Itera Plans Triple Gas Output By 2012
November 2007
Oil & Gas Eurasia

Russia's independent gas producer Itera aims to increase gas output to 12 Bcm in 2008 and to 22-23 Bcm/year by 2012, according to the memorandum. To maintain this production level in 2012-2018, Itera will have to develop an additional 185 Bcm of gas reserves, the document said.

The company expects output from its existing assets, which contain reserves of 238 Bcm, to stabilize at 13.5-14 Bcm/year over the 2009-2014 period. To secure long-term growth, Itera will need to raise productivity from its existing fields and expand into new fields.

In 2006, Itera produced 7.4 Bcm, all of which came from its 49% share in the Gubkinskoye field in West Siberia. At the same time the company plans to sell off all its oil assets, worth some $300 million-500 million, as part of a restructuring plan to consolidate in the gas sector and triple gas output by 2012.

"Itera is in talks to sell all of its oil assets, which contain some 90.4 million barrels of oil," a company spokesman said. "In the future Itera plans to increase its direct ownership in gas producing and trading companies; it also plans to sell non-core and oil assets and purchase new gas production companies," the company said in a memorandum accompanying its Rb5 billion ($202.7 million) bond issue.

Source: Platts Energy