Russia could produce record 516-518 mln tonnes oil in 2012 - energy minister

The Russian Energy Minister forecasts the country will produce a record 516 million-518 million tonnes of oil this year, Energy Minister Alexander Novak told reporters.

The ministry previously forecast oil production would be 514 million this year.

"We expect oil production will 516 million-518 million tonnes this year. We're already approximately 1.2% up on last year," Novak said.

Novak did not say how much oil he thought Russia might produce next year. He said only that so far his ministry had coordinated its position with the Economic Development Ministry, which has factored 510 million tonnes into its Russian development forecast.

"So far we're in agreement with the Economic Development Ministry's forecast for next year. Our global task is to sustain [output of] 505 million-510 million tonnes in the mid term. If we produce more it means our incentives, in particular the "60/66" system, are working well, he said.