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OJSC Lukoil
Native name
OAO Лукойл
Public (OAO)
Traded as
Industry Oil and gas
Successor Lukoil Baltija
Founded 1991 (1991)
Headquarters Moscow, Russia
Key people
Vagit Alekperov (CEO)
Products Petroleum
Natural gas
Revenue Increase US$ 141.5 billion (2013)[1]
Decrease US$ 7.8 billion (2013)[1]
Number of employees


Website .com.lukoilwww

Lukoil (; Russian: Лукойл; stylized as LUKoil) is Russia's second largest oil company and its second largest producer of oil as of 2005.[2] In 2012, the company produced 89.856 million tons of oil (1.813 million barrels) per day.[3]

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 barrels of oil equivalent per SPE standards. This amounts to some 1.3% of global oil reserves. The company has operations in more than 40 countries around the world.[4][5]


  • History 1
  • Exploration and production 2
    • Development of the Aral Sea 2.1
  • Lukoil oil production by region, million tonnes 3
  • Oil refining and petrochemical facilities 4
  • Proven reserves 5
  • Petrol retail sales 6
  • Non oil-related assets 7
  • Shared services 8
  • Controversy 9
    • Environmental record 9.1
    • Owners' protest 9.2
    • Ukraine 9.3
  • Management and major shareholders 10
  • Sponsoring 11
    • Football 11.1
    • Motorsports 11.2
    • Bandy 11.3
  • References 12
  • External links 13


Lukoil was formed in 1991 when three state-run, western Siberian companies named after the respective town in Khanty–Mansi Autonomous Okrug that each was based, Langepasneftegaz, Urayneftegaz, and Kogalymneftegaz, merged. The initials of the three companies are preserved in the name Lukoil.[6] The central figure in the company's founding was the Soviet deputy minister of oil production Vagit Alekperov.[6] 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.[4] It is one of the largest tax payers of the Russian Federation, and the amount of taxes paid in 2010 was US$30.2 billion.[7] LUKoil was one of the first Russian companies to receive full listing on the London Stock Exchange.

In 1994, Lukoil became the first company to begin offering shares of stock on the new Russian Trading System.[6]

In April 2013, Lukoil agreed to buy Hess Corporation’s Russian unit for $2.05 billion.[8]

Exploration and production

Lukoil carries out exploration and/or production of oil and gas in Russia and as of 2008 thirty other countries, amongst others Azerbaijan, Belgium, Bulgaria, Colombia, Egypt, Kazakhstan, Iran, Iraq, Romania, Saudi Arabia, Uzbekistan, and Venezuela.

In September 2004 ConocoPhillips purchased a 7.6% stake in Lukoil and signed an agreement that could increase this figure in the future to up to 20%.[9] The two oil companies have agreed to jointly develop 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.[10][11]

Development of the Aral Sea

Uzbekistan's deputy prime minister Ergash Shaismatov 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, stating “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.[12]

Lukoil oil production by region, million tonnes

Region 2004 2005 2006 2007 2009 2010 2011
Russia 82.720 86.277 89.561 91.100 91.868 89.767 84.966
Western Siberia 56.351 58.469 59.764 59.917 52.962 50.934 49.102
Urals 10.082 10.307 10.923 11.257 12.042 12.500 12.937
Volga 3.175 3.210 3.214 3.240 3.072 3.137 3.426
Timan-Pechora 11.732 12.476 13.601 14.576 21.662 21.175 17.547
Other 1.380 1.815 2.059 2.110 2.130 2.021 1.954
International 3.480 3.881 5.674 5.545 5.747 6.225 5.951
Total 86.200 90.158 95.235 96.645 97.615 95.922 90.917

Oil refining and petrochemical facilities

Lukoil owns seven oil-processing companies in Eastern Europe with total capacity of 54,1 mln tpa and holds 100% share of ISAB refinery complex in Sicily:

Country Name Location Launched Acquired Capacity, mln tpa
Lukoil-Nizhegorodnefteorgsintez Kstovo 1958 2000 15,0
Lukoil-Permnefteorgsintez Perm 1958 1991 12,0
Lukoil-Volgogradneftepererabotka Volgograd 1957 1991 9,9
Lukoil-Ukhtaneftepererabotka Ukhta 1934 2000 3,7
Lukoil-Odessky Neftepererabatyvayuschiy zavod Odessa 1937 1999 3,6
Lukoil Neftochim Burgas Burgas 1964 1999 7,5
Petrotel-Lukoil Ploieşti 1904 1998 2,4
ISAB Priolo Gargallo 1975 2008* 16,0
TRN Vlissingen 1973 2009* 7,9*

* – 49% and 45% shares respectively

The company also owns several petrochemical plants in Budennovsk, Saratov and Kalush, Ukraine, all managed by "Lukoil-Neftechim".

