Lukoil owner. Who owns Lukoil? Russian oil company PJSC "Lukoil"
LUKOIL is Russian oil company. The name of the company comes from the first letters of the names of the cities of oilmen (Langepas, Uray, Kogalym) and the word "oil".
The main activities of the company are operations for the exploration, production and processing of oil and natural gas, sales of oil and oil products.
The second company in Russia after Gazprom in terms of revenue (according to the results of 2014, according to the Expert magazine). Until 2007, it was the largest oil company in Russia in terms of production (Rosneft overtook it after buying Yukos assets). In terms of proven hydrocarbon reserves, Lukoil, according to its own data, as of January 1, 2011, was the third private oil company in the world (first in terms of oil reserves).
The Lukoil trademark is one of two Russian brands (along with Baltika) included in the list of the world's 100 largest brands, compiled in April 2007 by the British newspaper Financial Times. However, according to the results of a similar rating compiled in April 2009, Lukoil was no longer among the top 100 brands.
The headquarters of Lukoil is located in Moscow, on Sretensky Boulevard. The company also has a North American headquarters located in East Meadow, a suburb of New York.
The State Oil Concern LangepasUrayKogalymneft (Lukoil) was established by Resolution No. 18 of November 25, 1991 of the Council of Ministers of the USSR. The new oil concern united three oil producing enterprises Langepasneftegaz, Urayneftegaz, Kogalymneftegaz, as well as processing enterprises Permnefteorgsintez, the Volgograd and Novoufimsk refineries (the latter soon came under the control of the authorities of Bashkortostan).
On the basis of Decree of the President of the Russian Federation No. 1403 dated November 17, 1992 "On the specifics of privatization and transformation into joint-stock companies of state enterprises, production and research and production associations of the oil, oil refining industry and oil products supply" on April 5, 1993, a joint-stock company was created on the basis of the state concern open type Oil Company Lukoil.
In 1994, the first privatization auctions for the company's shares took place; began trading shares on the secondary market.
In 1995, in accordance with Decree of the Government of the Russian Federation No. 861 dated September 1, 1995, controlling stakes in nine oil producing, marketing and service enterprises in Western Siberia, the Urals and the Volga region were transferred to the authorized capital of Lukoil (including Nizhnevolzhskneft ”, “Permneft”, “Kaliningradmorneftegaz”, “Kaliningradtorgmorneftegaz”, “Astrakhannefteprodukt”, etc.).
Also in 1995, a relatively small (5%) stake in Lukoil was sold by the state at a privatization mortgage auction. Current Package went to a company affiliated with Lukoil with a minimum excess of the starting price; foreign participants were not admitted to the competition.
In 1996, Lukoil placed American Depository Receipts (ADRs) on Western stock markets. Also, this year was marked by the entry of Lukoil into the largest Azerbaijani oil project Shah Deniz, as well as the start of construction of the company's own tanker fleet.
On one of the storage ponds of JSC "LUKoil-Volgograd-neftepererabotka" in the period from July 25 to August 8, 1996, oil sludge caught fire due to unacceptable welding operations here. The surface layer of oil waste products has been formed over the past two decades, and a similar fire in this area was already noted in 1972. As a result of a fire in 1996, about 50 thousand tons of oil products burned out, since even the soil in this place was saturated with volatile fractions. In the fire seat, the concentration of carbon monoxide exceeded the permissible limits by almost 28 times, nitrogen dioxide - three times, hydrogen sulfide and phenol - more than one and a half times. In residential areas of the Krasnoarmeisky district of Volgograd, located 7 km from the fire, as well as in nearby settlements- B. and M. Chapurnikakh, Oak Ravine, Chervlen, Tingut - the content of combustion products in the air also exceeded the maximum permissible concentrations. In the elimination of this major man-made emergency with severe environmental impact Departments of the Ministry took part emergencies Russia.
In 1997, the Russian company signed a contract with the Iraqi Oil Ministry for the development and production of the second stage oil field West Qurna-2. After the overthrow of the regime of Saddam Hussein, the project was suspended, and the contract was terminated. In the same 1997, Lukoil-Neftekhim was created, under whose management the petrochemical enterprises acquired over the next few years (Stavrolen, Saratovorgsintez and Kalush's LUKOR) are transferred.
In 1999, Lukoil made a number of major acquisitions, including the Odessa Oil Refinery, a refinery in Burgas, Bulgaria, OJSC KomiTEK, and others.
In 2000, the Russian company acquired the American corporation Getty Petroleum Marketing Inc., thus gaining control over a network of gas stations in the United States and entering the American retail market of petroleum products for the first time. In the same year, the company took control of the Kstovsky refinery (NORSI-oil), which led to a conflict with Sibur, which claimed petrochemical enterprises technologically connected with the refinery. As a result, Lukoil received the Perm GPP, ceding petrochemical assets in the Nizhny Novgorod region to Sibur.
2001: the next major acquisitions - OAO Yamalneftegazdobycha, OAO Arkhangelskgeoldobycha, Lokosovsky Gas Processing Plant. In 2002, Lukoil began building its own terminal for the transshipment of petroleum products in the port of Vysotsk (Leningrad Region).
In 2004, Lukoil finally became a private company - the 7.59% of the company's shares remaining with the state were sold to the American oil company ConocoPhillips for $1.988 billion. According to some commentators, the results of the open auction for the sale of this block of shares were predetermined in advance, during a personal meeting between Russian President Vladimir Putin and ConocoPhillips President James Mulva. After the auction, Lukoil and ConocoPhillips announced the creation of a strategic alliance. Later, the American company increased its stake in the capital of Lukoil, and also sold part of its network of gas stations in the US and Western Europe to the Russian company.
In 2005, Lukoil acquired Nelson Resources, a company operating in Kazakhstan, for $2 billion. Also this year, the Nakhodka gas field was put into operation.
On January 25, 2006, the company announced the discovery of the first exploratory well at the Yuzhno-Rakushechnaya structure in the Severny licensed area in the northern part of the Caspian Sea, 220 km from Astrakhan, of a large multilayer oil and gas condensate field named after the famous oilman Vladimir Filanovsky. The probable reserves of the field are estimated at 600 million barrels of oil and 34 billion m³ of gas; annual production can reach 5 million tons. In December 2006, Lukoil announced the acquisition of 376 filling stations in six European countries (Belgium, Finland, Czech Republic, Hungary, Poland and Slovakia) from ConocoPhillips.
In 2007, Lukoil created joint ventures with Gazprom Neft, and in June 2008 with the Italian oil company ERG (on the basis of its two ISAB refineries in Sicily, and for 49% of this JV, Lukoil undertook 1.3475 billion euros). In 2009, Lukoil, together with the Norwegian Statoil, won a tender for the development of the Iraqi West Qurna-2 hydrocarbon field (at the beginning of 2012, the Norwegians withdrew from the project, and Lukoil consolidated 75% in it).
In 2007, the number of Lukoil employees increased by 1.9% to 151.4 thousand people compared to 2006 (148.6 thousand).
Lukoil's average daily hydrocarbon production in 2008 was 2.194 million barrels. n. e./day; oil refining volume - 1.127 million barrels per day. The output of petroleum products in 2008 (excluding mini-refineries and Sicilian ISAB refineries) increased by 7.4% compared to 2007 and amounted to 52.5 million tons. The total volume of sales of oil and petroleum products in 2008 amounted to 134.7 million tons (an increase of 2.1% compared to the previous year).
In November 2009, the Russian Federal Antimonopoly Service imposed a record fine of 6.54 billion rubles on the company for violating antitrust laws. The fine was imposed for the abuse of a dominant position on the wholesale market of petroleum products recorded in the first half of 2009, expressed in “withdrawal of goods from circulation” and creation of “discriminatory conditions in the sale of petroleum products to certain counterparties”. According to the FAS, 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.
By February 2011, ConocoPhillips had completely withdrawn from the capital of Lukoil, having sold its shares due to a difficult financial situation.
In December 2011, Lukoil entered into a joint venture with Bashneft to develop large oil fields named after Roman Trebs and Anatoly Titov. The total recoverable oil reserves and resources for these fields are 89.73 million tons in category C1, 50.33 million tons in category C2 and 59.29 million tons in category C3
At the end of 2012, Lukoil won the state auction for the sale of rights to explore and develop the Imilorskoye, Zapadno-Imilorskoye and Istochnoye hydrocarbon fields located in the Khanty-Mansiysk Autonomous Okrug. In this competition, Lukoil bypassed Rosneft and Gazpromneft, paying the state 50.8 billion rubles.
In February 2013, Lukoil agreed to sell the Odessa oil refinery to the Ukrainian East European Fuel and Energy Company (VETEK). The deal to sell the company, which stopped production in October 2010 due to unprofitability, is expected to close in the summer of 2013.
In 2014, the company faced a sharp decline in retail sales in Ukraine, caused by a cooling in relations with Russia (according to Vagit Alekperov, sales in 2014 fell by 42% compared to the previous one). In this regard, Lukoil's management agreed to sell 100% of Lukoil Ukraine's subsidiary to the Austrian company AMIC Energy Management, which was announced at the end of July 2014.
