Post on 11-Aug-2020
ANALYST DATABOOK 2009
1
CONTENTS
LUKOIL in Russia and the world ..................................................................................................................2
Exploration and production
Geological exploration ................................................................................................................................4
Oil reserves ................................................................................................................................................6
Gas reserves ..............................................................................................................................................8
Hydrocarbon reserves ..............................................................................................................................10
Field development ....................................................................................................................................12
Oil production ..........................................................................................................................................17
Gas production..........................................................................................................................................20
Hydrocarbon production ..........................................................................................................................22
Major fields of LUKOIL Group in Russia ..................................................................................................23
International projects of LUKOIL Group ..................................................................................................31
Refining and gas processing
Oil refining ................................................................................................................................................33
Gas processing ........................................................................................................................................44
Petrochemicals ........................................................................................................................................45
Marketing
Marketing of oil, petroleum products and petrochemicals ......................................................................47
Trade balance of LUKOIL subsidiaries ......................................................................................................50
Finances
Company shares ......................................................................................................................................52
Macroeconomic and tax environment ......................................................................................................56
Consolidated financial statements............................................................................................................58
Financial ratios ..........................................................................................................................................63
Glossary ........................................................................................................................................................72
Reference information ................................................................................................................................74
LUKOIL IN RUSSIA AND THE WORLD
ANALYST DATABOOK 2009
2
RUSSIA
USA
Venezuela
Columbia
Finland
Belarus
Estonia
Latvia
Litva
Ukraine
Poland
Hungary
Moldova
Serbia
Romania
Bulgaria
Turkey
Cyprus
Czech Republic
Slovakia
Belgium
Macedonia
Kazakhstan
Uzbekistan
Azerbaijan
Georgia
Egypt
Iraq
SaudiArabia
Cote d’Ivoire
Ghana
Luxemburg
Montenegro
Croatia
Italy
Exploration
Production andpreparation for production
Refining
Retail marketing
Petrochemistry
Power industry
Share of LUKOIL Group in the global oil & gas industry, %
2004 2005 2006 2007 2008
Proved oil reserves 1.32 1.32 1.28 1.25 1.15
Proved gas reserves 0.40 0.41 0.43 0.45 0.45
Proved hydrocarbon reserves 0.90 0.91 0.90 0.88 0.82
Oil production 2.14 2.20 2.32 2.35 2.29
Gas production 0.24 0.27 0.56 0.56 0.63
Hydrocarbon production 1.48 1.52 1.69 1.70 1.68
Refining capacities 1.38 1.37 1.35 1.34 1.51
Refinery throughputs 1.20 1.28 1.31 1.39 1.50
Share of Russian entities of LUKOIL Group in the Russian oil & gas industry, %
2004 2005 2006 2007 2008
Proved oil reserves 20.2 20.0 19.4 18.9 18.3
Proved gas reserves 1.4 1.4 1.5 1.5 1.5
Proved hydrocarbon reserves 5.7 5.7 5.7 5.7 5.3
Oil production wells 17.0 17.4 17.4 17.5 17.7
Oil production 18.03 18.36 18.64 18.54 18.41
Gas production 0.79 0.89 2.14 2.09 2.14
Hydrocarbon production 8.98 9.27 10.06 10.09 10.14
Oil exports 20.75 18.94 17.92 16.66 16.52
Refining capacities 15.6 15.4 16.2 16.2 16.2
Refinery throughputs 18.32 18.05 18.05 18.69 18.75
Petroleum product exports 17.42 17.21 20.04 22.35 22.36
LUKOIL Group activities in Russia
LUKOIL IN RUSSIA AND THE WORLD
3
1
Comparison of LUKOIL Group indicators in Russia with national averages
2004 2005 2006 2007 2008
Flow rate of oil wells, tons per day
LUKOIL 10.7 11.1 11.2 11.0 10.5
National average 10.3 10.4 10.3 10.2 9.9
Share of idle wells in total oil production wells, %
LUKOIL 17.9 16.8 15.4 15.3 14.7
National average 23.6 19.6 17.5 16.4 16.0
Watercut of oil wells, %
LUKOIL 76.4 77.8 79.6 80.9 82.2
National average 81.0 82.2 83.3 86.2 84.7
Depth of refining, %
LUKOIL 75.4 77.5 76.2 74.0 76.0
National average 71.1 71.3 71.7 71.4 71.5
Light products yield, %
LUKOIL 50.2 51.1 50.2 49.9 50.4
National average 53.5 54.0 55.3 55.1 56.0
Share of high!octane gasoline in overall productionof motor gasoline, %
LUKOIL 61.4 69.0 76.6 83.5 87.0
National average 56.1 58.3 68.7 73.9 77.2
Exploration and productionregions
Refineries
Gas!processing plants
Petrochemical plants
Marketing regions
Moscow
ANALYST DATABOOK 2009
4
GEOLOGICAL EXPLORATION
Geological exploration
2004 2005 2006 2007 20082D seismic prospecting, km 9,752 9,787 10,573 7,736 6,266
3D seismic prospecting, km2 2,153 5,686 3,118 5,451 2,973
VSP*, wells 45 40 33 30 15
Geo!electrics, km 2,488 2,381 4,030 2,513 3,603
*Vertical seismic profiling.
Exploration drilling by regions, th. meters
2004 2005 2006 2007 2008 Total 118 131 162 143 150
Russia 111 119 139 130 123
Western Siberia 44 44 60 54 63
Urals 11 11 9 9 9
Volga 17 23 29 31 17
including Caspian 0 2 2 4 0
Timan!Pechora 24 26 27 18 18
Bolshekhetskaya Depression 4 6 4 6 4
Other 11 9 10 12 12International 7 12 23 13 27
Number and average depth of exploration wells drilled in Russia
2004 2005 2006 2007 2008Number of wells 47 28 40 49 41
Average depth, meters 2,541 2,548 2,417 2,797 2,553
Number of newly discovered fields and strata at existing fields
2004 2005 2006 2007 2008Fields 13 5 10 7 8
Oil (including oil, gas and condensate) 12 5 9 7 8
Gas 0 0 1 0 0
Gas condensate 1 0 0 0 0Strata 10 11 15 17 18
Oil 10 11 15 13 18
Gas 0 0 0 0 0
Gas condensate 0 0 0 4 0
Proved reserve extensions and discoveries, mln boe2004 2005 2006 2007 2008
Oil 624 506 551 518 529
Gas 16 170 66 141 72
Hydrocarbons 640 676 617 659 601
0 1,000 2,000 3,000 4,000 5,000
Geo!electrics, km
3,6032008
2007
2004
2005
2006 4,030
2,381
2,488
2,513
0 2,000 4,000 6,000
3,118
5,686
2,153
3D seismic prospecting, km2
5,451
2004
2005
2006
2007
2008 2,973
0 3,000 6,000 9,000 12,000
2004
2005
2006 10,573
9,787
9,752
2007
2D seismic prospecting, km
7,736
2008 6,266
2004
2005
2006
2007
Proved hydrocarbon reserve extensions and discoveries, mln boe
2008
0 200 400 600 800
617
676
640
659
601
Proved reserve replacement by extensions and discoveries, %
2004 2005 2006* 2007 2008
Oil 98 76 78 73 75
Gas 55 510 71 146 63
Hydrocarbons 96 97 77 81 74* Starting from 2006 reserves are calculated on the basis of total gas production including losses, own use and reinjection.
Exploration expenses, mln USD
2004 2005 2006 2007 2008
Total expenses 309 426 479 558 679
Subsidiaries 306 423 468 546 670
Russia 225 252 276 366 313
International 81 171 192 180 357
Affiliates 3 3 11 12 9
Russia 3 3 10 12 9
International 0 0 1 0 0
Finding & development costs of LUKOIL Group subsidiaries
2002–2004 2003–2005 2004–2006 2005–2007 2006–2008
Reserve extensions anddiscoveries, mln barrels 2,258 1,720 1,898 1,899 1,824
Exploration expenses, mln USD 651 985 1,197 1,437 1,684
Acquisition of unproved reserves, mln USD 395 1,444 1,905 2,347 1,341
Development expenses, mln USD 4,833 6,006 8,973 13,547 18,201
F&D costs, USD per barrel 2.60 4.90 6.36 9.13 11.64
EXPLORATION AND PRODUCTION
5
Finding anddevelopment costs Proved reserve extensions and discoveries
Exploration expenses + Development expenses + Acquisition of unproved reserves=
2
0
20
40
60
80
100
2004 2008200720062005
12.0%
11.3%
2.7%
6.0%
42.0%
18.0%
8.0%
20.4%
14.4%
9.3%
5.9%
3.4%
37.3%
19.6%
17.9%
4.3%
8.6%
9.3%
33.4%
9.1%
7.1%
16.8%
17.9%
2.3%
5.4%
37.2%
13.9%
6.5%
12.7%
21.3%
4.2%
6.0%
37.7%
9.3%
8.8%
Western Siberia
Other
BolshekhetsayaDepression
Urals
International
Volga
Timan!Pechora
Exploration drilling by regions, %
ANALYST DATABOOK 2009
6
OIL RESERVES
0
20
40
60
80
100
20082007200620052004
54.8%
21.3%
13.7%
1.6%
3.1%4.2%
1.3%
53.9%
20.2%
14.4%
1.6%
4.1%4.3%
1.5%
52.7%
24.7%
13.3%
1.7%
53.4%
24.4%
13.3%
1.6%
53.2%
23.8%
13.5%
1.6%
3.0%3.2%
1.4%3.1%3.0%
1.2%3.8%2.9%
1.2%
53.8%
22.0%
13.3%
1.5%
3.8%4.4%
1.2%
Western Siberia
Urals
Timan!Pechora
Other
BolshekhetsayaDepression
International
Volga (inludingNorthern Caspian)
Oil reserves of LUKOIL Group (end of year), mln barrels
2003 2004 2005 2006 2007 2008Proved 15,977 15,972 16,114 15,927 15,715 14,458
Developed 10,207 10,651 10,583 10,176 10,059 9,170Undeveloped 5,770 5,321 5,531 5,751 5,656 5,288
Probable 7,238 7,424 8,869 8,767 8,679 8,083Possible 3,326 3,269 4,336 4,275 4,446 3,333Total 26,541 26,665 29,319 28,969 28,840 25,874
Proved oil reserves of LUKOIL Group (end of year), mln barrels
2003 2004 2005 2006 2007 2008Total 15,977 15,972 16,114 15,927 15,715 14,458Russia 15,506 15,485 15,500 15,319 15,220 13,866
Western Siberia 8,421 8,536 8,572 8,574 8,616 7,798Urals 2,124 2,130 2,170 2,112 2,151 2,082Volga 516 478 468 697 657 623
including Caspian 185 184 183 448 407 376Timan!Pechora 3,953 3,892 3,833 3,496 3,346 2,912Bolshekhetskaya Depression 216 195 203 197 203 219Other 276 254 254 243 247 232
International 471 487 614 608 495 592
Oil reserves replacement ratio, % 221 99 121 73 70 (79)
Oil reserves to production ratio, years 27.0 25.2 24.3 22.7 22.0 20.6
Proved oil reserves of LUKOIL Group by regions, %
7
2
Proved oil reserves in international projects (end of year), mln barrels2003 2004 2005 2006 2007 2008
AzerbaijanShakh Deniz 7 15 11 10 11 18
KazakhstanTengiz and Korolevskoye 106 112 118 120 117 120Kumkol 107 111 89 79 78 68Karachaganak 232 231 208 173 157 246Arman – – 3 4 2 1Karakuduk – – 38 50 34 33North Buzachi – – 42 80 41 35Kazakhoil!Aktobe – – 89 76 35 32
EgyptMeleiha 4 1 3 2 3 4WEEM 15 13 7 6 5 7
UzbekistanKandym – Khauzak – Shady – 4 6 8 6 10South!West Gissar – – – – – 17
ColombiaCondor – – – – 6 1
Total 471 487 614 608 495 592
Factors of change in proved oil reserves, mln barrels2004 2005 2006 2007 2008
Reserves at start of year 15,977 15,972 16,114 15,927 15,715Extensions and discoveries 624 506 551 518 529Production (635) (664) (703) (713) (703)Acquisition and sale of reserves (4) 320 216 (31) 41Revision of previous estimates 10 (20) (251) 14 (1,124)
Reserves at end of year 15,972 16,114 15,927 15,715 14,458
Proved oil reserves ininternational projects (31.12.2008)
Arman (0.2%)
Kumkol(11.5%)
Tengiz and Korolevskoye(20.3%)
Karachaganak(41.6%)
Karakuduk (5.6%)
NorthBuzachi (5.9%)
Kazakhoil!Aktobe (5.4%)
Meleiha (0.7%)
WEEM (1.2%)
Kandym – Khauzak – Shady (1.7%)
Shakh Deniz (3.0%)Condor (0.2%)
South!West Gissar (2.9%)
24
26
28
30
2004 2005 2006 2007 2008
Total oil reserves of LUKOIL Groupby all categories*, bln barrels
12
13
14
17
16
15
2004 2005 2006 2007 2008
450
500
550
650
2004 2005 2006 2007 2008
600
Proved oil reserves of LUKOIL Group, bln barrels
Proved oil reserves in international projects, mln barrels
* Proved, probable and possible.
