LUKOIL’s gas program is focused on accelerated growth of gas
production both in Russia and abroad and increase in the share of gas to a third
of total hydrocarbon production by the Group. The main aim of this strategy is
to commercialize gas reserves and reduce the Company’s exposure to major price
volatility on the international oil market.
Total gas production by LUKOIL Group in 2012 (including the share of production by equity affiliates) rose by
11.9% to 24.606 billion cubic meters (396,000 boe per day). Output of marketable gas (net of own use,
reinjection into reservoir formations and transport losses) rose by 10.5% to 15.934 billion cubic meters (321,000 boe per day), and the increase in Russia alone was 2.9%.
The Company was operating 408 gas wells at the end of 2012, of which
312 were in production.
Production of marketable gas in Russia in 2012 was 13.554 billion
cubic meters, which is 2.9% more than in 2011. The Company had 293 gas production wells in Russia at the end of
2012, of which 218 were actually in use.
Our major gas production field is the Nakhodkinskoe field, where we
produced 8.041 billion cubic meters of natural gas in 2012 (8.273 billion cubic
meters in 2011).
Production of marketable gas in 2012 as part of international
projects rose by 31.3% to 6.337 billion cubic meters. The share of natural gas
was 92%. The Company had 115 gas production wells in international projects at the end of
2012, of which 94 were actually in use.
Our international gas production increased by 39.7%, mostly due to
growth of our production in Uzbekistan. We produced 992 million cubic meters of
gas from the Gissar field (commercial production commenced in December 2011),
and increased production from the Khauzak field by 635 million cubic meters, or