Count down: Russian production down 0.9% from 9.85 million bpd in the same period last year
Russian production slides
Russian oil output edged up 0.3% in June compared to the previous month, but was down almost 1% in the first half of the year, casting further doubts over the government's goal to sustain growth this year.
Russian officials still hope production will rise slightly this year, as the government seeks to avert the first annual decline in output since 1998, wrote Reuters.
But analysts say Russia cannot sustain spectacular production spikes experienced over the previous years as fields in West Siberia become depleted and new fields in East Siberia have yet to come onstream.
The decline also comes as Russia's third largest oil producer TNK-BP, half owned by BP, warns that its output growth is at risk this year due to a protracted corporate conflict between BP and its Russian billionaire co-owners over the company's strategy and management tactics.
Energy Ministry data showed today that Russian oil companies produced 9.77 million barrels per day in June, up slightly from 9.74 million bpd in May, and down by 0.8% from 9.85 million bpd in June last year.
Production stood at 9.76 million bpd in the first half, down 0.9% from 9.85 million bpd in the same period last year.
Oil production in Russia has fluctuated between decline and stagnation since the beginning of the year, prompting many analysts to revise down their oil production forecasts for the year.
Russian authorities still expect production to grow by around 1% this year after an increase of 2.3% in 2007 and much bigger spikes in previous years, including a record 11% in 2003.
On the export front, supplies via pipeline monopoly Transneft fell by 5.9% to 4.196 million bpd from 4.458 million bpd in May.