Management’s discussion and analysis of financial
condition and results of operations
The
following report contains a discussion and analysis of the financial condition
of OAO LUKOIL as of December
31, 2011
and the results of it’s operations for each of the years ended
December 31, 2011, 2010 and 2009,
and significant factors that may affect its future performance. It
should be read in conjunction with our US GAAP consolidated financial
statements and notes and supplemental oil and gas disclosure.
References to “LUKOIL,” “the Company,” “the Group,” “we” or “us” are
references to OAO LUKOIL and its subsidiaries and equity affiliates. All dollar
amounts are in millions of US dollars, unless otherwise indicated. Tonnes of
crude oil produced are translated into barrels using conversion rates
characterizing the density of oil from each of our oilfields. Tonnes of crude
oil purchased as well as other operational indicators expressed in barrels were
translated into barrels using an average conversion rate of 7.33 barrels
per tonne.
Translations of cubic meters to cubic feet were made at the rate of
35.31 cubic
feet per cubic meter. Translations of barrels of crude oil into
barrels of oil equivalent (“BOE”) were made at the rate of 1 barrel per BOE
and of cubic feet into BOE at the rate of 6 thousand cubic feet per
BOE.
This report includes forward-looking
statements – words such as “believes,” “anticipates,” “expects,” “estimates,”
“intends,” “plans,”
etc. – that reflect management’s current estimates and beliefs, but are not
guarantees of future results.
Please see “Forward-looking statement” on page 35 for a discussion of
some factors that could cause actual results to differ
materially.
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