EXPLORATION AND PRODUCTION
ANALYST DATABOOK 2009
8
GAS RESERVES
Gas reserves of LUKOIL Group (end of year), bcf2003 2004 2005 2006 2007 2008
Proved 24,473 24,598 25,298 26,597 27,921 29,253
Developed 2,914 4,958 6,089 7,480 8,055 7,919
Undeveloped 21,559 19,640 19,209 19,117 19,866 21,334
Probable 14,616 15,537 20,587 21,436 21,048 22,103
Possible 3,548 5,103 10,240 10,479 11,134 11,694
Total 42,637 45,238 56,125 58,512 60,103 63,050
Proved gas reserves of LUKOIL Group (end of year), bcf2003 2004 2005 2006 2007 2008
Total 24,473 24,598 25,298 26,597 27,921 29,253Russia 22,167 21,382 21,453 22,155 22,853 22,281
Western Siberia 1,284 1,414 1,698 1,999 2,163 1,726
Urals 568 667 607 619 471 496
Volga 5,926 5,913 5,783 6,031 6,255 6,278
including Caspian 5,763 5,736 5,603 5,786 6,057 6,060
Timan!Pechora 577 463 176 708 709 631
Bolshekhetskaya Depression 13,806 12,919 13,185 12,788 13,243 13,138
Other 6 6 4 10 12 12
International 2,306 3,216 3,845 4,442 5,068 6,972
Gas reserves replacementratio, % 332 172 450 330 329 294
Gas reserves to production ratio, years 184.0 141.4 126.5 47.1 48.2 42.6
0
20
40
60
80
100
20082007200620052004
44.9%
21.5%
23.8%
5.9%
1.7%2.2%
47.4%
22.4%
18.2%
7.8%
1.7%2.5%
56.4%
24.2%
9.4%
5.3%
2.3%2.4%
52.5%
24.0%
13.1%
5.8%
2.7%1.9%
52.1%
22.9%
15.2%
6.7%
2.4%0.7%
48.1%
22.7%
16.7%
7.5%
2.3%2.7%
Western Siberia
Urals
Timan!Pechora
BolshekhetsayaDepression
International
Volga (inludingNorthern Caspian)
Proved gas reserves of LUKOIL Group by regions, %
9
2
Proved gas reserves in international projects (end of year), bcf2003 2004 2005 2006 2007 2008
Azerbaijan
Shakh Deniz 125 338 249 314 476 532
Kazakhstan
Tengiz and Korolevskoye 151 188 177 154 151 152
Karachaganak 2,030 1,624 1,441 1,203 1,137 1,861
Kumkol 0 0 0 13 14 13
Uzbekistan
Kandym – Khauzak – Shady – 1,066 1,978 2,758 3,290 3,019
South!West Gissar – – – – – 1,395
Total 2,306 3,216 3,845 4,442 5,068 6,972
Proved gas reserves ininternational projects (31.12.2008)
Karachaganak (26,7%)
Tengiz and Korolevskoye (2.2%)
Shakh Deniz (7.6%)
Kandym – Khauzak – Shady (43.3%)
Kumkol (0.2%)
South!West Gissar (20.0%)
Factors of change in proved gas reserves, bcf2004 2005 2006* 2007 2008
Reserves at start of year 24,473 24,598 25,298 26,597 27,921Extensions and discoveries 95 1,020 399 844 435Production (174) (200) (565) (579) (686)Acquisition and sale of reserves 1,171 2 (2) 5 1,399Revision of previous estimates (967) (122) 1,467 1,054 184
Reserves at end of year 24,598 25,298 26,597 27,921 29,253
200430
60
70
2005 2006 2007 2008
Total gas reserves of LUKOIL Groupby all categories**, tcf
40
50
200420
22
26
30
2005 2006 2007 2008
28
24
20042
8
6
2005 2006 2007 2008
4
Proved gas reserves of LUKOIL Group, tcf
Proved gas reserves in international projects, tcf
* Starting from 2006 reserves are calculated on the basis of total gas production including losses, own use and reinjection.
EXPLORATION AND PRODUCTION
** Proved, probable and possible.
ANALYST DATABOOK 2009
10
HYDROCARBON RESERVES
Hydrocarbon reserves of LUKOIL Group (end of year), mln boe2003 2004 2005 2006 2007 2008
Proved 20,056 20,072 20,330 20,360 20,369 19,334
Developed 10,693 11,477 11,598 11,423 11,402 10,490
Undeveloped 9,363 8,595 8,732 8,937 8,967 8,844
Probable 9,674 10,014 12,300 12,340 12,187 11,767
Possible 3,917 4,119 6,043 6,022 6,301 5,282
Total 33,647 34,205 38,673 38,722 38,857 36,383
Proved hydrocarbon reserves of LUKOIL Group (end of year), mln boe
2003 2004 2005 2006 2007 2008
Total 20,056 20,072 20,330 20,360 20,369 19,334
Russia 19,201 19,049 19,075 19,010 19,030 17,580
Western Siberia 8,635 8,772 8,855 8,907 8,977 8,085
Urals 2,219 2,241 2,271 2,215 2,230 2,165
Volga 1,504 1,464 1,432 1,702 1,699 1,670
including Caspian 1,146 1,140 1,117 1,412 1,417 1,386
Timan!Pechora 4,049 3,969 3,862 3,614 3,465 3,017
Bolshekhetskaya Depression 2,517 2,348 2,400 2,327 2,410 2,409
Other 277 255 255 245 249 234
International 855 1,023 1,255 1,350 1,339 1,754
Hydrocarbon reserves replacementratio, % 226 102 137 104 101 (27)
Hydrocarbon reserves to productionratio, years 32.7 30.2 29.2 25.5 25.2 23.7
0
20
40
60
80
100
20082007200620052004
41.8%
15.6%
12.5%
11.2%
8.6%
9.1%1.2%
44.1%
17.0%
11.8%
11.0%
8.3%
6.6%1.2%
43.0%
20.2%
12.5%
11.1%
7.5%
4.3%1.4%
43.7%
19.8%
11.7%
11.1%
7.3%
5.1%1.3%
43.6%
19.0%
11.8%
11.2%
7.0%
6.2%1.2%
43.7%
17.8%
11.4%
10.9%
8.4%
6.6%1.2%
Western Siberia
Urals
Timan!Pechora
Other
BolshekhetsayaDepression
International
Volga (inludingNorthern Caspian)
Proved hydrocarbon reserves of LUKOIL Group by regions, %
11
2
Proved hydrocarbon reserves in international projects (end of year), mln boe2003 2004 2005 2006 2007 2008
AzerbaijanShakh Deniz 28 71 53 63 90 107
KazakhstanTengiz and Korolevskoye 131 143 147 146 142 145Kumkol 107 111 89 81 80 70Karachaganak 570 502 448 374 347 556Arman – – 3 4 2 1Karakuduk – – 38 50 34 33North Buzachi – – 42 80 41 35Kazakhoil!Aktobe – – 89 76 35 32
EgyptMeleiha 4 1 3 2 3 4WEEM 15 13 7 6 5 7
UzbekistanKandym – Khauzak – Shady – 182 336 468 554 513South!West Gissar – – – – – 250
ColombiaCondor – – – – 6 1
Total 855 1,023 1,255 1,350 1,339 1,754
Factors of change in proved hydrocarbon reserves, mln boe2004 2005 2006* 2007 2008
Reserves at start of year 20,056 20,072 20,330 20,360 20,369Extensions and discoveries 640 676 617 659 601Production (665) (697) (797) (809) (817)Acquisition and sale of reserves 192 320 217 (31) 274Revision of previous estimates (151) (41) (7) 190 (1,093)
Reserves at end of year 20,072 20,330 20,360 20,369 19,334
Proved hydrocarbon reserves ininternational projects (31.12.2008)
Arman (0.1%)
Kumkol(4.0%)
Tengiz and Korolevskoye(8.3%)
Karachaganak(31.7%)
Karakuduk (1.9%)North Buzachi (2.0%)
Kazakhoil!Aktobe (1.8%)Meleiha (0.2%)
WEEM(0.4%)
Kandym – Khauzak – Shady
(29.2%)
Shakh Deniz (6.1%)Condor (0.1%)
South!West Gissar (14.2%)
200425
30
40
2005 2006 2007 2008
35
Total hydrocarbon reserves of LUKOIL Group by all categories**, bln boe21
19
20
2004 2005 2006 2007 2008
2004800
1,000
1,800
2005 2006 2007 2008
1,400
1,200
1,600
Proved hydrocarbon reserves of LUKOIL Group, bln b!e
* Starting from 2006 reserves are calculated on the basis of total gas production including losses, own use and reinjection.