On November 25, 1991, Decree of the Government of the RSFSR No. 18 was issued on the creation of the LangepasUrayKogalymneft oil concern, which was subsequently transformed into the Open Joint Stock Company Oil Company LUKOIL.
The name LUKOIL is formed from the initial letters of the names of the cities of Langepas, Uray and Kogalym, where the main oil producing enterprises that are part of the Company are located. This name was proposed by Ravil Maganov, who at that time was the general director of the Langepasneftegaz enterprise.
In accordance with Decree of the Government of the Russian Federation No. 861 dated September 1, 1995, controlling stakes in nine oil producing, marketing and service enterprises in Western Siberia, the Urals and the Volga region were transferred to the Company's authorized capital. This year major shareholder LUKOIL became the American company Atlantic Richfield Company, which acquired 7.99% of the Company's shares. In 1995, LUKOIL expanded the geography of its activities by entering oil production projects in Egypt and Kazakhstan. In Russia, the Company has begun large-scale seismic surveys in the North and Middle Caspian. Russian President Boris Yeltsin awarded President of OAO LUKOIL Vagit Alekperov the Order of Friendship for his services to the state and his great contribution to the development of the fuel and energy complex.
In 2000, LUKOIL entered the US petroleum product retail market by completing the acquisition of Getty Petroleum Marketing Inc., which operated 1,260 gas stations in thirteen states in the northeastern United States. As a result of exploration work in the Caspian area "Severny", LUKOIL discovered the first oil field, which is named after the former Secretary of the Board of Directors of OAO "LUKOIL" Yuri Korchagin. An important corporate achievement of the Company was the transition to international standards financial reporting. After the acquisition of the American oil company ARCO, British Petroleum became the owner of a 7% stake in OAO LUKOIL. In early 2001, BP announced its intention to sell its stake in LUKOIL. 3% of the shares were converted into ADRs and sold on the open market, and for the remaining 4% valuable papers LUKOIL issued convertible bonds. In January 2003, BP began to exchange bonds for the Company's shares, thus withdrawing from the Company's share capital.
In 2005, LUKOIL and ConocoPhilips set up a joint venture to develop the Yuzhnoye Khylchuyu oil and gas field in the Nenets Autonomous Okrug. The company also acquired stakes in four more oil and gas projects in Kazakhstan, and in Finland - a large network of gas stations under the Teboil brand and a plant for the production of automotive oils.
LUKOIL and GAZPROM signed a general agreement on strategic partnership for 2005-2014. In April 2005, the Company started gas production at the Nakhodkinskoye field. In the middle of 2005, LUKOIL was the first Russian oil company to start producing EURO-4 clean diesel fuel. The company released its first activity report in the field sustainable development. Since then, such reports have been published every two years.
In October 2005, President of the Russian Federation Vladimir Putin awarded Vagit Alekperov, President of OAO LUKOIL, the Order of Merit for the Fatherland, 4th Class, for his great contribution to the development of Russia's fuel and energy complex.
The beginning of 2010 was marked by the signing in Baghdad of a contract for the provision of development and production services at the West Qurna-2 field. The document was signed by the Iraqi state oil company South Oil Company and a consortium of contractors consisting of the Iraqi state company North Oil Company (25%), LUKOIL OJSC (56.25%) and the Norwegian Statoil ASA (18.75%). The term of the contract is 20 years with the possibility of extension for 5 years. In the spring of 2010, ConocoPhillips decided to sell its 20% stake in LUKOIL within two years. For its part, LUKOIL decided to buy most this package. The company has begun developing new concept and development strategies.
important events The year also included the discovery of significant hydrocarbon reserves at the Dzata structure located on the shelf of Ghana in the Gulf of Guinea, the victory together with the American Vanco International in a tender for the right to explore and develop two blocks in the Romanian sector of the Black Sea, the commissioning of a chlorine and caustic soda production unit at the Ukrainian enterprise "Karpatneftekhim" and the catalytic cracking complex at LLC "LUKOIL-Nizhegorodnefteorgsintez".
LUKOIL signed a memorandum of understanding with the Development Fund of the Skolkovo Center for the Development and Commercialization of New Technologies.
A group of LUKOIL specialists was awarded the RF Government Prize in the field of science and technology for the development and implementation of a system of innovative organizational and methodological solutions and technologies that ensure comprehensive involvement in the development of unclaimed oil and gas reserves and resources. The President of the Russian Federation Dmitry Medvedev awarded the President of OAO "LUKOIL" Vagit Alekperov with the Order "For Merit to the Fatherland" III degree for his great contribution to the development of the oil and gas complex and many years of conscientious work
LUKOIL today
2.2% of global oil production*
· No. 1 company among the world's largest private oil and gas companies in terms of proven oil reserves
Company No. 3 among the world's largest private oil and gas companies in terms of oil production
17.8% of all-Russian oil production and 18.2% of all-Russian oil refining
· The largest Russian oil business group with revenue in 2010 of more than $100 billion and net profit of more than $9 billion.
* According to EIG.
Exploration and production business segment
LUKOIL implements oil and gas exploration and production projects in 12 countries around the world.
As of the end of 2010, the proven hydrocarbon reserves of the LUKOIL Group amounted to 17.3 billion barrels. n. e.
Russia accounts for 89.8% of the Company's proven reserves and 90.6% of commercial hydrocarbon production. Abroad, the Company participates in 11 oil production projects in five countries of the world.
The main part of the Company's activities is carried out on the territory of four federal districts RF - North-West, Volga, Ural and South. The Company's main resource base and main region of oil production remains Western Siberia, which accounts for 44% of proven reserves and 49% of hydrocarbon production.
On the international projects accounts for 10.2% of the Company's proven reserves and 9.4% of commercial hydrocarbon production.
Downstream business segment
Refining and marketing is the second important business segment of the LUKOIL Group. The development of this segment allows the Company to reduce its dependence on high price volatility in the oil market and improve its competitive position in the main regions of operation by producing and selling high-quality products with high added value.
LUKOIL owns oil refining capacities in 6 countries of the world (including the ISAB refinery and the TRN refinery).
The total capacity of the refineries of the LUKOIL Group as of the end of 2010 is 71.5 million tons per year.
In Russia, the Company owns four oil refineries and two mini-refineries, as well as four gas processing plants. In addition, the Russian assets of the LUKOIL group include 2 petrochemical enterprises.
The total capacity of the Russian oil refineries of the LUKOIL Group as of the end of 2010 is: 45.1 million tons/year (338 million barrels/year).
Today, LUKOIL produces a wide range of high-quality petroleum products, gas processing products and petrochemicals and sells its products wholesale and retail in more than 30 countries around the world.
In December 2010, we launched a catalytic cracking complex at the refinery in Nizhny Novgorod - this is the largest catalytic cracking complex built in Russia over the past 25 years. This made it possible to start producing gasoline that fully complies with the Euro-5 standard.
Business sector "Power industry"
The sector includes all areas of the energy business, from generation to transportation and distribution of heat and electricity. The Power Industry business sector, the core of which is the assets of OAO YuGK TGK-8 acquired in 2008, also includes organizations that generate electricity and heat at the Company's refineries in Bulgaria, Romania, and Ukraine.
The generating capacity of the LUKOIL Group currently stands at about 4.4 GW. The Group's total electricity generation, including the generation of small-scale power generation, in 2010 amounted to 14.6 billion kWh. The supply of thermal energy in 2010 amounted to 15.3 million Gcal.
Innovation policy
The innovation policy is becoming one of the main elements of the Company's development. Usage modern technologies allows us to increase business efficiency. Today, we are the first Russian company to gain experience in the deep water offshore of West Africa. The company continues to improve technologies for the production of heavy and high-viscosity oil in Russia. In 2010, we provided 20% of the total Russian oil production in this category.
In 2010, the Group established a unified corporate research and development center – OOO LUKOIL-Engineering. Its tasks are to organize and carry out scientific and technical work on geology, development and production at all facilities of the LUKOIL Group. On the basis of OAO RITEK, a department for working with complex and unproductive fields was created, which will become the center for the active implementation of innovative methods of oil production.
How does "LUKOIL" stand for? July 30th, 2016
I did not even imagine that the name of this organization has a transcript. Oil = this is oil, of course. What is a LUK? Lukomorye? And since I am now in Tyumen, I was told the answer to this question.
So, the name LUKOIL stands for ...
L angepas + At paradise + To rabid + OIL.
That is, in general, the history of LUKOIL began in 1991, when the state oil concern LangepasUraiKogalymneft was established by a decree of the Council of Ministers of the USSR, which included three producing production associations in Western Siberia (Langepasneftegaz, Urayneftegaz and Kogalymneftegaz), as well as processing plants in Perm, Volgograd, Ufa and Mazeikiai.
That's how it is. Now you are in the know.
Well, then, a little interesting about this oil company.
