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{{Use dmy dates|date=May 2011}} {{Cleanup|date=February 2008}} {{Update|date=February 2011}} Lukoil/LUKoil ({{RTS|LKOH}} / {{MICEX|LKOH}} / {{LSE|LKOD}} / {{FWB|LUK}}) {{lang-ru|Лукойл}}; ˈluːkɔɪl) is Russia's second largest [[oil company]] and its second largest producer of [[petroleum|oil]]. In 2009, the company produced 97.615 million tons of oil; {{convert|1.972|Moilbbl/d|m3/d}}. Headquartered in [[Moscow]], Lukoil is the second largest public company (next to [[ExxonMobil]]) in terms of [[proven oil and gas reserves]]. In 2008, the company had 19.3 billion [[barrel of oil equivalent|barrels of oil equivalent]] per [[Society of Petroleum Engineers|SPE]] standards. This accounts to some 1.3% of global [[oil reserves]]. The company has operations in more than 40 countries around the world.


[[Image:Moscow-Lukoil-1607.jpg|right|200px|thumb|Lukoil headquarters in Moscow]] Lukoil was formed in 1991, when three state-run, western Siberian companies, Langepasneftegaz, Urayneftegaz, and Kogalymneftegaz, merged. The initials of the three companies are preserved in the name Lukoil. The central figure in the company's founding was the Soviet deputy minister of oil production [[Vagit Alekperov]]. He came to believe the only way Russians could compete against Western companies was to copy their business model. That meant vertically integrating the three branches of the industry – exploration, refining, and distribution – that were strictly separate under the old Soviet system. In 1994, Lukoil became the first company to begin offering shares of stock on the new [[Russian Trading System]].

Exploration and production

Lukoil carries out exploration and/or production of oil and gas in [[Russia]] and (as of 2008) thirty other countries: [[Kazakhstan]], [[Azerbaijan]], [[Uzbekistan]], [[Egypt]], [[Iran]], [[Iraq]], [[Colombia]], [[Venezuela]], [[Belgium]], [[Saudi Arabia]], [[Bulgaria]] and more. In September 2004, [[ConocoPhillips]] purchased a 7.6 percent stake in Lukoil and signed an agreement that could increase this figure in the future to up to 20 percent. The two oil companies have agreed to develop jointly an oil and gas field in the northern [[Timan-Pechora]] area of Russia ([[Komi Republic]]) and intend to secure the rights to develop the [[West Qurna Field]] in Iraq, one of the country's largest.

Development of the Aral Sea

[[Ergash Shaismatov]], the Deputy [[Prime Minister of Uzbekistan]], announced on 30 August 2006 that the [[Uzbek government]] and an international consortium consisting of state-run [[Uzbekneftegaz]], Lukoil Overseas, [[Petronas]], [[Korea National Oil Corporation]], and [[China National Petroleum Corporation]] signed a production sharing agreement to explore and develop oil and gas fields in the [[Aral Sea]], saying, “The Aral Sea is largely unknown, but it holds a lot of promise in terms of finding oil and gas. There is risk of course but we believe in the success of this unique project." The consortium was created in September 2005.

Lukoil oil production by region, million tonnes

[[West Siberian economic region|Western Siberia]]56.35158.46959.76459.91752.962

Oil refining and petrochemical facilities

CountryNameLocationLaunchedAcquiredCapacity, mln tpa
 UkraineLukoil-Odessky Neftepererabatyvayuschiy zavod[[Odessa]]193719993,6
 Kingdom of Bulgaria[[Lukoil Neftochim Burgas]][[Burgas]]196419997,5
 Kingdom of RomaniaPetrotel-Lukoil[[Ploieşti]]190419982,4
 Italy[[Industria Siciliana Asfalti e Bitumi|ISAB]][[Priolo Gargallo]]19752008*16,0*
 Netherlands[[Total Raffinaderij Nederland|TRN]][[Vlissingen]]19732009*7,9*
NEWLINENEWLINE * – 49% and 45% shares respectively The company also owns several petrochemical plants in [[Budennovsk]], [[Saratov]] and [[Kalush, Ukraine|Kalush]], all managed by "Lukoil-Neftechim". [[Image:US Lukoil station.jpg|thumb|right|A Lukoil station in [[Vails Gate, New York]]]]

Proven reserves

As of January 2009, the company had proven reserves of {{convert|14.5|Goilbbl|m3}} of oil and {{convert|29.3|e12cuft|km3}} of gas, per [[PRMS]] (previously called [[Society of Petroleum Engineers|SPE]]) requirements.