Proved hydrocarbon reserves in international projects, mln boe
EXPLORATION AND PRODUCTION
** Proved, probable and possible.
ANALYST DATABOOK 2009
12
0
20
40
100
60
80
20072003 2004 2005 2006 2008
Other
Liquidated wells
Injection wells
Temporarily closedwells
Steam injection wells
Test and pressureobservation wells
Oil wells
Gas wells
Water wells
Development expenses, mln USD
2004 2005 2006 2007 2008
Total 2,100 2,619 4,652 6,660 7,288
Subsidiaries 1,983 2,495 4,495 6,557 7,149
Russia 1,875 2,235 3,901 5,887 6,430
International 108 260 594 670 719
Share in affiliates 117 124 157 103 139
FIELD DEVELOPMENT
Structure of drilled wells at oil & gas fields of LUKOIL (end of year), %
59
61
63
62
60
Drilled wells at oil & gas fieldsof LUKOIL Group, th. wells
5820082004 2005 2006 2007
0 3,000 6,000 9,000
4,652
2,619
2,100
Development expenses, mln USD
6,660
2004
2005
2006
2007
2008 7,288
Production drilling, th. meters
0 1,000 2,000 3,000 4,000
2008
2,341
1,453
1,345
3,572
2,9682007
2004
2005
2006
Number of fields put into operation and their reserves (at the end of yearwhen they were put into operation)
2004 2005 2006 2007 2008
Fields 7 9 11 13 11
Reserves (proved, probable and possible), mln boe 1,302 1,618 681 354 1,016
Production drilling by regions, th. meters
2004 2005 2006 2007 2008Total 1,345 1,453 2,341 2,968 3,572
Russia 1,245 1,328 2,122 2,641 2,981Western Siberia 933 1,027 1,716 2,197 2,563Urals 88 88 98 98 137Volga 5 11 7 5 3Timan!Pechora 135 125 248 254 231Bolshekhetskaya Depression 31 33 11 37 0Other 53 44 42 50 47
International 100 125 219 327 591
13
0
20
40
100
60
80
20072003 2004 2005 2006 2008
Other
Liquidated wells
Steam injection wells
Temporarily closedwells
Water wells
Test and pressureobservation wells
Production wells
Injection wells
62
60
58
Drilled wells at oil fields of LUKOIL Group, th. wells
5620082004 2005 2006 2007
200850
150
200
2004 2005 2006 2007
100
Steam injection wells
Number and average depth of production wells drilled in Russia2004 2005 2006 2007 2008
Number of production wells 459 511 707 941 1,151
Average depth, meters 2,350 2,330 2,652 2,722 2,625
New oil wells put into operation2004 2005 2006 2007 2008
Wells 514 558 945 1,193 1,510
0
20
40
60
80
100
20082007200620052004
Western Siberia
Other
BolshekhetsayaDepression
Urals
International
Volga
Timan!Pechora
71.0%
16.6%
3.8%
6.5%
0.7%0.1%1.3%
74.0%
7.4%
10.0%
2.3%6.6%
0.4%
11.0%
3.3%
8.5%
1.3%0.2%
69.4%
8.6%
8.6%
0.8%2.3%
70.6%
6.0%
1.7%3.9% 3.1%
9.3%
10.6%
0.5%
73.3%
4.2%
1.8%0.3%
Drilled wells at oil fields (end of year), %
Production drilling of LUKOIL Group by regions, %
2
EXPLORATION AND PRODUCTION
ANALYST DATABOOK 2009
14
Oil production wells in use, th. wells
Oil production wells (end of year), wells
2003 2004 2005 2006 2007 2008
Total 27,221 26,936 27,354 27,833 28,468 29,417
Russia 26,812 26,502 26,619 26,965 27,451 28,097
Western Siberia 15,436 15,256 15,417 15,940 16,372 16,797
Urals 6,343 6,142 6,104 6,134 6,255 6,393
Volga 1,114 1,087 1,051 1,001 906 869
Timan!Pechora 3,395 3,447 3,473 3,288 3,286 3,387
Other 524 570 574 602 632 651
International 409 434 735 868 1,017 1,320
Oil production wells in use (end of year), wells
2003 2004 2005 2006 2007 2008
Total 22,172 22,122 22,750 23,490 24,099 25,112
Russia 21,844 21,761 22,150 22,799 23,238 23,964
Western Siberia 12,721 12,802 13,346 13,879 14,337 14,775
Urals 5,582 5,480 5,322 5,298 5,225 5,375
Volga 1,045 982 951 895 790 785
Timan!Pechora 1,990 1,937 1,967 2,133 2,266 2,394
Other 506 560 564 594 620 635
International 328 361 600 691 861 1,148
Share of idle wells in total oil production wells (end of year), %
2003 2004 2005 2006 2007 2008
Total 18.5 17.9 16.8 15.6 15.3 14.6
Russia 18.5 17.9 16.8 15.4 15.3 14.7
Western Siberia 17.6 16.1 13.4 12.9 12.4 12.0
Urals 12.0 10.8 12.8 13.6 16.5 15.9
Volga 6.2 9.7 9.5 10.6 12.8 9.7
Timan!Pechora 41.4 43.8 43.4 35.1 31.0 29.3
Other 3.4 1.8 1.7 1.3 1.9 2.5
International 19.8 16.8 18.4 20.4 15.3 13.0
22
23
26
2007
24
25
20082004 2005 2006
International (5%)
Other (3%)
Volga (3%)
Western Siberia (59%)
Timan!Pechora (9%)
Urals (21%)
Oil production wells in useby regions (31.12.2008)
15
Drilled wells at gas fields (end of year), %
2
Injection wells at oil fields (end of year), wells
2003 2004 2005 2006 2007 2008
Operating wells 7,848 8,007 8,158 8,663 9,064 9,552
Russia 7,780 7,937 8,048 8,501 8,859 9,303
International 68 70 110 162 205 249
Wells under pressure 5,196 5,434 5,769 6,338 6,656 7,047
Russia 5,133 5,365 5,669 6,193 6,471 6,835
International 63 69 100 145 185 212
Share of idle wells, % 33.8 32.1 29.3 26.8 26.6 26.2
Russia 34.0 32.4 29.6 27.1 27.0 26.5
International 7.4 1.4 9.1 10.5 9.8 14.9
Number of steam injection wells at oil fields* (end of year), wells
2003 2004 2005 2006 2007 2008
Wells 73 74 77 137 152 164
* LUKOIL!Komi is the only LUKOIL subsidiary operating steam injection wells.
20081.3
1.4
1.5
1.6
2004 2005 2006 2007
Drilled wells at gas fields of LUKOIL Group, th. wells
Gas production wells (end of year), wells
2003 2004 2005 2006 2007 2008
Total 313 317 365 367 376 387
Russia 254 258 302 295 297 299
Western Siberia 0 0 4 4 5 6
Urals 85 81 74 72 73 73
Volga 122 118 119 123 123 124
Timan!Pechora 47 56 56 35 35 35
Bolshekhetskaya Depression 0 3 49 61 61 61
International 59 59 63 72 79 88
0
20
40
100
60
80
20072003 2004 2005 2006 2008
Temporarily closedwells
Liquidated wells
Test and pressureobservation wells
Production wells
Injection wells
Other
EXPLORATION AND PRODUCTION
ANALYST DATABOOK 2009
16
Gas production wells in use (end of year), wells
2003 2004 2005 2006 2007 2008Total 250 231 239 285 277 278
Russia 213 190 194 239 221 209
Western Siberia 0 0 2 2 1 2
Urals 75 74 73 71 71 71
Volga 97 101 101 104 87 83
Timan!Pechora 41 14 5 1 1 2
Bolshekhetskaya Depression 0 1 13 61 61 51
International 37 41 45 46 56 69
Gas production wells in use, wells
200
220
300
240
260
280
2007 20082004 2005 2006
Gas production wells in useby regions (31.12.2008)
Timan!Pechora (1%)
International (25%)
BolshekhetskayaDepression (18%)
Volga (30%)
Western Siberia (1%)
Urals (25%)
Share of idle wells in gas production wells (end of year), %
2003 2004 2005 2006 2007 2008
Total 20.1 27.1 34.5 22.3 26.3 28.2
Russia 16.1 26.4 35.8 19.0 25.6 30.1
Western Siberia – – 50.0 50.0 80.0 66.7
Urals 11.8 8.6 1.4 1.4 2.7 2.7
Volga 20.5 14.4 15.1 15.4 29.3 33.1
Timan!Pechora 12.8 75.0 91.1 97.1 97.1 94.3
Bolshekhetskaya Depression – 66.7 73.5 0.0 0.0 16.4
International 37.3 30.5 28.6 36.1 29.1 21.6
Injection wells at gas fields (end of year), wells
2003 2004 2005 2006 2007 2008
Total 34 34 35 35 35 35
Russia 20 20 20 20 20 20
International 14 14 15 15 15 15
17
OIL PRODUCTION
2
Oil production by LUKOIL Group2004 2005 2006 2007 2008
Th. tons 86,200 90,158 95,235 96,645 95,240
Mln barrels 636 664 703 713 703
Th. tons per day 236 247 261 265 260
Th. barrels per day 1,738 1,820 1,926 1,953 1,921
Oil production by LUKOIL Group, mln barrels
2004 2005 2006 2007 2008
LUKOIL Group production, total 636 664 703 713 703
Subsidiaries 607 634 675 694 684
Russia 596 619 648 668 660
International 11 15 27 26 24
Share in production by affiliates 29 30 28 19 19
Oil production by regions, th. tons
2004 2005 2006 2007 2008
LUKOIL Group production, total 86,200 90,158 95,235 96,645 95,240
Russia 82,720 86,277 89,561 91,100 89,945
Western Siberia 56,351 58,469 59,764 59,917 56,187
Urals 10,082 10,307 10,923 11,257 11,625
Volga 3,175 3,210 3,214 3,240 3,263
Timan!Pechora 11,732 12,476 13,601 14,576 16,685
Other 1,380 1,815 2,059 2,110 2,185
International 3,480 3,881 5,674 5,545 5,295
KogalymneftegazLangepasneftegazPokachevneftegaz
Urayneftegaz
YamalneftegazNaryanmarneftegaz
LUKOIL!Komi
LUKOIL!Perm
