Russia’s oil production increased by 1% in July to 10.43million barrels a day – nearing the country’s post-Soviet record.
The Soviet-era oil output peaked at 11.48million barrels in 1987.
The current production levels are a result of president Vladimir Putin’s efforts to keep daily oil production above 10million barrels a day.
Following months of campaigning by the state oil and gas majors, Putin is now promoting tax relief for offshore operations.
He also approved tax breaks for exploiting less accessible resources, starting in September, due to the decline in Soviet-era Siberian deposits.
Despite the rise in output, the oil exports decreased by 1.7% since July to 4.97million barrels a day.
For Primorsk, Russia’s largest oil port, August will be the third consecutive month of exports bellow 1million barrels a day – lowest in five years.
Meanwhile, natural gas production rose by 3.9% in June compared to last year due to 29% increase in exports to Europe and Turkey.
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