In the mid-2000s, Lukoil was the largest oil company in Russia in terms of production, after the defeat of Yukos, Vagit Alekperov's company held the lead for two years, but when the state-owned Rosneft bought most of the bankrupt's assets, Lukoil became second. Among the world's private oil and gas companies, Lukoil ranks first in terms of proven oil reserves (1% of world hydrocarbon reserves) and second in terms of production (more than 2% of world production). The main resource base is Western Siberia, Lukoil recently started production at the Imilorskoye field, one of the largest in the region. In total, in 2014, Lukoil discovered 14 new fields, which was the company's best result over the past 10 years. Lukoil was in many ways a pioneer of the Russian oil industry. He was the first to start working on the shelf, having implemented large projects in the Caspian, Baltic and Barents Seas. By decision of the government in 2008, only Rosneft and Gazprom were allowed to develop new fields on the shelf. Since then, Lukoil has been lobbying for a revision of this norm. In 2015, Rosneft and Lukoil clashed in a fierce battle for the onshore part of the East Taimyr shelf. In August, Rosneft began to challenge the results of the competition through the courts, in which Lukoil won. So far, the court has blocked the transfer of the license to Lukoil. The disputed area is partly located on land, partly captures transit waters and partly goes to the shelf.
Lukoil, along with other domestic companies, suffered from sectoral sanctions, and projects for shale oil fields of the Bazhenov Suite were hit. After the suspension of cooperation with the French Total, Lukoil had to continue its work on its own.
Lukoil was the first Russian company to go abroad. About a third of capital expenditures now fall on foreign projects that the company is implementing in more than 40 countries around the world. The company faced difficulties outside of Russia, at the end of 2014 Lukoil recognized a $104 million loss from depreciation of assets in Ukraine, and in July 2015 the Romanian prosecutor's office initiated proceedings against six top managers of Petrotel Lukoil subsidiaries (owns a refinery in Romania ) and Lukoil Europe Holdings, accusing them of money fraud and damage to the country's economy. The court of Romania, at the suit of the prosecutor's office, seized the property and accounts of Lukoil for a total amount of about € 2 billion. Lukoil came to Romania back in 1998. The plant's capacity is 2.4 million tons, the enterprise provides about 1,000 jobs and is one of the largest in the region. Lukoil has been present in Europe for 17 years. There are four refineries and a network of filling stations in the EU countries. The total amount of European assets is estimated at $9 billion.
Many Russian citizens would like to know who owns Lukoil, one of the largest private oil companies in our country. The recent international economic forum Petersburg shed light on this mystery. The head and co-owner of PAO made a statement. He spoke about who owns Lukoil. Vagit Alekperov previously reported that 50% of the company is owned by foreign investors, he personally owns only 20%, and another 10% of the shares are held by the vice president, Leonid Fedun.
How it was
At a summit on technological innovations and changes in the global energy market, President Vladimir Putin confidently stated that companies in which foreign investors participate produce 25% of all Russia's oil. He stressed that we do not have a single large firm without foreign participation. Even the state-owned Rosneft is a joint-stock company. This fragment of VV Putin's speech was published by mass media.
After this statement, the President of the Russian Federation directly turned to Vagit Alekperov with a specific question: "Who really owns Lukoil? How many foreigners do you have, approximately?" The head of the oil company named the figure - 50%. V. Alekperov himself is the owner of 20% of the shares. But it was not always so.
Previously, the largest foreign holder of Lukoil's shares was the American company ConocoPhillips. In the spring of 2010, she sold her stake (just about 20%). Information about the buyer is not disclosed. It is only known that the sale process was fully completed in early 2011.
And now we have to figure out who owns Lukoil at the moment. There are still rumors on the Internet that ConocoPhillips is still a strategic partner of this oil company. Allegedly, she owns a blocking stake, and her representatives are members of the board of directors and participate in joint projects. However, it is not.
successes
The international vertically integrated company is the largest not only in our country, but also in the whole world. It occupies the top positions in terms of hydrocarbon reserves. Now some specifics. Oil reserves in the fields owned by the company are the largest in the world. All experts know about it.
PJSC Lukoil produces hydrocarbons not only in Russia, but also far beyond its borders. Where exactly? The company owns numerous mining companies both in Western and Eastern Europe. Therefore, it is not so easy to determine who actually owns Lukoil.
The company sells products through its distribution networks in more than 20 countries around the world. In any case, in the US, Lukoil filling stations are the first in terms of the number of filling stations among other manufacturers. The shares of this company are traded not only on Russian, but also on foreign stock exchanges, they are among the so-called "blue chips" supplied from the Russian stock market. Where is the main office of the company "Lukoil"? Address (legal): Moscow, Sretensky Boulevard, building No. 11.
Structure
The competitiveness of a company directly depends on the effectiveness of corporate governance. And it is provided by more than one president of PJSC Lukoil. Development is impossible without a well-established management structure that would determine the relationship between shareholders, the executive body and the Board of Directors. Only in this case, investors will be confident in the reasonableness of the funds spent by management. A properly built management structure effectively contributes to the growth of the company's capitalization.
The PJSC system has established reliable and trusting relationships between the community of shareholders and investors. Therefore, their cooperation is strong, effective and long. The investment attractiveness of the company is increasing year by year.
The principles of interaction between shareholders and the company itself are as transparent as possible. What does it mean? Shareholders of PJSC "Lukoil" can follow how the general management is carried out, as well as receive up-to-date information on financial transactions.
Who is at the head of the corporate governance system? This is the Board of Directors, which manages in the interests of shareholders and investors. It includes independent directors. Such an approach helps to form an objective opinion of the Council on any of the issues discussed. These factors also strengthen the confidence of shareholders and investors in PJSC Lukoil.
Each division of the general structure has its own director. Each of them was elected to the Board at the general meeting of shareholders in June 2017. It is they who now determine the priority areas of the oil company's activities, develop its strategic, medium-term and annual planning, and will also sum up the results of all work. How many directors are on the Board? Only eleven people, including three foreigners (two of them are personnel policy and rewards, and one - investments).
Persons
The President of the company is Vagit Yusufovich Alekperov, who is an executive member of the Board of Directors and Chairman of the Management Board of the company. This person is written a lot in the media. He has been a member of the Council since 1993.
The Chairman of the Board of Directors is Valery Isaakovich Graifer. This is not his only position. V. Greifer also chairs the Board of Directors of AO RITEK. In PJSC Lukoil, he was elected to the Board of Directors in 1996.
His deputy is Ravil Ulfatovich Maganov, who is an executive member of the board, the investment and strategy committee, and a member of the company's board. He was the first executive vice president of exploration and production. Member of the Board of Directors since 1993.
Blazheev Viktor Vladimirovich is a member of the Board of Directors, Chairman of the Audit Committee and a member of the Human Resources Committee. Concurrently works as the rector of the Moscow State Law University named after Kutafin (MGYuA). Member of the Board of Directors since 2009.
It is impossible not to single out one more person. This is Igor Sergeevich Ivanov. He is a member of the Board of Directors, Chairman of the Investment and Strategy Committee, and sits on the Audit Committee. In addition, Ivanov chairs the RIAC. Member of the Board of Directors since 2009. The management of the company considers him a valuable employee.
Roger Mannings is a member of the British-Russian Chamber of Commerce. He is a member of the Board of Directors and chairs the Human Resources Committee. He is also an independent member of the Board of Directors of AFK Sistema OJSC, the largest public diversified financial company in Russia and the CIS, engaged in telecommunications, insurance, finance, media business, retail, oil industry, radio electronics, mechanical engineering. This is not a complete list yet. R. Mannings has been on the Board of Directors of PJSC Lukoil since 2015.
Introducing another foreign specialist - American Toby Trister Gati. She came to the Board of Directors a year later than Mannings. Now the woman is on the investment and strategy committee, along the way being the president of TTG Global LLC. And before that she was the US Deputy Secretary of State for Research and Intelligence, and also an adviser to Bill Clinton (when he was president) on Russian affairs.
Toby Trister Gati is not going to completely leave politics. But for now, she's content with being a senior advisor to the world's most lucrative lobby group, Akin Gump Strauss Hauer & Feld LLP. She loves Brzezinski. Probably, in order to form an opinion on the composition of the leadership of NK Lukoil, this information must be taken into account, since the business policy of our country directly depends on the worldview of its participants.
Personnel Committee
Richard Matzke is on the Board of Directors of PJSC Lukoil for the second time: first from 2002 to 2009, then re-elected in 2011. The committee deals with personnel and remuneration. He also serves on the Advisory Board of Directors of the US-Russian Chamber of Commerce. That's not all. Richard Matzke also sits on the third Board of Directors - at PHI, Inc. (Project Harmony Inc.), and on the Board of Directors of the well-known Chinese company PetroChina Company Limited, specializing in the exploration, production and refining of oil.
Audit and Development Strategies
Yvan Pictet is a successful Swiss banker. He has been on the Board of Directors of Lukoil since 2012. Works on the audit committee. In addition, he chairs the boards of directors of the Symbiotics companies, as well as PSA International SA. In addition, Ivan Pictet is the president of two foundations - Fondation pour Geneve and Fondation Pictet pour le development. Member of the AEA European Advisory Board. We talked about foreigners.
