Jan. 2 (Bloomberg) -- Russia, the world's second-largest crude oil supplier, boosted production growth last year, after output in 2006 rose at the slowest pace in seven years.

The country raised output 2.4 percent to 491.5 million tons (9.83 million barrels a day) last year, up from 480 million tons in 2006, when production gained by 2.1 percent, according to the Energy and Industry Ministry. Growth in 2006 was the smallest since 1999.

Pipeline exports to countries outside the Commonwealth of Independent States fell 0.5 percent to 220.6 million tons last year, according to the ministry's CDU-TEK unit.

Russian oil companies cut crude shipments abroad after the government raised export duties to record highs as world oil prices surged. Oil advanced 57 percent to $95.98 a barrel in New York last year, the sixth consecutive year of gains. Russian export blend Urals rose about 65 percent, the most since 1999, to $91.28 a barrel in northwestern Europe.

The Commonwealth of Independent States, or CIS, comprises the former Soviet states except for the three Baltic republics. Exports to nations outside the CIS include crude that's pumped from Kazakhstan, Azerbaijan and Belarus across Russian territory.

Oil transit through pipelines owned by OAO Transneft fell 3.3 percent to 23.2 million tons last year, CDU-TEK said. The data is preliminary and will be updated later this month.

Russian producers cut exports to the CIS last year by 1.1 percent to 36.3 million tons. Exports that didn't use pipes owned by Transneft, the state-controlled pipeline monopoly, rose by 61 percent to 21.4 million tons.

Saudi Arabia is the world's largest crude oil supplier.

To contact the reporter on this story: Eduard Gismatullin in London at egismatullin@bloomberg.net

Last Updated: January 2, 2008 10:18 EST