Thursday, June 25, 2009
Gazprom may cut its investprogram by 30 pct this year
MOSCOW, June 25, 2009 (Itar-Tass) - Gazprom intends to reconsider and to approve an adjusted budget of the holding in August-September this year. Andrei Kruglov, Deputy Chairman of the Board and head of the Gazprom financial and economic department, told a news conference here on Thursday, "This is normal practice for Gazprom to reconsider the parameters of the company’s budget on the strength of half-year results". Kruglov pointed out that the results of the first quarter -- during which a decline in gas prices, the complex situation concerning Ukraine, and a continuation of the economic downturn played a substantial role -- are no indicators that determine a trend for the entire year. Therefore, the holding will orient itself to the results of the second quarter and the first six-month period as a whole. "Taking into consideration the decline in demand for gas on the world markets, Gazprom intends to cut investments," Kruglov emphasized. He said, "The overall scope of investment programme adjustment may amount to about 30 percent downward". Gazprom's investment programme, which is calculated on the strength of the forecast for average annual oil price of $42 per barrel, amounts to 920,000 million roubles this year. Speakng of adjustment plans, Kruglov pointed out, "One of key tasks among the anti-crisis measures is to determine priorities more efficiently". "We do not plan seriously to cut down capital expenses on priority projects and on the construction of key processing and transportation facilities," he assured. Kruglov also stressed that Gazprom affords enough monetary resources and open credit lines to ensure a sufficient level of liquidity".