UPDATE 1-Gazprom says gas exports to rise 4-5 pct in 2008

(Adds Gazprom's production plans)

MOSCOW, Feb 19 (Reuters) - Russian gas export monopoly Gazprom (GAZP.MM: Quote, Profile, Research) expects its shipments to key European markets to rise by 4-5 percent in volume terms this year, a Gazprom executive told a conference call on Tuesday.

Mikhail Malgin, head of the customers department at Gazprom's export subsidiary, Gazpromexport, said the average price for gas sold in Europe stood at around $300 per 1,000 cubic metres in the fourth quarter of 2007.

He said export revenues in 2008 will rise by more than 4-5 percent but gave no figures. Gazprom, the world's largest gas producer, supplies Europe with a quarter of its gas needs.

Production at home is expected to steadily increase.

"This year's levels will of course exceed 2007, and... by 2010 we will approach the level of 570 bcm," Gazprom's management board member Pyotr Bakayev told the call.

Last year, Gazprom produced 548.5 bcm.

"This increase will come from five new fields. Old fields will decrease in production. At Yuzhno Russkoye we are expecting it to reach peak production by 2009," Bakayev said.

The large Yuzhno Russkoye field in northwest Siberia, in which German chemical group BASF (BASF.DE: Quote, Profile, Research) has a 25 percent stake minus one share with Gazprom owning the rest, is expected to yield 15 bcm this year.

The field, which will supply the Nord Stream gas pipeline from Russia to Western Europe, was launched late last year. (Reporting by Amie Ferris-Rotman)