He is taking part in a meeting of federal government officials with Chechnya's authorities.
Mr. Bogdanchikov reminded the audience that the republic annually produces about two million tons of crude oil.
"This year, after a 15-year-long break, we resumed well-drilling in the republic," Rosneft CEO said. According to him, 48 flowing and powered wells will be put on production in 2004, with 2005 seeing an increase to 100-150 wells in operation.
At the same time, Sergei Bogdanchikov pointed out that the volume of oil stolen through illegal cut-ins into the pipeline running across the republic has never before been so enormous.
"The volume of stolen oil has permanently been on the rise. In 2002 we registered theft of 48,000 tons of oil. In 2003 the amount rose to 150,000 tons, worth about 300 million rubles (nearly $10 mln.) On the whole, oil thefts account for 7 percent of annual oil production," Rosneft CEO said.
He believes, however, that the oil theft problem can be successfully dealt with. Last year, the company, in close cooperation with law enforcement bodies, liquidated as many as 1,500 illegal cut-ins and more than 1,000 improvized oil refineries.
Responding to a question whether the company intended to allocate a greater share of the Grozneftegaz (Rosneft's subsidiary) profits to social programs in Chechnya, Mr. Bogdanchikov said that in the next 2-2.5 years the company would expand its investment in development of oil production capacities.
"Then, in two years' time, we will be in a position to substantially increase, actually to quadruple, our social allocations," he said.
