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PJSC Lukoil
Native name
OAO Лукойл
Public (PJSC)
Traded as
Industry Oil and gas
Predecessor Langepasneftegaz
Founded 25 November 1991; 26 years ago (1991-11-25)
Headquarters Moscow, Russia
Key people
Vagit Alekperov (CEO)
Products Petroleum
Natural gas
Revenue $78 billion[1] (2016)
$6.25 billion[1] (2016)
$3.1 billion[1] (2016)
Total assets $74.8 billion[1] (2016)
Total equity $48.1 billion[1] (2016)
Number of employees
110,000 (2014)[2]
Parent IFD Kapital Group
Subsidiaries Lukoil Baltija

The PJSC "Oil Company" Lukoil (Russian: Лукойл, tr. Lukoil, IPA: [ˈluːkɔɪl] stylized as LUKOIL) is a Russian multinational energy corporation headquartered in Moscow, specializing in the business of extraction, production, transport, and sale of petroleum, natural gas, and petroleum products. 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 in, Langepasneftegaz, Urayneftegaz, and Kogalymneftegaz, merged. Its name is the combination of the acronym LUK (initials of the oil-producing cities of Langepas, Uray, Kogalym) and the English word "oil".[3][4]

Lukoil is the second largest company in Russia after Gazprom as well as the largest non-state enterprise in the nation in terms of revenue (4,744 billion).[5][6] Internationally, Lukoil is one of the largest global producers of crude oil. In 2012, the company produced 89.856 million tons of oil (1.813 million barrels) per day.[7] The company has operations and subsidiaries in more than 40 countries around the world.[8][9]



"Langepas, Uray, and Kogalym" oil (Lukoil) was established by the USSR Council of Ministers Decree № 18 on November 25, 1991 as a state-owned enterprise. In the new company, three oil production companies, Langepasneftegaz, Uraineftegaz, and Kogalymneftegaz, processing company Permnefteorgsintez, and the Volgograd and Novosibirsk refineries, were merged (the latter soon came under the control of the authorities of Bashkortostan).[10]

The central figure in the company's founding was the Soviet deputy minister of oil production Vagit Alekperov.[10] 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.[8]

On April 5, 1993, Lukoil transformed itself from a state-owned enterprise to a private open joint-stock company based on Presidential Decree № 1403 of November 17, 1992. The Decree also applied to other state-owned oil companies as well.


In 1994, Lukoil became the first company to begin offering shares of stock on the new Russian Trading System.[10]

In 1995, Lukoil controlled the stakes of nine oil-producing, marketing and service enterprises in Western Siberia, the Urals, and Volgograd Oblast in order to abide by Government Decree № 861 of September 1, 1995.[11] In the same year, a 5% stake of Lukoil was sold by the state with a minimum excess of the starting price in an auction.[12] In November 1995, Lukoil filed with the U.S. Securities and Exchange Commission to issue American depositary receipts on Western stock markets. This allowed United States investors for the first time, to be able to buy shares in a Russian company.[13]

In 1996, Lukoil started contributing to the Shah Deniz natural gas project, and started to build its own tanker fleet as well.

In 1997, Lukoil signed a contract with the Iraqi Ministry of Oil for the development and production of the second stage of the West Qurna-2 oil field. After Saddam Hussein's regime was overthrown, the project was suspended and later terminated.[14] In the same year, Lukoil expanded into the petrochemical industry through its establishment of its subsidiary Lukoil-Neftekhim.[citation needed]

In 1999, Lukoil acquired numerous enterprises such as the Odessa Oil Refinery in Ukraine, the Burgas Oil Refinery in Bulgaria, and KomiTEK.[11]


In 2000, Lukoil acquired American oil company Getty Oil, resulting in the control of a network of gas stations in the United States as well as the first time Lukoil enters the American oil market.[11] In the same year, Lukoil acquired the Kstovo Oil Refinery, leading into a conflict with gas processing and petrochemicals company Sibur, which has petrochemical enterprises technologically related to the refinery. As a result, Lukoil received the Perm GPP, while losing to Sibur's petrochemical assets in Nizhny Novgorod Oblast.[citation needed]

In 2002, Lukoil started construction of its own terminal for shipment of petroleum products in the port of Vysotsk in Leningrad Oblast.[citation needed]

