RUSSIA TO PRODUCE 450 MLN TONS OF OIL IN 2004

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ASTANA, September 14 (RIA Novosti) - "On the results of 2004, we expect the total volume of production at about 450 million tons. There is no talk about plans to reduce the volume, there are no grounds for that," Russian Industry and Energy Minister Viktor Khristenko said at a press conference in Astana.

Speaking about the issue of the Baltic pipeline system (BTS), the minister said that it will reach the design capacity at 62 million tons before the end of 2005.

"Before the end of 2005, this project will work to the full capacity," said the minister.

Mr. Khristenko said that "all decisions by the government connected with the BTS are registered in the energy strategy, where it's written clearly that the volume of this direction is up to 62 million tons."

"Today we work in the capacity of some 50 million," he said.

"I think when specified assessments are ready, all relevant governmental and corporate actions to complete the BTS project and make it reach the design capacity will be made," Mr. Khristenko believes.

"We estimate that it will take the whole next year to realize them," he added.

Speaking about the Yukos situation, Mr. Khristenko said "no competitions or auctions [to sell Yukos affiliates] were announced."

Mr. Khristenko added that "a situation is underway connected with clearly legal aspects of fulfillment of court decisions which were already made and became valid."

In the minister's words, now the Yukos oil company is one of the four leaders in terms of the growth rates of oil production in Russia.

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