Petroleum product and petrochemical
LUKOIL sold 11.0 million tonnes of petroleum products to wholesale
customers on the domestic market in 2011, representing an increase of 0.4%
compared with 2010.
Export of petroleum
products declined by 6.9% in 2011 to 24.0 million tonnes as deliveries of
medium distillates to the domestic market were increased. The structure of
exports remained unchanged in the reporting year: company exports were dominated
by diesel fuel, fuel oil and gasoil, which together accounted for 89% of total
export volumes. The Company’s petroleum product export structure mainly
corresponds to the structure of product exports from Russia as a
Railway remained the chief means of transport for Group exports
of petroleum products (about 79% of the total). Products were carried by railway
to the Vysotsk terminal, via which 9.9 million tonnes of products were
dispatched in 2011 (including 0.5 million tonnes of vacuum gasoil, 2.0 million
tonnes of diesel fuel and 6.4 million tonnes of fuel oil).
Petroleum products were also exported by sea and by pipeline (12%
and 9% of export volumes, respectively).
LUKOIL is rapidly developing its
international petroleum product trading business, increasing both scale and
international diversification of this business. The Group’s objective is to
achieve maximum efficiency in resource placement, including direct sales to
end-users by-passing third-party traders, deliveries of third-party’s resources
and efficient provision of the Company’s own networks.
LUKOIL has trading offices in nine countries worldwide and makes
deliveries of crude oil and petroleum products to markets in Europe, the USA and
the Asia-Pacific region, as well as increasing its sales volumes in new regions
(Africa, Latin America and the Middle East). The Company had trading business in
90 countries worldwide during the reporting year.
LUKOIL’s retail network operated in 26 countries at the start of
2012, including Russia, CIS and European countries (Azerbaijan, Belarus,
Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Finland, Georgia,
Hungary, Italy, Latvia, Lithuania, Luxembourg, Macedonia, Moldova, Montenegro,
Poland, Romania, Serbia, Slovakia, Turkey and Ukraine) as well as the USA. The
network included 183 storage facilities with total reservoir capacity of 2.7
million cubic meters and 5,994 filling stations (including
Retail sales of petroleum products through owned and leased
filling stations increased by 6% in the reporting year compared with 2010 to a
level of 15.25 million tonnes . In 2011 average daily sales per filling station
(owned and leased ) rose from 8.1 (in 2010) to 8.8 tonnes .
As of January 1, 2012 LUKOIL’s retail network in Russia consisted of
2,336 filling stations (including franchises) and 109 storage facilities with
reservoir capacity of 1.12 million cubic meters. The filling stations and
storage facilities are operated by 7 petroleum product supply organizations,
which do business in 62 of Russia’s administrative
Volume of retail sales of petroleum products on the domestic
market in 2011 was 8.3 million tonnes , which is 18.3% more than in 2010.
Average daily sales per filling station in Russia rose from 10.2 to 11.7 tonnes
, which is 14.7% more than in 2010.
Investments in development of the
Group’s Russian retail business were $216 million in 2011.
LUKOIL’s retail network in the CIS (outside Russia), Europe, and the
USA consists of 3,658 filling stations (including franchises) and 74 storage
facilities with reservoir capacity of 1.6 million cubic
Investments in development of international retail network were
$123 million in 2011.
Retail sales of petroleum products on international markets in
the reporting year were 6.9 million tonnes, which is 5.0% less than in 2010. The
decline was mainly due to restructuring of the retail network in the USA.
Average daily sales per filling station in Europe were 6.8 tonnes compared with
6.5 tonnes in 2010. Withdrawal of inefficient stations gave an increase in sales
volume per filling station comparing with 2010, despite reduction of demand in some
The Group brought 18 filling stations into operation in Europe
and the CIS during 2011, of which 10 were newly built and 8 were acquired, and
80 stations were upgraded.