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Product quality management

Oil refineries of LUKOIL produce a wide range of popular, high-quality products for all means of transport and many types of industrial equipment.  

LUKOIL considers the continuous search for opportunities to improve properties of its products and to proactively meet the needs of the markets where such products are sold as its strategic task.  

Over the entire lifecycle of its products the Company applies advanced technology and best practice aiming at the sustainable use of natural resources, energy saving and reducing waste and contamination. Certified quality management systems are in place in LUKOIL entities applicable to specific groups of products. In all entities engaged in refining and sales of oil products corporate standards were approved covering the quality control system, including the process of incoming, operational and acceptance control, control of non-conforming products, quality control of products during their storage and transportation, procurement management, etc.  The conformity of finished products to regulatory requirements and specifications is confirmed by certificates/passports of quality issued for each product on the basis of laboratory and other tests.

The consumer relations system is being constantly improved to make sure that needs of our customers are fully met. Surveys are conducted annually to measure customer satisfaction with products and services and a process of reviewing customer claims and complaints was introduced.  

A system of continuous improvements is in place at the level of PJSC LUKOIL, the Lean Six Sigma methodology is being introduced. This approach encompasses quality management concepts of Lean Manufacturing which focuses on avoiding losses and non-productive costs, and Six Sigma which aims at reducing the variability of process indicators and stabilizing properties of products.  

The quality management systems are certified in accordance with international, Russian and industry standards.  Internal audits of the quality management systems are carried out every year at all production facilities and test laboratories.

Technical rules and industrial standards which are strictly observed by the entities of LUKOIL contain mandatory requirements to the quality and market distribution of fuel and lubricants which aim at protecting life and health of consumers  as well establish the allowable level of environmental impact. The conformity of every batch of products to requirements of the standards is confirmed by a certificate/passport of quality.  

 

ISO 9001  All refineries, aircraft refueling and lubricant producing entities are certified under this standard
IATF 16949 (standard of the International Automotive Task Force industry organization)The standard establishes requirements to quality management systems of suppliers that procure products for the automobile industry. Certificates were issued to relevant entities of the LUKOIL Group

Refineries have a quality control system in place that provides for the centralized collection, keeping and processing of information but is developed separately for each group of products. Raw materials, additives and chemicals supplied by third parties are subject to the incoming quality control.

The following procedures apply to suppliers of materials and equipment used, for example, for the production of chemical agents:

  • incoming control of materials and equipment to check their conformity to the declared parameters;

  • technical audit of suppliers;

  • joint investigation of failures involving supplier's representative;

  • multilevel control of supplied raw materials and storage rules for raw materials and finished products.

Incoming control includes taking official samples, control of raw materials before their handover to production and control of finished products, including official samples. 

 

  • Blending formulas for fuel products are set with the use of an intelligent system depending on the assortment, production plan and season. 

  • Products blended according to preset formulas are sent to storage tanks and certificates/passports for them are issued in line with requirements of national standards.

  • The quality of products is assessed with the use of virtual analyzers and is verified in the Central Plant Laboratory.

  • The majority of product flows in refineries are equipped with flow analyzers to measure the quality of future products.

    The Company is making continuous efforts to maintain the stable quality of its products.

  • A plan of pilot tests of new and alternative additives and chemical agents is approved every year.

  • Cooperation is ongoing with Russian scientific research institutes to develop new formulas of fuel, motor oils and technical fluids in line with quality requirements of respective national standards and latest market trends. 

  • LUKOIL participates in the Work Groups of the Russian Ministry of Energy that are in charge of monitoring and assuring the quality of products of gas processing plants and refineries.

The range of refining products is constantly updated to include new products with improved technical and environmental performance. Innovative products are available for marine vessels, aviation and industrial sector. 

  • 100% of motor fuels comply with Euro-5 standards.

  • Products of combustion of the ECTO and ECTO+ motor fuels contain less sulfur compounds.  The ECTO 100 gasoline allows for reducing the consumption of fuel by up to 6% and СО2 emissions by up to 3%.