In 2003, Lukoil split off US$3 billion of non-oil or non-core assets to start IFD Kapital Group.[citation needed]

On September 2004, ConocoPhillips purchased a 7.6% stake in Lukoil for about $2 billion. According to some commentators, the sale of this deal was planned before in a personal meeting between Russian President Vladimir Putin and ConocoPhillips' president and C.E.O, James Mulva. After the auction, Lukoil and ConocoPhillips announced the creation of a strategic alliance. Later, the American company increased its stake to 20% in Lukoil and sold to the Russian company part of its network of gas stations in the United States and Western Europe. The two oil companies also agreed to jointly develop an oil and gas field in the northern Timan-Pechora area of Russia (Komi Republic) and intended to secure the rights to develop the West Qurna Field in Iraq, one of the country's largest.[15][16]

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".[17] In December 2006, Lukoil announced the acquisition of 376 filling stations in six European countries: Belgium, the Czech Republic, Finland, Hungary, Poland, and Slovakia, form ConocoPhillips.[18]

In 2007, Lukoil established a joint-venture with Russian energy corporation Gazprom and in 2008, established a joint-venture as well with Italian oil company ERG S.p.A..[11] In 2009, Lukoil and Norwegian oil company Statoil won a tender offer for the development of the West Qurna Field in Iraq. However, in early 2012, Statoil withdrew from the project, resulting in Lukoil consolidating 75% of development of the oil field.[11][14]


From 2010 to February 2011, ConocoPhillips sold its whole 20% stake in Lukoil due to their difficult financial situation.[19][20]

In September 2012, Lukoil created a shared service centre in the Czech Republic to provide accounting services to its subsidiaries in Belgium, Poland, and Bulgaria.[21] In December 2012, Lukoil bought the Imilor field for 50.8 billion in the Khanty-Mansi Autonomous Okrug to explore and develop the hydrocarbon deposits located there.[22]

In February 2013, Lukoil sold the Odessa Oil Refinery to the Ukrainian "East European Fuel and Energy Company" (VETEK). For Lukoil, the oil refinery was unprofitable when production was stopped as early as October 2010 and the refinery finally closed in the summer of 2013.[23] In April 2013, Lukoil agreed to buy Hess Corporation's Russian unit for $2.05 billion.[24]

In 2014, the company faced a sharp decline in retail sales in Ukraine by 42%, caused by Russian intervention in Ukraine. As a result, the management of Lukoil has agreed to sell a 100% its subsidiary Lukoil Ukraine to the Austrian company AMIC Energy Management, which was announced at the end of July 2014.[25][26]

In 2014, Lukoil sold its service stations in the Czech Republic, Slovakia, and Hungary.[27]

In 2015, it sold its service stations in Estonia and Ukraine, and in 2016, it sold its service stations in Latvia, Lithuania, Poland, and Cyprus.[28][29][30]


Oil and gas[edit]

A Lukoil station in Vails Gate, New York, USA
A Lukoil gas station in Tula, Russia
A Lukoil gas station in Macedonia

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.[needs update]

As of January 2009, the company had proven reserves of 14.5 billion barrels (2.31×109 cubic metres) of oil and 29.3 trillion cubic feet (830 billion cubic metres) of natural gas gas, per PRMS (previously called SPE) requirements.[9][needs update]

Lukoil owns seven oil-processing companies in Eastern Europe with total capacity of 82.1 million tons per year. In Russia it owns large refineries in Volgograd, Perm, Nizhny Novgorod, and Ukhta refineries and mini-refineries in Uray and Kogalym. It also owns refineries in Bulgaria, Romania, and Italy, and has a 45%-stake in an oil refining complex in the Netherlands.[31]

Country Name Location Launched Acquired Capacity, mln tpa
Russia Lukoil-Nizhegorodnefteorgsintez Kstovo 1958 2000 15.0
Russia Lukoil-Permnefteorgsintez Perm 1958 1991 12.0
Russia Lukoil-Volgogradneftepererabotka Volgograd 1957 1991 9.9
Russia Lukoil-Ukhtaneftepererabotka Ukhta 1934 2000 3.7
Ukraine Lukoil-Odessky Neftepererabatyvayuschiy zavod Odessa 1937 1999 3.6
Bulgaria Lukoil Neftochim Burgas Burgas 1964 1999 7.5
Romania Petrotel Lukoil Refinery Ploieşti 1904 1998 2.4
Italy ISAB Priolo Gargallo 1975 2008* 16.0
Netherlands 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.