NizhnevolzhskneftVolgogradneftegaz
KaliningradmorneftProjects in Kazakhstan
Projects in Egypt
Shakh Deniz inAzerbaijan
Kandym – Khauzak – Shadyand South!West Gissar
in Uzbekistan
LUKOIL’s main hydrocarbon production regions
EXPLORATION AND PRODUCTION
ANALYST DATABOOK 2009
18
0
20
40
60
80
100
20082007200620052004
59.0%
17.5%
12.2%
5.6%
2.3%3.4%
62.0%
13.6%
11.7%
3.7%4.0%
1.6%
15.1%
11.6%
5.7%
2.2%3.4%
65.4%
13.8%
11.4%
2.0%3.6%
64.9%
4.3%
14.3%
11.5%
2.2%3.4%
62.7%
5.9%
Western Siberia
Urals
Timan!Pechora
Other
International
Volga
2004 2005 2006 2007 2008Subsidiaries 82,408 86,193 91,537 94,147 92,846
Russia 81,039 84,180 87,930 90,735 89,646
Western Siberia 55,630 57,345 58,414 59,849 56,187
Urals 10,010 10,234 10,855 11,183 11,548
Volga 2,969 3,001 3,001 3,017 3,041
Timan!Pechora 11,050 11,785 13,601 14,576 16,685
Other 1,380 1,815 2,059 2,110 2,185
International 1,369 2,013 3,607 3,412 3,200
Share in production by affiliates 3,792 3,965 3,698 2,498 2,394
Russia 1,681 2,097 1,631 365 299
Western Siberia 721 1,124 1,350 68 0
Urals 72 73 68 74 77
Volga 206 209 213 223 222
Timan!Pechora 682 691 0 0 0
Other 0 0 0 0 0
International 2,111 1,868 2,067 2,133 2,095
Oil production by regions, %
19
2Watercut of Russian oil wells of LUKOIL Group, %
2004 2005 2006 2007 2008
New wells 21.1 22.0 27.4 35.1 32.1
Old wells 77.1 78.5 80.4 83.0 83.1
Total wells 76.4 77.8 79.6 80.9 82.2
Western Siberia 78.7 80.5 82.5 84.1 85.9
Urals 69.7 69.7 68.5 66.6 65.7
Volga 62.7 63.4 62.2 60.0 64.3
Timan!Pechora 71.3 70.5 71.8 72.3 71.4
Other 66.8 62.2 60.8 62.7 64.8
Flow rate of Russian oil wells of LUKOIL Group, tons per day
2004 2005 2006 2007 2008
New wells 44.3 41.9 37.3 33.0 36.1
Old wells 10.4 10.8 10.8 10.6 10.0
Total wells 10.7 11.1 11.2 11.0 10.5
Western Siberia 12.3 12.4 12.3 11.7 10.5
Urals 5.2 5.4 5.8 6.0 6.2
Volga 9.1 9.7 10.3 11.4 10.8
Timan!Pechora 17.5 18.7 18.6 18.4 19.8
Other 7.3 9.2 10.0 10.0 9.7
Average flow rate of LUKOIL oilwells in Russia, tons per day
6 7 8 9 10 11 12
2008
11.2
11.1
10.7
10.5
11.02007
2004
2005
2006
Watercut of LUKOIL wells in Russia, %
10 35 60 85
2008
2004
2005
2006
2007
82.2
79.6
77.8
76.4
80.9
Application of enhanced oil recovery methods and latest technologies
2004 2005 2006 2007 2008
Drilling of horizontal wells 29 41 56 109 112
Average flow rate, tons per day 79.6 125.4 110.4 65.5 58.4
Drilling of sidetracks 63 102 146 188 260
Average increase in flow rate, tons per day 21.9 25.0 25.9 19.2 18.1
Hydrofracturing, wells 583 850 1,002 762 711
Average increase in flow rate, tons per day 15.9 13.7 10.2 8.9 9.4
Additional oil production from application of enhanced oil recovery methods in Russia, mln tons
2004 2005 2006 2007 2008
LUKOIL Group in Russia, total 21.53 22.07 24.19 23.75 22.95
Western Siberia 17.46 17.74 19.16 18.19 16.76
Urals 1.34 1.51 1.84 2.17 2.76
Volga 0.56 0.59 0.57 0.64 0.51
Timan!Pechora 2.00 2.06 2.41 2.69 2.73
Other 0.17 0.17 0.21 0.06 0.19
EXPLORATION AND PRODUCTION
Marketable gas production by LUKOIL Group*
2004 2005 2006 2007 2008Mcm 4,924 5,635 13,612 13,955 17,020
Bcf 174 200 481 493 601
Mln boe 29.0 33.2 80.1 82.1 100.2
Mcm per day 13.5 15.4 37.3 38.1 46.5
Mcf per day 475.1 545.2 1,317.0 1,350.0 1,642.1
Th. boe per day 79 91 219 225 273
Natural gas production, mcm2004 2005 2006 2007 2008
Total production of natural gas** 1,828 2,628 10,709 10,787 13,888
Production of marketable natural gas* 1,395 1,878 9,821 9,652 12,671including:
Subsidiaries 1,395 1,878 9,821 9,652 12,671
Russia 478 899 8,816 8,161 8,711
Western Siberia 0 0 0 0 0
Bolshekhetskaya Depression 3 433 8,348 7,719 8,313
Urals 326 319 326 322 291
Volga 148 146 141 119 106
Timan!Pechora 1 1 1 1 1
Other 0 0 0 0 0
International 917 979 1,005 1,491 3,960
Share in production by affiliates 0 0 0 0 0
Russia 0 0 0 0 0
International 0 0 0 0 0
Associated petroleum gas production, mcm
Total production of associated petroleum gas** 4,645 4,941 5,258 5,610 5,549
Production of marketable associated petroleum gas* 3,529 3,757 3,791 4,303 4,349including:
Subsidiaries 3,281 3,499 3,576 4,079 4,084
Russia 3,281 3,497 3,576 4,079 4,084
Western Siberia 1,983 2,103 2,089 2,528 2,549
Urals 433 487 527 575 576
Volga 381 398 409 403 426
Timan!Pechora 474 499 542 564 524
Other 10 10 9 9 9
International 0 2 0 0 0
Share in production by affiliates 248 258 215 224 265
Russia 30 31 31 33 33
International 218 227 184 191 232
Utilization rate of associated petroleum gas, % 79.7 79.1 72.2 69.0 70.4
ANALYST DATABOOK 2009
20
GAS PRODUCTION
* Includes gas for sale, does not include reinjection and own consumption as well as production and transportation losses.** Includes gas for sale, reinjection and own consumption as well as production and transportation losses.
Natural and associated petroleum gas production, mcm
2004 2005 2006 2007 2008
Total production of gas** 6,473 7,569 15,967 16,397 19,437
Production of marketable gas* 4,924 5,635 13,612 13,955 17,020including:
Subsidiaries 4,676 5,377 13,397 13,731 16,755
Russia 3,759 4,396 12,392 12,240 12,795
Western Siberia 1,983 2,103 2,089 2,528 2,549
Bolshekhetskaya Depression 3 433 8,348 7,719 8,313
Urals 759 806 853 897 867
Volga 529 544 550 522 532
Timan!Pechora 475 500 543 565 525
Other 10 10 9 9 9
International 917 981 1,005 1,491 3,960
Share in production by affiliates 248 258 215 224 265
Russia 30 31 31 33 33
International 218 227 184 191 232
0
20
40
60
80
100
20082007200620052004
48.8%
24.6%
23.1%
15.4%
11.4%
0.2%
15.0%
5.1%3.3%
0.1%
40.3%
9.6%3.1%
0.1%
55.3%
12.1%
18.1%
6.4%
4.0%
0.1%
21.4%
14.3%
0.2%
8.9%
37.3%
10.2%
7.7%
4.0%
8.7%
6.3%
0.1%4.0%
15.3%
4.3%
61.3%Western Siberia
Urals
Timan!Pechora
Other
BolshekhetsayaDepression
International
Volga
21
Gas production by regions, %
2
EXPLORATION AND PRODUCTION
* Includes gas for sale, does not include reinjection and own consumption as well as production and transportation losses.** Includes gas for sale, reinjection and own consumption as well as production and transportation losses.
ANALYST DATABOOK 2009
22
HYDROCARBON PRODUCTION
LUKOIL Group hydrocarbon production, mln boe2004 2005 2006 2007 2008
Oil 636 664 703 713 703Gas* 38 45 94 96 114Total production by LUKOIL Group 674 709 797 809 817Total production by LUKOIL Group, th. boe per day 1,842 1,942 2,184 2,218 2,232
Production of marketable hydrocarbons(including marketable gas**) 665 697 783 795 803Production of marketable hydrocarbons,th. boe per day 1,817 1,911 2,145 2,178 2,194
Marketable hydrocarbon production by regions, mln boe2004 2005 2006 2007 2008
Total production by LUKOIL Group 665 697 783 795 803Russia 632 660 733 743 738
Western Siberia 430 444 455 459 431Bolshekhetskaya Depression 0 3 49 45 49Urals 78 80 84 87 90Volga 27 27 28 28 28Timan!Pechora 87 93 102 108 124Other 10 13 15 16 16
International 33 37 50 52 65
Subsidiaries 635 665 754 775 783Russia 619 643 721 740 735
Western Siberia 425 435 445 458 431Bolshekhetskaya Depression 0 3 49 45 49Urals 77 79 84 86 89Volga 25 25 26 27 26Timan!Pechora 82 88 102 108 124Other 10 13 15 16 16
International 16 22 33 35 48
Share in production by affiliates 30 32 29 20 20Russia 13 17 12 3 3
Western Siberia 5 9 10 1 0Bolshekhetskaya Depression 0 0 0 0 0Urals 1 1 0 1 1Volga 2 2 2 1 2Timan!Pechora 5 5 0 0 0Other 0 0 0 0 0
International 17 15 17 17 17
Hydrocarbon lifting costs of LUKOIL Group subsidiaries, USD per boe2004 2005 2006 2007 2008
Total 2.46 2.66 3.08 3.58 4.12Russia 2.44 2.60 3.01 3.55 4.11International 3.52 4.50 4.67 4.16 4.32
* Includes gas for sale, does not include reinjection and own consumption as well as production and transportation losses.** Includes gas for sale, reinjection and own consumption as well as production and transportation losses.
