Budget move: at TNK-BP
TNK-BP tightens its belt
The global financial crunch has prompted Russian producer TNK-BP to slash its investment next year by between $500 million and $1 billion, according to reports.
"The company is now considering an investment program in the amount of $3 billion to $3.5 billion. Capital expenditure has been calculated proceeding from the current tax situation and oil prices," the Russian-British joint venture told Moscow-based financial daily Kommersant.
TNK-BP's 2008 capital expenditure budget was pegged at $4.4 billion.
The company's shareholders are set to endorse the joint venture's investment programme for next year on Thursday.
TNK-BP, a 50-50 joint venture between UK supermajor BP and the Alfa Access Renova consortium of four Russian billionaires, pumped more than 572 million barrels of crude oil last year.