Two more members of the Board of Directors are Russians. This is a member of the investment and strategy committee, as well as holding the position of vice president of strategic development of the company since 2013. And the second person is Lyubov Nikolaevna Khoba. In addition to being a member of the Board of Directors, he is the chief accountant of PJSC Lukoil and its vice president.
About Committees
In August 2003 committees were established under the Board of Directors. Each of them had their own goals and objectives. Igor Sergeevich Ivanov - Chairman of the Investment and Strategy Committee. Toby Trister Gati, Ravil Ulfatovich Maganov and Leonid Arnoldovich Fedun work with him. The Audit Committee is chaired by Viktor Vladimirovich Blazheev. And his colleagues are Igor Sergeevich Ivanov and Ivan Pictet. The Human Resources and Compensation Committee is chaired by Roger Manning. Victor Vladimirovich Blazheev and Richard Matske decide questions with him.
The corporate secretary of PJSC Lukoil, Natalya Igorevna Podolskaya, coordinates the actions of the company's management. She is also responsible for communication and interaction between the Board of Directors, shareholders and executive management. Under the supervision of the secretary, it is guaranteed that the officials and management of the company comply with all procedural requirements that ensure the realization of the interests and rights of each shareholder. The Corporate Secretary is appointed directly by Vagit Yusufovich Alekperov.
Single share
In 1995, a number of others were added to the structure of the joint-stock company: Research Institute "Rostovneftekhimproekt", "Volgogradnefteproduktavtomatika" and six more oil companies from Nizhnevolzhsk, Perm, Kaliningrad, Astrakhan. This was both a blessing and a difficulty for Lukoil: five divisions of the company had their own shares, which independently traded on the stock market. Plus shares of the main holding. Exchange players preferred some papers, others did not. And processing plants, unlike mining ones, did not involve traders in the business. That's why they didn't have any deals.
When one company has such a wide variety of securities, interacting with investors and finding them is very difficult. Switching to a single share was a good idea. At that time, not a single oil company in Russia had yet decided on such transformations. Lukoil was the first. That is why this process was difficult and slow. The entire transition took two years.
blue chips
The term "blue chip" came to the stock markets from casino lovers. Where did such a name come from? The fact is that chips of exactly this color in the game are more expensive than the rest. Now this expression is used for securities or shares of the most reliable, liquid and large companies. These firms boast stable earnings and dividends. When a single share of Lukoil appeared on the stock market, it immediately received the highest interest from investors.
The state got the opportunity to profitably sell its shares. And Lukoil registered with the Commission on Exchanges and Securities (SEC) an application for issuing receipts of the first level on deposits, which were intended for sale in the US on the stock market. The Bank of New York agreed to act as depositary.
Long haul
In 1996, the depositary notes of the company were included in the listings of the Berlin and At the same time, joint ventures LUKARCO, LUKAgip N.V (Italy) were created. Lukoil began to form its own tanker fleet, designed to operate in the Arctic Ocean. By 1999, it was fully commissioned. Russian specialists have been waiting for this for a long time.
In 1997, there was a huge disappointment in the amount of two billion tons of Iraqi oil and a very expensive contract broken due to the Kuwait conflict. That's not all. In 1998, there was a crisis with a rapid drop in oil prices throughout the world. The company's budget has been revised. Everything that was low-margin has stopped. But shares in domestic and foreign markets still fell, and more than 5 times.
The company continued to make acquisitions nonetheless. On the advice of Dresdner Kleinwort Benson and AB IBG NIKoil, financiers, KomiTEK was bought, then immediately one hundred percent of the shares of Nobel Oil, then 50% of the shares of KomiArcticOil (under an agreement with British Gas North Sea Holdings Limited) and so on - up to the present moment. Unless we can add that in 2004 Lukoil-USA managed to buy 779 Lukoil gas stations from ConocoPhilips located in Pennsylvania and New Jersey. Rather, before the acquisition, all gas stations belonged to the Mobil brand, but were quickly transferred to a new brand name.
So who owns Lukoil?
This is what many Russians want to know. However, the president of PJSC Lukoil always answered evasively to this question. Alekperov said that there is no single shareholder controlling all processes. And he is not ready to discuss the package belonging to the managers. This continued for a long time, until the beginning of 2017.
Now Vagit Yusufovich Alekperov admitted that the main "strength" of the company is management. Although such a goal was not voiced, it was already possible to collect a controlling stake.
Brief description of the company
NK "LUKOIL"- one of the largest international vertically integrated oil companies. LUKOIL occupies a leading position in terms of hydrocarbon reserves. The company produces oil both in Russia and abroad. LUKOIL owns oil refineries in Russia, Eastern and Western Europe. The sales network of LUKOIL covers over 20 countries, in the USA LUKOIL ranks first in terms of the number of filling stations.
LUKOIL's strategic partner is ConocoPhillips. ConocoPhillips owns a blocking stake in LUKOIL. Representatives of ConocoPhillips are members of the board of directors of LUKOIL, the companies are implementing joint projects.
Shares of OAO "LUKOIL" are traded on Russian and foreign stock exchanges and are among the "blue chips" of the Russian stock market.
The structure of the company
Russia
Mining
LUKOIL-Western Siberia, including:
Kogalymneftegaz
Langepasneftegaz
Pokachevneftegaz
Urayneftegaz
Eganoil
Arkhangelskgeoldobycha
Kaliningradmorneft
LUKOIL-Komi
Nizhnevolzhskneft
LUKOIL-Perm
LUKOIL-AIK
Aksaitovneft
Baitek-Silur
Bitran
Volgodeminoil
Danao Engineering
Kolvageoldobycha
PermTOTIoil
RKM-Oil
RITEK
SeverTEK
Tursunt
Tabukneft
Tebuk-UNG
Tulvaneft
UralOil
Ukhtaneft
YANTK
Shaimgeoneft
Arcticneft
Boval
Naryanmarneftegaz
Nakhodkaneftegaz
Geoilbent
Production
Permnefteorgsintez
Volgograd oil refining
Ukhta oil refining
Nizhny Novgorodnefteorgsintez
Kogalym Oil Refinery
Lokosovsky GPP
Permneftegazpererabotka
Korobkovsky GPP
Usinsky GPP
Stavrolen
Saratovorgsintez
Sales
LUKOIL-Adygea
LUKOIL-Arkhangelsk
LUKOIL-Astrakhannefteprodukt
LUKOIL-Volgogradnefteprodukt
LUKOIL-Vologdanefteprodukt
LUKOIL-Kavkazskiye Mineralnye Vody
LUKOIL-Kaliningradnefteprodukt
LUKOIL-Kirovnefteprodukt
LUKOIL-Kominefteprodukt
LUKOIL-Krasnodar
LUKOIL-Mari El
LUKOIL-Permnefteprodukt
LUKOIL-Saratov
LUKOIL-Severo-Zapadnefteprodukt
LUKOIL-Tyumen
LUKOIL-Chelyabnefteprodukt
LUKOIL-Nefteprodukt
Trading House "LUKOIL"
LUKOIL-Holding-Service
FOREIGN ASSETS
Mining
Lukoil Overseas
Production
Lukoil Neftochim Bourgas (Bulgaria)
Petrotel-Lukoil (Romania)
LUKOIL-Odessa Oil Refinery (Ukraine)
LUKOR (Ukraine)
Sales
LUKOIL Europa Holdings (Europe)
Getty Petroleum Marketing Inc. (USA)
Company history and projects
Company formation
The state concern "LUKOIL" was established in 1991, in accordance with Decree of the Government of the Russian Federation No. 18 of 11/25/91. on the basis of three oil and gas production departments (Langepas-Urai-Kogalymneftegaz). On November 17, 1992, Decree of the President of the Russian Federation No. 1405 was published, which marked the beginning of the formation of vertically integrated oil companies. The first companies appeared in Russia, combining all the main areas of the oil business (production, refining and marketing), - Rosneft, LUKOIL, Yukos and Surgutneftegaz. According to the appendix to the decree, the mining sector of NK LUKOIL was formed on the basis of the departments of Kogalymneftegaz, Langepasneftegaz, Urayneftegaz, the processing sector was made up of the Perm, Volgograd and Novoufimsk refineries, and the sales of products were provided by the enterprises Adygeynefteprodukt, Vologdanefteprodukt, Volgogradnefteprodukt, Chelyabinsknefteprodukt, Kirovnefteprodukt, Permnefteprodukt. The company also included a number of drilling, service, construction and installation departments. Novoufimsky refinery was soon withdrawn from LUKOIL and merged with other refineries in Bashkortostan in the process of creating Bashneftekhim.
On September 1, 1995, the Government of the Russian Federation issued Resolution No. 861 “On Improving the Structure of the Joint-Stock Company Oil Company LUKOIL”, according to which the joint-stock companies Nizhnevolzhskneft, Permneft, Kaliningradmorneftegaz, Astrakhanneft, Kaliningradmortorgneftegaz joined the company ”, “Astrakhannefteprodukt”, “Volgogradnefteproduktavtomatika”, as well as the Research Institute “Rostovneftekhimproekt”.
