Bloomberg News

Gazprom Neft to Raise 2012 Capital Expenditures to $5.5 Billion

February 02, 2012

Feb. 2 (Bloomberg) -- OAO Gazprom Neft, the oil arm of Russia’s natural-gas exporter and producer, plans to spend $5.5 billion this year, not including aquisitions, said Deputy Chief Executive Officer Vadim Yakovlev.

“We are reducing investment in brownfields and investment is growing in new projects,” Yakovlev told reporters today in St. Petersburg. Capital expenditures and acquisitions together amounted to $5.4 billion last year, he said.

Gazprom Neft agreed with a Japanese partner to develop the Ignyalinskoe field at the Chonsk blocks in eastern Siberia and plans to sign a contract soon, Yakovlev said, without naming the company. The Russian oil producer is in talks with a Korean partner for two other fields, Tympuchikanskoe and Vakunayskoe, in the area, he said.

The company will soon visit the Elephant oil field in Libya to assess the assets after a force majeure was lifted in December and has a year to decide on joining the project, Yakovlev said. Gazprom Neft had agreed to buy a stake in the project from Italy’s Eni SpA before civil unrest began last year in the North African nation.

To contact the reporter on this story: Jake Rudnitsky in Moscow at jrudnitsky@bloomberg.net

To contact the editor responsible for this story: Torrey Clark at tclark8@bloomberg.net


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