Lukoil sells petrol in 59 regions of Russia and in 17 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"), Finland (Teboil), Georgia, Italy, Luxembourg, Republic of Macedonia, Moldova, Montenegro, Netherlands, Romania, Serbia, Turkey and USA. As of January 2014, it had 166 tank farms and 5,867 filling stations.[32]

Power generation[edit]

Lukoil has the aggregate power generation capacity of 5,800 MW, of which 73% is for commercial use. Lukoil generates about 99% of electrical power of the Astrakhan Oblast and 62% of the Krasnodar Krai. Its main power generation subsidiaries are Lukoil-Volgogradenergo, Lukoil-Rostovenergo, Luikoil-Kubanenergo, Lukoil-Astrakhanenergo, and Lukoil-Stavropolenergo.[33]

Lukoil operates two solar power plants at its own refineries in Romania and Bulgaria with respective capacity of 9 MW and 1.3 MW.[33] A 10-MW solar plant is under construction at the Volgograd Refinery.[34] It also owns a 84-MW wind farm in Topolog, Romania.[35]

Mikhail Aleshin driving Lukoil sponsored car in Formula Renault 3.5 Series


Lukoil has been titular sponsor of FC Spartak Moscow since 2000.[36] The company's vice president, Leonid Fedun, is also the owner of the club since 2003. Since 2001, the company has been sponsoring the Children's Football League. In addition, the company sponsors a number of regional Russian teams in various sports.

In particular, the company sponsors the Volgograd water polo club "Lukoil-Spartak". Lukoil also sponsors the Russian Olympic Committee and is one of the founders of the Russian Olympians Support Fund. In February 2014, Lukoil signed an agreement with the government of Arkhangelsk Oblast about supporting Vodnik.[37] Vodnik was the dominant force of Russian bandy for a decade, starting in the mid-1990s.

Lukoil has been involved in motorsports for more than ten years. The Lukoil Racing team is a leading Russian motorsport organization and has achieved notable successes both in Russia and in Europe, winning more than 60 championships over the years.. Lukoil's operations include management, driver training and support, engineering expertise and a quality technical environment.

In addition to Russia, Lukoil sponsors various sports teams in all countries where it operates. The company sponsors the football club FC Rapid București of Romania, the football club FC Zimbru Chișinău of Moldova, the National Federation of Motorsport of Ukraine, and the men's basketball club Lukoil-Akademik, the women's Lukoil-Neftohimik, the volleyball, acrobatic clubs and club of the same name rowing, as well as the club of martial arts "Lukoil-Ikken" of Bulgaria.

Corporate issues[edit]

Management and major shareholders[edit]

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.[8] The rest of the shares are a free-float.

The Board of Directors elected at the Annual General Shareholders Meeting on 28 June 2005 consisted of:[38]

  • Valery Grayfer Chairman, General Director of JSC RITEK
  • Vagit Alekperov President of Lukoil[39]

Environmental record[edit]

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.[40]

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.[41] 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.[42]



On one of the storage ponds of JSC "Lukoil-Volgograd-neftepererabotka" during the period from July 25 to August 8, 1996, the oil sludge was ignited due to the unacceptable conduct of welding operations. The surface layer of oil products was formed during the last two decades, and a similar ignition in this area was already noted in 1972. As a result of the 1996 fire, about 50,000 tons of oil products were burned, since even the soil was saturated with volatile fractions at this site. In the fire, the concentration of carbon monoxide exceeded the permissible standards by almost 28 times, nitrogen dioxide tripled, hydrogen sulfide and phenol more than 1.5 times. In the residential areas of the Krasnoarmeysky district of Volgograd, located 7 km from the fire, as well as in the nearby settlements - B. and M. Chapurnik, Dubov Gully, Chervlen, Tingut - the content of combustion products in the air also exceeded the maximum permissible concentration. In the liquidation of this major technogenic emergency situation with severe environmental consequences, the divisions of the Ministry of Emergency Situations of Russia took part.[43][44]

In the fall of 2003, the Russian Emergencies Ministry revealed the oil spill as a result of the depressurization of the interfacial oil pipeline belonging to the TPP Lukoil-Usinskneftegaz on the territory of the Komi Republic near the city of Usinsk. The area of oil pollution in one case was about 1.8 thousand m², in the second - 377 m².[45]

On January 25, 2011 at about 10:00 (local time), as a result of oil leakage in the engine room LGPZ (CCI "Langepasneftegaz"), there was a fire. Fire extinguished more than 50 fighter. The plant suspended its work.

