Russia’s Sechin upbeat on oil output outlook-report

Russia’s newly appointed vice-premier and the chairman of the country’s largest oil firm Rosneft, Igor Sechin, said on Wednesday oil output in Russia was likely to rise this year despite gloomy experts’ forecasts.

“Let’s see and wait until the end of the year. I am sure there will be an increase in production, not decline,” Sechin said in an interview with Interfax news agency.
Russia’s overall output grew by just 2 percent in 2007 and has moved into negative territory in the first quarter of this year after big spikes in previous years earned it the title of being the world’s second-largest exporter after Saudi Arabia.

Analysts have said oil output in Russia is likely to plateau this year while oil majors LUKOIL and Surgut have also predicted a decline on the back of a significant tax burden, which makes developing new regions difficult.

“We should sort out the (situation with) taxes within the oil industry. Geological development is also very important as it should lead to the discovery of new deposits,” Sechin said.

Reuters