LUKoil

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LUKOIL oil company

Type	Public (NASDAQ: LUKOY)
Founded	1991
Headquarters	Moscow, Russia
Key people	Vagit Alekperov , LUKoil's founder and chief
Industry	Oil and Gasoline, Alternative fuel
Products	petroleum and derived products Service stations
Revenue	$46.28 billion USD (2006)
Net income	$6.44 Billion USD (2006)
Employees	150,000 (2006)
Slogan	Always Moving Forward
Website	www.lukoil.com]

LUKOIL (LSE: LKOD) NASDAQ: LUKOY (Russian: ЛУКОЙЛ; pronounced "Luke-Oil") is the largest oil company of Russia and is that country's largest producer of oil. ^[1] In 2005, it produced 90.16 million tonnes of oil and 7.57 billion cubic meters of natural gas.

Its international upstream subsidiary is called LUKOIL Overseas Holding. Headquartered in Moscow, LUKOIL is the second largest public company (next to ExxonMobil) in terms of proven oil and gas reserves (ca. 20 bn boe by SPE standards; some 1.3% of global oil reserves). LUKoil's North American Headquarters are in East Meadow, New York, USA.

LUKOIL headquarters in Moscow

1 History
2 Exploration and production
- 2.1 Development of the Aral Sea
3 Oil refining and petrochemical facilities
4 Gasoline retail sales
5 References
6 External links

[edit] History

LUKOIL's name is derived from the three oil companies that were merged in 1991: Langepasneftegaz, Uraineftegaz, and Kogalymneftegaz.

[edit] Exploration and production

LUKOIL carries out exploration and/or production of oil and gas in Russia and (as of 2005) nine other countries: Kazakhstan, Azerbaijan, Uzbekistan, Egypt, Iran, Iraq, Colombia, Venezuela, and Saudi Arabia.

In September 2004, ConocoPhillips purchased a 7.6 percent stake in LUKOIL and signed an agreement that could increase this figure in the future to up to 20 percent. [1]. The two oil companies have agreed to develop jointly an oil and gas field in the northern Timan-Pechora area of Russia (Komi Republic) and intend to secure the rights to develop the West Qurna Field in Iraq, one of the country's largest. [2] [3]

[edit] Development of the Aral Sea

Ergash Shaismatov, the Deputy Prime Minister of Uzbekistan, announced on August 30, 2006 that the Uzbek government and an international consortium consisting of state-run Uzbekneftegaz, LUKoil Overseas, Petronas, Korea National Oil Corporation, and China National Petroleum Corporation signed a production sharing agreement to explore and develop oil and gas fields in the Aral Sea, saying, “The Aral Sea is largely unknown, but it holds a lot of promise in terms of finding oil and gas. There is risk of course but we believe in the success of this unique project." The consortium was created in September 2005.^[2]

[edit] Oil refining and petrochemical facilities

LUKOIL owns four oil-processing companies in Russia:

LUKOIL-Volgogradneftepererabotka Ltd. (Russian: ООО "ЛУКОЙЛ-Волгограднефтепереработка") in Volzhsky, Volgograd Oblast;
LUKOIL-Permnefteorgsintez Ltd. (Russian: ООО "ЛУКОЙЛ-Пермнефтеоргсинтез") in Perm;
LUKOIL-Nizhegorodnefteorgsintez Ltd. (Russian: ОАО "ЛУКОЙЛ-Нижегороднефтеоргсинтез") in Kstovo, Nizhny Novgorod Oblast;
LUKOIL-Ukhtaneftepererabotka Ltd. (Russian: ОАО "ЛУКОЙЛ-Ухтанефтепереработка") in Ukhta, Komi Republic.

The company also owns three other petrochemical companies elsewhere in Europe:

LUKOIL Neftokhim Burgas AD, (Bulgarian: "ЛУКОЙЛ Нефтохим Бургас" АД) in Burgas, Bulgaria.
LUKOIL-Odessky NPZ, (Russian: ОАО "ЛУКОЙЛ-Одесский НПЗ") in Odessa, Ukraine.
Petrotel-LUKOIL SA in Ploieşti, Romania.

A LUKOIL station in Vails Gate, New York

[edit] Gasoline retail sales

LUKOIL sells gasoline in 59 regions of Russia and in 16 other countries (Azerbaijan, Belarus, Georgia, Moldova, Ukraine, Finland, Bulgaria, Hungary, Cyprus, Latvia, Lithuania, Poland, Serbia, Romania, Czech Republic, Estonia, and the USA). As of the end of 2004, it has 199 tank farms and 5,405 gas stations.^[3]

In 2000, LUKOIL purchased the remaining assets of Getty Oil, and began opening Lukoil stations in the United States in 2003. Most of the American LUKOIL stations are converted Getty stations, though some are also converted Mobil stations bought from ConocoPhillips when that company left the Northeast.

In Spring 2004, Lukoil purchased 779 Mobil gas stations throughout New Jersey and Pennsylvania, and in 2005 began converting them to the Lukoil brand.