  • Fuels containing biocomponents are supplied to European countries.

  • The Company produces marine and bunkering fuel with low content of sulfur (no more than 0.1-0.2% and no less than 0.5%).

In accordance with the corporate standards, the Company arranges for the proper acceptance, storage and distribution of fuel products at its oil depots and petrol stations and their transportation by trucks, including:

  • establishing proper conditions for storing finished products and their transportation;

  • laboratory control of product quality during storage;

  • final control of products ready to be shipped.

    Entities of the LUKOIL Group strictly abide by requirements of the corporate standards which guarantees that technical characteristics of products conform to the specifications and technical rules throughout the entire period of their storage and shipping.

LUKOIL fully controls the process of handover and acceptance of oil products to/from the transport systems operated by Transneft and RZD and with due care arranges for their acceptance, storage and sales at own oil depots and petrol stations.

Motor Fuel

The in-house automated management system is in place that guarantees the delivery of the required quantity and quality of oil products and makes it possible to track electronically the movement of products from the refinery to the end consumer. The system allows for enhancing the safety of transportation, reducing losses in quantity and quality of products, preventing fraud during transportation and distribution of fake products.   

A Petrol Station Monitoring Center analyzes activities of petrol stations connected to the network down to every fuel truck, tank and operator. LUKOIL's test laboratories are fitted with equipment to control the quality of products at all stages (acceptance at oil depots, transportation from oil depots to petrol stations and sales at petrol stations). In addition, mobile laboratories and fuel sampling vehicles are used for scheduled and unscheduled sampling at petrol stations and oil depots. Petrol stations undergo required maintenance and repair.

OOO LIKARD has a central function of setting standards and unifying activities of sales entities and business processes supporting core operations. Electronic training courses and guidelines for petrol station personnel are developed.

Aviation Fuel

The quality control system covering LUKOIL's aircraft refueling facilities in airports and airfields aims primarily at   promoting the safety of flights and includes a set of measures to maintain the high quality of jet fuel, lubricants and other fluids during their acceptance, storage, preparation for release for refueling and refueling of aircrafts.

The internal inspection control is carried out regularly, including the monthly control of fuel and lubricants quality, use of process equipment and tools and professional skills of personnel.

Laboratories of the Company are fitted with modern equipment intended for the control over the quality of fuel and lubricants at all stages as well as for the analysis of waste fuel and lubricants and samples of fuel and lubricants taken in connection with incidents involving civil aircrafts. In Russia, the State Scientific Research Institute of Civil Aviation tests aviation fuel supplied by LUKOIL on a quarterly basis. 

Bunkering Fuel

Analytical laboratories that test chemical and physical properties of marine fuels are accredited with Russian and international certifications. Sampling and analysis is performed in strict compliance with industry standards.

The main quality and quantity control points for petroleum products cover refineries and transshipment terminals. Key quality parameters test and quality control is carried out in onshore tanks, railway tankers and oil tankers. Terminals perform quality and quantity control for incoming petroleum products and those transshipped to vessels and motor vehicles.

Data received from independent surveyors on the results of laboratory tests and inspections is monitored and analyzed on a daily basis, which allows to respond promptly to possible deviations in quality of petroleum products from contractual specifications and take timely risk mitigation measures. 

LUKOIL Group's priority in developing production of oils and process liquids is to create innovative products for advanced equipment and machinery, as well as high performance and field-specific products for various industries.

LUKOIL Group's production sites are ISO 9001:2015 and IATF 16949:2016 certified according to their specifics and focus on supplies to ОЕМs (Original Equipment Manufacturers). The Company's sites undergo 3 to 10 audits annually by OEMs, world manufacturers of machinery and equipment.

LUKOIL Group's product range is constantly developing and rapidly diversifying in response to changing market requirements and customer needs. LUKOIL develops new formulations of high-tech products with a reduced environmental and climatic footprint every year in close cooperation with the world's leading manufacturers of vehicles and industrial equipment.

