17.06.2011
RIA "Novosti"
St. Petersburg. By the end of the year "RussNeft", ranking among top ten largest oil companies of Russia, is going to reduce its debt by 700 million dollars - to 5,3 billion dollars, declared to the reporters the President and the joint holder of "RussNeft" Mikhail Gutseriev on Friday.
"We will reduce our debt by 700 million by the end of the year, and it will make 5,3 billion dollars", - said Gutseriev on the sidelines of SPIEF.
"RussNeft" is burdened with significant debt. Its major creditors are Sberbank and the trader Glencore.
"RussNeft" and "Bashneft", which is among top ten largest oil companies of the RF, carry on lengthy merger negotiations herewith the principal condition of bargain is called the debt reduction of "RussNeft". Thus, on Thursday, the President of AFK "Sistema" Mikhail Shamolin said, that the holding will consider the possibility of consolidation of two oil companies after the debt reduction of "RussNeft" to some 4 billion dollars. AFK "Sistema" owns 49% of shares of "RussNeft" and controls over 70% of shares of "Bashneft".
Gutseriev reminded that the company’s strategy and its obligations to banks provide payment in full discharge in 2017.
He also said that this year the Company should reach the production level of 18 million tons and to add 1 billion tons of new reserves. The President of the Company noticed, that the rapid buildup of oil production will be carried out at the expense of geological prospecting as well as through the acquisition of new upstream operations. He also added that currently "RussNeft" could return to the production rate of the year 2007, and according to the results of 2010 the production will make 13,7 million tons.
The investments of the Company for the year are planned in the amount of 14 billion Rubles, of which 10 billion will fall on the production, 3 billion – for the construction of infrastructure, and the rest – for gas projects.