Transition to a single share
In early 1995, the company's management developed a program for LUKOIL's transition to a single share. At that time, separate shares of five main divisions of LUKOIL were traded on the stock market: Langepasneftegaz, Urayneftegaz, Kogalymneftegaz, Permnefteorgsintez and Volgogradneftepererabotka. The shares of the holding itself were also presented on the market. The papers of Kogalymneftegaz enjoyed the greatest interest among stock market players, slightly less – Langepasneftegaz and Urayneftegaz. Unlike the mining enterprises of LUKOIL, the processing plants did not attract traders and transactions with their shares were practically not carried out. Such a variety of securities of one company made it difficult to interact with potential investors, and the transition to a single share, backed by all the assets of the company, was the only way out of this situation. At the same time, before LUKOIL, not a single Russian oil company made such a transformation, and LUKOIL had to become a pioneer. This, in particular, explains the fact that the transition to a single share took more than two years. On April 1, 1995, Presidential Decree No. 327 “On Priority Measures to Improve the Activities of Oil Companies” was issued, authorizing the process of introducing a single share. The appearance on the stock market of a single share of the largest Russian oil company made it a "blue chip". Due to the high interest on the part of investors, LUKOIL was able to raise significant funds from the stock market, and the state was able to profitably sell its shares.
Access to international financial markets
At the end of 1995, the US Securities and Exchange Commission (SEC) granted LUKOIL's application for registration of the issue of Level 1 depository receipts intended for sale on the US stock market. The Bank of New York acted as the depositary bank.
In 1996, LUKOIL's ADRs were included in the listings of the London and Berlin stock exchanges.
In December 2002, the Project Privatization Company, acting on behalf of the Russian Federal Property Fund, carried out another placement on the London Stock Exchange of depository receipts for LUKOIL shares. 12.5 million ADRs were put up for sale, each of which is equivalent to 4 ordinary shares of LUKOIL (5.9% of total number shares). During the placement, the cost of one share amounted to $15.5, and $775 million was received for the entire package.
Creation of LUCARCO
On September 19, 1996, LUKOIL and ARCO signed an agreement to establish a joint venture, LUCARCO. The main area of activity of LUKARCO is the Caspian Sea region, where the joint venture is included in the implementation of a number of projects for the extraction and transportation of hydrocarbon raw materials. ARCO provided the company with a $400 million loan, of which $200 million was used to acquire a 5% stake in the Tengizchevroil consortium.
Creation of LUKAgip N.V.
The LUKAgip JV was established by LUKOIL and ENI (Italy) on a parity basis in 1996.
LUKAgip N.V. owns 24% in a concession agreement for a license to develop hydrocarbons in the Meleiha field in Egypt. The company also owns 10% in the development and production sharing agreement for the Azerbaijani Shah Deniz field, 8% in the Azerbaijan Gas Supply Company Ltd. and 100% in LUKAgip (Midstream) B.V., which, in turn, is the owner of 10% of the South Caucasian Pipeline Company.
At the end of 2004, LUKOIL and ENI signed an agreement under which the Russian company bought out from ENI its 50% stake in LUKAgip N.V.
West Qurna
In March 1997, a consortium of Russian companies led by LUKOIL signed an agreement on participation in the development of the Iraqi West Qurna-2 field for a period up to 2020.
Due to the regime of international sanctions imposed after Iraq's invasion of Kuwait, Russian companies failed to start work at the field.
Iraq accused the Russian consortium of failing to fulfill its obligations and in December 2002 notified Lukoil Oil Company that the contract was terminated.
The reserves of the field are estimated at 2 billion tons of oil.
The consortium for the development of the West Qurna-2 field included LUKOIL (68.5%, the project operator), Zarubezhneft (3.25%), Mashinoimport (3.25%) and the Ministry of Oil and Gas of Iraq ( 25%).
Own tanker fleet
In 1996, LUKOIL began building its own tanker fleet. In November, the first tanker was launched.
By 1999, the company had formed the largest tanker fleet in Russia, capable of operating in the conditions of the Arctic Ocean.
In 2001, JSC LUKOIL-Arktiktanker acquired a controlling stake in JSC Northern Shipping Company.
Development of deposits in the Caspian Sea
In 1994, LUKOIL became a participant in the Azeri-Chirag-Guneshli project. LUKOIL paid $400 million for a 10% stake in the project. In 2002, a stake in Azeri-Chirag-Guneshli was sold to the Japanese company Itochu Oil Exploration Co. for $1.25 billion.
In 1997, LUKOIL acquired a 60% stake in an oil production project at the D-222 (Yalama) field in the Azerbaijani sector of the Caspian Sea.
In 1997, LUKOIL bought a 15% stake in a consortium to develop the Kazakh oil and gas field Karachaganak.
On January 9, 2004, OJSC LUKOIL, CJSC KazMunayGas and CJSC KazMunayTeniz signed an agreement under which LUKOIL received a 50% stake in the projects to develop the Tyub-Karagan offshore area and conduct geological exploration at the Atashsky offshore area.
The parties agreed that in the process of purchasing materials, goods and services and attracting personnel for the implementation of projects, priority will be given to Russian and Kazakhstani suppliers and contractors.
On March 14, 2005, LUKOIL and KazMunayGas signed constituent documents on the establishment of a joint venture LLC Caspian Oil and Gas Company for the development of the Khvalynskoye field. As it was announced during the signing of the founding documents, the joint venture is being created within the framework of the agreement on the delimitation of the bottom of the northern part of the Caspian Sea, which provided for the joint development of the Khvalynskoye and Kurmangazy fields by Russia and Kazakhstan. The parties received equal shares in the authorized capital of the joint venture.
In early 2005, Lukoil Overseas withdrew from the project to develop the Azerbaijani Zikh-Govsany field. The main reason for the decision taken by LUKOIL was the low profitability of this project due to the high costs of environmental rehabilitation of the contract area and high degree depletion of reserves.
The decision to withdraw from the project was agreed with SOCAR.
The agreement on Zykh-Govsany, in which the Russian and Azerbaijani companies had equal shares, was signed on January 9, 2001, but did not enter into force.
Arkhangelskgeoldobycha
In December 1997, LUKOIL acquired a controlling stake in OJSC Arkhangelskgeoldobycha, which owns the majority of licenses for the development of fields in the Timano-Pechora oil and gas province.
In July 2003, as part of an asset swap with Rosneft Oil Company, LUKOIL increased its stake in OAO Arkhangelskgeoldobycha to 99.7%.
Construction of the Kogalym mini-refinery
In September 1997, trial operation of the first stage of the Kogalym oil refinery began. The construction of the plant was financed by LUKOIL at its own expense.
1998 crisis
The rapid fall in world oil prices in 1997-1998 had a negative impact on financial indicators"LUKOIL". Given the current situation, the Board of Directors of LUKOIL revised the company's budget in the direction of reducing costs. In particular, it was decided to decommission about 1,500 low-margin wells and reduce the salaries of middle and senior managers. The company froze negotiations on obtaining a $1.5 billion loan from a consortium of Western banks, which was planned to be used for investment projects. The decline in profits provoked a fall in LUKOIL shares on Russian and foreign stock exchanges, which accelerated after the events of August 1998. During the year, the value of LUKOIL shares fell by more than five times (from $25-27 to $5 per share).
Acquisition of KomiTEK
In 1999, LUKOIL acquired KomiTEK. This deal allowed LUKOIL to take a leading position in the Timan-Pechora province. The company increased its resource base, gained control over the Ukhta Oil Refinery and the strategically important Kharyaga-Usa oil pipeline. AB IBG NIKoil and Dresdner Kleinwort Benson acted as financial advisers to LUKOIL.
In the same year, LUKOIL bought a 100% stake in Nobel-Oil (a joint venture of Komi-TEK). Nobel Oil owns a license to develop the Permian-Carboniferous deposit of the Usinskoye field.
OAO Komineft has reached an agreement with British Gas North Sea Holdings Limited to buy out a 50% stake in CJSC KomiArcticOil. The value of the deal was $28 million. The acquisition of shares in KomiArcticOil was carried out as part of LUKOIL's program to consolidate the mining assets of KomiTEK's subsidiaries.
In 2001, a tender was held for the sale of 1.074% of the shares of OAO NK KomiTEK, which were state-owned. LUKOIL was recognized as the winner of the competition, offering $3.003 million for a block of shares at a starting price of $3 million. After the deal was completed, there was no state share in the authorized capital of KomiTEK, almost all 100% of the shares became the property of LUKOIL.
Development of Timano-Pechora fields
In 2000, NK LUKOIL acquired a 56.25% stake in the authorized capital of LLC Parmaneft, having bought out the share that belonged to CJSC Intaneft. LLC Parmaneft owns licenses for the use of four fields located in the Komi Republic.
