Russia's Sechin upbeat on oil output outlook-report
MOSCOW, May 14 (Reuters) - 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 (LKOH.MM) and Surgut (SNGS.MM) 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.
The Russian government has long been discussing easing the tax burden for oil producers, which include tax breaks for companies developing new fields and cutting the mineral extraction tax.
Prime Minister Vladimir Putin said on Wednesday he expected Russian oil output to rise by 67 million tonnes (1.3 million bpd), or 13.6 percent, by 2015.
Putin also said the tax breaks should be granted for a period of up to seven years and would involve fields located on Russia's continental shelf, the Yamal peninsula and the northern Timan-Pechora province.
Putin, who counts Sechin as a close ally, also called on the state Duma, the lower house of parliament, to urgently reduce the mineral extraction tax on oil.
Sechin said Rosneft (ROSN.MM), which raised $10.6 billion selling a 15 percent stake in its 2006 initial public offering, had no immediate plans to sell the 9.44 percent of its shares it bought last year from bankrupt oil firm YUKOS.
"I do not think we should be in a great hurry given the situation on the stock markets. It is possible that the stake would be more valuable if sold later than now. This is a serious matter," he said. (Reporting by Tanya Mosolova; editing by James Jukwey)
