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. Last Updated: 07/27/2016

Oil Output Falls Amid Exxon Setback

The country's oil output fell for a second month in a row in October partly because the government and ExxonMobil failed to solve differences over the Sakhalin-1 venture holding back the start up of full-scale production.

Industry and Energy Ministry data showed late Wednesday that output fell to 9.71 million barrels per day in October from 9.75 million in September and an all-time high of 9.76 million bpd in August.

"This is a major disappointment given seasonal additions of around 30,000 bpd on average in October over recent years," said Adam Landes of Renaissance Capital brokerage.

Production peaked in August after Exxon ramped up output at the Sakhalin-1 production site and said it was on track to reach output of 250,000 bpd by the end of the year.

But its October output stagnated at around 30,000 bpd after the government said Exxon's De Kastri terminal was not fully ready for export operations and ordered more checks. The move is seen as part of a Kremlin strategy to reduce foreign influence and strengthen control over Russia's strategic energy sector.