MOSCOW, December 5 (RIA Novosti) - Russia's oil output may reach 470 million metric tons in 2005 and 475 million in 2006, the head of the Russian Energy Agency said Monday.
Sergei Oganesyan said oil production would grow by 2.4% year-on-year and by 3.3% in West Siberia.
He also said natural gas production would grow by 1%.
Oganesyan said the large amount of inactive wells hampered output growth. "Inactive wells account for more than 20%," he said adding that some companies, including Sibneft, which was recently acquired by Gazprom, had 50% inactive wells.
According to Oganesyan, the government needs to make a decision on East Siberia's gasification and to work out amendments to the Mineral Extraction Law.
He cited the lack of guarantees to companies working under geological survey licenses as one of the key problems.
Oganesyan also said it was necessary to consider investing in the restoration of the mineral base.
Tax privileges granted to deposits without infrastructure, depleted deposits, and to companies involved in the reconstruction and building of oil and natural gas refineries might boost geological surveying, he added.
Oganesyan said a commission headed by Prime Minister Mikhail Fradkov would be formed to tackle fuel and energy issues. It will include representatives of all relevant departments and the heads of energy companies.
