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Fuel Quality

LUKOIL has been ahead of schedule in its compliance with the technical regulations and implementation of its own plans concerning the launch of production of Euro-5 fuels: this was achieved four years ahead of schedule. In just five years (starting from 2010) quantities of green diesel fuel increased by almost 100%.

* without mini-refineries and Zeeland refinery.

Decreased production of dark petroleum products.

The major goal of the Russian oil industry is to significantly reduce production of fuel oil. LUKOIL proposes a significant decrease in fuel oil production by 2018 as soon as it completes construction of its new coking, petroleum residue recycling, hydrocracking units, and a number of other projects. Stable market regulation and favorable tax treatment will help those programs to be a success.

Diesel fuel and gasolines.

Projects to produce winter and Arctic diesel fuels with under 10 ppm sulphur content without depressor additives are now under way at LUKOIL-Permnefteorgzintez.

Jet fuel.

LUKOIL-AERO supplies jet fuel to the aircraft in more than 30 Russian and international airports. The customer base includes almost all Russian and international airlines. LUKOIL-AERO is doing its best to maximize satisfaction of the needs of airlines for quality fuel, as this factor directly affects the safety of air traffic.

Marine fuel.

LUKOIL has developed a new marine fuel grade to use in environmental protection areas with limitations on the pollutant emissions generated by marine vessels. This fuel will enable compliance with the limitations on sulphur content becoming effective starting in January 2015, according to which the sulphur mass content must be below 0.1%. Green marine fuel (GMF) is a kind of heavy distillates whose properties are a combination of the best desired parameters of fuel oils and distillate fuels. It is distinguished from fuel oils by the absence of abrasive particles, whereas no sedimentation or disintegration occurs when they are mixed with other kinds of vessel fuel. It demonstrates high detergency which results in the absence and removal of previously generated sediments. The fuel was first tested in 2012. Testing is still underway.
In 2014, LUKOIL-Nizhegorodnefteorgsintez started producing a new commercial product, low-viscosity marine fuel that may be used by marine and river fleet with high and medium speed diesel engines, or utilized by gas-turbine plants.

Lubricants.

LUKOIL is a major lubricants producer in Russia. LUKOIL Group’s Russian plants account for more than 45% of the country’s total production of lubricants. The annual lubricant production is more than a million tons, while the supply geography includes more than 100 countries all across the world.

LLC-International supplies the following groups of lubricants:
groups I-III basic and industrial oils utilized as a raw material for the production of finished oils, lubricants, additives, etc. These oils are in high demand on export markets;

industrial oils to be used in various industry sectors (hydraulic, reduction gear, turbine, compressor, transformer oil, etc.);
transport oils to be used in trucks, buses, agricultural and special-purpose machinery, railway transport, marine vessels and aircrafts
– motor and transmission oils;

passenger car oils – motor and transmission oils; special-purpose oils – softeners, plastifiers for mechanical rubber industry and basic oils to produce oiling coolants.

Oil production and mixing at the Company’s plants, thousand tons

20102011201220132014
Production of lubricants (full cycle)1193115111291053973
Mixing lubricants from ready-made components
8787105101121
Production of pre-packaged volumes251254238242251
Sales of branded oils289317358342376

Development of a Gas Stations Network.

Retail sales of petroleum products and gas processing products are driven by LUKOIL’s subsidiaries through both their in-house gas stations, and through the ones operating under a franchise. The Company’s long-term plans till 2021 require an increase in the average daily sales at the gas stations in Russia both through the expansion of the sales network (including by construction of new gas stations in the regions), and through improved performance of the existing sales infrastructure. 

In 2010, the Company was the first one in Russia to launch a program for franchising some of its gas stations to dealers who may be represented by both business entities and individuals with the appropriate experience in the business and knowledge of the region (CODO program). Gas stations are offered as part of a competitive bidding. The contracts provide for a fee that the dealers receive for fuel sales. Also, the Company assumes responsibility for the costs associated with banking services and a number of other cost items.

This way LUKOIL strengthens its marketing business while encouraging the development of small and family business in the Russian regions.Fuel quality control: from the refinery to the end consumer.

To assure appropriate fuel quality petroleum products are continuously controlled along the whole supply chain: from the refinery to tank farms and gas stations. 

Tank farms check the petroleum products arriving in tank cars and through petroleum product pipelines, as well as after the acceptance to the farm’s tanks. Following the results of such delivery acceptance, quality certificates are issued (the copies thereof are available to end consumers). Gas stations check the quality of the fuel supplied in tank cars and conduct monthly scheduled fuel quality control activities with regard to the gas station tanks. Unscheduled inspections take place as well. All petroleum products are subject to mandatory certification.

The fuel is sampled for control checkouts at random gas stations located in different city districts and on highways. Tests are conducted by mobile labs that have the appropriate equipment as is necessary to check the fuel for all the pollutant parameters. All kinds of fuel are sampled.

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