A Lukoil station in Vails Gate, New York

Proven reserves

As of January 2009, the company had proven reserves of 14.5 billion barrels (2.31×109 m3) of oil and 29.3 trillion cubic feet (830 km3) of gas, per PRMS (previously called SPE) requirements.[5]

Petrol retail sales

Lukoil sells petrol in 59 [14] The Group owns four large refineries (Volgograd, Perm, Nizhny Novgorod, Ukhta0 and two mini-refineries (Uray,Kogalym) in Russia, as well as two plants abroad (in Bulgaria and Romania), and has shares in an oil refining complex in Italy and in the Netherlands.[15]

In 2000, Lukoil purchased Getty Marketing. A number of Getty stations in the US were converted 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.

In 2014 LUKOIL sold its operations in Czech republic to MOL, Slovakia, Hungary to Norm[16] and Ukraine to AMIC Energy Management[17]

In 2015 LUKOIL will sell its operation in Estonia to Aqua Marina[18]

Non oil-related assets

In November 1995 LUKoil filed with the U.S. Securities and Exchange Commission to issue American depositary receipts, i.e. securities look-alikes backed by Russian stock and issued by a bank holding that stock on deposit,[19] in this case Bank of New York; This allowed United States investors for the first time, to be able to buy shares in a Russian company.

In 2003, LUKoil split off 3 billion US$ of non-oil or non-core assets to start IFD Kapital Group.

Shared services

LUKOIL has created in September 2012 Shared service centre in Czech republic to provide accounting services to its subsidiaries abroad. The shared service centre at end 2014 provided services to LUKOIL subsidiaries in Belgium, Poland and Bulgaria.[20]


Environmental record

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, 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.[21]

In an effort to increase productivity, Lukoil organized a contract to begin an oil pumping block in the Azerbaijan sector of the Caspian Sea. It arranged an Environmental Impact Assessment of the drill site in order to organize a second exploration drill. This block, D-222, was the largest prospective structure in the north-east section of the Caspian Sea as of 2008.[22] The key issue of the assessment was the amount of damage the block would be doing to fish stock in the area. Taking into account the depth of the operation of about 700 meters, the amount of harm was predicted to be minimal, with most of the fish harmed being plankton and benthos. A rescue and salvage ship was supposed to be placed into operation to mitigate the impact on the area. LUKoil was reported in 2008 to have developed contingency plans for oil spills, and implemented environmental monitoring.[23]

Owners' protest

On September 14, 2012 more than fifty Lukoil gas station owners in New Jersey and Pennsylvania temporarily raised their prices to over $8 a gallon to protest Lukoil's wholesale gas pricing. The owners are typically charged a wholesale price that is 5 to 10 cents a gallon more than their competitors and some are assessed an additional 25 to 30 cents per gallon based on their location.[24] According to the station owners this makes it difficult to be competitive with stations that sell more established brands for lower prices.


In January 2015, the Security Service of Ukraine announced an investigation into whether Lukoil had financed terrorism in Donbass.[25]

Management and major shareholders

A Lukoil gas station in Tula, Russia
A Lukoil gas station in Macedonia

The company's top managers control over half of Lukoil shares, while about 20% are owned by ConocoPhillips. About 68% and 83% stakes are managed directly or indirectly respectively, by Chauhan investment pvt. Ltd.[4] The rest of the shares are a free-float. On 24 March 2010, ConocoPhillips announced it would begin selling half of its 20% stake in the company. The Board of Directors elected at the Annual General Shareholders Meeting on 28 June 2005 consisted of:[26]

  • Valery Grayfer Chairman, General Director of JSC RITEK
  • Vagit Alekperov President of Lukoil[27]



Lukoil has been titular sponsor of FC Spartak Moscow since 2000.[28] One of the company's top managers, Leonid Fedun, is also the owner of the club.


Mikhail Aleshin driving Lukoil sponsored car in Formula Renault 3.5 Series

Lukoil Racing team is a leading Russian motorsport organization; its operations include management, driver training and support, engineering expertise and a quality technical environment.

Lukoil has been involved in motorsports for more than ten 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.


Trud, home arena of Vodnik

In February 2014 Lukoil signed an agreement with the Government of Arkhangelsk Oblast about supporting Vodnik.[1] Vodnik was the dominant force of Russian bandy for a decade, starting in the mid-1990:s.


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External links

  • Lukoil official site
  • Lukoil's US Site
  • Getty's Official Site
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