Gazprom Neft reports production declines

MOSCOW, Feb. 13 (UPI) -- Russia's Gazprom Neft reported Friday its oil production for 2008 was down 5.8 percent compared with the previous year.

Gazprom Neft, the oil division of Russian energy monopoly Gazprom, said it produced 226.2 million barrels of oil for 2008. Oil exports, meanwhile, fell in 2008 by just over 106 million barrels, or 2.4 percent, because of a redirection of crude to domestic markets, RIA Novosti reported Friday.

Refining for 2008, however, increased 8.7 percent from 2007 levels to slightly less than 214 million barrels, board Chairman Alexander Dyukov said.

"The company has managed to substantially increase oil refining from (183.8 million barrels) to (213.8 million barrels) in the past two years," he said.

The announcements follow earlier statements from Russian Energy Minister Sergei Shmatko, who said Russian banks may float oil companies $10 billion.

The Russian Energy Ministry in January said crude overall oil production had declined 0.7 percent to 9.74 million barrels per day in 2008. December totals fell 2.1 percent to around 815,000 bpd.