At
its session today the Board of Directors of OAO LUKOIL granted preliminary
approval to OAO LUKOIL 2008 Annual Report in accordance with
the Federal Law of the Russian Federation “On Joint-Stock Companies” and
the Charter of the Company.
The
document is recommended for approval at the Annual General Shareholders Meeting
which will take place on June 25, 2009
in Moscow.
Members
of the Board of Directors also discussed performance of the Board of Directors,
the Audit Committee, the Strategy and Investment Committee and the HR and
Remuneration Committee.
The
acting Board of Directors of OAO LUKOIL numbers 11 members and was elected at
the Annual General Shareholders Meeting on June 26, 2008, which is in line with
the Charter of OAO LUKOIL. The Board of Directors includes two executive
directors; five members of the Board of Directors comply with independent
directors criteria set by the Code of Corporate Conduct adopted by the RF
Government on November 28, 2001 and recommended by the RF Federal Commission for
the Securities Market.
Considering
the crisis on world financial markets and the recession of the global economy,
the Board of Directors in the course of the meetings paid a considerable
attention to the effect of the global financial crisis on the operations of OAO
LUKOIL and the strategy and techniques for managing the risks.
Among
other things, the Board of Directors took decisions on the following
issues:
·
On
OAO LUKOIL’s preliminary operating results in 2008, tasks for 2009 and the near
future, and OAO LUKOIL’s priorities in 2009;
·
On
the operating results of LUKOIL
Group in the first half of 2008 and progress in the execution of the 2008 Budget
and Investment Program;
·
On
key indicators of LUKOIL Group’s Medium-Term Plan for 2009-2011 and the Budget
and the Investment Program for 2009;
·
On the
effect of the global financial crisis on the operations of OAO LUKOIL and the
strategy and techniques for managing the newly appeared risks to minimize
potential losses in the Company’s shareholder value;
·
On
measures to be taken by the Company to replenish liquid hydrocarbon
reserves;
·
On the
state of industrial safety at LUKOIL Group.
The
Board of Directors held eight meeting through
joint attendance and seventeen absentee
votes in 2008 - 2009.
Performance
of the Board of Directors and its Committees was declared efficient.
