MOSCOW, June 19 (RIA Novosti) -- Surgutneftegaz (RTS: SNGS) is planning to increase investment in 2007 by 40% on 2006, to 88 billion rubles (about $326 mln), the company's chief executive said Monday.
Vladimir Bogdanov said the Siberian oil company would channel investment into boosting oil production and downstream operations, adding that in 2005 the company had produced 64 million metric tons of crude.
He said earlier that downstream operations would account for most of investment growth, attributing this to an ongoing project to build a new deep conversion refinery. With the plant operational, the company's oil-products output is expected to reach 22 million metric tons in 2007, with oil production increasing 5% annually.
He said the company was planning to produce 3 million metric tons of oil per year (60,400 bbl/d) a year at its Talakan oilfield by 2008 which would be subsequently doubled to 6 mln tons (120,800 bbl/d)
The Talakan oilfield is the company's main investment program in East Siberia.