Gulf Oil and Gas accountACCOUNT

Cost Optimization in Gazprom Core Operations

Source: 1/22/2013, Location: Asia

The Gazprom Management Committee Chairman Alexey Miller approved the Company's Comprehensive Cost Optimization Plan for 2013. The document contains a comprehensive list of special-purpose measures aimed at reducing investment, operational and administrative costs of the Company, as well as provides for rigid control over expenditures and the implementation of the said measures.

Particularly, in 2013 Gazprom will keep holding down prices for purchased goods, works and services. One of the mechanisms is acquiring goods (services) at prices showing a no less than 20 per cent reduction as compared with those predicted by the Russian Ministry of Economic Development. As previously, open tender procedures will be maximally applied.

Provided that gas transmission projects have for years been a basic expenditure item in the Gazprom Investment Program, the Company will go on cooperating with pipe manufacturers based on long-term contracts using a pricing formula. Such a practice already proved to be successful in 2012. The application of the formula helped not only to retain the prices at the 2011 level, but also to reduce them.

The Company will also keep optimizing the Investment Program for 2013, 2014 and 2015 as well.

Energy saving measures remain an important element of the cost optimization efforts. The measures within the Gazprom Energy Saving and Energy Efficiency Enhancement Program for 2013 will be specified in the nearest future.

The approved plan of measures specifically focuses on the introduction of innovations and advanced engineering solutions. A corresponding program will be completed in the first quarter of 2013. Moreover, the plan provides for developing the Program for the Unification of Design Concepts for Gazprom Production Facilities.

Similar documents targeted at cost optimization beyond the parent Company will be developed by Gazprom subsidiaries in January 2013.

“Gazprom met the 2012 Cost Optimization Plan. In 2013 we will proceed with enhancing the expenditure efficiency and rigidly controlling this process. The task is as follows – in 2013 some RUB 50 billion has to be saved in our core operations,” said Alexey Miller.

For more information about related Opportunities and Key Players visit Caspian Region Projects

Investment News in Russia >>

Qatar >>  2/18/2019 - Baker Hughes, a GE company, the world’s first fullstream oil and gas company, has signed a Memorandum of Understanding (MoU) with Qatar Petroleum (QP)...
Qatar >>  2/18/2019 - His Excellency Sheikh Abdullah Bin Nasser Bin Khalifa Al-Thani, the Prime Minister and Interior Minister, launched Qatar Petroleum’s Localization Prog...

Russia >>  2/14/2019 - Gazprom Neft has concluded a cooperation agreement with the Government of the Omsk Oblast at this year’s Russian Investment Forum in Sochi, signed by ...
Russia >>  2/14/2019 - Gazprom Neft, the Ministry of Industry and Trade of the Russian Federation and the Government of the Omsk Oblast have concluded a special investment c...

Mexico >>  2/13/2019 - BHP has approved US$696 million (BHP share) in funding to develop the Atlantis Phase 3 project in the US Gulf of Mexico. This follows sanction by BP, ...
Nigeria >>  2/13/2019 - A major step on attaining sufficiency in domestic gas supply was taken by the Nigerian National Petroleum Corporation (NNPC) Wednesday in Abuja with t...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Russia Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 | 33 | 34 | 35 | 36 | 37 | 38 | 39 | 40 | 41 | 42 | 43 | 44 | 45 | 46 |

More News

Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.