IEA, Russia spar again over energy investments

MOSCOW, Oct 23 (Reuters) - The International Energy Agency said on Tuesday it still believed Russia was not investing enough in new oil and gas fields, but Moscow insisted it was on track to meet its long-term production targets.

"It is obvious that greenfield investment conditions are worsening. There is too little focus on greenfield development as most of Russia's projects are brownfield," IEA Executive Director Nobuo Tanaka said in Moscow.

"Russia should assure consumers and governments that timely investments are made," he added.

The IEA has already criticised Russia's gas export monopoly Gazprom (GAZP.MM) for not investing enough in new gas fields, which could put Europe at risk in the long-term as it relies on Russia for a quarter of its gas needs.

Gazprom has rebuffed the accusations, saying it could boost production from its massive reserves any time the markets ask for more supplies.

Tanaka was speaking at a Russian annual energy summit, which was also attended by Energy Minister Viktor Khristenko.

Khristenko said he expected Russian oil output to rise 2.4 percent in 2007 to 492 million tonnes or 9.88 million barrels per day, slightly exceeding the growth rate of 2.2 percent in 2006.

"Today our oil production volumes and the trend under which volumes have reached their plateau fully coincide with the forecasts given in our (government energy) strategy (to 2020)," he told the conference.