REUTERS
Russian gas giant Gazprom is testing scenarios under which oil prices are as low as $20-$25 per barrel, Igor Shatalov, first deputy head of Gazprom's financial and economic department, told investors at a meeting in New York on Monday, Russian news agency TASS reported.
Shatalov said the budgeted $50 per barrel oil price was below most analysts' forecasts. He also noted the company tailored its budget based on oil price forecasts of $35 per barrel.
"We are now working on a $25 and $20 per barrel analysis," Shatalov said.
During the meeting, member of Gazprom's Board of Directors Oleg Aksyutin said the company sees the recent decline in oil prices as temporary. He also stressed the state seeks to maintain the integrity of Gazprom group, especially in the current crisis.
Read also3 scenarios for oil in 2016: RBC commodity chiefRBC reported that earlier in January, Sberbank CFO Alexander Morozov had voiced the preparation of stress scenarios with the price of oil at $20-25 per barrel or even lower. According to Morozov, the base-case scenario included in the business plan for 2016 envisages the average price of Brent crude oil at $35 per barrel this year (compared to $50 per barrel included in the base-case scenario drafted late 2015). The average dollar exchange rate is projected at 77.4 rubles per dollar, as compared to the previous forecast of 60 RUB/USD.
Lukoil CEO Vagit Alekperov said the company expects that the oil price will average at $30 per barrel this year. A stress scenario envisages a further drop in prices down to $20. Alekperov estimates that the break-even price for Russian oil is $24 per barrel.