OAO Gazprom Neft (SIBN.RS), Russia's fifth-largest oil producer by volume, said Wednesday it will recommend a dividend of 5.4 rubles ($0.23) per ordinary share for 2007 at its June 20 annual shareholder meeting, amounting to a total of RUB25.6 billion.
The company paid a dividend of RUB8.08/share for 2006.
Gazprom Neft said it will use a lower dividend payout and a planned $2 billion five-year syndicated loan to finance acquisitions in the upstream and to complete an already disclosed deal to buy 51% of Serbian national oil company Naftna Industrija Srbija.
Alexei Miller, chairman of Gazprom Neft's board, said the company plans to boost output and grow its reserves considerably in the coming years, aimed at making it among the largest oil companies in the world.
Last month, the company approved a strategy plan running to 2020, in which it expects to boost crude production to 100 million metric tons a year, or around 2 million barrels per day. Gazprom Neft has been fighting declining production since its acquisition by Russian gas monopoly Gazprom OAO (OGZPY) from billionaire Roman Abramovich in 2005. Last year, the company posted daily output of 653,900 barrels.