23
MAJOR FIELDS OF LUKOIL GROUP IN RUSSIA
2
Oil fields*
Western Siberia2004 2005 2006 2007 2008
Total LUKOIL production of oil in Western Siberia, th. tons 56,351 58,469 59,764 59,917 56,187Oil production from 15 major oil fields ofthe Group in the region, th. tons 44,536 45,543 45,821 44,857 42,249Share, % 79.0 77.9 76.7 74.9 75.2
LUKOIL proved oil reserves in Western Siberia, mln barrels 7,798Proved oil reserves of 15 major oil fieldsof the Group in the region, mln barrels 5,801Share, % 74.4
Tevlinsko"Russkinskoye field2004 2005 2006 2007 2008
Proved oil reserves, mln barrels 1,023
Oil production, th. tons 11,367 11,443 10,382 9,486 8,608
Cumulative oil production, mln tons 102.7 114.2 124.6 134.1 142.7
Total wells 2,088 2,151 2,229 2,297 2,407
Production wells 1,233 1,332 1,383 1,404 1,423
Production wells in use 1,171 1,227 1,281 1,300 1,333
Average flow rate per well, tons per day 26.2 25.6 22.7 20.3 17.9
Watercut, % 45.4 54.9 64.2 70.4 75.4
Vat"Yeganskoye field2004 2005 2006 2007 2008
Proved oil reserves, mln barrels 1,292
Oil production, th. tons 8,058 8,175 8,344 8,086 7,626
Group’s share, th. tons 7,943 8,087 8,265 8,086 7,626
Cumulative oil production, mln tons 136.2 144.4 152.7 160.8 168.4
Total wells 3,476 3,563 3,643 3,722 3,834
Production wells 2,362 2,390 2,331 2,310 2,357
Production wells in use 2,144 2,124 2,041 2,017 2,074
Average flow rate per well, tons per day 10.6 10.7 11.0 11.0 10.2
Watercut, % 78.4 80.8 81.8 83.0 85.0
Povkhovskoye field2004 2005 2006 2007 2008
Proved oil reserves, mln barrels 760
Oil production, th. tons 5,618 5,824 6,093 6,183 5,898
Cumulative oil production, mln tons 160.0 165.8 171.9 178.1 184.0
Total wells 3,202 3,202 3,213 3,261 3,268
Production wells 1,831 1,836 1,824 1,873 1,886
Production wells in use 1,330 1,422 1,428 1,466 1,535
Average flow rate per well, tons per day 11.9 11.8 11.9 11.8 10.7Watercut, % 61.5 66.3 70.1 71.2 73.4
EXPLORATION AND PRODUCTION
* Reserves are stated in accordance with the share of the Group. If the Group’s share in production is less than 100%, then the share is stated in a separate line. Summary production data are stated in accordance with the share of the Group.
Yuzhno"Yagunskoye field2004 2005 2006 2007 2008
Proved oil reserves, mln barrels 571
Oil production, th. tons 4,535 4,387 3,711 3,142 2,810
Group’s share, th. tons 4,512 4,365 3,689 3,142 2,810
Cumulative oil production, mln tons 113.2 117.5 121.2 124.3 127.1
Total wells 1,771 1,776 1,783 1,810 1,879
Production wells 1,006 1,046 979 975 990
Production wells in use 907 943 875 860 883
Average flow rate per well, tons per day 14.6 13.2 11.3 10.0 8.7
Watercut, % 76.3 80.1 83.3 86.7 89.6
Pokachevskoye field2004 2005 2006 2007 2008
Proved oil reserves, mln barrels 321
Oil production, th. tons 3,096 3,412 3,468 3,582 3,125
Cumulative oil production, mln tons 132.8 136.2 139.7 143.3 146.4
Total wells 2,206 2,214 2,215 2,243 2,272
Production wells 1,182 1,165 1,232 1,341 1,362
Production wells in use 965 978 1,059 1,151 1,158
Average flow rate per well, tons per day 8.7 9.4 9.0 8.9 7.4
Watercut, % 87.7 88.6 91.0 92.1 93.3
Kogalymskoye field2004 2005 2006 2007 2008
Proved oil reserves, mln barrels 273
Oil production, th. tons 2,380 2,460 2,623 2,793 2,846
Cumulative oil production, mln tons 20.9 23.4 26.0 28.8 31.6
Total wells 473 504 520 553 574
Production wells 240 267 282 294 308
Production wells in use 217 232 248 275 287
Average flow rate per well, tons per day 33.5 30.8 30.9 29.1 27.4
Watercut, % 40.2 41.9 42.3 45.7 50.3
Uryevskoye field2004 2005 2006 2007 2008
Proved oil reserves, mln barrels 310
Oil production, th. tons 1,987 1,935 1,847 2,227 2,394
Cumulative oil production, mln tons 74.8 76.7 78.6 80.8 83.2
Total wells 1,984 2,008 2,011 2,076 2,200
Production wells 989 945 906 921 945
Production wells in use 782 798 811 818 833
Average flow rate per well, tons per day 7.0 6.7 6.4 7.6 8.0
Watercut, % 90.3 90.9 91.6 90.0 89.7
ANALYST DATABOOK 2009
24
Nong"Yeganskoye field
2004 2005 2006 2007 2008
Proved oil reserves, mln barrels 192
Oil production, th. tons 1,456 1,536 1,447 1,340 1,026
Cumulative oil production, mln tons 27.3 28.8 30.3 31.6 32.6
Total wells 443 443 444 454 469
Production wells 223 240 257 285 300
Production wells in use 195 204 222 250 263
Average flow rate per well, tons per day 20.1 21.3 18.2 15.5 10.9
Watercut, % 73.0 75.4 83.7 86.4 89.6
Kluchevoye field
2004 2005 2006 2007 2008
Proved oil reserves, mln barrels 101
Oil production, th. tons 1,751 1,464 1,385 1,160 884
Cumulative oil production, mln tons 17.2 18.6 20.0 21.2 22.1
Total wells 409 409 409 409 407
Production wells 299 295 292 295 302
Production wells in use 275 259 248 261 264
Average flow rate per well, tons per day 17.2 14.9 14.3 12.2 9.2
Watercut, % 71.5 78.8 85.4 88.3 91.8
Druzhnoye field
2004 2005 2006 2007 2008
Proved oil reserves, mln barrels 140
Oil production, th. tons 1,287 1,380 1,682 1,655 1,477
Cumulative oil production, mln tons 41.4 42.8 44.4 46.1 47.6
Total wells 896 915 945 966 998
Production wells 333 363 436 467 440
Production wells in use 288 324 378 415 400
Average flow rate per well, tons per day 12.8 12.7 13.6 11.5 9.8
Watercut, % 80.8 81.6 83.0 85.2 87.3
Nivagalskoye field
2004 2005 2006 2007 2008
Proved oil reserves, mln barrels 345
Oil production, th. tons 1,422 1,283 1,198 1,330 1,632
Cumulative oil production, mln tons 15.1 16.4 17.6 18.9 20.5
Total wells 931 931 934 936 968
Production wells 501 474 459 473 489
Production wells in use 356 376 380 386 402
Average flow rate per well, tons per day 10.7 9.7 8.7 9.6 11.7
Watercut, % 75.6 79.9 83.0 82.1 81.2
25
2
EXPLORATION AND PRODUCTION
Sredne"Khulymskoye field
2004 2005 2006 2007 2008
Proved oil reserves, mln barrels 32
Oil production, th. tons 781 1,090 1,035 969 840
Cumulative oil production, mln tons 1.2 2.3 3.4 4.4 5.2
Total wells 61 85 114 138 142
Production wells 53 72 81 93 96
Production wells in use 51 69 79 89 91
Average flow rate per well, tons per day 59.1 52.5 39.9 29.6 26.9
Watercut, % 19.3 23.8 31.3 38.2 44.7
Severo-Pokachevskoye field
2004 2005 2006 2007 2008
Proved oil reserves, mln barrels 73
Oil production, th. tons 476 680 853 1,093 1,036
Cumulative oil production, mln tons 0.9 1.6 2.5 3.6 4.6
Total wells 89 105 125 154 204
Production wells 53 59 76 88 104
Production wells in use 46 50 69 77 91
Average flow rate per well, tons per day 32.7 41.4 40.0 44.4 34.7
Watercut, % 16.2 28.1 34.4 43.6 59.7
Kamenny license area (eastern part of the Kamennaya area of the Krasnoleninskoye field)
2004 2005 2006 2007 2008
Proved oil reserves, mln barrels 192
Oil production, th. tons – – 1,124 1,081 1,079
Cumulative oil production, mln tons – – 2.8 2.9 5.0
Total wells – – 311 332 434
Production wells – – 196 205 294
Production wells in use – – 148 170 264
Average flow rate per well, tons per day – – 23.5 18.2 14.7
Watercut, % – – 43.7 50.4 62.0
Kechimovskoye field
2004 2005 2006 2007 2008
Proved oil reserves, mln barrels 176
Oil production, th. tons 460 584 730 731 968
Cumulative oil production, mln tons 2.6 3.2 4.0 4.7 5.7
Total wells 146 167 177 200 327
Production wells 83 101 98 112 177
Production wells in use 73 86 83 97 155
Average flow rate per well, tons per day 17.4 20.7 24.2 22.9 22.1
Watercut, % 61.7 63.5 65.9 68.2 73.8
ANALYST DATABOOK 2009
26
Timan"Pechora
2004 2005 2006 2007 2008Total LUKOIL production of oil in Timan!Pechora, th. tons 11,732 12,476 13,601 14,576 16,685
Oil production from 7 major oilfields of the Group in the region, th. tons 7,235 7,631 8,475 9,152 10,714
Share, % 61.7 61.2 62.3 62.8 64.2
LUKOIL proved oil reserves in Timan!Pechora, mln barrels 2,912
Proved oil reserves of 7 major oil fieldsof the Group in the region, mln barrels 1,608
Share, % 55.2
Kharyaginskoye field
2004 2005 2006 2007 2008
Proved oil reserves, mln barrels 298
Oil production, th. tons 2,711 2,721 2,827 2,874 2,901
Cumulative oil production, mln tons 27.7 30.5 33.3 36.2 39.1
Total wells 331 333 348 356 365
Production wells 221 226 237 250 261
Production wells in use 184 188 213 217 234
Average flow rate per well, tons per day 40.7 39.6 40.0 37.0 34.9
Watercut, % 38.5 42.0 45.2 47.2 51.9
Usinskoye field2004 2005 2006 2007 2008
Proved oil reserves, mln barrels 518
Oil production, th. tons 2,128 2,149 2,129 2,113 2,109
Cumulative oil production, mln tons 148.5 150.7 152.8 154.9 157.0
Total wells 1,755 1,752 1,748 1,745 1,730
Production wells 1,210 1,224 1,228 1,241 1,247
Production wells in use 680 670 726 757 793
Average flow rate per well, tons per day 8.8 8.8 8.5 7.9 7.4
Watercut, % 83.1 83.3 83.1 83.9 84.0
Yuzhno"Shapkinskoye field2004 2005 2006 2007 2008
Proved oil reserves, mln barrels 82
Oil production, th. tons 1,346 1,498 1,341 1,299 903
Group’s share, th. tons 672 811 1,341 1,299 903
Cumulative oil production, mln tons 1.9 3.4 4.7 6.0 6.9
Total wells 43 57 60 62 68
