Gazprom Neft Approved Medium-term Investment Program for 2008-2010

JSC Gazprom Neft approved the scope of medium-term investment program (MIP) for 2008-2010 in the amount of RUR 267.5 bln. At that, in 2008 the volume of investments will make RUR 88.9 bln, which is 36% more that the investment program for 2007.

Main investments will be allocated for oil extraction projects: in 2008 they will make RUR 67.8 bln, in 2008-2010 – RUR 176.5 bln. Capital investments into geologic exploration will be RUR 5.6 bln in 2008 and RUR 29.7 bln in 2008-2010. In 2008, RUR 6.3 bln will be applied to develop oil refining and RUR 27.3 bln will be used for this purpose in 2008-2010. It is planned to allocate RUR 6 bln into the marketing segment in 2008 and RUR 19.9 bln in 2008-2010.

Implementation of medium-term investment program will allow JSC Gazprom Neft to solve the key strategic tasks: increase the volume of oil production, ensure future growth of extraction through efficient geologic exploration and development of new sites, strengthen competitive position of the oilfield services segment, shift to production of oil products conforming to Euro-4 standard by 2011, significantly increase the volumes of oil products retail sale.

Alexander Dyukov, Chairman of the Management Board of JSC Gazprom Neft, said: “Medium-term investment program is ambitious and serves the purpose of meeting the key strategic objectives of JSC Gazprom Neft. The main challenge of the program implementation is creation of an effective system for investment projects implementation, mainly those concerning intensive growth.”