Gazprom board passes original 2016 investment program, 842 bln rubles by implementation
MOSCOW. Dec 28 (Interfax) - Gazprom's board of directors has passed the original version of the 2016 investment program, which will total 842 billion rubles by implementation.
The Russian gas giant said in a statement that the board passed the investment program, budget and cost optimization plan for 2016.
The 2016 program includes capex of 777.628 billion rubles, of which 767.327 billion rubles for capital construction and 10.301 billion rubles for the acquisition of fixed assets. Long-term financial investments will come to 64.372 billion rubles.
The original version of the investment program by financing was 806 billion rubles in 2016. The 2015 program by implementation is 840 billion rubles.
The company usually revises its investment program every half year, increasing it to a trillion rubles.
Gazprom's approved 2016 budget caps external financial borrowing at 90 billion rubles. "The approved financial plan will cover Gazprom's obligations without a deficit, in full," the company said.
The cost optimization program in 2016 provides for cost cutting measures which save 15.3 billion rubles in total.
The board also approved the long-term development program.
It took note of information about the effect of the 2015 results on the long-term forecast for the development of the global energy market and information about progress with the implementation of a corporate governance code.