RIA Novosti reported that Oil production of Russia's largest private oil company, LUKoil fell 5.5% to 90.7 million tons from 96 million tons last year according to preliminary data.

LUKoil said in a statement that "The expected level of oil production amounted to 90.7 million tons including 84.7 million tons in Russia and six million tons abroad."

Mr Leonid Fedun vice president of Lukoil said last October that 2011 oil production might decrease due to a fall in output at the Yuzhno-Khylchuyuskoe oilfield, located in the Timan-Pechora Province. The province accounts for 22.1% of company overall oil production.

LUKoil overall hydrocarbon production decreased 4% to 112.7 million tons of oil equivalent in 2011 compared to 2010. Gas production rose 3.2% to 22 billion cubic meters.

Last year, the company exported 41.3% of oil produced in Russia while sales of oil and gas products grew 6.1% to 15.7 million tons. Investment volume rose 22% in 2011 to USD 9.8 billion.

(Sourced from RIA Novosti)