Russia: Lukoil Approves Revised Expenditure Plan
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Tuesday, 04 November 2008 |
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Lukoil Holdings said its board had approved a medium-term plan to 2011
that will help provide financial stability amid the global economic
crisis.
Lukoil said next year's capital spending would be between $7.5 billion
and $9 billion, but could fall as low as $5.1 billion should oil prices
fall further. The company said a program to optimize costs could save
$900 million from lower operating, general and administrative expenses,
and better production efficiency.
Lukoil added it would review account settlement systems with suppliers
and contractors across all business segments and would lower the terms
and amounts of advance payments to ensure additional cash flow of $1
billion in 2009.
"Such actions, in addition to the scheduled rescue measures, will help
provide financial stability of Lukoil given any development scenario of
the global and Russian economy," Lukoil President Vagit Alekperov said.
All the measures are aimed at better management of working capital and
- eventually - its reduction, Lukoil said, adding that the measures
were also designed to ensure additional cash flow of $1 billion in 2009.
Lukoil Vice President Leonid Fedun said Wednesday the company's budget
is based on oil prices of $45 a barrel as a pessimistic scenario, $60 a
barrel for the optimal one, and $80 a barrel for an optimistic outlook.
PetrolWorld 011108 www.lukoil.com
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