Russian energy giant Rosneft has confirmed that it is looking into increasing its oil refining capacity across Europe and Asia so as to reduce export levels.

While the chief executive of the state-controlled producer, Sergei Bogdanchicov, has recently confirmed that capitalisation exceeded the $129 billion mark at the end of May.

However, the firm currently exports around 60 per cent of the oil produced and, according to Mr Bogdanchicov, by investing in oil refinery operations outside of Russia's borders, this proportion will be significantly reduced.

He stated: "We are carrying out such work in both the Asian and European markets.

"To enter the foreign market for filling stations only makes sense if we buy an oil refinery there."

According to the latest annual performance figures published by Rosneft, oil output in 2007 totalled around 100.9 million metric tonnes, equivalent to 739 million barrels and a 25 per cent year-on-year increase on 2006 levels.

Mr Bogdanchicov has also announced his intention to make the company the world's third-largest oil producer within the next 12 years.