Capex Data
Under the Investment Program for 2008, total investments will make up RUR 710.13 bln with capital investments projected at RUR 479.42 bln and long-term financial investments projected at RUR 203.71 bln.
Under the Budget for 2008, overall cash income & revenues will make up RUR 2,926 trln; liabilities, expenditures and investments will account for RUR 3,014 trln; financial borrowings will annually be RUR 90 bln.
The Cost Optimization (Reduction) Program for 2008 stipulates activities furthered to cost optimization (reduction) accounting for RUR 10.1 bln.
Future Plans
The Gazprom Investment Program for 2008 and forecast for 2010 embraces the most promising investment projects.
In the production sector the major projects are: pre-development of the Bovanenkovskoye, Kharasaveyskoye and Shtokman fields. The work will continue on pre-development of the Kharvutisnkaya area of the Yamburgskoye, Yen-Yakhinskoye, Urengoyskoye, Zapolyarnoye and other fields.
In gas transportation the major projects are: the Bovanenkovo-Ukhta gas main system, Ukhta-Torzhok, construction of Gryazovets-Vyborg gas pipeline construction, Pochinki-Gryazovets, Murmansk-Volkhov, construction of SRTO-Torzhok gas main construction, expansion of the Urengoy gas transportation joint.
Capital investments will also be channeled to development of fields and gasification of the Irkutsk Oblast, Kamchatka Krai, Khabarovsk Krai, reconstruction of major funds and gas transportation, technical re-equipment of UGS facilities, provision of design and geological survey and operating drilling in fields.
The Long-Term Financial Investment Plan for 2008 particularly contemplates Gazprom participation in the Nord Stream, Sakhalin-2 projects as well as the projects of development and utilization of gas condensate and oil fields of the Arctic shelf of Russia including the Prirazlomnoye and Shtokman field. Additionally, the Plan stipulates the asset acquisition particularly Beltransgaz shares.
The Plan contemplates earmarking finance for field exploration and development projects abroad (in Block 112 in the Republic of Vietnam, Bay of Bengal in India), as well as provision of long-term loans to Gazprom subsidiaries to operate in the Yuzhno-Russkoye field, Krasnoyarsk Krai, Caspian Sea Shelf.
Pursuant to the investment program, in 2008 it is planned to commission 1293 km of gas mains and branch pipelines, 7 compressor stations at pipelines and underground gas storage facilities with total capacity of 616 MW, 4 compressor stations, 1 installation of the integrated gas preparation. It is also planned to put into operation 84 exploitation gas wells and 19 wells at UGS.
Company Development Conception
Investments in promising field facilities are planned to be prioritized on an economic viability basis, with the Gazprom long-term investment portfolio to be optimized in parallel with the account of comprehensive development of gas production capacities and associated transmission, processing and storage capacities.
The required extraction rate will be maintained till 2010 by bringing to full capacity the Zapolyarnoye field as well as the Aneryakhinskaya and Kharvutinskaya areas of the Yamburgskoye field, bringing onstream relatively small blocks and satellite fields located in the region of giant fields (Medvezhye, Urengoyskoye, Yamburgskoye, Zapolyarnoye). Gazprom plans to develop the Yuzhno-Russkoye field, Valanginian deposits of the Zapolyarnoye and Pestsovoye fields, Achimov deposits of the Urengoyskoye field located near existing infrastructure, which speaks in favor of the economic viability of these projects.
The period after 2010 is projected to see the development of new strategic gas production provinces in the Far East, Eastern Siberia, Ob and Taz Bays offshore, on the Yamal Peninsula and in the Arctic Seas offshore. Field developments in these regions will require a substantial amount of investment due to long distances from existing gas trunkline systems and the need to solve a number of critical tasks while constructing wells and upstream facilities, laying gas pipelines in the permafrost soil, introducing new technologies that ensure nature preservation under harsh environmental conditions.
Additionally, Gazprom strives to get involved in hydrocarbon exploration, extraction, transmission and marketing projects in third countries, as set out in its global presence strategy for the global oil and gas market, through participation in both bidding procedures and asset swap deals.
Major strategic priorities
- the Company's capitalization build-up;
- gas production increase and strengthening of the mineral resource base;
- development and modernization of the United Gas Supply System;
- large-scale international projects realization;
- production and economic efficiency enhancement.
The major goal of Gazprom's mineral exploration is to make commercial hydrocarbon reserves available for production in gas-producing areas, as well as to prepare the raw-material base in promising regions.
Up to 2010, the principal exploration targets will be the West Siberian, Timan-Pechora, and Caspian regions. Exploration will intensify in the Ob and Taz gulfs of the Kara Sea, as well as on the Pechora Sea shelf. Furthermore, increasing amounts of exploration will be conducted in the East Siberian and Far Eastern regions.
In 2011–2020, the main mineral exploration targets will be the shelf of the Arctic seas and the Sea of Okhotsk, Krasnoyarsk Territory, Irkutsk region, SakhaaYakutia, and the Sakhalin shelf.
In the long term, priority will continue to be given to the Arctic regions of West Siberia, East Siberia, and the shelf of the Arctic seas. In addition, it is planned to initiate mineral exploration in new, so far uninvestigated regions of the Siberian and Far Eastern federal districts (northern Evenkia, Sakha-Yakutiya, the Chukchi Peninsula, Kamchatka, etc.).