In 2000, LUKOIL made an offer to the shareholders of Arkhangelskgeoldobycha to exchange the company's shares for its own securities. By the beginning of the year, LUKOIL, together with affiliated structures, owned 58.7% of Arkhangelskgeoldobycha, 15% belonged to Conoco and 25.5% to Rosneft. In addition to Arkhangelskgeoldobycha, LUKOIL began the process of consolidating the assets of the Ukhta Refinery and Kominefteproduct.
In 2001, LUKOIL entered into an agreement with Bitech Petroleum Corporation to acquire all of the company's outstanding shares. The shares were purchased by LUKOIL's 100% subsidiary Lukoil Overseas Holding Limited at a fixed price of CAD 1.55 per share. The main business of Bitech Petroleum is concentrated in the Komi Republic and is located in close proximity to LUKOIL facilities.
In 2001, Lukoil Overseas Holding Limited entered into an agreement with the Cypriot company Aminex PLC, according to which LUKOIL acquired a 55% stake in AmKomi LLC for $38.5 million.
In 2001, LUKOIL decided to merge CJSC Baitek-Silur, LLC AmKomi and LLC Parma-Oil into CJSC LUKOIL-Perm.
In 2002, LUKOIL carried out the next stage of reorganization of the producing enterprises of the Parma project, during which Parma-Oil LLC joined Baitek-Silur CJSC.
In 2002, NK LUKOIL completed the reorganization of Baitek Petroleum, acquired in July 2001. At the time of the transaction, Baitek Petroleum held licenses for exploration and development of promising areas in the Komi Republic and Sakhalin, as well as a number of fields in Egypt, Colombia, Morocco and Tunisia.
In April 2003, OAO LUKOIL and the shareholders of the Urals Group reached an agreement in principle on the sale of oil assets in the Komi Republic to LUKOIL. These assets include a 50.8% stake in OAO Tebukneft, a 59.8% stake in OAO Ukhtaneft and a 58.3% stake in CJSC RKM Oil. As a result of the transaction, OAO LUKOIL, together with affiliated companies, will control about 85% of the shares of OAO Tebukneft, 85% of the shares of OAO Ukhtaneft and 90% of the shares of ZAO RKM Oil.
LUKOIL acquired 81% of the shares of Yaregskaya Oil-Titanium Company. The deal has been approved by the Russian Ministry for Antimonopoly Policy and Entrepreneurship Support. The main shareholders of the Yaregskaya Oil-Titanium Company are OOO LUKOIL-Reserve-Invest and OAO Bitran, controlled by LUKOIL.
The proven oil reserves of the Yaregskoye oil-titanium field are 31 million tons, the explored reserves are 50 million tons. Titanium ore reserves at the deposit are estimated at 640 million tons, which is about 50% of the total Russian titanium reserves.
Creation of LUKOR
In December 2000, LUKOIL-Neftekhim and the Ukrainian petrochemical complex Oriana created a joint venture called LUKOR. The Ukrainian side contributed its petrochemical complex to the authorized capital of the joint venture, while LUKOIL-Neftekhim contributed cash, technical equipment and raw materials. Oriana and LUKOIL-Neftekhim received equal shares in the joint venture.
October 29, 2004 Lukoil Chemical B.V. and LUKOR created a new company - Karpatneftekhim, where the main production facilities of LUKOR were transferred. In the new company, LUKOIL got 76% of the shares, while the share of Oriana in the capital of Lukor decreased from 50% to 47.93%.
The Ukrainian state authorities have repeatedly tried to challenge the deals on the creation of Lukor and Karpatneftekhim, but the Russian side managed to win legal proceedings.
Asset swap with Rosneft
In the summer of 2003, LUKOIL and Rosneft signed a number of contracts for the sale and purchase of mining assets. LUKOIL acquired a 25.5% stake in OAO Arkhangelskgeoldobycha from Rosneft, increasing its share in the capital of this enterprise to 99.6%. Rosneft, in turn, bought back from LUKOIL a 13.6% stake in CJSC Rosshelf and a 30% stake in Polar Lights Company LLC.
“As a result of these mutually beneficial transactions, LUKOIL and Rosneft reached a complete understanding on a number of contentious issues and intend to focus on the implementation of specific projects in the field of oil production, which Arkhangelskgeoldobycha, Rosshelf and Polar Lights are engaged in, said Vagit Alekperov, President of OAO LUKOIL, commenting on the signed agreements.
Development of the petrochemical sector
In 1999, CJSC LUKOIL-Neftekhim received a controlling stake in the Saratov petrochemical enterprise Nitron.
Development of foreign processing capacities
In January 1998, LUKOIL won a tender for the sale of a 51% stake in the Romanian refinery Petrotel.
In October 1999, LUKOIL signed an agreement to acquire a 58% stake in the Bulgarian Neftokhim plant. Under the terms of the agreement, the company paid $101 million for the received block of shares, and also assumed obligations to pay off the company's debts to the budget and implement an investment program worth $408.3 million.
At the beginning of 2005, LUKOIL summed up the results of a public tender for the buyout of shares in the Burgas Oil Refinery (Bulgaria), announced on December 10, 2004. During the 28 days of the offer, the minority shareholders of the Burgas Oil Refinery submitted 2.99 million shares (22.05% of the authorized capital) for redemption. As a result, the stake in the refinery held by Lukoil Europe Holdings B.V. increased to 93.16%
JV "LUK Synthesis Oil", established by the companies "LUKOIL" and "Sintez Oil", in March 1999 was declared the winner in the tenders for the sale of two blocks of shares in JSC "Odessa Oil Refinery". LUKOIL paid $6.9 million for a 51.9% stake in the plant. Later, LUKOIL bought out Sintez Oil's stake, increasing its own stake to 97.4%.
In 2001, LUKOIL completed the formation of the LUKOIL-Europe Holdings structure, which will manage the company's foreign group of assets. The basis of European assets are enterprises acquired in 1998-2000 - Neftokhim (Burgas, Bulgaria), Petrotel (Ploiesti, Romania) and Odessa Oil Refinery (Ukraine).
Caspian Oil Company
On July 25, 2000, LUKOIL, Yukos and Gazprom signed the founding documents of the Caspian Oil Company. The company was established to carry out exploration and development of oil gas fields in the Caspian region. On September 6, 2000, the Caspian Oil Company received official registration of rights to develop the fields of the Northern Caspian.
By 2002, KNK had completed a significant program of geological prospecting work, carried out the interpretation of over 6000 linear meters. km of seismic profiles. One of the main projects of KNK was to be the development of the Kurmangazy structure. In accordance with the agreement between Russian Federation and the Republic of Kazakhstan, the Kurmangazy structure was transferred under the jurisdiction of Kazakhstan, but its development should be carried out jointly on parity terms. On this occasion, LUKOIL Vice-President Leonid Fedun said that “after the boundaries of the Caspian Sea bottom have been determined, the priority in developing the Kurmangazy structure should be assigned to the Caspian Oil Company, which already owns a license for exploration of the Russian part of the block.”
One of the main reasons for the involvement of the "Caspian Oil Company" in the development of Kurmangazy was the need to concentrate capital three largest Russian oil and gas companies Lukoil, Yukos and Gazprom. However, by the time the agreement on the development of Kurmangazy was signed, the financial capabilities of LUKOIL had increased so much that it could carry out the work independently. Yukos had problems with the authorities, Gazprom never put Kurmangazy among the priority projects at all.
Shelf of the Baltic Sea
In 2000, LUKOIL-Kaliningradmorneft announced the start of development of the Kravtsovskoye (D-6) field on the shelf of the Baltic Sea.
Development of the retail network in the USA
In 2000, LUKOIL signed an agreement to acquire 100% of Getty Petroleum Marketing Inc. for $73 million. At the time of the transaction, Getty Petroleum controlled 1,260 gas stations and a network of tank farms in the eastern states of the United States.
In 2004, Lukoil-USA bought 779 filling stations from ConocoPhilips in the states of New Jersey and Pennsylvania for $265.75 million.
Acquisition of NORSI-oil
In 2001, LUKOIL was declared the winner of the auction for the sale of the state-owned stake in NK NORSI-Oil. The main asset of "NORSI-oil" was the oil refinery "Nizhegorodnefteorgsintez". LUKOIL offered $26 million for 85.36% of NORSI-oil's shares. In addition, the winner of the auction assumed obligations to repay NORSI-oil's debt and implement an extensive investment program.
Consolidation of assets
At the end of 2003, LUKOIL announced the completion of the next stage of asset reorganization. A 50% stake in the authorized capital of JV Volgodeminoil and 100% each of OOO Yugraneft, OOO AmKomi and ZAO Baitek-Silur became the property of OAO LUKOIL. Yugraneft became part of LUKOIL-Western Siberia, AmKomi and Baitek-Silur were merged into LUKOIL-Komi, and a share in the Volgodeminoil JV was transferred to LUKOIL-Nizhnevolzhskneft. ZAO LUKOIL-Perm became the sole owner of OOO LUKOIL-Permneft, and at the end of 2003 LUKOIL-Permneft was merged into LUKOIL-Perm.
