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Pumping up the volume: in Russia

Russia eyes output rise

Russian oil production will continue to be flat this year despite a drop in the first half but will certainly rise next year, Russian Energy Minister Sergei Shmatko said.

"There won't be any decrease. I think next year we will definitely produce more than this year," he told Reuters. He declined to give figures.

Russian oil production declined by almost 1% in the January to June period, for the first time in a decade, in contrast with previous production spikes that have allowed Russia to approach and in some months even exceed output levels of the world's leading oil producing country, Saudi Arabia.

Russian officials, including Prime Minister Vladimir Putin, have said that recently approved tax breaks will allow companies to put aside cash needed for development of new fields and reverse stagnation in oil production.

Russia produced 9.77 million barrels per day in June.

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