2nd Apr 2020 16:51
(Alliance News) - Volga Gas PLC, the oil and gas exploration and production group operating in the Volga region of Russia, on Thursday reported a drop in March production.
Further, the oil company said that operations to date have seen little direct impact from the Covid-19 pandemic, other than the significant downturn in international oil prices.
The potential impacts of virus outbreak are currently unknown but could include production disruption due to government restrictions or customer sales, impact on our workforce and supply chain disruption, the company added.
Volga Gas has implemented several measures to mitigate the virus impact. Its average production in March was 4,070 barrels of oil equivalent per day, 3% lower than February.
Andrey Zozulya, chief executive of Volga Gas, said: "The group remains cash flow positive at an operational level at current oil prices, assuming no extensive disruptions, and thanks to our strong balance sheet and our ability to delay or cancel capital investment projects as necessary, the board of Volga Gas is confident that the group will be able to withstand the current crisis and continue as a viable business for the long term."
Volga Gas shares closed at 20.00 pence each in London on Thursday, down 4.8%.
By Tapan Panchal; [email protected]
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