MOSCOW, May 12. /TASS/. Rosneft plans to slash its investment program this year by 21% or by 200 bln rubles ($2.7 bln) to about 750 bln rubles ($10.2 bln), Chief Executive Officer of the Russian oil major Igor Sechin said at the meeting with President Vladimir Putin.
"The investment program was about 950 bln rubles ($13 bln) last year… Considering, so to say, the dramatic condition of the global oil market at large and in view of decisions taken to reduce production, we will certainly have to optimize a portion of capital expenditures. We will endeavor to keep our investment program at the level of about 750 bln [rubles] ($10.2 bln)," Sechin said.
Reduction of the investment program is related to declining oil production and the measure is needed to maintain financial and economic stability of the company, Sechin noted. "We will have to make such optimization decisions in order to preserve the company's financial and economic stability," the top manager said, adding that Rosneft would endeavor to maintain investment dynamics.
Oil transportation tariffs
In his conversation with the president, Rosneft's head voiced a request to take into account the drop in raw material prices in oil transportation tariffs, since pumping costs reach 32% of the cost of oil.
"We are not asking for any special benefits, but adjusting in connection with the price drop would, of course, be significant for us. Currently, 32% of the cost of oil are transportation charges," the Rosneft CEO stated.
"If in 2008, let’s say, the cost of oil in rubles was about 1,100 rubles ($15), today's 1,200 rubles ($16) is comparable to that. Before though the pumping tariff was 822 rubles ($11) per tonne, which today exceeds 2,000-2100 rubles ($28.7)," he complained.
The Russian oil pipeline operator Transneft supports pipeline transport of crude oil and petroleum products. The Federal Antimonopoly Service of Russia sets tariffs for the monopoly’s services. Oil transport tariffs were earlier increased by 3.42% for 2020.