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  • Jan 3rd, 2004
  • Comments Off on Russia sees big slowdown in oil output growth
Russia's energy ministry said on Wednesday it expected the country's oil output growth to slow down significantly in 2004, rising a mere three percent compared to an 11 percent increase this year.

The ministry said in a statement oil output, booming over the last five years, would rise to 432 million tonnes (8.68 million barrels per day) compared to 419 million tonnes (8.41 million bpd), expected this year.

The energy ministry has been regularly underestimating Russian oil output growth in the past few years, but experts say the government has become increasingly keen to cap ambitious oil output plans of its private oil majors.

Government officials have said Russia, the world's second largest oil exporter after Saudi Arabia, should cap and maintain the output at a level of nine million bpd for the long term.

Oil majors have said they had enough reserves to quickly push Russian production up to record Soviet levels of 12 million bpd, thus outpacing Saudi Arabia as the world's top oil nation.

The government and the Kremlin administration have had little means in the past of controlling large-scale plans of private firms beyond regulations via the pipeline monopoly Transneft.

However, experts say the state has dramatically increased its influence on the oil industry over the last few months after the beginning of a judicial attack on the country's biggest and most ambitious oil major YUKOS.

Copyright Reuters, 2004


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