Production wells 27 30 34 42 48
Production wells in use 24 28 33 41 44
Average flow rate per well, tons per day 198.2 157.2 127.2 96.3 61.3
Watercut, % 7.9 21.1 52.1 57.2 67.5
27
2
EXPLORATION AND PRODUCTION
Vozeiskoye field2004 2005 2006 2007 2008
Proved oil reserves, mln barrels 120
Oil production, th. tons 1,085 1,058 1,058 1,138 1,278
Cumulative oil production, mln tons 95.8 96.8 97.9 99.0 100.3
Total wells 1,587 1,588 1,586 1,585 1,583
Production wells 768 819 760 767 787
Production wells in use 347 363 403 439 465
Average flow rate per well, tons per day 9.0 8.4 7.7 7.6 7.8
Watercut, % 89.8 89.7 90.3 90.0 89.3
Tedinskoye field2004 2005 2006 2007 2008
Proved oil reserves, mln barrels 46
Oil production, th. tons 621 882 1,037 1,099 1,042
Cumulative oil production, mln tons 1.2 2.0 3.1 4.2 5.2
Total wells 19 28 36 50 58
Production wells 19 28 35 43 49
Production wells in use 19 27 35 43 49
Average flow rate per well, tons per day 124.9 106.8 93.5 80.2 65.0
Watercut, % 5.8 23.3 39.6 54.0 65.5
Pashshorskoye field2004 2005 2006 2007 2008
Proved oil reserves, mln barrels 39
Oil production, th. tons 18 10 83 629 954
Cumulative oil production, mln tons 0 0 0 0.8 1.7
Total wells 6 6 6 14 21
Production wells 2 2 3 12 19
Production wells in use 2 2 3 10 16
Average flow rate per well, tons per day 386.0 356.4 317.1 226.0 190.2
Watercut, % 0.7 0.0 11.0 13.1 10.6
Yuzhno"Khylchuyuskoye field2004 2005 2006 2007 2008
Proved oil reserves, mln barrels 505
Oil production, th. tons – – – – 1,527
Cumulative oil production, mln tons – – – – 1.6
Total wells – – – – 68
Production wells – – – – 22
Production wells in use – – – – 22
Average flow rate per well, tons per day – – – – 539.9
Watercut, % – – – – 2.0
ANALYST DATABOOK 2009
28
29
Urals2004 2005 2006 2007 2008
Share of the Unvinskoye field in LUKOIL oilproduction in Urals, % 10.2 11.2 11.7 12.3 11.9
Share of the Unvinskoye fieldin LUKOIL proved oil reserves in Urals, % 8.1
Unvinskoye field2004 2005 2006 2007 2008
Proved oil reserves, mln barrels 169
Oil production, th. tons 1,033 1,152 1,274 1,385 1,385
Cumulative oil production, mln tons 21.5 22.7 23.9 25.3 26.7
Total wells 428 428 428 428 420
Production wells 289 294 291 293 294
Production wells in use 262 233 252 251 261
Average flow rate per well, tons per day 11.3 13.6 14.6 16.2 15.3
Watercut, % 24.3 19.8 19.6 27.3 30.2
Volga2004 2005 2006 2007 2008
Share of the Pamyatno!Sasovskoyefield in LUKOIL oilproduction in Volga, % 70.4 72.1 72.8 76.0 73.2
Share of the Pamyatno!Sasovskoyefield in LUKOIL proved oil reserves in Volga (excluding Caspian), % 58.3
Pamyatno"Sasovskoye field2004 2005 2006 2007 2008
Proved oil reserves, mln barrels 144
Oil production, th. tons 2,439 2,518 2,547 2,667 2,585
Group’s share, th. tons 2,236 2,313 2,341 2,464 2,390
Cumulative oil production, mln tons 24.7 27.2 29.8 32.4 35.0
Total wells 61 62 65 65 65
Production wells 49 48 49 49 49
Production wells in use 49 47 49 49 48
Average flow rate per well, tons per day 135.5 143.5 143.7 147.3 146.4
Watercut, % 0.2 0.7 0.9 2.3 3.8
Kaliningrad region2004 2005 2006 2007 2008
Share of the Kravtsovskoye field in LUKOIL oil production in Kaliningrad region, % 10.3 47.3 60.9 61.7 59.1
Share of the Kravtsovskoyefield in LUKOIL proved oil reserves in Kaliningrad region, % 42.4
EXPLORATION AND PRODUCTION
ANALYST DATABOOK 2009
30
Kravtsovskoye field2004 2005 2006 2007 2008
Proved oil reserves, mln barrels 33
Oil production, th. tons 80 562 861 877 842
Cumulative oil production, mln tons 0.1 0.6 1.5 2.4 3.2
Total wells 3 8 12 18 19
Production wells 3 8 12 12 13
Production wells in use 3 8 12 12 13
Average flow rate per well, tons per day 237.4 277.0 252.3 200.5 171.3
Watercut, % 14.5 5.5 8.7 14.0 22.3
Gas fields
Nakhodkinskoye field
2004 2005 2006 2007 2008
Proved natural gas reserves, bcf 3,703
Natural gas production, mcm 7 472 8,486 7,798 8,408
Cumulative natural gas production, mcm 0.0 0.5 9.0 16.8 25.2
Total wells – 52 69 65 65
Production wells – 49 61 61 61
Production wells in use – 13 61 61 50
0
20
30
40
50
60
20082007200620052004
10
Timan!PechoraYuzhno!ShapkinskoyePashshorskoyeTedinskoyeVozeiskoyeYuzhno!KhylchuyuskoyeUsinskoyeKharyaginskoye
VolgaPamyatno!Sasovskoye
UralsUnvinskoye
Kaliningrad regionKravtsovskoye
Western SiberiaSredne!KhulymskoyeKluchevoyeKechimovskoyeNong!YeganskoyeSevero!PokachevskoyeKamenny license areaDruzhnoyeNivagalskoyeUryevskoyeYuzhno!YagunskoyeKogalymskoyePokachevskoyePovkhovskoyeVat!YeganskoyeTevlinsko!Russkinskoye
Oil production from major LUKOIL fields in Russia, mln tons
31
INTERNATIONAL PROJECTS OF LUKOIL GROUP
ColumbiaCondor
VenezuelaJunin!3
70%
Kazakhstan
Karachaganak 15%
Tengiz 2.7%
Kumkol 50%
Kazakhoil!Aktobe 25%
North Buzachi 25%
Karakuduk 50%
Arman 25%
Tyub!Karagan 50%
Atashsky 50%
Uzbekistan
Kandym – Khauzak– Shady 90%
Azerbaijan
Shakh Deniz 10%
D!222 65%
Saudi Arabia
Block " 80%
Iraq
West Kurnah!2 68.5%
Egypt
Meleiha 24%
WEEM 100%
SNG Holdings Ltd. 100%
Share ofLUKOIL Group
Gas Oil
ExplorationProduction and preparation for production
15%
Cote d’Ivoire
CI!205 63%
CI!101 56.66%
CI!401 56.66%
Ghana
Cape Three Points Deep Water 56.66%
Aral 20%
South Zhambai
South Zaburunye 12.5%
12.5%
International projects*, total2004 2005 2006 2007 2008
Proved oil reserves, mln barrels 487 614 608 495 592Proved gas reserves, bcf 3,216 3,845 4,442 5,068 6,972Hydrocarbon reserves, mln boe 1,023 1,255 1,350 1,339 1,754Oil production, th. tons 3,480 3,881 5,674 5,545 5,295Marketable gas production, mcm 1,135 1,208 1,189 1,682 4,192Marketable hydrocarbon production, mln boe 33 37 50 52 65
KazakhstanKarachaganak
Proved oil reserves, mln barrels 231 208 173 157 246Proved gas reserves, bcf 1,624 1,441 1,203 1,137 1,861Hydrocarbon reserves, mln boe 502 448 374 347 556Oil production, th. tons 1,189 1,438 1,448 1,601 1,565Marketable gas production, mcm 1,189 979 1,005 1,046 1,069Marketable hydrocarbon production, mln boe 15 17 17 19 18
KumkolProved oil reserves, mln barrels 111 89 79 78 68Proved gas reserves, bcf 0 0 13 14 13Hydrocarbon reserves, mln boe 111 89 81 80 70Oil production, th. tons 1,689 1,502 1,707 1,756 1,628Marketable gas production, mcm 51 54 41 44 42Marketable hydrocarbon production, mln boe 13 12 13 14 13
TengizProved oil reserves, mln barrels 112 118 120 117 120Proved gas reserves, bcf 188 177 154 151 152Hydrocarbon reserves, mln boe 143 147 146 142 145Oil production, th. tons 369 366 360 376 466Marketable gas production, mcm 167 172 143 147 190Marketable hydrocarbon production, mln boe 4 4 4 4 5
North BuzachiProved oil reserves, mln barrels – 42 80 41 35Oil production, th. tons – 103 668 524 428Marketable gas production, mcm – 2 – – –Marketable hydrocarbon production, mln boe – 0.7 5 4 3* Group’s share.
EXPLORATION AND PRODUCTION
ANALYST DATABOOK 2009
32
2004 2005 2006 2007 2008
ArmanProved oil reserves, mln barrels – 3 4 2 0.6Oil production, th. tons – 19 82 44 26Oil production, mln barrels – 0.1 0.6 0.3 0.2
KarakudukProved oil reserves, mln barrels – 38 50 34 33Oil production, th. tons – 125 702 668 636Marketable gas production, mcm – 1 – – –Marketable hydrocarbon production, mln boe – 1 5 5 5
Kazakhoil"AktobeProved oil reserves, mln barrels – 89 76 35 32Oil production, th. tons – 114 508 286 190Oil production, mln barrels – 1 4 2 1
EgyptMeleihaProved oil reserves, mln barrels 1 3 2 3 4Oil production, th. tons 53 47 40 46 47Oil production, mln barrels 0.4 0.4 0.3 0.4 0.4
WEEMProved oil reserves, mln barrels 13 7 6 5 7Oil production, th. tons 180 167 159 154 144Oil production, mln barrels 1 1 1 1 1
AzerbaijanShakh DenizProved oil reserves, mln barrels 15 11 10 11 18Proved gas reserves, bcf 338 249 314 476 532Hydrocarbon reserves, mln boe 71 53 63 90 107Oil production, th. tons – – – 88 147Marketable gas production, mcm – – – 309 551Marketable hydrocarbon production, mln boe – – – 2 4
UzbekistanKandym – Khauzak – ShadyProved oil reserves, mln barrels 4 6 8 6 10Proved gas reserves, bcf 1,066 1,978 2,758 3,290 3,019Hydrocarbon reserves, mln boe 182 336 468 554 513Oil production, th. tons – – – 2 12Marketable gas production, mcm – – – 136 2,340Marketable hydrocarbon production, mln boe – – – 0.8 14
South"West GissarProved oil reserves, mln barrels – – – – 17Proved gas reserves, bcf – – – – 1,395Hydrocarbon reserves, mln boe – – – – 250Oil production, th. tons – – – – 6Marketable hydrocarbon production, mln boe – – – – 0.1
ColumbiaCondorProved oil reserves, mln barrels – – – 6 1Proved gas reserves, bcf – – – – –Hydrocarbon reserves, mln boe – – – 6 1
REFINING AND GAS PROCESSING
33
OIL REFINING
2.8
2.04
3.9
10.0
2.42
2.4
8.8
7.12
8.3
17.0
16.97
4.0 3.7
3.81
3.1 12.6
12.46
8.0
0.4
0.20
11.0
10.74
5.2
44.7
44.18
21.8
12.10
66.5
56.28
7.8
0.52
9.3ISAB Complex*Italy
* Capacity of the ISAB complex is shown in accordance with the Company share (49%). The throughput represents the Company share in December 2008.
