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Rosneft to Increase Output by 2% in 2009

Russian oil producer Rosneft believes to expand output by 2 percent in 2009, it wil help to maintain positive free cash flow in case oil prices are above $50 per barrel

Rosneft said in a statement that its oil and gas condensate output is expected to reach 2.26 million barrels per day in 2009. It is 2% higher comparing to the previous year.

The increase is expected mainly because of accelerated production drilling - the company plans to drill 704 new wells - and the launch of Vankor, its major oil and gas field in eastern Siberia, the company said.

Rosneft also said it plans to increase marketable gas production to 11.9 billion cubic meters in 2009, up by 6 percent from 11.2 bcm in 2008.

Rosneft was one of Russia's few major oil companies that managed to increase oil production last year, which was the first year in the last decade when the country's overall oil output fell following large increases in the previous years.

Rosneft said its board of directors on Dec. 31 approved a business plan for 2009 and reviewed a set of measures aimed at reducing operating and administrative expenses to minimize the impact of the global financial turmoil.

Author: Ksenia Kochneva