Russia's Lukoil eyes $1.5 billion investment cut on low oil price
Russia's largest private oil firm Lukoil will look to reduce its investments by $1.5 billion this year on the back of low oil price, its chief executive said in an interview published Thursday.
"Today we have three scenarios lined up: the current one of $30 for a barrel, an optimistic one of $40 and a crisis one for $20. Our earlier scenario envisaged $50 to the barrel," chief executive Vagit Alekperov told the RBK business daily.
"If we settle on $30, then from the planned investment of $8.5 billion we will have to cut about $1.5 billion," he said.
Russia's energy-reliant economy has been rocked by the fresh slump in oil as the price of a barrel has fallen to 12-year lows.
US benchmark on West Texas Intermediate -- which fell below $27 briefly Wednesday -- on Thursday lost 0.8 percent to $28.12, while Brent shed 0.6 percent to $27.72.
Russia's ruble on Thursday also resumed its slide to new record lows against the dollar, tumbling over 3 percent in early trading beyond 84 to the greenback on tumbling oil prices.