LUKoil expects drop in world oil prices next year

LUKoil's forecasted net income for 2003 is some $1.5bn-1.7bn, LUKoil president Vaghit Alekperov told journalists at a news conference in Nizhny Novgorod today after a meeting of the board of directors. He pointed out that the company's investment program for 2003 would be cut by 10 percent, compared to the 2002 program, and would be about $2.185bn.

Moreover, LUKoil specialists forecast a decrease in world oil prices by 10-12 percent next year, compared to the 2002 level, the president noted. According to forecasts, the dynamics of growth in domestic oil prices in 2003 will be 1.5-2 times lower than the expected inflation rate. Alekperov specified that a set of measures aimed at limiting all kinds of expenses and providing more efficient use of financial resources was to be introduced to set off these negative tendencies.

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