Lukoil exec sees Russian oil output falling 5-20 mln tns Jul–Dec
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MOSCOW, Mar 3 (PRIME) -- Russia’s oil output will fall by 5-20 million tonnes starting from July–December due to lower investments, Leonid Fedun, vice president for strategic development of Lukoil, said during a conference call on Tuesday.
“All Russian companies have reduced their capital expenditures to varying degrees, and we see that the number of drilling brigades in Russia will also fall, which will result in a 5 to 20 million tonne oil output decrease,” Fedun said.
Lukoil will cut capital expenditures by 20-25% in the U.S. dollar-equivalent in 2015, but this will not hurt the company’s output, Fedun said. “We see our capital expenditures tapered by 20-25% in U.S. dollars, but meanwhile we do not expect significant oil output changes in 2015.”
Basing on the 2014 investment amount, Lukoil’s capital expenditures will be U.S. $11.5-12.3 billion in 2015.
Fedun said he does not rule out oil price growth to $100 until the end of 2015.
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