LUKOIL is one of the major international oil and gas companies that accounts for more than 2% of the world's oil production and around 1% of the proven hydrocarbon reserves. While having the full production cycle, the Company exercises full control over the whole production chain — from oil and gas production to petroleum product sales. The Russian Federation accounts for 88% of hydrocarbon reserves and 83% of hydrocarbon production, with the main activities concentrated in four (4) federal districts, including the Northwestern, Volga, Urals and Southern Federal Districts.
Every day millions of consumers in more than 30 countries worldwide buy our products, energy and heat, improving the quality of their life.
Our corporate mission is to make the energy of natural resources serve the interests of mankind, to efficiently and responsibly develop the unique hydrocarbon fields entrusted to us by providing Company growth, the wellbeing of its employees and community at large.
LUKOIL's goal is to create new value, maintain high profitability and stability of its business, deliver high return on capital employed for its shareholders by increasing the value of the Company's assets and the payment of cash dividends. To achieve these goals, LUKOIL shall use all available opportunities, including further efforts to reduce costs, increase the efficiency of its operations, improve the quality of its products and services and use new advanced technologies.
Our key strategic guidelines include the following:
To preserve and strengthen our positions in the industry by stepping up financial and operational efficiency. We strive to provide seamless operation, and financial stability of the Group given the unfavorable macroeconomic conditions based on strict financial discipline, efficiency and productivity growth. The Company plans to launch major upstream projects and complete its refining modernization cycle.
To provide an effective balance between the current rate of shareholder return and long-term capital investments. Efforts to improve financial discipline help ensure competitive dividend payments and implement our investment program.
High corporate responsibility standards. We strive to minimize the environmental impact and comply with the highest international safety standards in close cooperation with all of our stakeholders. To do this, we invest in the development of environmental projects, including the construction of gas processing facilities and own generation enterprises as well as pipeline replacement. We will continue to invest in our employees, as their expertise is the central pillar of our success.
Successful implementation of the strategy helps us deliver a high return to our shareholders and investors. We invest in local projects, home-produced products and services in the regions of our presence, creating jobs and income for the local communities. We interact with all our stakeholders to understand their expectations and to include them in our plans to prevent unfavorable scenarios.
Personnel. Whatever the Company does is done by the people and for the people.
Environment and Technologies. Being one of the world's largest users of natural resources, LUKOIL stringently abides by the highest global environmental standards and prides itself on the environmental management system it has in place across the entire Company's vertical chain of management.
Responsibility for the human lives and the natural resources entrusted to us in the regions of our presence.
Openness and partnership in cooperation with the public and stakeholders.
Ethics. Following its mission, LUKOIL is guided by fairness and justice, respect and integrity.
OUR CONTRIBUTION TO SUSTAINABLE DEVELOPMENT
Taking social responsibility for the efficient use of natural resources in all its earnestness and maintaining favorable environmental conditions in its business, LUKOIL is guided by the highest HSE standards. In its operations the Company pursues the sustainable development principles and seeks to achieve a good balance between socio-economic and environmental development.
PJSC LUKOIL upholds the principles of the Global Compact and of the Social Charter of Russian Business, which is reflected in the activities that contribute to sustainable economic growth and social responsibility enhancement.