LUKOIL is a major international vertically-integrated oil & gas
company, accounting for 2.2% of global output of crude oil.
The strong position, which the Company enjoys today, is the fruit
of 20 years work to expand the reserve base, increasing business scale by
seeking out and executing strategic transactions
.
LUKOIL
today
ü
2.2% of global production of crude
oil
ü The largest privately owned oil & gas company in the world by proved oil
reserves
ü
4th largest privately owned oil & gas company in the world by oil
production
ü
16.6% of Russian crude oil production and 17.7% of Russian crude oil
refining
ü
One of the biggest Russian oil business groups with $133 billion
revenue and net income in excess of $10
billion
Exploration & Production segment
LUKOIL is implementing oil & gas exploration and production
projects in 12
countries.
Proved reserves as of December 31, 2011 were 17.3 billion barrels of
oil.
90.5% of Company’s proved reserves and 90.5% of marketable hydrocarbon
production are in
Russia.
The Company is also taking part in projects in 5 countries outside Russia.
Most activity is concentrated in four federal districts of the
Russian Federation: the North-West, the Volga, the Urals and the South.
The Company's main resource base and oil production region is
Western Siberia which accounted for 42% of proved hydrocarbon reserves and
49% of LUKOIL’s hydrocarbon
production in 2011.
International projects account for 9.5% of
Company’s proved hydrocarbon reserves and 9.5% of marketable hydrocarbon
production.
Refining &
Marketing segment
Refining & marketing is LUKOIL's second major business
segment.
By developing this segment the Company lowers its exposure to
high price volatility on the crude oil market and enhances its competitive
position in main business regions by production and sale of high-quality
petroleum products with high value-added.
LUKOIL currently produces a wide range of high-quality petroleum
and gas products and petrochemicals, selling them via wholesale and retail in
over 30 countries.
Has oil refineries in 6 countries (including share in the
ISAB refinery complex and Zeeland Refinery).
Overall capacity of LUKOIL Group refineries at the end of 2011
was 73.5 mln tons of crude oil per
year.
The Company owns 4 oil refineries and 2 mini-refineries in Russia, as well as 4 gas-processing
plants. The Company's Russian assets also include 2 petrochemical
plants.
Overall capacity of Russian oil refineries of LUKOIL Group at the
end of 2011 was 45.3 mln tons
per year (332 mln barrels
per year).
LUKOIL currently produces a wide range of high-quality petroleum
and gas products and petrochemicals, selling them via wholesale and retail in
over 30 countries.
LUKOIL produces a first batch of automotive gasoline to Euro-5
standards. This was made possible by commissioning of a hydrofluoric alkylation
unit as part of catalytic cracking complex at the Nizhny Novgorod Refinery. Euro-5 gasoline ensures so-called ‘clean exhaust’, reducing
emission of sulphur oxides and the products of incomplete combustion of
aromatics (including the particularly dangerous carcinogen and mutagenic,
benzopyrene).
Power
Generation sector
Power Generation sector comprises all aspects of power generation,
including delivery and marketing of electrical energy and of heat produced at
power plants. The nucleus of the segment is the Russian power generating
company, UGK TGK-8, which was acquired by LUKOIL in 2008, but it also includes
companies producing electricity and heat in Bulgaria, Romania, and
Ukraine.
LUKOIL Group has power generating capacity of 3.5 GW. The Group’s electricity output in 2011 totalled 12.6 billion kWh. Heat production in 2011 was 15.2 million Gcals
.
Innovation
policy
Innovation and the application of new technologies are among the main
competitive strengths of LUKOIL. The Company’s specialists both design new
technologies and work to modernize existing
technologies.
Total Research and Development financing increased in 2011 and
accounted for more than $140 million (comparing with more than $120 million in
2010). Organizational transformation of LUKOIL’s scientific project capacities
was completed in 2011. Four regional institutes were taken into
LUKOIL-Engineering, which established five branches in different geographical
regions where it has activities. The institutes, which are the core of LUKOIL’s
scientific project capacity, carried out R&D work, project studies and other
work with total value of $310 million in 2011.
A LUKOIL working group was set up in 2011 to consider issues
associated with participation in the Russian Government’s Skolkovo innovation
project. Work was carried out during the year on selection of scientific and
technology projects, which have been recommended for implementation as part of
joint work with the Skolkovo Innovation Center. Joint scientific research work
between OJSC RITEK ( LUKOIL subsidiary) and the Skolkovo Center is scheduled in
2012–2014.
The Group continued to work closely in 2011 with the Russian
Corporation of Nanotechnologies (RUSNANO) on commercialization of
nanotechnologies and their application in the oil and gas industry. OJSC RITEK
carried out joint work with RUSNANO during the accounting year on innovative
developments for extraction of difficult reserves in Bazhenov
formations
.
