RusEnergy

02 February 2007 - Upstream onLine - Russian oil output hit a new post-Soviet high of 9.85 million barrels per day in January as unusually warm weather supported production, Energy Ministry data showed today. January production increased 0.6% versus December and 4.5% against January 2006, when harsh weather slashed oil output to 9.43 million bpd, the lowest level of the year. The year-on-year growth came at a much higher rate than 2.1%, expected for this year by the Energy Ministry, which lowered its forecast on Thursday from the previous expectation of 2.5%. The ministry cited slow development of new fields and depletion of old deposits as the main reasons for the slowdown. Analysts also expect the output to expand by no more than 2.5% in 2007 as new fields in East Siberia will not come on stream before the next decade, Reuters reported. Meanwhile, output by gas monopoly Gazprom increased in January to 51.2 billion cubic metres, Russian Energy Ministry data showed.