Yukos
holds expanded management meeting
Posted: 1 March 2004
Yukos Oil Company held an Expanded Management Meeting to consider
the Company's 2003 operational activity results and to discuss the
capital and operating plans for the Company for 2004 approved by
the Board of Directors.
"This year's production plan and investment program are unprecedented
in Yukos' history. The key management priorities for this year will
be unconditional fulfillment of the targets set by the Board of
Directors as well as continued improvement of investment projects
efficiency and cost reduction," said Simon Kukes, the Company's
CEO
The Company's crude oil and gas condensate production target for
2004 was set at 90 million metric tons (659 million bbl), including
1.8 million metric tons (13 million bbl) of Yukos' interest in the
production of equity affiliates, which is approximately 11.4 per
cent above 2003 production. The produced and associated gas production
target for 2004 was set at 7.07 billion cubic meters (250 billion
cubic feet), including 1.95 billion cubic meters (69 billion cubic
feet) of Yukos' interest in the production of equity affiliates,
which is 25.1 per cent higher than gas production in 2003.
Refining throughput is expected to reach 39.2 million metric tons
(287 million bbl) in 2004, approximately the same level as in 2003.
This includes 8.0 million tons (59 million bbl) to be refined by
Mazeikiu Nafta.
Most of the Company's incremental crude oil and gas condensate
production is expected to be sold internationally in 2004. International
sales of crude oil are expected to increase 15.7 per cent to 49.9
million metric tons (365 million barrels) in 2004. International
sales of petroleum products are expected to reach 18.8 million metric
tons (136 million barrels), 3.9 per cent more than in 2003 mainly
as a result of higher expected sales of petroleum products at Mazeikiu
Nafta. Sales of petroleum products on the Russian domestic market
in 2004 are expected to decrease by 5.1 per cent from 2003 levels
to 17.0 million metric tons (126 million barrels).
Exports of crude oil outside the territory of the Russian Federation
including sales to Mazeikiu Nafta are expected to reach 57.7 million
metric tons (422 million barrels) in 2004, 17.3 per cent more than
in 2003. Exports of petroleum products, excluding sales of Mazeikiu
Nafta, are expected to decrease by 3.8 per cent from 2003 levels
to 11.4 million metric tons (80 million barrels) in 2004.
Approved capital expenditures for 2004 are planned to reach approximately
USD 1.9 billion compared to the about USD 1.7 billion on a US GAAP
basis expected for 2003, excluding acquisitions but including approximately
USD 300 million for business development activities.
Capital expenditures for refining and marketing are expected to
increase from the USD 336 million expected in 2003 to USD 586 million
targeted in 2004 primarily due to higher investments in refinery
modernization aimed at improvement of refinery mix and compliance
with new product specifications as well as higher investments in
transportation infrastructure development and investment in gasoline
stations. Corporate and other capital expenditures are expected
to be USD 30 million in 2004 compared to USD 97 million in 2003.
The above data does not include the operational plans and expected
results of OAO Sibneft. Yukos completed the acquisition of 92 per
cent of OAO Sibneft in October 2003 and currently intends to consolidate
the financial and operational results of this subsidiary starting
from the acquisition date, however, Sibneft has not yet provided
Yukos with the information necessary to consolidate the Sibneft
operating and capital expenditures plans for 2004 or the results
of 2003.
For more information see www.yukos.com
Posted by Richard Price,
Editor Pipeline Magazine
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