Russia’s 2012 Oil Output Rises to Post-Soviet Record on Prices

Russia’s crude oil and condensate output in 2012 climbed 1.1 percent from a year ago to a post-Soviet record as companies maximized supply to take advantage of an increase in prices.

Russia, the world’s biggest energy producer, pumped 10.38 million barrels a day last year, up from 10.27 million in the previous year, according to data from the Energy Ministry’s CDU-TEK unit. Daily oil output was 10.485 million barrels in December, little changed compared with revised data from November and up 1.6 percent from the same period in 2011, the agency said in an e-mail today.

Russia’s government is reviewing the export duty structure, with plans to propose incentives for offshore and unconventional oil production by the end of the first quarter. President Vladimir Putin has set a goal of maintaining output at more than 10 million barrels a day. The country pumped above that level in September 2009 for the first time since the collapse of the Soviet Union.

Oil exports declined to 5.14 million barrels a day last month, a 0.3 percent decrease from November and 1.8 percent less than in December 2011.

Brent oil on the London-based ICE Futures Europe exchange, a benchmark for more than half of the world’s supply, averaged a record $111.68 a barrel last year, up 0.7 percent from 2011.

Russia’s annual natural-gas production in 2012 was 655 billion cubic meters, down 2.3 percent from 2011, according to the data. December output rose 4.1 percent compared to a year earlier, to 65.8 billion cubic meters.

Soviet-era crude and condensate output in Russia peaked at 11.4 million barrels a day in 1987, BP Plc data show.

Before it's here, it's on the Bloomberg Terminal.