
Nataliya Grib and Natalya Skorlygina
All the Article in Russian as of Sep. 13, 2006
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