Business | Oil & Gas
Russia's Rosneft sees 2% oil output hike
Russia's largest oil producer Rosneft expects to boost oil and gas condensate output by two per cent in 2009 and maintain positive free cash flow given that oil prices are above $50 (Dh183.61) per barrel, it said on Monday.
- Reuters
- Published: 23:31 January 12, 2009
Moscow: Russia's largest oil producer Rosneft expects to boost oil and gas condensate output by two per cent in 2009 and maintain positive free cash flow given that oil prices are above $50 (Dh183.61) per barrel, it said on Monday.
Rosneft said in a statement its oil and gas condensate output is expected to reach 112.3 million tonnes in 2009 (2.26 million barrels per day), up from 110.1 million tonnes the company produced last year.
The increase is mainly expected due to accelerated production drilling - the company plans to drill 704 new wells - and the launch of Vankor, its major oil and gas field in Eastern Siberia, the company said.
The 2008 production represented a 9 per cent growth compared to the previous year, less than the initial forecast of 11 per cent, which was revised down in September after the company delayed the launch of Vankor by a year.
Rosneft also said that it plans to increase marketable gas production to 11.9 billion cubic metres (bcm) in 2009, up by six per cent from 11.2 bcm in 2008.
Rosneft was one of Russia's few major oil companies which managed to increase oil production last year, which was the first year in the last decade when the country's overall oil output fell following large increases in the previous years.
Analysts expect the decline - by 0.9 per cent to 9.87 bpd - is likely to continue because of ageing reserves and plunging oil prices.
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