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Russia's Rosneft starts production at east Siberian oilfield

Published 04/11/2016, 08:46
Updated 04/11/2016, 08:50
© Reuters. A logo of Russian state oil firm Rosneft is seen at its office in Moscow
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MOSCOW (Reuters) - Russia's largest oil producer Rosneft (MM:ROSN) said on Friday it was gradually starting production at the Yurubcheno-Tokhomskoye oilfield in eastern Siberia and had began shipments to a pipeline.

The move comes as oil producers globally struggle to reach a deal on capping output to support prices.

Rosneft, led by Igor Sechin, who has been sceptical about OPEC's ability to stabilise prices, said it had started oil shipments to a pipeline connected to the main East Siberia-Pacific Ocean pipe, mainly used for supplies to China.

The company said it planned to launch new facilities at Yurubcheno-Tokhomskoye for industrial-scale production in 2017. China's Sinopec (HK:2386) has shown an interest in buying into the field, according to Russian media.

© Reuters. A logo of Russian state oil firm Rosneft is seen at its office in Moscow

Rosneft has said Yurubcheno-Tokhomskoye will reach peak production of up to 5 million tonnes a year (100,000 barrels per day) in 2019.

Last week, Russian President Vladimir Putin, who has pledged to join a global pact to cap oil output, gave the green light to start production at a new Caspian Sea field owned by the country's No.2 oil producer Lukoil (MM:LKOH).

Russia's move to continue opening up oilfields has added to the uncertainty over whether producers' will reach a deal to limit output.

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