Interfax reported that West Siberian Resources plans capital expenditure of USD 194 million in 2009 a decrease of more than 60% from last year.

The total includes USD 58 million in upstream investment and USD 136 million in downstream.

West Siberian Resources said the investment program for 2009 will be financed entirely out of operating cash flow. WSR has moved back the dates for a host of projects reconstruction of the Khabarovsk Oil Refinery is now scheduled for completion in late 2012 compared with early 2011 previously and commercial production at the Kolvinskoye field will be launched in 2011 compared with 2010.

The report said the company targets oil production to decline 8% to 16 million barrels in 2009 and refining will fall 14.6% to 21 million barrels. It will focus on reducing short-term debt through repayment and extending the maturity of existing short-term loans.

WSR completed a merger with Alliance Oil Company in April 2008. As a result of the merger, Alliance became a WSR subsidiary, while the Alliance Group received a controlling stock interest in WSR.

CAPEX in 2008 totaled USD 541.4 million, including USD 177.06 million in explorations and production, USD 344.65 million in refining and USD 19.71 million in retail.

(Sourced from Interfax)