29-08-08 LUKoil Group cut oil production 3.1 % year-on-year and increased natural gas output 19.5 % in the first half of 2008, Russia's largest independent oil producer said. LUKoil produced 47 mm tons (345.45 mm bbl) of oil in the reporting period, including 44.4 mm tons (326.05 mm bbl) in Russia and 2.65 mm tons (19.48 mm bbl) under international projects.
"The decrease in oil production in West Siberia due to a natural deterioration of mining and geological conditions was the main reason for the oil production drop in Russia," the company said.

The company exported 19.2 mm tons of oil in January-June 2008, down 11.9 % against the same period of last year.
Oil refining by LUKoil subsidiaries rose 8.0 % to 27.2 mm tons in the first six months of the year. The company's Russian subsidiaries, including small refineries, accounted for 21.8 mm tons of refined oil, with 5.4 mm tons of oil refined globally.

Production of light petroleum products (gasoline, jet fuel, diesel fuel) rose 8.4 % year-on-year in January-June 2008. Oil and oil product sales stood at 65.3 mm tons in the first half of 2008, slightly below the same period of last year. However, the company boosted its retail sales of oil products 17.2 % to 6.7 mm tons.
LUKoil accounts for around 1.3 % of global oil reserves and for some 2.3 % of global oil output. Its share in Russian oil production and refining is 18 % and 18 %, respectively.