LUKOIL Oil Company  

LUKOIL was formed in 1991 as a state concern, which combined three oil producers (Langepasneftegaz, Uraineftegaz, and Kogalymneftegaz) and two oil refineries (Permnefteorgsyntez and Volgograd Refinery). Today, LUKOIL is the leading vertically integrated oil company in Russia. The company’s main activities are oil and gas exploration and extraction, as well as refining and selling petroleum products. LUKOIL is the second largest private oil company worldwide by proven reserves. The company’s proven reserves (including consolidation of assets in the Komi republic) were 15.97 billion barrels of crude oil at the beginning of 2005, according to Miller & Lents. The company has around 1.5% of the global oil reserves and 2.1% of the global oil production. LUKOIL dominates the Russian oil and gas sector, with 19% of total Russian oil production and 19% of total Russian oil refining. LUKOIL has an outstanding portfolio of production assets. The main production flows come from the company’s key operating regions, West Siberia (about 54% of company reserves) and the Perm region. LUKOIL is also the only Russian oil company with significant hydrocarbon reserves in two new oil and gas provinces, Timano-Pechora and Northern Caspian. LUKOIL’s geological prospecting is mainly concentrated in West Siberia, the Timano-Pechora oil province, and the Yamal region. In Russia, the company’s principle refineries are LUKOIL-Nizhegorodnefteorgsintez (capacity of 15.1 million tons, or 111 million barrels, per year), LUKOIL-Permnefteorgsyntez (capacity of 12.1 million tons, or 89 million barrels, per year), and LUKOIL-Volgogradneftepererabotka (capacity of 10.5 million tons, or 80 million barrels, per year). In the second half of the 1990s, LUKOIL actively expanded in eastern Europe by acquiring stakes in three oil refineries: 51% of Petrotel (Romania) in 1998, 58% of Neftokhim (Bulgaria) in 1999, and the Odessa Refinery (Ukraine) in 2000. Currently, LUKOIL is carrying out international exploration and production projects in Azerbaijan, Kazakhstan, Egypt, North Africa, Columbia, and South Arabia. LUKOIL’s sales network covers 58 regions in Russia, as well as the CIS, the Baltic countries, Europe, and the United States. The company owns a total of 197 tank farms and 5,405 filling stations, including 151 tank farms and 1,711 filling stations in Russia. The company, in 2004, produced 86.2 million tons (632 million barrels) of oil, 6.5 billion cubic meters of gas, and refined 45.3 million tons (332 million barrels) of oil. In 2005, the company expects to boost output by 4% to 90.2 million tons (661 million barrels) of oil. By 2013, the company expects to boost output by 35% to 110 million tons (800 million barrels) of oil. LUKOIL expects that most of the increase in its Russian oil output will come from the Timano-Pechora province. In 2006, LUKOIL’s capital expenditures reached approximately USD6.9 billion. The company plans to spend USD5 billion in the area by 2010 and expects to produce a third of its oil in the Arctic. LUKOIL’s investments in the development of oil and gas fields and condensate fields in the Yamal-Nenets Autonomous Area are expected to reach approximately USD5 billion, including almost USD3 billion for development of the Bolshekhetskaya depression fields. LUKOIL plans to invest between USD3.0 billion and USD3.5 billion annually through 2013. After 2013, the company will increase its investments to between USD5 billion and USD6 billion per year to finance its current and future projects. In September 2004, ConocoPhillips bought a 7.59% state stake in LUKOIL at an auction. By the end of March 2006, ConocoPhillips increased its stake in the company to 17.1%. The two oil majors plan to establish a joint venture to develop oil and natural gas in the Timano-Pechora oil and gas province in the Republic of Komi and the Yamal-Nenets Autonomous Area. The company has ratings by Standard & Poor's (BBB-), Fitch Rating (BBB-), and Moody’s Investors Service (Baa2)

Search by industry

Search by alpha index

A B C D E F G I K L M N O P R S T U V W X Y Z