Bloomberg Mr Alexander Dyukov CEO of Gazprom Neft as saying that his company plans to expand its refining capacity and spend as much as USD 70 million on building filling stations as the government encourages oil companies to develop crude processing.

The company, which is Gazprom's oil arm, will in the next few years expand its annual output of refined oil products by as much as 5 million tonnes at its Moscow and Yaroslavl refineries.

Mr Dyukov said that Gazprom Neft's annual refining capacity rose more than 16% in the past two years to 28.5 million tonnes. The company will also add a network of 20 stations in the Leningrad region, which surrounds St. Petersburg.

Mr Vladimir Putin PM of Russian recently met with executives from the industry to discuss tax breaks and aid as the government seeks to improve refining and spur new exploration.

Mr Dyukov said that Gazprom Neft may expand its spending program because of the state support. He said that "Our investment potential will increase if the government extends its support to Gazprom Neft and the industry as a whole."He said that tax relief may create a new foundation for Russia's oil industry, easing the tax burden in those regions with less developed oil fields that lack sufficient infrastructure.

(Sourced from Bloomberg)