Production of hydrocarbons outside of Russia
June 19, 2003 Lukoil Overseas Egypt Ltd. signed concession agreements with the Egyptian government for exploration and development of the North East Geisum and West Geisum blocks located in the Gulf of Suez.
In early 2004, LUKOIL received the right to explore and develop gas fields in Saudi Arabia. The company has won a tender for the right to explore and develop gas and gas condensate fields at Block A, located in the center of the country.
The project will be directly implemented by the joint venture LUKOIL Saudi Arabia Energy Ltd. (LUKSAR). The share of LUKOIL in the authorized capital of the joint venture was 80%, Saudi Aramco - 20%.
Reconstruction of the Perm Oil Refinery
On September 14, 2004, LUKOIL put into operation a deep oil refining complex at the Perm Refinery. The complex is designed to carry out the process of hydrocracking and hydrotreatment of vacuum distillates in order to obtain low-sulphur diesel fuel and high-octane gasoline components. Hydrogen and granulated sulfur will be produced as by-products. With the introduction of new equipment, the depth of processing of raw materials at the enterprise increased from 66% to 83%.
The complex includes three main facilities - hydrocracking, hydrogen production and sulfur production.
The commissioning of the deep processing complex will increase the total output of light oil products by 1 million tons per year. The project cost was $365 million.
Sale of non-core assets
On June 23, 2004, the board of NK LUKOIL approved the decision to sell the company's stake in CJSC LUKOIL-Neftegazstroy to the management of this enterprise. Based on an independent appraisal, the cost of a 38% stake in CJSC LUKOIL-Neftegazstroy was determined at RUB 1,925 million.
The sale of shares in LUKOIL-Neftegazstroy was carried out as part of the implementation of the Company's Strategic Development Program for the period up to 2013. The program provides for the sale of non-core and low-income assets.
CJSC LUKOIL-Neftegazstroy was registered on January 12, 1994. The company specializes in the construction of facilities oil and gas industry, the creation of industrial and civil infrastructure and the construction of roads. It includes a branch in Yuzhno-Sakhalinsk, 16 representative offices and about 50 subsidiaries and affiliates.
On June 6, 2004, LUKOIL announced the results of the tender for the right to acquire a 100% stake in the authorized capital of OOO LUKOIL-Bureniye. Three investors expressed their interest, but a specific offer was received only from Eurasia Drilling Company Limited. Due to the fact that only one application was received by the commission for the choice of the buyer, the tender was declared invalid. However, after the completion of the competition, LUKOIL held direct negotiations with Eurasia Drilling Company Limited and the parties reached an agreement.
OOO LUKOIL-Drilling was established in 1995 on the basis of LUKOIL subdivisions that carried out work on the construction and development of oil wells.
Reconstruction of the Odessa Oil Refinery
In the spring of 2005, LUKOIL announced its intention to reconstruct the Odessa Oil Refinery, which will cost about $500 million. The company is preparing a long-term development program for the Odessa Oil Refinery for the period up to 2014. It is planned to continue the reconstruction of the plant, increase its capacity, and master new technologies for oil refining. The main stage of technical re-equipment is the creation of a catalytic cracking unit with a capacity of 1.1 million tons of gas oil per year. The long-term program is broken down into two-year investment periods, with the proceeds from one stage of the program being used to finance the next.
In July 2005, the Odessa Oil Refinery was shut down until 2009.
Development of the Nakhodka deposit
At the beginning of 2004 OOO LUKOIL-Western Siberia started drilling production wells at the Nakhodkinskoye field of the Bolshekhetskaya depression. Gas reserves at the field are estimated at 275.3 billion cubic meters. m.
In October 2003, LUKOIL and Gazprom signed an agreement on receiving gas from the Nakhodkinskoye field into Gazprom's transport system. The parties agreed that in the fourth quarter of 2005 LUKOIL would sell to Gazprom up to 0.75 billion cubic meters. m, and in 2006 - up to 8 billion cubic meters. m of natural gas. The gas price is set at no less than $22.5 per 1,000 cubic meters. m without VAT.
Acquisition of Lokosovsky GPC
In December 2001, LUKOIL, the main supplier of associated gas to the Lokosovsky Gas Processing Complex, agreed with SIBUR-Tyumen to purchase a 100% stake in this enterprise. The proceeds from the sale of the GPC were to be used to pay off SIBUR's debts to Gazprom. However, the parties did not have time to complete the deal, because at the beginning of 2002 ex-president"SIBUR" Yakov Goldovsky was arrested. The new management of SIBUR made efforts to return the shares of the gas processing complex to the composition.
In October 2004, LUKOIL and SIBUR entered into an amicable agreement on the Lokosovsky gas processing complex. In accordance with the agreement, SIBUR waived further litigation and admitted that the establishment of Lokosovsky GPC OJSC, as well as the sale of 100% of the shares of this enterprise in favor of LUKOIL-Western Siberia LLC, took place without violating the law. For its part, LUKOIL-Western Siberia undertook to pay $20 million in addition to the previously paid cash for the acquired shares of Lokosovsky GPC.
The design capacity of the Lokosovskoye GPC is 1.07 bcm. m of gas per year. The complex includes a gas processing plant and a booster pumping station, a network of gas pipelines with a length of more than 100 km. The plant was put into operation in the early 80s.
ConocoPhillips is a strategic partner of LUKOIL
On September 29, 2004, an auction was held to sell the state-owned stake in NK LUKOIL. 7.59% of the company's shares were put up for auction at a starting price of $1.928 billion. SpringTime Holdings Ltd was recognized as the winner of the auction. (subsidiary of ConocoPhillips), which offered $1.988 billion ($29.83 per share) for the package.
At a press conference, ConocoPhillips President James Mulva unveiled the company's plan to increase its stake in LUKOIL's charter capital to 20%. After winning the auction, ConocoPhillips acquired an additional 2.4% stake in LUKOIL on the market, which made it possible to appoint a representative to the company's board of directors.
At the beginning of 2007, ConocoPhillips increased its stake in OAO NK LUKOIL to 20%.
Construction of a marine terminal in Vysotsk
On June 16, 2004, LUKOIL officially put into operation the first stage of the distribution and transshipment complex in Vysotsk (Leningrad Region). The capacity of the first stage allows transshipment of up to 4.7 million tons of oil cargo per year.
Oil and oil products will be delivered to the RPK LUKOIL-II mainly by rail. Besides, in summer period the possibility of delivering fuel oil by tankers of the "river-sea" class is envisaged.
Kandym group of gas fields (Uzbekistan)
In 2004, NK "LUKOIL", NHC "Uzbekneftegaz" and the government of Uzbekistan signed a production sharing agreement, on the basis of which the development of the Kandym group of gas fields will be carried out. The term of the PSA is 35 years. The fields are located in the southwest of Uzbekistan, their total gas reserves are estimated at 250 billion cubic meters. m in category ABC1 and 90 billion cubic meters. m in category C2. There are also small reserves of gas condensate - about 10 million tons in category C2. The largest in the group is the Kandym field, its gas reserves exceed 100 billion cubic meters. m.
The development of the Kandym group of fields is complicated by difficult mining and geological conditions and remoteness from main pipelines. In addition, gas samples showed that it has a high sulfur content (up to 4%), which will require additional costs for purification. To improve economic parameters, the Khauzak block is included in the agreement. Part of the funds received from the sale of profitable gas produced at this block will be directed to the development of less profitable fields.
A preliminary agreement on the development of the Kandym deposits was signed in mid-2001. LUKOIL, Itera and Uzbekneftegaz participated in the project. Previously, the parties agreed that Russian companies would receive 45% each in the project, while Uzbek companies would receive the remaining 10%. Later, Itera withdrew from the project and its share was distributed among the remaining participants. The participation of Lukoil in the project has increased to 70%, Uzbekneftegaz - up to 30%. During the negotiations preceding the signing of the PSA, the parties agreed on the next amendment - the share of Lukoil increased to 90%, the share of Uzbekneftegaz decreased to 10%.
Entering the retail market in Finland
In March 2005, LUKOIL-Finland acquired a 100% stake in the Finnish companies Oy Teboil Ab and Suomen Petrooli Oy for $160 million.
Teboil (historical name Trustivapaa Bensiini) was founded in Helsinki in 1938, Suomen Petrooli (also known as Finska Petroleum) in 1932 in Vyborg. In 1948, VO Soyuznefteexport became the owner of both companies, which in 1994 was transformed into OAO Nafta-Moskva. Suomen Petrooli is engaged in the purchase and transportation of petroleum products, Teboil in their implementation. Teboil's retail network consists of 289 gas stations and 132 individual diesel fuel sales stations. In 2004, Teboil controlled 23.2% of the Finnish oil products market, including 14.8% of the gasoline market, 24.6% of diesel fuel and more than 40% of the fuel oil market.
Acquisition of OOO Geoilbent
In June 2005 OOO LUKOIL-Western Siberia acquired 66% of OOO Geoilbent from OAO NOVATEK. LUKOIL paid 5.1 billion rubles for its stake in OOO Geoilbent.
