UPDATE 2-Russian March gas output collapses, oil rises

* Gazprom March gas output slumps by a quarter yr/yr

* Falls 12 pct from February 2009

* Total Russian March gas output down 19 pct yr/yr

* Oil output shows signs of recovery in March

(Adds details, analyst quote)

By Dmitry Zhdannikov and Gleb Gorodyankin

MOSCOW, April 2 (Reuters) - Russian gas export monopoly Gazprom's (GAZP.MM) March gas production slumped by a quarter from a year ago as demand shrivelled in Europe and at home and buyers delayed purchases in hopes that prices would fall.

Russian Energy Ministry data showed on Thursday Gazprom's March gas output was 1.24 billion cubic metres per day, 12 percent down from 1.41 bcm per day in February 2009 and 24 percent down from 1.63 bcm per day in March 2008.

Mikhail Korchemkin from the East European Gas Analysis think tank said his data showed Gazprom's gas output fell as low as 1.146 bcm on some days in March.

"Such low production levels have been unseen over the past decade, even during summer months, when Gazprom puts some wells on planned maintenance," he said.

Gazprom said on Tuesday its European gas exports were likely to fall more than it had previously expected as the global financial crisis hit demand. [ID:nLV450449]

Russia's total gas output in March was 1.58 bcm per day, down 9 percent from 1.74 bcm per day in February and 19 percent less than the 1.94 bcm per day produced in March 2008.

Novatek (NVTK.MM), Russia's second-largest gas producer, extracted a total 2.6 bcm of gas in March, down 13 percent from February, but up 2 percent from March 2008, the data showed.

Gazprom's production started to fall from January, when its supplies to Europe were severely disrupted by a pricing dispute with Ukraine. Analysts only expect a recovery in the second quarter, when gas prices drop as they follow oil prices with a lag of six to nine months.

Gazprom, the world's biggest gas producer and supplier of a quarter of Europe's gas, has kept output relatively stable over the past few years.

Production contracted sharply only in January, but it did not recover in February, a sign cash-strapped consumers were cutting consumption and were choosing cheaper alternative fuels.

Gazprom extracts around 80 percent of gas in Russia. The rest is produced by smaller independent gas firms or oil majors.

OIL OUTPUT RISES

Russian March oil output stood at 9.8 million barrels per day, up 1 percent from 9.72 million bpd in February 2009 and up 0.5 percent from 9.76 million bpd in March 2008.

The oil output data was a surprise, as industry sources expected extraction to fall as a result of low energy prices and a reduction in upstream investments.

Oil production in Russia, the world's No. 2 exporter, fell by about 1 percent last year because of ageing reserves and plunging oil prices. The decline is cause for concern in a country highly dependent on oil export revenues for its budget.

Russian state oil major Rosneft (ROSN.MM), the country's largest oil producer, raised oil output in March by 1.8 percent versus February. But production was down 0.4 percent from March 2008.

TNK-BP TNBPI.RTS, Tatneft TATN3.MM, Novatek and small producers increased oil output month-on-month, while output at LUKOIL (LKOH.MM), Surgut (SNGS.MM), Gazprom, Bashneft (BANE.RTS) and Russneft declined, the data showed.

Small producers boosted oil output by 12 percent versus March 2008, while Russneft's output dropped by 10 percent in the same comparison.

PSA (Production Sharing Agreement) operators increased crude production by 4 percent versus February 2008 and 28 percent from March 2008, demonstrating the highest production rise in Russia's oil industry.

Energy Minister Sergei Shmatko said in March Russia could sustain and even raise oil output if prices stay above $50 per barrel. [ID:nLN200393]

Dated BFOE in March BFO- averaged just $1 below the $50 per barrel level, Reuters data showed.

Pipeline oil exports stood at 4.22 million bpd, down from 4.33 million in February and nearly flat with 4.23 million in March 2008.