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Oil transportation

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Oil transportation

Crude oil exports from Russia by LUKOIL subsidiaries (including oil purchased from other producers) declined to 42.15 million tonnes, down by 4.5% from 2006, due to redirection of a part of export oil to the domestic market. LUKOIL exported 38.10 million tonnes to the far-abroad countries and 4.05 million tonnes to the near-abroad. The Company managed its export deliveries efficiently in 2007, selecting the most profitable routes. The largest share of export volumes was delivered via the ports of Primorsk and Novorossiysk, which accounted for 50% of total exports (46% in 2006). A further 13% of exports were directed to Germany via the Druzhba pipeline (16% in 2006).

th. tons	2004	2005	2006	2007
Export and sales on international markets	46,030	45,916	41,017	39,407
including export and sales to near-abroad countries	4,076	3,254	2,958	2,712
Domestic sales	1,637	672	1,823	1,604
Total	47,667	46,588	42,840	41,011

Export of crude oil using Transneft export routes	38,909	38,529	41,478	39,995
Export of crude oil bypassing Transneft	7,389	7,288	2,655	2,158
Total crude oil exports	46,298	45,817	44,133	42,153

Petroleum product sales

LUKOIL exported 25.1 million tonnes of petroleum products to the near- and far-abroad in 2007 (22.0% more than in 2006). The growth compared with 2006 was due to production and export increases at nearly all of the Company’s Russian refineries. The bulk of exports (over 85%) consist of fuel oil, diesel and vacuum gas oil.