On April 20, 2012 at the Trebs field, developed jointly by Lukoil and Bashneft, there was an accident that caused significant damage to the natural environment: over a day, continued flowing of oil from the re-opened well, which led to large-scale contamination of the territory. According to the press service of the administration of the Nenets Autonomous District, the contamination area exceeded 5 thousand square meters, the volume of spilled oil, according to Bashneft, was 600 tonnes (in independent sources numbers were up to 2.2 thousand tonnes).[46][47][48]

Violation of anti-trust laws[edit]

In November 2009, the Federal Antimonopoly Service of Russia (FAS) imposed a record fine of 6.54 billion on the company for violating anti-trust legislation. The fine was imposed for the abuse of the company's dominant position in the wholesale market of petroleum products in the first half of 2009, expressed in "the seizure of goods from circulation" and the creation of "discriminatory conditions for the sale of petroleum products to individual counterparties." As FAS has calculated, these actions led to an increase in prices in the wholesale markets of motor gasoline, diesel fuel, and aviation kerosene in the first half of 2009.[49]


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.[50] 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 separatists in Donbass.[51]

See also[edit]


  1. ^ a b c d e
  2. ^ Annual Report 2014 Archived 2015-09-15 at the Wayback Machine.
  3. ^ "LUKOIL - Langepas, Uray and Kogalym Oil (Russia oil company named after major producing cities) | AcronymFinder". Retrieved 2018-01-12. 
  4. ^ "LUKOIL - History". Retrieved 2018-01-12. 
  5. ^ "РБК 500: Крупнейшие компании России". РБК. Retrieved 2018-01-12. 
  6. ^ "annual report" (PDF). Lukoil Company websitepublisher=LUKoil. 2005. Archived from the original (PDF) on 4 March 2016. Retrieved 13 April 2014. 
  7. ^ "Production". Lukoil Company website. LUKoil. 2005. Archived from the original on 2 July 2014. Retrieved 13 April 2014. 
  8. ^ a b c "Russia's king of crude". 26 January 2008. 
  9. ^ a b "UPDATE 2-LUKOIL says proved '08 reserves fall, replaces output". Reuters. 6 March 2008. 
  10. ^ a b c "OAO LUKOIL – Company history". Retrieved 14 May 2011. 
  11. ^ a b c d e Ведомости (2010-09-02). ""Моя миссия еще не закончена"". Retrieved 2018-01-18. 
  12. ^ "Тема дня - 1 ноября 2016 г. - До свидания!". Retrieved 2018-01-18. 
  13. ^ Jim Kennett (6 December 1995). "LUKoil ADRs Near U.S. Retail Premiere". The Moscow Times. 
  14. ^ a b "«ЛУКойл» управится с зарубежными активами из Дубая". Газета.Ru. Retrieved 2018-01-18. 
  15. ^ "Blockade Strengthened On Palestine Town Of Qalgilya". Pravda. 30 October 2001. Retrieved 14 May 2011. 
  16. ^ "Bright future for LUKoil". Archived from the original on September 21, 2004. 
  17. ^ "Uzbekistan, intl consortium ink deal on exploring Aral Sea". ITAR-Tass. Archived from the original on 2010-07-27. 
  18. ^ Ведомости (2006-12-19). ""Лукойл" покупает сеть АЗС". Retrieved 2018-01-18. 
  19. ^ "ConocoPhillips to sell stake in Russian oil firm Lukoil". BBC News. 28 July 2010. Retrieved 10 September 2004. 
  20. ^ Ведомости (2011-05-23). "Ни следа от Conoco". Retrieved 2018-01-18. 
  21. ^ "Veřejný rejstřík a Sbírka listin - Ministerstvo spravedlnosti České republiky". (in Czech). Retrieved 2018-01-19. 
