LUKOIL owns modern refining capacity in Russia and abroad. The company’s Russian refining segment includes: LUKOIL-Permnefteorgsintez, LUKOIL-Volgogradneftepererabotka (Volgograd), LUKOIL-Nizhegorodnefteorgsintez (Kstovo, the Nizhny Novgorod Region), and LUKOIL-Ukhtaneftepererabotka. The total capacity of its Russian refineries is 49.3 million tons of crude oil per year.
The company’s foreign refineries are located in Ukraine, Bulgaria, and Romania, and it also holds a 49% interest in the ISAB refining complex (Sicily, Italy). The total capacity of its foreign refineries is 24 million tons of crude oil per year.
LUKOIL attends carefully to the development of its petrochemical segment, which includes: Stavrolen (Budënnovsk, the Stavropol Territory), LUKOIL-Saratovorgsintez, LUKOR (Ukraine), and Karpatneftekhim (Ukraine).
In 2008, as part of the implementation of its Strategic Development Program for 2008–2017, LUKOIL created a new business division, Power Generation. In addition to the TGK-8 Southern Generating Company acquired in 2008 and proprietary generating stations at a field in Russia, the division includes enterprises that generate electrical and thermal energy in Bulgaria, Romania, and Ukraine. The total electric power generated by division companies was 16.2 billion kWh, and thermal energy generated exceeded 18.1 million Gcal (TGK-8 Southern Generating Company accounted for 90% and 85% of these totals, respectively). Over the long term, the Power Generation division will become an important factor in the company’s capitalization growth.
As of the beginning of 2009, the company’s sales network operated in 25 countries, including Russia, the former Soviet Union, and Europe (Azerbaijan, Belarus, Georgia, Moldova, Ukraine, Bulgaria, Hungary, Finland, Estonia, Latvia, Lithuania, Poland, Serbia, Montenegro, Romania, Macedonia, Cyprus, Turkey, Belgium, Luxembourg, the Czech Republic, Slovakia, and Croatia), as well as in the United States, and comprised 204 oil tank farm facilities with a total tank capacity of 108 MMCF and 6,748 gas stations (including franchise stations).
The company is confidently building its strategy and production policy on the principles of effective nature and resource conservation, and is actively introducing state-of-the-art technologies to substantially reduce the anthropogenic environmental impacts.
TNK-BP Holding Company Open Joint-Stock Company is one of Russia’s leading vertically integrated oil companies. It was formed in 2003 by the merger of the oil and gas assets of the transnational BP in Russia and the oil and gas assets of a Russian consortium of Alpha and Access/Renova (AAR). BP and AAR own TNK-BP Holding Company on a parity basis.
TNK-BP Holding Company incorporates a series of production, refining, and sales enterprises in Russia and Ukraine and employs some 63,000 people.
The company’s oil production assets are located mainly in Western Siberia (the Khanty-Mansi and Yamal-Nenets Autonomous Districts and the Tyumen Region), Eastern Siberia (the Irkutsk Region) and the Volga-Urals region (the Orenburg Region). An independent audit of reserves performed by De Golyer & MacNaughton has confirmed that, as of December 31, 2008, TNK-BP’s total proven reserves were 10.252 billion BOE, using PRMS (former SPE) criteria, and the reserve replacement ratio was 146%. Using the SEC method and ignoring license expiration dates, TNK-BP’s total proven reserves were 8.112 billion BOE, with a reserve replacement ratio of 82%. TNK-BP Holding Company holds about 200 production licenses. Eighty percent of proven reserves are in the company’s 20 main fields and about two-thirds of production occurs at 10 main fields.
TNK-BP’s oil production division includes: Samotlorneftegaz, TNK-Nizhnevartovsk, Orenburgneft, TNK-Nyagan, NNP, Varyëganneftegaz, Tyumenneftegaz, Yugraneft, Novosibirskneftegaz, Rospan International, Orenburggeologiya, and Vanyëganneft.
At present, TNK-BP has refining capacity of 675,000 barrels/day. TNK-BP’s refining division includes: the Ryazan Refinery, the Saratov Refinery, and the Nizhnevartovsk and Krasnoleninsk Refineries, both located in Western Siberia. The company also owns the Lisichansk Refinery in Ukraine, which is advantageously located from the standpoint of serving the domestic market as well as making export deliveries through Black Sea terminals.
TNK-BP’s retail network includes some 1,400 gas stations in Russia and Ukraine, operating under the TNK and BP brands. The company is among the most important petroleum products suppliers on the Moscow retail market, and is well-positioned on the Ukrainian market.
Surgutneftegaz Open Joint-Stock Company is Russia’s fourth-largest vertically integrated company in oil production. Its upstream reserves include mineral licenses in the Western Siberian, Eastern Siberian, and Timan-Pechora oil and gas provinces within the territory of 10 Russian Federation regions. An estimate made per international standards puts the company’s recoverable oil and gas reserves at about 2.8 billion TOE.
Surgutneftegaz has 60 organizational units, including six major oil production divisions: Surgutneft, Bystrinskneft, Nizhnesortymskneft, Komsomolskneft, Lyantorneft, and Fëdorovskneft. The company is well-positioned to build wells and develop new fields, having accounted for 20% of the industry’s exploratory drilling in 2008. The growth in its C1 oil reserves in 2009 exceeded 115 million tons, or 171% of its annual oil production volume.
Surgutneftegaz is also a leading independent gas producer. Its assets include one-third of the gas produced by Russian oil companies. The company was an industry pioneer in the creation of a full cycle of gas production, processing, and sale, as well as the gas-fired generation of electricity to supply its own fields and industrial processes.
The main enterprise in the company’s refining division is the Kirishinefteorgsintez Refinery (the Leningrad Region), which has transitioned to the manufacture of high-octane gasoline that meets the Euro-4 standard, and continues to manufacture diesel fuel to current European standards.
Surgutneftegaz’s retail network includes six petroleum products supply subsidiaries: Kaliningradnefteprodukt, Kirishiavtoservis, Lennefteprodukt, Novogorodnefteprodukt, Pskovnefteprodukt, and Tvernefteprodukt.
In all, Surgutneftegaz employs about 100,000 people.
With every year, Gazprom Neft Open Joint-Stock Company confidently increases its pace as it strives to improve its standing among Russian vertically integrated companies. It was founded in 1995 and was originally called “Sibneft.” In 2005, Gazprom became the main stockholder in Gazprom Neft, when it acquired 75.68% of the company’s stock. Another 20% belongs to EniNeftegaz, which is controlled by Eni (Italy). The remainder of the stock is in public circulation. Gazprom Neft controls 50% of Slavneft and 74.43% of Sibir Energy on an equal footing with TNK-BP Holding Company.
Gazprom Neft operates in Russia’s largest oil and gas regions: the Khanty-Mansi, Yamal-Nenets, and Nenets Autonomous Districts, the Tomsk and Omsk regions, and the Krasnoyarsk Territory, as well as areas outside the former Soviet Union, in Serbia and Angola. The company and its subsidiaries currently hold more than 60 field exploration and development licenses, and the proven oil reserves of the company’s fields exceed 4.5 billion barrels. Its upstream reserves increase annually due to the acquisition of new assets in Russia and abroad. Today, its proven and probable oil reserves per international Society of Petroleum Engineers (SPE) standards amount to 7.2 billion barrels. Most of Gazprom Neft’s oil reserves are at the early stages of development. This is a great plus, affording the company excellent prospects for further growth and development.