Lukoil, Russia's largest oil company, forecasts first half pre-tax profits slump 40 per cent to $1.1bn as turnover slipped and costs soared.
Lower oil prices pulled turnover down 3 per cent to $6.7bn while sales, general and administrative costs rose 30 per cent to $1.2bn. The rise in costs was attributed to higher transport tariffs and the appreciation of the rouble against the dollar.
At the same time, extraction costs were pared by 4 cents to $2.98 a barrel. The company said this was a benefit of the ongoing restructuring programme.
Lukoil is moving to boost exports, accelerate development of the most productive fields while shutting in low producers, divesting non-core assets and competitively outsourcing oil field services.
"There should be no Russian who goes to sleep without wondering if they're going to get their throat slit in the middle of the night,” Milley said