ROSNEFT INTENDS TO CONTINUE
On December 18, Rosneft's Board of Directors reviewed preliminary results of the Company's performance in 2014 and approved the 2015-2016 plan.
According to preliminary data, in 2014 the Company's growth in reserves exceeded planned rates and is expected to reach over 450 million TOE. In particular, drilling of the world's most northern well, Universitetskaya-1, was successfully completed discovering the Pobeda field.
The Company's 2015-2016 business plan is arranged considering a conservative macroeconomic blueprint and is aimed at the realization of the Long-term Development Program goals. The Program was approved by the Russian Government. It is planned to increase production as well as continue the program of efficiency enhancement including growth of energy efficiency. That will let the Company to reduce OPEX per BOE. In 2014 this figure is expected to be lower than $4 per barrel which is the lowest level among international oil and gas companies.
In 2015-2016 the Company expects to generate a stable and positive free cash flow, which, along with internal cash sources is sufficient for the implementation of the Company's investment program, its planned debt service as well as payout of interests and dividends.
Rosneft intends to continue net debt reduction in 2015-2016 to appropriate net debt-EBITDA ratio.
Commenting on the results of the Board meeting, Head of Rosneft Igor Sechin said: "The Company continues its development and generates stable cash flow, which completely supplies our financial needs. Our investment program is aimed at the continuation of the development of the Company in compliance with the Long-term Development Program approved by the Board of Directors and is provided with the sources of financing. This applies also to the timely debt service".
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