Yukos has taken over as No. 1 oil producer for the first time, beating out LUKoil in monthly crude production for October, according to the Energy Ministry.

LUKoil produced 6.412 million tons in October, while Yukos pumped 6.429 million tons, according to ministry data published by Interfax last week.

Yukos, furthermore, is predicting a growth rate of 18 percent next year, which analysts said would keep the company at No. 1.

LUKoil, however, said the Energy Ministry figures are incorrect.

The ministry did not factor in production at partially owned subsidiaries or foreign projects, said a LUKoil official who declined to be named.

When this production is factored in, LUKoil produced 6.8 million tons in October, the official said.

An Energy Ministry official, however, said partially owned subsidiaries had been included.

LUKoil expects to extract 73.6 million tons this year and boost production to 75 million tons in 2003.

Yukos has not given a forecast for 2003, but company spokesman Alexander Shadrin said production would grow by 18 percent.

That would bring output to 82.6 million tons.

Yukos plans to produce 130 million tons of crude per year by 2010.

LUKoil, meanwhile, is forecasting output of 140 million to 160 million tons in oil equivalent per year by 2010. That includes 50 billion to 60 billion cubic meters of natural gas and 100 million tons of oil.

Valery Nesterov, an analyst at Troika Dialog, said Yukos' step into the leading position was due to LUKoil's changing strategy.

LUKoil has begun concentrating on high-output upstream projects, Nesterov said, and so it is too early to say whether the company has lost the leadership for long.

"This fact has a negative effect on the company's image and on its investment attractiveness, so LUKoil won't give in without a fight," he said.

This kind of competition is good for the oil sector as a whole, he added.