Official: Russia’s oil output may drop this year

MOSCOW (AP) -Russia may see its first drop in oil output for a decade in 2008 as the country’s West Siberian oil fields mature, a top energy official said Thursday.

Vitaly Karaganov, head of Energy Ministry’s department for oil and gas industries, was the first official to say that Russia’s oil production may go down, confirming analyst expectations. Karaganov predicted a cut of 0.3 percent, or 1 million metric tons.

“Compared to 2007, when 490 million tons of oil was produced, we forecast a 1 million ton drop (this year),” Karaganov said, according to Russian news agencies. He added that planned new projects by Lukoil company may help prevent a slump in production.

Oil production reached 9.87 million barrels per day last year in Russia, up 2.3 percent. It was down 0.5 percent in the first eight months of the year compared with the same period in 2007.

AP