In 2018 LUKOIL Group's average hydrocarbon production excluding West Qurna-2 project was 2,319 thousand boe per day, which is 3.8% higher year-on-year. In the fourth quarter of 2018 production increased by 1.9% quarter-on-quarter and averaged 2,371 thousand boe per day. The increase was mainly driven by the development of gas projects in Uzbekistan.

 Hydrocarbon production, thousand boe per day

Oil production excluding West Qurna-2 project in 2018 remained unchanged year-on-year and amounted to 85.6 million tonnes. In the fourth quarter of 2018 production was 21.8 million tonnes, which is 0.5% higher quarter-on-quarter.

 Oil production, thousand tonnes

Active development of the priority projects continued. In the fourth quarter of 2018 the fifth well was launched at the second development stage of the V. Filanovsky field. In 2018 oil production at the field increased by 32% year-on-year, to 6.1 million tonnes.

In the fourth quarter of 2018 oil production at the Yu. Korchagin field increased by 15% quarter-on-quarter as a result of the second production well launch at the field's second development stage.

The development of the Yaregskoe field and Permian reservoir of the Usinskoe field, including the launch of new steam-generating capacities, allowed to increase high viscosity oil production in 2018 by 25% year-on-year, to 4.3 million tonnes.

Oil and gas condensate production at the Pyakyakhinskoe field in West Siberia increased in 2018 by 4% year-on-year, to 1.6 million tonnes.

The share of the abovementioned five projects in the LUKOIL Group's oil production excluding West Qurna-2 project amounted to 15% in 2018, 3 percentage points up year-on-year.

 Gas production, million cubic meters

In 2018 LUKOIL Group's gas production was 33.5 billion cubic meters, which is 16% higher year-on-year. In the fourth quarter of 2018 gas production was 8.9 billion cubic meters, 5% up quarter-on-quarter.

The main driver of gas production growth was the development of projects in Uzbekistan. As a result of the launch of new gas treatment facilities, the Group's share in production at Kandym and Gissar projects in 2018 increased to 13.4 billion cubic meters (LUKOIL's share) which is 67% higher year-on-year.

 Refinery throughput, thousand tonnes

In 2018 refinery throughput at LUKOIL Group's refineries was 67.3 million tonnes, which is almost flat year-on-year.

In the fourth quarter of 2018 the Group's refinery throughput was 17.0 million tonnes, 2.7% lower quarter-on-quarter, mainly due to the maintenance works at ISAB refinery in Italy in the fourth quarter of 2018.

Information

LUKOIL will release its Consolidated Financial Statements prepared in accordance with IFRS and MD&A for the fourth quarter and the twelve months of 2018 on March 4, 2019.
The information in this press release is an estimate of the LUKOIL Group's results for the fourth quarter and the twelve months of 2018 and therefore constitutes forward-looking statements. This information is preliminary and based on information available at the date of this document, and may be revised after statistical, financial, tax and accounting statements become available. The information on the LUKOIL Group's operational results in this press release are subject to many external factors which may cause the actual results to differ materially from those expressed or forecasted in this press release for the fourth quarter and the twelve months of 2018. The LUKOIL Group assumes no obligation to update or alter its forward-looking statements, whether as a result of new information, subsequent events or otherwise, except to the extent required by applicable law.
This document does not constitute or form part of an invitation or inducement to engage in investment activity with, or any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of, the LUKOIL Group, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of, or any investment in, the LUKOIL Group.
INFORMATION ABOUT THE COMPANY:
PJSC “LUKOIL” is one of the largest publicly traded, vertically integrated oil and gas companies in the world in terms of proved hydrocarbon reserves and production; and the second largest producer of crude oil in Russia. Established in 1991, the Company currently operates in more than 30 countries with core upstream assets located in Russia. The full production cycle includes oil and gas exploration, production and refining; production of petrochemicals and lubricants; power generation; marketing and distribution. The Company’s shares are listed in Russia on Moscow Exchange under the ticker “LKOH” and depositary receipts are listed on the London Stock Exchange under the ticker “LKOD”.

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