Gasoline retail sales

Lukoil sells gasoline in 59 [[Subdivisions of Russia|regions of Russia]] and in 22 other countries (Azerbaijan, Belarus, Belgium (through its subsidiary "Jet" until late 2008, and progressively directly under the Lukoil brand), Bulgaria, Croatia (operated by Lukoil Croatia, but under the brand name "Europa-Mil"), Cyprus, Czech Republic, Slovakia (Rebranded from "Jet" to "Lukoil"), Estonia, Finland ([[Teboil]]), Georgia, Hungary, Latvia, Lithuania, Republic of Macedonia, Moldova, Montenegro, Poland (Rebranded from "Jet" to "Lukoil" in August 2008), Romania, Serbia, Turkey, USA and Ukraine). As of the end of 2006, it has 197 tank farms and 6,090 gas stations. In 2000, Lukoil purchased [[Getty Oil]], and converted a small number of Getty stations in the [[Economy of the United States|United States]] to Lukoil in 2003. In 2004, Lukoil acquired Schlotzmeyer Bros., who formerly owned the [[Mobil]] stations in [[New Jersey]] and [[Pennsylvania]]. Many of these stations had [[Circle K]] stores, which Lukoil converted to its own Kwik Farms brand. However, many Mobil franchisees in the area did not want to convert their stations to Lukoil because it sold its fuel at the same prices as more established brands. In 2008, Lukoil purchased petroleum distribution company Akpet in Turkey. As a result of this acquisition, Lukoil market share in Turkish retail market increased to 5% with 8 storage facilities and over 600 petroleum stations across the country.

Environmental record

[[Image:C0420-Kudma-flare.jpg|thumb|right|The [[gas flare]] over Lukoil's [[Kstovo]] plant is a major local landmark]] According to Lukoil, their numbers in 2007 recorded a drop of 7.8% in the volume of pollutant effects and a drop of 3.8% in the area of contaminated lands compared to 2006. These numbers came after an appeal from EMERCON of Russia (the Ministry of the Russian Federation for Civil Defense, Emergencies and Natural Disaster Recovery), which proposed that Lukoil participate in the development of monitoring, prevention, and emergency recovery systems. In an effort to increase their productivity, Lukoil organized a contract to begin an oil pumping block in the Azerbaijan sector of the Caspian Sea. They arranged an Environmental Impact Assessment of the drill site in order to organize a second exploration drill. This block, D-222, is the largest prospective structure in the north-east section of the Caspian Sea. The key issue of the assessment was the amount of damage the block would be doing to the fish stock in the area. Taking into account the depth of the operation of about 700 meters, the amount of harm would be minimal with most of the fish harmed being plankton and benthos. A rescue and salvage ship will be placed into operation to mitigate the impact on the area. They have also developed contingency plans for oil spills, and implemented an environmental monitoring system.

Management and major shareholders

[[Image:Lukoil-azs.jpg|thumb|right|A Lukoil gas station in [[Tula, Russia]]]] [[Image:Russian gas station in Macedonia.jpg|thumb|right|A Lukoil gas station in Macedonia]] Company's top managers control over half of Lukoil shares while about 20% is owned by [[ConocoPhillips]]. The rest of shares is a [[free-float]]. On 24 March 2010, ConocoPhillips announced it would begin selling half of its 20% stake in the company. Board of Directors elected at the Annual General Shareholders Meeting on 28 June 2005 consists of: *[[Valery Grayfer]] (Chairman, General Director of the JSC RITEK) *[[Vagit Alekperov]] (President of the JSC Lukoil)


{{Main|Lukoil Racing}} [[Image:Mikhail Aleshin 2007 WSBR.jpg|thumb|right|[[Mikhail Aleshin]] driving Lukoil sponsored car in [[Formula Renault 3.5 Series]]]] Lukoil Racing team is the leading Russian [[motorsport]] organization; its operations including management, driver training and support, engineering expertise and a quality technical environment, which enables continuous development, building, testing and race preparation. Lukoil has been involved in motorsport for over 10 years. The Lukoil Racing Team has achieved notable successes both in Russia and in Europe, winning more than 60 championships over the years. No other auto racing team has gained such success in the history of the USSR and Russia.

External links

{{Commons category|LUKOIL}} {{Portal|Companies}} * [ Lukoil official site] * [ Lukoil's US Site] * [ Getty's Official Site] * [ Lukoil – information and analytics] {{RTSI}} {{MICEX Index}} {{MSCI Russia}} {{Oil Companies}} {{DEFAULTSORT:Lukoil}}