Russia sees oil output stalling

Russian oil output growth is unlikely to exceed 2.2% next year and will slow to under 1% by 2011, the government said today, confirming earlier forecasts of a slowdown in production growth.

Falling oil production in Russia has become a major concern for the government, which relies heavily on export revenues.

The Kremlin quoted the Economy Ministry’s updated forecast for Russian economic development to 2011 as saying oil output could this year reach 492 million tonnes, or 9.85 million barrels per day, almost flat from 491.5 million tonnes, or 9.87 million bpd, in 2007. This year, a leap year, has one extra day.

Under the Economy Ministry’s optimistic scenario, oil production is expected to rise to 503 million tonnes in 2009 but growth would then slow to just 0.8% year-on-year in 2011, reaching 518 million tonnes, a Reuters report said.

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