Russian laws need to change to prevent a decline in oil and gas production, according to one of the country's experts.
Vagit Alekperov, head of Russian producer LUKoil, stated a radical change is required in the country's exploration laws if a decline in gas and oil production is to be prevented. Alekperov believes production will peak within the next 12 months and then fall away unless incentives are introduced to stimulate further exploration.
He claims that investment in geological exploration has already dropped by 65% due to laws which sign any newly-discovered fields to the state rather than to the licence holder.
Meanwhile Kazakstan proudly announced its first motor oil production as its plant in Shymkent went online. Run by the newly-formed Hill Corporation, the plant has an annual capacity of 70,000 tons, which will cover between 25-30% of the country's total motor oil demands.