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. Last Updated: 07/27/2016

LUKoil to Raise 2002 Oil Output

Russia's No. 1 oil producer, LUKoil, said Wednesday it would raise crude output in 2002 to 80.2 million tons (1.6 million barrels per day) from 78 million tons this year.

The company said in a statement, released after a board meeting, that LUKoil had factored an average benchmark IPE Brent crude price of $16 a barrel into its accounts.

"We expect that in 2002 production from all the company's subsidiaries, including participation in production sharing agreements, will be 80.2 million tons, with 39.8 for processing," the statement said.

LUKoil produced 78 million tons of crude in 2000.

The Organization of Petroleum Exporting Countries and Russia are currently locked in a stalemate over oil production cuts.

OPEC has made a proposal to cut output by 1.5 million barrels a day from Jan. 1 conditional on non-cartel members Russia, Norway and Mexico slashing by 500,000 barrels a day.

Earlier Tuesday, LUKoil said it had not yet been invited by the government to discuss output cuts.

Deputy Prime Minister Viktor Khristenko was quoted as saying Wednesday the country could make further cuts in exports, but so far Russia has laid only a token 30,000 barrels a day output cut on the table.

LUKoil also said it would invest 46.4 billion rubles ($1.55 billion) in 2002, including 7.6 billion rubles in foreign projects. "We expect our 2002 budget to be in the black," the statement said.

It added that the company intended to improve standards of corporate governance next year, including drawing up a code of conduct and gaining a listing in London.