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).