Gazprom's investment crisis

Gazprom in 2010 intends invest a total of 645 billion RUB. That is only half of what the company originally planned. Consequences will be dramatic for several new project, among them the Shtokman project.

Gazprom in a board meeting in December 2008 planned 2010 capital investments of 1.4 trillion RUB and total investments of 1.55 trillion RUB, newspaper Vedomosti reports.

Now, planned 2010 investments are reduced to 645 billion RUB, the newspaper reports with reference to information from company deputy Aleksandr Ananenkov.

Despite the major reduction, the sum is still 29 percent bigger than the 2009 investments. As BarentsObserver reported, Gazprom’s revised 2009 budget includes 755 billion RUB of investments. However, that sum includes also the aquisition of a 20 percent stake in Gazprom Neft from ENI.

The investment cuts will inevitably result in setbacks in several key projects. Gazprom has already said that it will postpone the Bovanenkovo project in Yamal with one year and indicated that also the Shtokman project will see postponements coming.

Gazprom in 2010 planned to spend as much as 450 billion RUB only on the Bovanenkovo field. The project postponement will give the company some space for manoeuvring, but not enough. The company is now likely to postpone also the construction of the 1365 km long Shtokman pipeline from the Barents Sea coast to Volkhov (Leningrad Oblast), Vedomosti reports with reference to Interfax.

According to a source close to Gazprom, the company in 2010 planned total investments in the Shtokman project and the Prirazlomnoe project of 75 billion RUB.

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