Throughputin 2008,mln tons
Capacity,mln tons per year Nelson
IndexTotalTotal, foreignrefineries
Total,Russian refineries
Burgas RefineryLUKOIL NeftokhimBurgas, Bulgaria
Petrotel!LUKOILPloiesti, Romania
Odessa RefineryUkraine
Nizhny Novgorod RefineryLUKOIL!Nizhego!rodnefteorgsintez
Ukhta RefineryLUKOIL!Ukhta!neftepererabotka
Perm RefineryLUKOIL!Perm!nefteorgsintez
Mini!refineriesin Uray andKogalym
Volgograd RefineryLUKOIL!Volgograd!neftepererabotka
LUKOIL Group refineries
Input capacity of LUKOIIL facilities, th. barrels per dayVacuum Thermal Catalytic Catalytic Catalytic Catalytic
Crude distillation Coking operations cracking reforming hydrocracking hydrotreating
Perm 254.6 116.3 17.6 – 9.3 36.9 65.2 146.3Volgograd 225.2 68.2 18.5 – – 43.7 – 95.9Nizhny Novgorod 337.1 132.4 – 42.2 – 47.1 – 158.5Ukhta 73.4 18.1 – 14.1 – 9.2 – 29.4Burgas 175.1 72.6 – 26.4 34.8 14.4 – 101.4Ploiesti 47.8 21.8 10.5 – 18.5 10.1 – 45.7Odessa 55.7 25.5 – 12.3 – 11.5 – 33.9Total* 1,168.9 454.9 46.6 95.0 62.6 172.9 65.2 611.1
Production capacity of LUKOIL facilities, th. barrels per dayHydrogen, Sulfur,
Alkylation Aromatics Isomerization Lubricants Oxygenates mcf per day tons per day Bitumen
Perm – 2.2 12.0 9.4 – 119.4 213.7 12.1Volgograd – 1.8 9.8 11.3 – 10.7 111.8 4.2Nizhny Novgorod – – 11.8 4.5 – – – 20.7Ukhta – – – – – 11.9 11.0 4.4Burgas 4.6 3.3 1.3 – 1.9 16.1 164.4 4.8Ploiesti – – 3.8 – 2.6 3.9 54.8 –Odessa – – 3.2 – – – 21.1 3.3Total* 4.6 7.3 41.9 25.2 4.5 162.0 576.8 49.5
Capital expenditures in refining, mln USD2004 2005 2006 2007 2008
Expenditures 428 412 696 830 1,023
Refining expenses, mln USD2004 2005 2006 2007 2008
Owned refineries 532 644 730 880 1,115
Affiliated refineries n/a 104 230 242 439
* Excluding mini!refineries and ISAB Complex.
Refinery throughputs and petroleum product output at LUKOIL Grouprefineries, mln tons
2004* 2005* 2006 2007 2008**Throughputs 43.62 47.27 48.88 52.16 56.28
Russian refineries 35.55 37.30 39.50 42.55 44.18Including mini!refineries 0.22 0.21 0.20 0.19 0.20
Foreign refineries 8.07 9.97 9.38 9.61 12.10Throughputs,th. barrels per day 874 949 982 1,047 1,127
Petroleum product output 41.05 44.40 45.85 49.00 53.22Russian refineries 33.66 35.48 37.64 40.56 42.25
Including mini!refineries 0.22 0.20 0.18 0.18 0.19
Foreign refineries 7.39 8.92 8.21 8.44 10.97
Structure of petroleum product output at LUKOIL Group refineries***, %2004 2005 2006 2007 2008
Motor gasoline 14.6 15.0 14.6 14.8 15.3Diesel fuel 28.6 30.7 30.4 30.1 30.5Jet fuel 5.4 5.0 5.3 5.4 5.4Ship fuel 4.0 4.7 3.5 2.2 2.2Heating oil 1.1 1.1 0.9 0.8 0.7Vacuum gas oil 5.2 7.5 8.9 9.3 11.2Naphta 3.4 3.4 3.7 3.8 3.0Fuel oil 26.6 22.4 22.8 24.8 23.1Bitumen 3.9 3.2 3.0 3.0 2.8Lubricants 3.1 2.6 2.7 2.3 2.2Coke 1.3 1.5 1.4 1.3 1.3Other 2.8 2.9 2.8 2.2 2.3
Depth of refining at LUKOIL Group refineries***, %2004 2005 2006 2007 2008
Total 74.4 77.5 77.0 75.3 76.7Russian refineries 75.4 77.5 76.2 74.0 76.0Foreign refineries 70.5 77.5 80.4 81.0 79.7
Production and blending of lubricants at LUKOIL refineries, th. tons2004 2005 2006 2007 2008
Total production(full cycle) 1,199 1,115 1,174 1,120 1,128Mixing of lubricants 83 88 91 93 76Packaged lubricants output 142 180 206 223 231
ANALYST DATABOOK 2009
34
Distribution of throughputs at LUKOIL refineries (2008)
Nizhny NovgorodRefinery (30.2%)
Mini!refineries (0.4%)
Ploiesti Refinery (4.3%)
Burgas Refinery (12.6%)
Ukhta Refinery (6.8%)
Volgograd Refinery(19.1%)
Perm Refinery(22.1%)
ISAB Complex (0.9%)
Odessa Refinery (3.6%)
Share of high!octane gasolines intotal output of motor gasolines atLUKOIL refineries, %***
0 20 40 60 80 100
84.5
88.8
79.5
72.2
91.02008
2004
2005
2006
2007
Share of clean diesel (Euro!2 andhigher) in total output of diesel fuelat LUKOIL refineries, %***
0 20 40 60 80
2008
2004
2005
2006
68.7
2007
67.8
61.8
42.0
70.6
Light products yield at LUKOILrefineries, %***
0 10 20 30 40 50 60
52.7
53.2
53.2
51.3
52.5
2008
2004
2005
2006
2007
N. NovgorodRefinery
PermRefinery
VolgogradRefinery
0 50 100
Output of main petroleum productsat LUKOIL refineries (2008), %
25 75
PloiestiRefinery
UkhtaRefinery
OdessaRefinery
Gasoline Diesel
Fuel oilLubricants Other
Jet fuel
BurgasRefinery
* Excluding fuel oil processed at Burgas Refinery.** Including refinery throughputs at ISAB Complex in December 2008 (Company’s share).
