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Type Public Limited Company
Founded 1991
Headquarters Moscow, Russia
Key people Vagit Alekperov (CEO), Valery Grayfer (Chairman)[1]
Revenue US $133.65 billion (2011)[2]
Net Income US $10.36 billion (2011)[3]
% change on previous year +15%[4]
Total assets US $91.19 billion (end 2011)[5]
Total equity US $67.47 billion (end 2011)[6]
Employees 120,300 (end 2011)[7]

Global Snapshot

Lukoil is a major Moscow-based international oil & gas company, accounting for 2.2% of global output of crude oil.[8] In 2011 it ranked in 69th place in the Fortune Global 500 List of the most valuable companies in the world.[9] and in 2012 was the 18th largest oil company in the world by production.[10]

The company was formed following the dissolution of the Soviet Union when three state-run western Siberian companies (Langepasneftegaz, Uraineftegaz and Kogalymneftegaz) merged and the initials of the original three companies were maintained to form the new company name.[11] The founder, and subsequent CEO and holder of 20 percent of shares, is former Soviet Deputy Oil Minister Vagit Alekperov[12] who, according to the New York Times, has kept an unusually low profile in Russian politics.[13]

In 2011, Lukoil claimed proved reserves of more than 19.3 billion barrels of oil equivalent (boe), the majority of which is located in Russia. It had operations in 60 regions in Russia and 25 other countries, and owned seven refineries and 6,750 gas stations. A significant 89.8% of the company’s proved reserves and 90.6% of marketable hydrocarbon production are in Russia[14], but the company also explores for oil and gas in Azerbaijan, Colombia, Egypt, Iran, Kazakhstan, and other areas in the Middle East and Central Asia.[15] Average daily production as of 2012 was 2.2 million boe per day.[16]

In July 2010 US oil major ConocoPhillips sold its entire 20% stake in Lukoil, valued at around $9 billion. Lukoil agreed to buy back 7.6% of its stock from ConocoPhillips for $3.44 billion.[17]

Company Report Highlights

According to Lukoil's 2010 Annual Report[18], the Group's business progressed well in 2010 as the world made a gradual recovery from the financial crisis.

Net income increased for 2010 increased by 28.5% to $9,006 million, which helped to increase income for shareholders. Lukoil reacted to the decision by ConocoPhillips to exit its shareholding in Lukoil by carrying out one of the largest ever buyback transactions on the Russian market, in excess of $3.4 billion.

In the Exploration and Production segment, the company increased its hydrocarbon output thanks to strong growth of gas production, rapid development of international projects and stabilization of production levels in Western Siberia. Daily hydrocarbon production by the Group rose by 1.2% to 2.24 million barrels of oil equivalent (boe) per day. A major achievement in the company's exploration business over 2010 was the discovery of a deepwater oil field on the continental slope of the Gulf of Guineau in Ghana.

Official Accreditations and Global Perceptions

EITI Supporter Status

As of December 2011, Lukoil was not a supporter company of the EITI.

UN Global Compact

As of December 2011, Lukoil was a participant in the UN Global Compact, having joined the initiative in 2008.

CSR Review

According to Lukoil's official website, the following corporate responsibility achievements can be highlighted for 2010:

  • A 4-fold reduction in the discharge of contaminated waste water, due to measure taken to enhance the efficiency of treatment facilities.
  • Hazardous waste products decreased by 56,000 tons over the year.
  • Special attention was paid to the construction of facilities to utilize associated gas produced during operations in the Republic of Kazakhstan, including the construction of electricity-generating facilities.
  • The sponsoring of a number of orphanages in Western Siberia, Komi Republic, Volgograd, Astrakhan, Leningrad, Kirov, Vologda, Saratov, Kaliningrad and other regions, over the past 20 years.
  • In order to promote socially responsible behaviour, the company adheres to the corporate Social Code published on its website, by creating internal mechanisms on both management and trade union levels.[19]

Global Operations by Country


Main article: Lukoil Operations in Azerbaijan


Main article: Lukoil Operations in Egypt


Main article: Lukoil Operations in Iraq


Main article: Lukoil Operations in Iran


  1. Annual Report 2011Lukoil.
  2. Annual Report 2011Lukoil.
  3. Annual Report 2011Lukoil.
  4. Annual Report 2011Lukoil.
  5. Annual Report 2011Lukoil.
  6. Annual Report 2011Lukoil.
  7. Annual Report 2011Lukoil.
  8. General InformationLukoil
  9. Global 500: LukoilCNN Money, retrieved 9 December 2011.
  10. The World's Biggest Oil Companies”, Forbes, 16 July 2012.
  11. "OAO Lukoil History", Funding Universe, retrieved 19 December 2012.
  12. The World's Biggest Oil Companies”, Forbes, 16 July 2012.
  13. LukoilNew York Times Business, retrieved 19 December 2012.
  14. General InformationLukoil, retrieved 19 December 2012.
  15. Lukoil Company ProfileYahoo Finance, retrieved 9 December 2011.
  16. The World's Biggest Oil Companies”, Forbes, 16 July 2012.
  17. ConocoPhillips to Sell Lukoil Stake After Posting Profit GainBloomberg, 28 July 2010.
  18. Annual Report 2010Lukoil
  19. LukoilLukoil, retrieved 9 December 2011.