Russian oil output rose by 2.2 percent in 2010 to a record 10.1 million barrels per day (505.193 million tonnes) as higher prices prompted the world's top oil exporter to ramp up production at its greenfield sites.
The growth in crude production surprised many analysts, who had expected 1.1 percent on average, when polled just before the start of 2010.
Energy Ministry data on Sunday showed the country extracted 10.145 million barrels per day last year, a record since the collapse of the Soviet Union, up from 9.93 million bpd in 2009 and 9.78 million bpd in 2008.
The government said last month it expects oil output to edge down this year.
Non-OPEC member Russia was the only country to produce more than 10 million bpd of oil last year as oil prices, which reached a 26 month-high above $90 per barrel, stimulated higher output.
The output of Saudi Arabia, the second-biggest producer, has been 8.25 million bpd during recent months, reflecting production quotas introduced by the Organization of the Petroleum Exporting Countries in December 2008 to boost falling crude prices.
Russian pipeline oil exports stood at 4.37 million bpd in December, bringing the annual average exports in 2010 to 4.29 million bpd, up from 4.24 million bpd in 2009 and 4.19 million bpd.
Exports are set to increase substantially this year as Russia began scheduled oil shipments to China via an East Siberian link on Saturday, cementing ties with its energy-hungry neighbor.
An annual plan envisages the supply of 15 million tonnes (300,000 barrels per day). Many oil market participants expected it would effectively double Russian sales to China.
One of the main obstacles for Russian oil output growth are heavy taxes in the industry, the main contributor to the government which is trying to plug a budget deficit.
The Economy Ministry expects production to edge down to 504 million tonnes (10.122 million bpd) in 2011, while Rosneft, which produces over a fifth of Russia's oil, expects its crude output to grow by a modest 0.5 percent to 120.2 million tonnes.
Bashneft, owned by oil-to-telecom holding Sistema, which has been pumping oil at the highest rate among Russian firms, increased production by almost 18 percent to 14.15 million tonnes in 2010.