Rosneft plans to boost investment about 35 percent to a record next year while production growth slows.
Capital expenditures are budgeted at 480 billion rubles ($15 billion) as the company upgrades refineries, Moscow-based Rosneft said Thursday on its web site. The state-controlled company targeted spending of about $11 billion this year, according to its third-quarter financial presentation.
Rosneft's output growth is slowing as western Siberian fields mature, diluting the gains at its Vankor field in Russia's east. Rosneft's crude production has overtaken ExxonMobil's as the highest among publicly traded companies, Vedomosti reported Thursday.
Production will climb to 124 million metric tons of liquids next year (2.48 million barrels a day) from 122.5 million tons this year, according to the statement. On a per-day basis, that is growth of about 1 percent, according to Bloomberg calculations. Crude and gas condensate output rose 2.5 percent this year, according to the statement.
Crude processing at Rosneft's refineries will probably reach 64.6 million tons next year from 57.9 million tons this year, according to the statement. The company is devoting 168 billion rubles, or about 35 percent of the planned spending, to modernizing refineries and improving fuel quality.
"The goal of the program is by 2015 to produce Euro-5 motor fuel," Rosneft said. Euro-5 grade contains no more than 10 parts per million of sulfur.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.