UPDATE 2: Russia’s Surgutneftegas plans no cuts in investment program

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SURGUT, Jun 29 (PRIME) -- Russian oil company Surgutneftegas invested more than 260 billion rubles in oil production in 2015 and has no plans to cut the volumes any time soon, while production will be maintained at about 61 million tonnes of oil per year, CEO Vladimir Bogdanov said Wednesday at the company’s annual general meeting.

“We have been maintaining the production plateau at a level of about 61 million tonnes for five years, which is an optimal amount. The consistent result was ensured by systematic capital investments…In 2015, the company’s investments in oil production exceeded 260 billion rubles, up 10% compared with 2010. We plan no cuts in the investment program any time soon,” he said.

Surgutneftegas also plans to launch production at 19 fields in West and East Siberia in the next five years, with production at four of them launched this year. In the five previous years, the company launched production at 15 fields, he said.

Taking into account the plans, Surgutneftegas does not expect a significant increase of oil production. “We are maintaining the plateau in our strategy because we increase the oil recovery ratio through that…Our oil recovery ratio for developed fields is the highest in the country as of today,” he said.

The company’s geological exploration is expected to increase its estimated oil reserves by at least 75 million tonnes in 2016. “As of today, we have found two fields…I think we will be able to fulfill the program, and (our reserves) may grow even more,” Bogdanov said.

(64.8095 rubles – U.S. $1)

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