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. Last Updated: 07/27/2016

Rosneft Seeks to Refine Half Its Oil Output

LONDON -- State oil firm Rosneft said Tuesday that it wanted to refine at least half its output and would need to buy new refineries in Russia and abroad as its production is set to rise steeply until 2015.

Rosneft vice president Alexander Sapronov told a conference in London that the country's second largest oil producer would raise output to 2 million barrels per day by 2010 and 2.8 million by 2015 from 1.75 million bpd now, confirming an earlier forecast.

"Rosneft plans in the next few years to increase its own refining to more than half its production. To achieve this goal, Rosneft is considering acquiring assets in Russia and abroad," he said.

The company plans to build a $7 billion refinery at the end of a planned pipeline to the Pacific coast from Siberia so it can start selling fuel products to Asia and the United States.

The refinery will be able to process up to 400,000 bpd, Sapronov said. As much as 90 percent of the facility's products will be exported to Asia, with a small amount going to the United States, he said. Russia wants to tap surging demand for oil products in China and other Asian markets. President Vladimir Putin earlier this month urged business leaders to invest in processing industries to wean the company from raw materials exports.

"We consider the Asia-Pacific region to be most promising," Sapronov said. The refinery will cost between $5 billion and $7 billion, based on preliminary estimates, he said.

(Reuters, Bloomberg)