According to LUKoil Vice President Leonid Fedun, by 2007 the Russian oil and gas sector will stop rising. This announcement came as a comment on LUKoil’s intention to refrain from a large-scale step-up in oil production. LUKoil expects its oil output to grow by 4 percent to 85m tons this year. Last year LUKoil’s oil output increased by 2.1 percent to 81.5m tons.
Meanwhile, the company is planning to cut its outlay for oil production by nearly 15 percent and at the same time increase investments in oil refining, as the company has focused on the production of high-quality oil products that would meet international standards.
