Russia's LUKOIL forecasts production decline: RIA

MOSCOW, July 18 (Reuters) - Russia second largest oil producer LUKOIL (LKOH.MM) has revised 2008 production forecasts to a decline of about 3 percent, Russia's RIA news agency reported on Friday, citing comments by Lukoil's president.

The forecast of a decline in LUKOIL production comes after a previous estimate of slight growth or at least flat output, the news agency said.

When asked by Prime Minister Vladimir Putin about production forecasts for 2008, LUKOIL President Vagit Alekperov said: "Up to 94 million tonnes of oil and 16 billion cubic metres of incidental gas," RIA reported.

Russian Energy Minister Sergei Shmatko said earlier on Friday that he expected Russian oil production to be at least flat this year despite a drop of almost one percent in the first half of the year.

Shmatko said he was confident production would grow next year as new projects came on stream. To see the story click on [nL18381519] (Reporting by Guy Faulconbridge and Dmitry Zhdannikov; Editing by Christian Wiessner)