Russia's Rosneft Won't Up Oil Production, Sechin Says
Denis Abramov / VedomostiIgor Sechin
ST PETERSBURG — Russian oil producer Rosneft plans to keep its hydrocarbon production stable in 2015-17, Chief Executive Officer Igor Sechin said on Wednesday, potentially increasing output by 2 percent if market conditions are favorable.
Rosneft, the world's top listed oil company by output, faces financial and technological restrictions due to Western sanctions imposed over Moscow's role in the Ukraine crisis.
"The business plan envisages a stable production level in 2015-17 with the potential for an increase of 2 percent if market conditions are favorable," Sechin told Rosneft shareholders at the company's annual general meeting.
Sechin added that Rosneft planned to produce 252 million tons of oil equivalent this year. He did not give a breakdown for oil and gas.
In 2014, Rosneft oil production reached 205 million tons (4.1 million barrels per day), compared to 4.2 million barrels per day in 2013.
Speaking in St. Petersburg, Sechin said Rosneft planned to invest 300-350 billion rubles ($5.6-$6.5 billion) into new large upstream projects in 2015-17.
Rosneft, in which BP owns almost a 20 percent stake, spent 533 billion rubles on capital expenditure last year. Sechin also said the firm planned to ship around 40 percent of its exports to Asia by 2019.
He was quoted as saying by the Interfax news agency that it was hard to predict when the state would further reduce its holding in Rosneft — a plan delayed due to the weak economy — and that the chief executive officer at oil producer Surgutneftegaz, Vladimir Bogdanov, had no plans to buy Rosneft shares.