LUKOIL is
one of the world’s leading vertically integrated oil & gas companies. Main
activities of the Company are exploration and production of oil & gas,
production of petroleum products and petrochemicals, and marketing of these
outputs. Most of the Company's exploration and production activity is located in
Russia, and its main
resource base is in Western
Siberia. LUKOIL owns modern refineries, gas processing
and petrochemical plants located in Russia, Eastern and
Western Europe,
near-abroad countries. The Company's products are marketed in
Russia, Eastern and Western
Europe, in near-abroad countries and USA.
LUKOIL is
the second largest private oil Company worldwide by proven hydrocarbon reserves.
The Company has around 1% of global oil reserves and 2.4% of global oil
production. LUKOIL dominates the Russian energy sector, with 18.6% of total
Russian oil production and 18.9% of total Russian oil refining.
LUKOIL
proven reserves at the beginning of 2010 were 13,696 mln barrels of crude oil
and 22,850 bcf of natural gas, totaling 17,504 mln boe.
LUKOIL has
an outstanding portfolio of production assets. The main production region for
LUKOIL Group is Western
Siberia. LUKOIL is carrying out international
exploration and production projects in Kazakhstan,
Egypt,
Azerbaijan,
Uzbekistan,
Saudi
Arabia,
Colombia,
Venezuela,
Cote
d’Ivoire,
Ghana and
Iraq.
With
putting into operation the Nakhodkinskoye gas field in 2005 the Company started
its gas program which targets at a rapid growth of gas production in
Russia
and abroad and increase in the share of gas to a third of total hydrocarbon
production by LUKOIL. The key regions for development of LUKOIL gas production
are the Bolshekhetskaya Depression, the Northern Caspian and
Tsentralno-Astrakhanskoye field in Russia as well as the Kandym – Khauzak –
Shady project in Uzbekistan and the Shakh Deniz project in Azerbaijan.
LUKOIL
owns significant oil refining capacity both in
Russia
and abroad. In Russia the company owns four
large refineries at Perm,
Volgograd, Ukhta and
Nizhny Novgorod. Total
capacity of LUKOIL facilities in
Russia
is 45.1 mln tons of oil per year. LUKOIL also has refineries in
Ukraine,
Bulgaria,
Romania, and a 49% stake in
ISAB refining complex (island of
Sicily,
Italy) and a 45%
stake in TRN refinery in the Netherlands with total capacity of
26.4 mln tons per year. In 2009 LUKOIL refined 62.70 mln tons of oil at its own
refineries, ISAB complex and TRN refinery, including 44.46 mln tons at its
Russian refineries.
LUKOIL
created a new business sector in 2008: Power Generation. Creation of the new
business sector is a part of the Company’s Strategic development program for
2008–2017. By the end of 2008, LUKOIL’s Power generation business sector
included UGK TGK-8 (acquired during the year), the Company’s own power
generating facilities at oil & gas fields, and also a number of power
generators in Bulgaria,
Romania and
Ukraine.
Output of electrical energy during 2009 by LUKOIL organizations was in excess of
14.7 billion kilowatt-hours, output of heat energy – more than 16.9 million
Gcal. In the long-term the Power Generation is going to attain a significant
role in cash flow maximization and shareholder value increase.
At the
beginning of 2010 the Company's marketing network encompassed 26 countries,
including Russia, the near-abroad and European countries (Azerbaijan, Belarus,
Georgia, Moldova, Ukraine, Bulgaria, Hungary, Finland, Estonia, Latvia,
Lithuania, Poland, Serbia, Montenegro, Romania, Macedonia, Cyprus, Turkey,
Belgium, Luxemburg, Czech Republic, Slovakia, and Croatia, Bosnia and
Herzegovina) as well as the USA and includes 199 tank farm facilities with total
capacity of 3.13 million cubic meters as well as 6,620 filling stations,
including franchises.