Oil production down at Petroneft

Exploration company Petroneft says while oil production at its Russian fields increased at the end of 2011, it has declined in recent weeks due to issues at some wells.

In an update yesterday, it said production reached 3,000 barrels of oil per day at the end of last year, but has fallen to 2,300 in recent weeks. It said its Lineynoye Pad 1 group of wells had responded to water injections, and a decline in production had halted.

Results at its Pad 2 wells, however, have been below expectations. Petroneft also said development at its Arbuzovskoye oil field is ahead of schedule.