Today, OAO
LUKOIL Board of Directors held a meeting in Moscow to summarize the Company’s preliminary
performance results in 2009 and set priority tasks for 2010.
According
to preliminary estimates, hydrocarbon reserves increment under the Russian
classification reached 105.8 million tons of reference fuel in 2009. One oil
field and 17 deposits in previously explored fields were discovered.
One of the
2009 most important achievements was successful joint bidding together with
Norway’s Statoil in the
tender to develop West Qurna-2 oil field in Iraq.
According
to preliminary estimates, oil production volume by LUKOIL Group (including share
in production in affiliated companies and foreign projects) exceeded the 2008
level and surpassed 97 million tons. Oil production rate growth in the
Russian
Federation primarily reflects oil production
growth in Yuzhno-Khylchuyuskoye field.
After the
implementation of the geological and engineering programs for carry-over assets
and due to extensive commissioning of new production wells in the reporting
period not only did the Company succeed in stopping the decline in average daily
oil production in the Russian Federation, but it also managed to increase it by
5 thousand tons per day as against 2008. The average oil flow rate of the
operating wells in Russia has been kept at the level of
10.5 tons per day for two years running.
The oil
and gas producing companies of LUKOIL Group launched hydrocarbons production at
7 new fields in 2009. Incremental oil production due to the application of
enhanced oil recovery methods by LUKOIL Group came in 2009 to 23 million tons
(25 % of the overall production).
According
to preliminary estimates, gas production (including internal use, gas injection
and transportation losses) by LUKOIL Group reached almost 17.5 billion cubic
meters in 2009. The decreased production rate is due to limitations imposed by
OAO Gazprom on the volumes of gas accepted.
Crude oil
refining volume by the Company’s refineries (including the refining share by
ISAB and TRN complexes) is expected to come to 63 million tons in 2009,
including more than 44 million tons at the Company’s domestic refineries. The
total refining volume rose by 11% compared with that of
2008.
According
to preliminary estimates, the high octane gasolines share in the total
production volume of motor gasolines by the Company’s domestic refineries rose
from 87% in 2008 to 90% in 2009. The EURO-3,-4 compliant motor gasoline
production is expected to come to 85% of the total gasoline production volume
(81.5% in 2008), while at the Company’s domestic refineries this index rose from
77.7% in 2008 to 83.4% in 2009.
The sales
volume of LUKOIL brand oils in the Russian Federation rose by 8% in 2009
as compared with that of 2008; the Company started production of motor oils
based on a new formula and packed in newly designed oilcans.
According
to preliminary estimates, the amount of tax proceeds transferred by LUKOIL Group
to the Russian
Federation budget is expected at the level of
more than RUR 500 billion in 2009.
More than
RUR 17 billion was allocated for the implementation of Health, Safety and
Environment programs. The total amount of funds allocated for the implementation
of the Annual Coordinating Research and Technology Program came to RUR 2.9
billion in 2009.
The main
achievement of the implemented anti-recession measures in the social sphere in
2009 was a stable salary and zero job cuts. The Company fulfilled its social
obligations assumed in 2009
in full scope. The expenses for social support of
employees, their family members and pensioners in 2009 were equal to those of
2008.
For
2010 and the near future, LUKOIL’s Board of Directors defined the following
primary objectives:
-
provide
hydrocarbons production growth;
-
provide
100% replenishment of production with incremental hydrocarbon reserves;
-
actively
develop the Western Qurna-2 project;
-
actively
implement projects aimed at the development of new offshore fields in the
Caspian Sea and ensure production of first oil
at Yuriy Korchagin field;
-
implement
the program for construction and commissioning of Pyakyakhinskoye oil and
gas-condensate field;
-
implement
the Program for Utilization of Associated Petroleum Gas;
-
step up
operational performance, among other methods through the improvement of
competitive refinery performance indicators based on the Solomon
study;
-
continue
reconstruction, upgrading and construction of new units at Russian
refineries;
-
control
growth of expenses;
-
spin off
non-core and inefficient assets from LUKOIL Group;
-
develop
and implement cutting-edge scientific innovations;
-
ensure
high level of health, safety and environment protection.
Information
provided in this press release presents expected results of OAO LUKOIL
operations in 2009. It was generated based on the
latest preliminary operational and financial data which hasn’t been financially
audited. The information represents preliminary assessment only, which can be
adjusted after statistical, financial, fiscal and business reporting becomes
available. The information on the LUKOIL Group operating
results in this press release depends on many external factors
and therefore, provided all permanent obligations imposed by the London Stock
Exchange listing rules are unconditionally observed, cannot qualify for accuracy
and completeness and should not be regarded as an invitation for investment.
Therefore, the results and indicators achieved in reality may significantly
differ from any declared or forecast operating results in 2009.
ÎÀÎ LUKOIL
assumes no obligation (and expressly declares that it has no such obligation) to
update or change any declarations concerning any future results, both due to new
information obtained, any future events or for any other
reasons.
