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Stavropol Territory

The history of PJSC LUKOIL in the Stavropol Territory began in 1998 in the petrochemical industry, following the acquisition of Stavrolen LLC, a local processor of gas and raw hydrocarbons, producer of petroleum products and organic chemicals.

In 2005, after acquiring YuGK-TGK-8 LUKOIL entered the new business segment of Power Engineering. In 2011, LUKOIL-Stavropolenergo LLC was established on the premises of existing power entities.

LUKOIL-Stavropolenergo LLC absorbed generating capacities of the Stavropol Territory located in Kislovodsk (Kislovodskyay CHP plant) and Pyatigorsk, and CCGT Unit-135 at the TPP of Stavrolen LLC in Budyonovsk, commissioned in June 2015.

It is in Stavropol Territory that LUKOIL is currently implementing one of the largest investment projects in Russia — "Construction of an associated petroleum gas processing complex to make polyethylene and polypropylene from the Northern Caspian Sea gas at Stavrolen LLC ".

This gas and chemical facility will become one of the leading polymer producing centers in Russia, enabling the introduction of mechanisms to encourage innovative activities and introduce new economically efficient technologies as well as to meet the government's target of maximum utilization of associated petroleum gas.

The project is on the list of promising projects to implement the Strategy of the North Caucasian Federal District's social and economic development until 2025, and will open up ways to encourage innovative activities, introduce new economically efficient technologies, establish a polymer cluster of small- and medium-size businesses, intensify operations of plastics processing companies to produce import-substituting products.

Company Presence

LLC LUKOIL-Stavropolenergo
    Production of thermal and electric power
LLC Stavrolen
    Production of petrochemicals
    Generation, transportation and distribution of thermal and electrical energy
LLC LUKOIL-Yugnefteprodukt
    Petroleum Product Marketing

LUKOIL's production activities are directly connected with the use of petrochemical products. Being responsible for their rational use, the Company took steps to mitigate and prevent potential negative consequences for the environment. This approach was made possible by introducing technological, managerial and scientific innovations into the business-process, as well as manufacturing of environmentally safer products.

In 2005, the Environmental Committee of the Russian State Duma praised LUKOIL for its responsible and careful approach to environment issues and recommended other organizations to learn from the Company's experience as exemplified by Stavrolen LLC, pointing out that environmental management should become routine practice aimed at the preservation and improvement of natural resources.

LUKOIL has also been working to raise environmental awareness among children and teenagers. Together with students from different educational institutions in the Kuma River area and members of the Bumblebee environmental teams, the Company organized many environmental events: district-wide competitions for the best ECO-project and the best bird box, readings on the pressing issued of environmental protection and natural resource use, festivals devoted to global Water and Earth Days, district stages of the Avenue Russia and Plant a Tree national campaigns, as well as the Green Wave national volunteer clean-up.

Beautification and conservation of vegetation in the arid zone of the Kuma river is one of the important environment conservation tasks and a priority for LUKOIL. With the help of young experts, urban residents and students of the Children's Creativity Center, thousands of tree and bush saplings were planted in the 6th, 7th and 8th neighborhoods in the central part of the city.

In 2014, a Ford van equipped for environmental monitoring was purchased. The van has all necessary equipment to conduct comprehensive environmental monitoring at the process facilities.

Another focus of the Company's environmental efforts is the clean-up of the water area and bed of the Beryozovaya River flowing through the premises of the Kislovodsk TPP. This project is important because Kislovodsk is a resort area of federal significance.

LUKOIL took an active part in the Clean Air program to reduce emissions of pollutants into the atmosphere.

LUKOIL's operations in Stavropol Territory are of strategic importance for the stable functioning and development of both the Company and the economy of the entire region. The Company impacts the employment situation in the eastern part of the Stavropol Territory: with the development of its process facilities it crates new jobs for local residents and a stable flow of orders for local contracting, construction and installation firms. etc.

LUKOIL strived to address the problems and needs of the region. It provided charity aid to resolve various social issues and hindrances.

Between 2012-2014, the Company took under its wing the most crucial social facilities including the Polymer Center for culture and sports, which became, after a thorough refurbishment, one of the best institutions of its kind in the Stavropol Territory.

Two nine-storey residential buildings were build with financial support from LUKOIL in Budyonovsk, as part of the investment program for the development of social projects. In 2015, construction of the third building was launched.

In 2014, a symbolic capsule was placed to mark the start of construction of a new health-and-recreation facility capable of handling 600 visitors per shift. The capsule placement ceremony was attended by the Interim Governor of Stavropol Territory Vladimir Vladimirov and PJSC LUKOIL's President Vagit Alekperov. In 2015, construction works began for a new health-and-recreation center with an ice rink, a multipurpose stadium for 770 seats, a gym and a fitness hall, a swimming pool, and a rehabilitation facility for people with musculoskeletal disorders.

The cost of the center exceeded 650 million rubles. The center is scheduled to open its doors at the end of 2016.

The Company provided support to educational institutions of Budyonovsk and the local history museum; it renovated the youth library and one of the oldest centralized libraries in Stavropol Territory; and built three children's playgrounds in residential neighborhoods. The east stand and fences were repaired at the Yunost Stadium, while its spectator areas were coated with asphalt.

In March 2016, with the Company's financial support refurbishment works were started at kindergarten No.21 in Budyonosvk. The original building was erected in 1980. The renovation is scheduled for completion by September 2016.

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