Surgut Output Will Fall by 7%

Surgutneftegaz will reduce crude output by 7 percent this year, Ivan Kos, the company's deputy chief geologist, said Friday.

Surgutneftegaz, the country's No. 4 oil producer, plans to produce 60 million tons of crude, or about 1.2 million barrels per day, this year and to sustain that level of output over the next few years, Kos said, Interfax reported.

The closely held private oil firm pumped about 64.5 million tons in 2007, or an average about 1.3 million barrels per day, Interfax said, citing government data.

The company increased its crude oil reserves by 78 million tons in 2007, Kos said, Interfax reported.

Surgut plans to spend 12 billion rubles ($507 million) on exploring for oil and gas in Siberia this year, about one-third more than it spent in 2007, Kos said.