Ready for action: Gazprom Neft
Gazprom Neft plans shopping spree
Russia's Gazprom Neft is planning to more than double its oil output by 2020 through a series of buy-ups, the oil arm of gas giant Gazprom said in a strategy document released today.
"Gazprom Neft will produce 90 million to 100 million tonnes of oil per year (1.8 million to 2 million barrels per day) by 2020 including subsidiary companies, Gazprom fields and new acquisitions both in Russia and abroad," the company said in a statement.
Gazprom Neft, which produced around 43 million tonnes of oil last year, flat on 2006, has been fighting declining production since its former owner, billionaire Roman Abramovich, sold the company, then called Sibneft, to the gas giant in 2005, a Reuters report said.
Gazprom Neft, which expects Gazprom to hand over the right to develop all of Gazprom's 11 oilfields within the next two to three years, has said it plans to invest up to $4 billion per year to 2020, or around $50 billion, to boost output.
"In its long-term strategy Gazprom Neft intends to develop its activity abroad," it added, saying it eyed Europe, the US and the Asian Pacific as areas of strategic interest.
Closer to home, West Siberia will remain a key region for the company and East Siberia and the northern Nenets region will also be developed.
Russian media has quoted Gazprom Neft boss Alexander Dyukov as saying his company would study swapping its production facilities in Russia with refineries of western partners Eni, Shell or Chevron .
Eni has a 20% stake in Gazprom Neft, which is up for either renewal or a buy-out by Gazprom next year.