MOSCOW, September 28 (RIA Novosti) - The Russian energy giant Gazprom said in a press release Wednesday that it had decided to increase its 2005 investment program by 92.4 billion rubles ($3.23 billion), to 305 billion rubles ($10.68 billion). The company's capital investments were increased by 49.55 billion rubles ($1.73 billion), to 237.45 billion rubles ($8.31 billion). An extra 42.85 billion rubles ($1.5 billion) was slated for financial investment, bringing it to a total of 67.55 billion rubles ($2.36 billion).
Gazprom said the decision, made at Wednesday's board meeting, "arises largely from the need to create conditions for major facilities to be put into operation in 2006" and to construct the trans-Baltic North European Pipeline and pipelines into Archangel and Severodvinsk, in northern Russia.
Along with the investment program, Gazprom's board meeting also approved a budget and a cost reduction program for the remainder of 2005. The company plans to reduce its costs by 13.8 billion rubles ($483.06 million) before year's end.
Earlier Wednesday, Gazprom struck a deal to buy control of Sibneft. The $13.01 billion deal, the biggest in Russian corporate history, will dramatically raise state-controlled Gazprom's stature in the oil patch, giving it a 72.7% stake in the country's number four oil company and, with it, 660,000 barrels a day in oil output.
