Russia’s major gas exporter, Gazprom has approved its investment program worth $11.71b ( RUB 842b) in total in 2016, the company’s board announced its decision in a statement, Reuters reported. The investments include capital expenditure totalling $10.81b (RUB 777.6b). According to the Scandinavian Oil & Gas Magazine, a part of the expenditure will be allocated for capital construction and acquisition of non-current assets.

The Cost Optimization Program for 2016 is to provide for the measures aimed at cost reduction with the expected cumulative effect of RUB 15.3b and the external financial borrowings will stand at RUB 90b, OilVoice added.

Gazprom Neft, the oil arm of the state gas producer also plans to increase its investment to $5.13b in 2016 as its preliminary hydrocarbon production in 2015 rose by 20%, the company informed in a statement cited by The Economic Times.