At the beginning of 2007, LUKOIL bought out 34% of OOO Geoilbent from RussNeft, becoming the sole owner of the enterprise.
Sale of a number of mining assets
In 2004, the board of LUKOIL decided to sell oil and gas assets located in the Komi Republic, the Nenets Autonomous Okrug and the Perm Territory. It was decided to put up for sale through an open tender the assets of OOO LUKOIL-Komi associated with the Nizhne-Omrinskiy, Verkhne-Omrinskiy and Voyvozhskiy licensed areas, the assets of OOO UralOil associated with the Sivinsky, Nezhdanovsky, Vereshchaginsky, Travninsky and Ochersky license areas, as well as the assets of CJSC Arktikneft associated with the Peschanoozersky license area.
In July 2005, LUKOIL completed the sale of 100% of the shares of CJSC Arktikneft. The buyer was Urals Energy, which paid about $20 million for the shares and repaid Arktikneft's debt to Lukoil in the amount of about $20 million.
In June 2006, Urals Energy acquired the right to develop the Voyvozhskoye, Nizhne-Omrinskoye and Verkhne-Omrinskoye fields from OOO LUKOIL-Komi and OAO Komineft. The deal amounted to about $1.5 million.
Acquisition of OJSC "Primorienefetegaz"
In November-December 2005 OOO LUKOIL-Nizhnevolzhskneft acquired 51% minus one share in OAO Primoryeneftegaz for $261 million. sole control over the company.
JSC "Primorieneftegaz" owns a license for geological exploration of the floodplain area, located 60 km from Astrakhan. In May 2004, the Central Astrakhan gas condensate field was discovered in this area. Reserves of the Central Astrakhan field in the category C1 + C2 - 300 million tons of condensate and 1.2 trillion cubic meters. m of gas.
Field them. Vladimir Filanovsky
In November 2005, LUKOIL discovered a large multilayer oil and gas condensate field at the Severny license block located in the Russian sector of the Caspian Sea. The field was discovered during the drilling of the first exploration well at the Yuzhno-Rakushechnaya structure.
The field has become the first predominantly oil field in the licensed areas of LUKOIL in the Northern Caspian. Recoverable oil reserves of category C1 + C2 - 202.5 million tons.
The field is named after the famous oilman Vladimir Filanovsky.
Purchase of Nelson Resources Limited
In October-December 2005, Caspian Investments Resources (a subsidiary of Lukoil Overseas) acquired 100% of Nelson Resources for $2 billion. At the time of the transaction, Nelson Resources owned shares in five projects in Kazakhstan (Alibekmola, Kozhasai, Arman, Northern Buzachi, Karakuduk) . In addition, Nelson Resources had an option to acquire 25% from Kazmunaigas in two exploration projects in the Kazakh sector of the Caspian Sea - South Zhambay and South Zaburunye. Proved and probable hydrocarbon reserves of Nelson Resources amounted to 269.6 million barrels.
In the spring of 2006, Lukoil Overseas signed with Chaparral Resources Inc. a takeover agreement under which Lukoil Overseas committed to purchase all outstanding shares of Chaparral Resources for $5.8 each. The 60% stake in Chaparral Resources was acquired in December 2005 among other assets of Nelson Resources Limited.
Chaparral Resources and Lukoil Overseas jointly owned KarakudukMunay CJSC, which is developing the Karakuduk oil field. LUKOIL paid $88.6 million for a 40% stake in Chaparral Resources.
In December 2006, LUKOIL sold 50% of Caspian Investments Resources for $980 million. The buyer was Mittal Investments.
LLK-International
In 2005, OOO LLK-International was established on the basis of the Oil Production and Sales Department of OAO LUKOIL. The enterprise united Russian and foreign production facilities of LUKOIL for the production of oils. The strategic objective of LLK-International is to reduce the share of base oils in the sales structure by increasing production and sales finished products High Quality.
Purchase of assets of Marathon Oil Corporation
In May 2006, NK LUKOIL and Marathon Oil reached an agreement on the acquisition by LUKOIL of the producing assets of Marathon Oil Corporation - 95% of the shares of OAO Khantymansiyskneftegazgeologiya, 100% of the shares of OAO Paitykh Oil, and 100% of the shares of OAO Nazymgeodobycha. All three companies are mining raw materials on the banks of the Ob River in the Khanty-Mansiysk Autonomous Okrug.
As of January 1, 2006, the recoverable oil reserves of JSC Khantymansiyskneftegazgeologiya, JSC Paitykh Oil and JSC Nazymgeodobycha amounted to 257 million tons (ABC1+C2 category).
The transaction amount is $787 million plus an adjustment for the amount of working capital.
Acquisition of shares in OAO Udmurtnefteprodukt
In June 2006, LUKOIL acquired a 41.8% stake in OAO Udmurtnefteprodukt from OAO Udmurttorf for $25 million. Udmurtnefteprodukt sells all types of petroleum products in Udmurtia. The company has a network of filling stations and storage facilities for petroleum products.
Purchase of the Jet network
On June 1, 2006, LUKOIL acquired a network of Jet filling stations from ConocoPhillips. The network of Jet filling stations consisted of 376 stations located in the Czech Republic, Slovakia, Belgium, Poland, Hungary and Finland. LUKOIL paid $436 million for the filling station network.
Sale of SPBU "Astra"
In December 2006, LUKOIL sold 100% of the shares of LUKOIL Shelf Limited and 100% of the shares of LUKOIL Overseas Orient Limited, which were the owners and operators of the Astra jack-up drilling rig. The BKE group of companies became the buyer of these assets. The transaction price was $40.3 million. The Astra jack-up rig is intended for drilling wells at offshore fields in the Caspian Sea.
Repurchase of shares of subsidiaries
In 2007, LUKOIL consolidated a number of subsidiaries. In the event that LUKOIL owned more than 95% of the company's shares, minority shareholders were sent a mandatory demand for the buyback of shares on the basis of Article 84.8 of the Federal Law "On Joint Stock Companies", in other cases a voluntary offer was made.
In August 2007 OOO LUKOIL-Komi made a mandatory offer to minority shareholders of OAO Arkhangelskgeoldobycha at a price of 668.15 rubles per ordinary share.
In September 2007, OAO KomiTEK sent requests to shareholders to buy back all shares of OAO LUKOIL-Ukhtaneftepererabotka. Based on an independent appraisal, the buyback price for OAO LUKOIL-Ukhtaneftepererabotka's ordinary and preferred shares was set at 0.83 rubles per share. In December 2007, an extraordinary general meeting shareholders of OAO LUKOIL-Ukhtaneftepererabotka decided to reorganize into OOO LUKOIL-Ukhtaneftepererabotka.
In August 2007 OAO LUKOIL-NORSI-Invest, which together with its affiliates owns 89.33% of the shares of OAO LUKOIL-Nizhegorodnefteorgsintez, made an offer for a voluntary buyout of shares from minority shareholders of OAO LUKOIL-Nizhegorodnefteorgsintez. Ordinary and preferred shares of the company are priced the same - 1565 rubles per share.
After LUKOIL collected over 95% of the shares of OAO LUKOIL-Nizhegorodnefteorgsintez, a mandatory demand was sent to the shareholders to buy back their securities.
In June 2008 OAO LUKOIL-Nizhegorodnefteorgsintez was reorganized into OOO LUKOIL-Nizhegorodnefteorgsintez.
In February 2008, OOO LUKOIL-Komi put out a mandatory offer to buy back the shares of OAO Tebukneft, in which it owns 97.99%. The cost of repurchasing securities is set at 464.91 rubles per one preferred and one ordinary share.
In December 2008, the meeting of shareholders of JSC "Tebukneft" decided to transform the joint-stock company into a limited liability company.
In February 2008, OAO KomiTEK made an offer to purchase shares in OAO LUKOIL-Usinsky Gas Processing Plant. Ordinary shares of OAO LUKOIL-Usinsk Gas Processing Plant were valued at 462 rubles per share, preferred shares at 342 rubles per share.
In December 2008, the meeting of shareholders of OAO LUKOIL-Usinsky Gas Processing Plant decided to transform it into a limited liability company.
Bayandynskoye field
In 2008, LUKOIL announced the discovery of a new field in the Timan-Pechora region, called Bayandynskoye. Proved reserves at the beginning of 2008 amounted to 36.9 million tons of oil, potential reserves - 27.4 million tons. The Bayandynskoye field is located in close proximity to the Usinskoye field, which is being developed by OOO LUKOIL-Komi.
Acquisition of Association "GRAND" and "Mega-Oil M"
In February 2008, LUKOIL completed the acquisition of 100% of the shares of CJSC Association for Socio-Economic, Scientific and Business Cooperation GRAND and 100% of the shares of Mega-Oil M LLC. At the time of the transaction, GRAND and Mega Oil M owned 122 gas stations located in Moscow and the Moscow region, as well as 26 gas stations in the Pskov, Kaluga, Novgorod and Rostov regions.