Gazprom Neft to Increase Oil, Gas Output to Record Next Year

OAO Gazprom Neft (SIBN), the Russian energy producer controlled by OAO Gazprom, expects oil and natural-gas output to increase to a record next year as it seeks to almost double volumes by the end of 2020.

Production will expand to 59.6 million metric tons of oil equivalent in 2012, or 1.19 million barrels a day, the company said today in a statement. That’s 4.2 percent more than the 57.2 million tons forecast for this year, the statement shows.

“We have approved a massive investment program for 2012 that will allow record oil output and the continuation of refinery modernization,” Chairman Alexei Miller said in the statement. Investment in the Omsk and Moscow refineries is set to reach 25 billion rubles ($780 million) in 2012 through 2014.

Gazprom Neft, based in St. Petersburg, plans to increase annual oil and gas output to 100 million tons in the next nine years as it expands in Iraq, Venezuela and Africa, adds assets at home and abroad and develops Siberian fields. Global oil demand is projected to rise 1.4 percent next year, led by Asian growth, according to the International Energy Agency.

Gazprom Neft’s SeverEnergia Arctic gas and condensate project with Enel SpA, Eni SpA and OAO Novatek is due to begin production next year. The company will also add more than 20 million tons by 2020 from its share of output in Russian fields at Orenburg, Messoyakha and Novoport, the statement shows.

The company pumped more than 52.8 million tons of oil and gas in 2010, according to an Oct. 18 presentation.

To contact the reporter on this story: Stephen Bierman in Moscow at sbierman1@bloomberg.net.

To contact the editor responsible for this story: Brad Cook at bcook7@bloomberg.net.

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