International agency says Yukos, Sibneft saga threat to Russia oil output

Petroleum News

The uncertainty surrounding Yukos and its on-again-off-again merger partner Sibneft is a potential threat to 200,000 barrels per day of oil production growth in 2004, the International Energy Agency said in its December report. The merger of the two Russian oil giants would create the world’s fourth largest oil company.

“Prospects for growth in 2004 will be critically dependent on how the current legal and political procedures surrounding Russia’s large producer Yukos play out,” IEA said.

“Any impediment to their continued expansion would have a material impact on total Russian supply growth,” the agency said, noting that it continued to assume short-term operations would not be affected.

Production from outside the Organization of the Petroleum Exporting Countries is expected to grow by 1.5 million bpd next year, with half of that expected to come from the former Soviet Union, IEA said.

Russian crude oil production was 8.53 million bpd in October and an estimated 8.56 million bpd in November, IEA said.