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. Most of
the Company's production is sold on the international market. LUKOIL petroleum
products are sold in Russia,
Eastern and Western Europe, near-abroad countries and the USA.
LUKOIL
is the second largest private oil Company worldwide by proven hydrocarbon
reserves. The Company has around 1.1% of global oil reserves and 2.3% of global
oil production. LUKOIL dominates the Russian energy sector, with 18% of total
Russian oil production and 19% of total Russian oil refining.
LUKOIL
proven reserves at the beginning of 2009 were 14,458 mln barrels of crude oil
and 29,253 bcf of natural gas, totaling 19,334 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 (put into
production in 2007) 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 44.7
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), with total capacity of 21.8
mln tons per year. In 2008 LUKOIL refined 56.28 mln tons of oil at its own
refineries and ISAB complex, including 44.18 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 2008 by LUKOIL organizations was in excess of 16.2 billion
kilowatt-hours, output of heat energy – more than 18.1 million Gcal (UGK TGK-8
accounted for 90% and 85% of the total, correspondingly).
At
the beginning of 2009 the Company's marketing network encompassed 25 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) as well as the USA
and includes 204 tank farm facilities with total capacity of 3.06 million cubic
meters as well as 6,748 filling stations, including
franchises