We produce oils, process liquids and other products that help to reduce waste, pollutant emissions and greenhouse gases.

  • Fully biodegradable hydraulic and coolant fluids and special hydraulic oils that are biodegradable in Arctic conditions.

  • Fuel-efficient motor and hydraulic oils.

  • Highly refined, environmentally friendly paraffin wax candles that release no carcinogens or CO from the combustion process.

  • iCOlube, an intelligent lubrication system for marine vessels, which adapt circulation oil to varying fuel qualities, extending engine life while significantly reducing emissions.

To improve customer convenience, specialized products are available for different fuel types of engines.

  • Products designed for gas vehicle fleets and stationary gas engines including those running on associated petroleum gas and landfill gas.

  • Engine oils for both conventional and biofuel-fueled engines.

  • Cylinder oils for marine engines running on low sulfur fuels.

Given the global trend towards climate neutrality, LUKOIL Group is developing and producing new products for renewable energy equipment and new types of vehicles.

  • Gear oils designed to meet the specifications of modern wind turbines.

  • Process liquids for hybrid engines.

Quality consistency is ensured by strict adherence to corporate and international standards. A key element is regular audits of LUKOIL's plants by customers where product quality and efficiency of production processes are assessed.

Customer relations are an important part of our quality management system (QMS). LUKOIL Group entities are in constant contact with wholesale and retail customers and analyze feedback in order to increase satisfaction with the Company's products and services. The customer satisfaction assessment process, as well as procedures for handling claims and complaints, are governed by the corporate standards of PJSC LUKOIL and its Group entities.

LUKOIL conducts annual surveys on customer feedback about refineries, LLK-International (a 100% subsidiary of LUKOIL Group and a leading producer in the market of oils, lubricants and process liquids), and retailers. While conducting surveys, LUKOIL strictly adheres to the principles of customer data confidentiality and constantly implements measures to protect it.

Customer relations at LLK-International

A great deal of data is collected and analyzed to maintain efficiency of the QMS, to identify trends in product and process parameters and areas for improvement, including customer satisfaction; compliance of products, incoming raw materials and supplies with established requirements; information on supplier performance; QMS audit results.

The data is analyzed at monthly Quality Day meetings, as well as in the summary report for quality management system analysis.

Customer feedback is received via dealers, customer service and the commercial unit. A customer satisfaction questionnaire is sent out once a year for industrial companies and twice a year for other customer groups. Organization and branch management are involved in the process of analyzing and discussing the results of the customer survey at all management levels from managers to the General Director of LLK-International.

Customer feedback sessions are organized based on the results of the survey to identify areas for improvement and development and to set goals to improve engagement in the identified growth areas.

Customer relations at petrol stations

The main mechanisms for interaction with retail customers in the petrol station network are LUKOIL's petrol station mobile application, the Unified Hotline, LUKOIL's official website for motorists, and visitor's books. The LUKOIL petrol stations mobile application enables customers to rate petrol stations based on their visits and purchases made using the loyalty program card.

A corporate IT solutions center for petrol stations in Russia and abroad, responsible for implementation of unified architecture solutions in automation and digitalization, has been set up for efficient handling of large amounts of data. Digital products and platforms are being created to improve the efficiency of communication channels and accelerate feedback.

To improve the quality of communications with customers, a Contact Policy has been developed and a rating system is used to assess the performance of petrol stations. Customer feedback is used to improve the efficiency of regional petrol station managers; a comparative analysis of their performance is carried out on a monthly basis, taking into account the range of appeals and complaints received by the Unified Hotline, as well as ratings in the mobile app.

LUKOIL continues to build an ecosystem of virtual and physical services, including LUKOIL Petrol stations mobile app, LUKOIL for Business mobile app, a wide range of travel services for holders of Fuel Cards, provision of non-fuel products and food products at petrol stations.