  22. ^ "«ЛУКойл» купил Имилорское месторождение за 50,8 млрд рублей — вдвое выше стартовой цены". Газета.Ru. Retrieved 2018-01-19. 
  23. ^ Ведомости (2013-03-05). "«Лукойл» договорился о продаже Одесского НПЗ". Retrieved 2018-01-19. 
  24. ^ Michael Erman and Vladimir Soldatkin (1 April 2013). "Hess Corp to sell Russian unit to Lukoil for $2.05 billion". Reuters. 
  25. ^ "«ЛУКойл» продаст Украину". Газета.Ru. Retrieved 2018-01-19. 
  26. ^ "«ЛУКойл» продал АЗС на Украине из-за давления со стороны «Правого сектора»". Газета.Ru. Retrieved 2018-01-19. 
  27. ^ "Archived copy". Archived from the original on 2015-06-20. Retrieved 2015-06-20. 
  28. ^ "Russian Lukoil sold its gasoline stations network in Cyprus". 15 March 2017. Retrieved 10 September 2017. 
  29. ^ "Lukoil Selling Lithuania, Latvia Assets on Anti-Russia Sentiment". Bloomberg. 24 December 2015. Retrieved 29 January 2016. 
  30. ^ "In Lithuania, Anti-Russia Sentiment Sends Oil Company Packing Its Bags". Forbes. 27 December 2015. Retrieved 29 January 2016. 
  31. ^ "Oil Refining". Lukoil. Retrieved 10 September 2017. 
  32. ^ "Lukoil web site: General Information". Archived from the original on 2 July 2014. Retrieved 20 June 2014. 
  33. ^ a b "Power Generation". Lukoil. Retrieved 10 September 2017. 
  34. ^ [ "Hevel starts construction on 10 MW PV plant for Russian oil giant Lukoil"] Check |url= value (help). PV Magazine. 28 June 2017. Retrieved 10 September 2017. 
  35. ^ "Lukoil is cutting investments in RES". Ukrainian Biofuel Portal. 16 August 2017. Retrieved 10 September 2017. 
  36. ^ "Company priorities in the field of physical culture and sports". Official website (in Russian). Lukoil. Archived from the original on 30 April 2013. Retrieved 15 March 2013. 
  37. ^ Vodnik Arkhangelsk
  38. ^ "OAO "LUKOIL" – Board of Directors". 24 June 2010. Retrieved 14 May 2011. 
  39. ^ "OAO "LUKOIL" – Management Committee". Retrieved 14 May 2011. 
  40. ^ "Environmental Protection in Lukoil". LUKoil. Archived from the original on 2008-05-07. 
  41. ^ "Lukoil Environmental Impact Assessment" (in Russian). 10 April 2008. Retrieved 13 April 2014. [permanent dead link]
  42. ^ "Lukoil overseas completes environmental assessment of exploration drilling at D-222". Scandinavian Oil Gas Magazine. 11 April 2008. Retrieved 13 April 2014. 
  43. ^ Tatjana. "Экологическое состояние природной среды Волгоградской области - 2 - Экология - электронный путеводитель". (in Russian). Retrieved 2018-01-20. 
  44. ^ "Авиация". Retrieved 2018-01-20. 
  45. ^ "В районе Усинска в Коми произошел разлив нефти из нефтепровода "ЛУКОЙЛ-Усинскнефтегаз"" (in Russian). Retrieved 2018-01-20. 
  46. ^ "Нефтяники пустили фонтан". (in Russian). Retrieved 2018-01-20. 
  47. ^ "Площадь загрязнения из-за аварии на месторождении им. Требса превысила 5000 кв. м". Газета.Ru. Retrieved 2018-01-20. 
  48. ^ "Greenpeace предупреждает об экокатастрофе из-за аварии на месторождении Требса, «Башнефть» отрицает". Газета.Ru. Retrieved 2018-01-20. 
  49. ^ Ведомости (2009-11-06). ""Лукойлу" выписан рекордный штраф". Retrieved 2018-01-20. 
  50. ^ RICHARD NEWMAN (13 September 2012). "Lukoil dealers protest wholesale gas prices". Retrieved 13 April 2014. 
  51. ^ "Ukraine Accuses Russia's LUKoil of Financing Terror in War-Torn East". The Moscow Times. 16 January 2015. 

External links[edit]