*** Excluding mini!refineries and ISAB Complex.
Throughput and petroleum product output at Volgograd Refinery
2004 2005 2006 2007 2008
Refinery throughput,mln tons 8.98 9.23 9.62 9.61 10.74
Petroleum productoutput, mln tons 8.46 8.74 9.12 9.06 10.18
Structure of petroleum product output, %
Motor gasoline 10.9 9.5 9.5 12.9 14.3
Diesel fuel 29.2 28.0 28.7 27.1 28.3
Jet fuel 8.8 9.1 8.8 9.5 9.2
Ship fuel 0.9 1.7 1.7 1.4 1.1
Heating oil 4.1 3.9 2.2 2.6 2.6
Vacuum gas oil 6.1 9.3 11.4 9.2 12.7
Naphta 9.9 11.1 9.9 6.2 4.4
Fuel oil 17.7 15.9 17.0 21.0 17.6
Bitumen 1.7 1.4 1.6 1.5 1.1
Lubricants 5.7 5.3 5.4 5.1 4.7
Coke 3.1 2.8 2.1 2.0 2.1
Other 1.9 2.0 1.7 1.5 1.9
Main operating indicators
2004 2005 2006 2007 2008
Depth of refining, % 82.3 83.7 81.8 78.4 81.3
Light products yield, % 60.5 60.2 57.9 56.6 57.0
Share of high!octane gasolinein total output of motorgasoline, % 51.7 59.9 62.6 77.7 84.1
Share of clean diesel intotal output of diesel fuel, % 8.9 6.7 8.5 16.5 16.2
35
VOLGOGRAD REFINERY
Shipment by transport type fromthe Volgograd Refinery (2008)
Railroad (76.3%)
Road (1.1%)Water (18.6%)
Pipeline (4.0%)
Depth of refining, %
0 20 40 60 80 100
81.3
81.8
83.7
82.3
78.4
2008
2004
2005
2006
2007
Light products yield, %
0 25 50 75
57.0
57.9
60.2
60.5
56.6
2008
2004
2005
2006
2007
Share of clean diesel (Euro!2 and higher) in total output of diesel fuel, %
0 6 12 18
8.5
6.7
8.9
16.2
16.5
2008
2004
2005
2006
2007
Share of high!octane gasoline intotal output of motor gasoline, %
0 25 50 75 100
84.1
62.6
59.9
51.7
77.7
2008
2004
2005
2006
2007
REFINING AND GAS PROCESSING
Throughput and petroleum product output at Perm Refinery
2004 2005 2006 2007 2008
Refinery throughput,mln tons 11.13 10.98 11.86 11.94 12.46
Petroleum productoutput, mln tons 10.49 10.43 11.32 11.38 11.89
Structure of petroleum product output, %
Motor gasoline 14.7 14.8 12.9 12.3 13.8
Diesel fuel 28.5 32.8 31.9 32.4 32.8
Jet fuel 5.3 5.2 5.8 6.7 6.5
Ship fuel 4.8 5.1 2.6 2.1 1.8
Heating oil 0.3 0.1 0.1 0.0 0.1
Vacuum gas oil 6.0 8.8 9.9 10.1 10.6
Naphta 2.2 2.8 4.4 6.5 4.6
Fuel oil 19.4 12.2 14.8 15.4 15.4
Bitumen 5.5 5.2 4.8 4.1 4.3
Lubricants 4.2 4.0 3.8 3.7 3.4
Coke 2.3 2.3 2.3 2.2 2.3
Other 6.8 6.7 6.7 4.5 4.4
Main operating indicators
2004 2005 2006 2007 2008
Depth of refining, % 84.6 88.0 85.3 84.2 84.2
Light products yield, % 52.1 57.2 57.2 58.1 57.6
Share of high!octane gasolinein total output of motorgasoline, % 63.5 69.4 75.9 84.6 87.4
Share of clean diesel intotal output of diesel fuel, % 46.8 78.9 84.8 91.3 92.9
ANALYST DATABOOK 2009
36
PERM REFINERY
Shipment by transport type fromthe Perm Refinery (2008)
Railroad (73.7%)
Pipeline (21.6%)
Road (1.5%)
Water (3.2%)
Depth of refining, %
0 20 40 60 80 100
84.2
85.3
88.0
84.6
84.2
2008
2004
2005
2006
2007
Light products yield, %
0 10 20 30 40 50 60
57.6
57.2
57.2
52.1
58.1
2008
2004
2005
2006
2007
Share of clean diesel (Euro!2 and higher) in total output of diesel fuel, %
0 20 40 60 80 100
92.9
84.8
78.9
46.8
91.3
2008
2004
2005
2006
2007
Share of high!octane gasoline intotal output of motor gasoline, %
0 30 60 90
87.4
75.9
69.4
63.5
84.6
2008
2004
2005
2006
2007
Throughput and petroleum product output atNizhny Novgorod Refinery
2004 2005 2006 2007 2008
Refinery throughput,mln tons 12.33 13.47 14.26 16.67 16.97
Petroleum productoutput, mln tons 11.69 12.85 13.58 15.97 16.33
Structure of petroleum product output, %
Motor gasoline 12.3 12.4 13.0 12.4 12.2
Diesel fuel 24.5 25.8 25.4 25.3 25.5
Jet fuel 5.7 5.0 5.5 5.1 5.4
Ship fuel 5.7 7.1 3.5 0.4 0.0
Heating oil 0.1 0.0 0.0 0.0 0.0
Vacuum gas oil 5.0 8.7 11.1 12.6 14.3
Naphta 1.3 0.6 0.5 1.6 1.7
Fuel oil 37.7 34.5 35.8 37.2 35.6
Bitumen 4.5 3.4 3.0 3.4 3.3
Lubricants 2.4 1.8 1.9 1.5 1.5
Coke 0.0 0.0 0.0 0.0 0.0
Other 0.8 0.7 0.3 0.5 0.5
Main operating indicators
2004 2005 2006 2007 2008
Depth of refining, % 63.4 66.2 64.8 63.7 65.0
Light products yield, % 43.4 42.8 42.3 42.6 43.1
Share of high!octane gasolinein total output of motorgasoline, % 66.5 75.0 85.4 86.6 90.3
Share of clean diesel intotal output of diesel fuel, % 29.9 61.2 78.9 72.2 63.2
37
NIZHNY NOVGOROD REFINERY
Shipment by transport type fromthe Nizhny Novgorod Refinery (2008)
Railroad (90.1%)
Water (3.2%)
Road (1.3%)
Pipeline (5.4%)
Share of clean diesel (Euro!2 and higher) in total output of diesel fuel, %
0 20 40 60 80
63.2
78.9
61.2
29.9
72.2
2008
2004
2005
2006
2007
Share of high!octane gasoline intotal output of motor gasoline, %
0 20 40 60 80 100
90.3
85.4
75.0
66.5
86.6
2008
2004
2005
2006
2007
Depth of refining, %
0 20 40 60 80
65.0
64.8
66.2
63.4
63.7
2008
2004
2005
2006
2007
Light products yield, %
0 10 20 30 40 50
43.1
42.3
42.8
43.4
42.6
2008
2004
2005
2006
2007
REFINING AND GAS PROCESSING
Throughput and petroleum product output atUkhta Refinery
2004 2005 2006 2007 2008
Refinery throughput,mln tons 2.89 3.41 3.56 4.14 3.81
Petroleum productoutput, mln tons 2.80 3.26 3.44 3.97 3.66
Structure of petroleum product output, %
Motor gasoline 9.8 9.6 9.0 8.9 8.3
Diesel fuel 27.3 27.9 27.4 28.4 27.9
Jet fuel 0.9 0.7 1.2 0.4 0.7
Ship fuel 12.2 14.5 19.9 16.8 21.7
Heating oil 0.0 0.0 0.0 0.0 0.0
Vacuum gas oil 10.8 11.8 11.8 13.6 15.6
Naphta 2.6 3.1 3.2 4.1 5.1
Fuel oil 33.4 29.6 24.7 25.1 17.6
Bitumen 3.0 2.7 2.7 2.6 3.0
Lubricants 0.0 0.0 0.0 0.0 0.0
Coke 0.0 0.0 0.0 0.0 0.0
Other 0.0 0.1 0.1 0.1 0.1
Main operating indicators
2004 2005 2006 2007 2008
Depth of refining, % 69.2 71.4 76.0 75.5 82.6
Light products yield, % 39.4 39.6 39.3 40.3 40.4
Share of high!octane gasolinein total output of motorgasoline, % 55.4 60.3 68.5 80.2 77.5
Share of clean diesel intotal output of diesel fuel, % 70.7 80.7 59.3 55.4 50.1
ANALYST DATABOOK 2009
38
UKHTA REFINERY
Shipment by transport type fromthe Ukhta Refinery (2008)
Railroad (97.9%)
Road (2.1%)
0 20 40 60 80 100
50.1
59.3
80.7
70.7
55.4
Share of clean diesel (Euro!2 and higher) in total output of diesel fuel, %
2008
2004
2005
2006
2007
Share of high!octane gasoline intotal output of motor gasoline, %
0 30 60 90
77.5
68.5
60.3
55.4
80.2
2008
2004
2005
2006
2007
Depth of refining, %
0 25 50 75 100
82.6
76.0
71.4
69.2
75.5
2008
2004
2005
2006
2007
Light products yield, %
0 15 30 45
2008
2004
2005
2006
40.4
2007
39.3
39.6
39.4
40.3
39
URAY MINI!REFINERY
KOGALYM MINI!REFINERY
Light products yield, %
0 10 20 30 40
38.8
36.5
39.1
38.7
36.2
2008
2004
2005
2006
2007
Depth of refining, %
38.8
37.7
41.1
41.2
36.7
0 10 20 30 40 50
2008
2004
2005
2006
2007
Depth of refining, %
0 10 20 30 40 50 60
39.8
42.6
38.3
50.6
38.7
2008
2004
2005
2006
2007
Light products yield, %
0 10 20 30 40 50
36.8
37.4
39.8
46.8
37.3
2008
2004
2005
2006
2007
Throughput and petroleum product output at Urayneftegaz Mini"refinery
2004 2005 2006 2007 2008Crude oil inputs, th. tons 100.0 100.0 100.0 99.7 100.0
Returned to oil, th. tons 57.0 57.4 60.8 61.1 58.6
Used for product output,th. tons 43.0 42.6 39.2 38.6 41.4
Output of petroleumproducts, th. tons 40.1 39.8 36.6 36.1 38.8
Structure of petroleum product output, %
Motor gasoline 32.4 31.9 34.4 34.0 32.1
Diesel fuel 60.4 60.2 65.6 66.0 67.9
Naphta 3.7 6.1 0.0 0.0 0.0
Bitumen 3.5 1.8 0.0 0.0 0.0
Main operating indicators
2004 2005 2006 2007 2008
Depth of refining, % 41.2 41.1 37.7 36.7 38.8
Light products yield, % 38.7 39.1 36.5 36.2 38.8
Throughput and petroleum product output at Kogalymneftegaz Mini"refinery
2004 2005 2006 2007 2008Crude oil inputs, th. tons 355.4 383.1 377.9 381.3 393.4
Returned to oil, th. tons 174.7 212.3 220.5 227.1 236.3
Used for product output,th. tons 180.7 170.8 157.4 154.2 157.1
Output of petroleumproducts, th. tons 179.3 158.4 145.1 144.4 146.4
Structure of petroleum product output, %
Motor gasoline 12.8 23.8 29.1 29.1 29.8
Diesel fuel 45.4 49.4 52.3 53.3 54.1
Jet fuel 14.0 14.6 16.0 16.1 14.9
Naphta 20.6 8.4 0.0 0.0 0.0
Bitumen 7.2 3.8 2.6 1.5 1.2
Main operating indicators2004 2005 2006 2007 2008
Depth of refining, % 50.6 42.6 39.8 38.7 38.3
Light products yield, % 46.8 39.8 37.4 37.3 36.8
REFINING AND GAS PROCESSING
Throughput and petroleum product output atPloiesti Refinery
2004 2005 2006 2007 2008
Refinery throughput,mln tons 0.36 2.41 2.32 2.54 2.42Upgrading of gasolinesand diesel fuel, mln tons 0.03 0.00 0.00 0.00 0.00
Blending and packagingof lubricants, mln tons 0.05 0.04 0.04 0.03 0.02
Petroleum productoutput, mln tons 0.33 2.23 2.03 2.39 2.22
Structure of petroleum product output, %
Motor gasoline 35.6 36.4 35.1 35.3 34.8
Diesel fuel 35.1 45.3 48.0 49.4 50.4
Jet fuel 0.0 0.0 0.0 0.0 0.0
Ship fuel 0.0 0.0 0.0 0.0 0.0
Heating oil 0.0 0.0 0.0 0.0 0.0
Vacuum gas oil 0.0 0.0 0.0 0.0 0.0
Naphta 0.0 0.0 0.0 0.0 0.0
Fuel oil 4.8 1.4 0.0 0.0 0.0
Bitumen 0.0 0.0 0.0 0.0 0.0
Lubricants 14.9 2.0 2.0 0.4 0.0
Coke 5.8 7.6 8.6 8.3 8.2
Other 3.8 7.3 6.3 6.6 6.6
Main operating indicators2004 2005 2006 2007 2008
Depth of refining, % 90.4 94.9 96.8 96.8 97.0
Light products yield, % 63.4 75.5 72.9 79.5 78.4
Share of high!octane gasolinein total output of motorgasoline, % 100.0 100.0 100.0 100.0 100.0
Share of clean diesel intotal output of diesel fuel, % 100.0 100.0 100.0 100.0 100.0
ANALYST DATABOOK 2009
40
PLOIESTI REFINERY
Share of clean diesel (Euro!2 and higher) in total output of diesel fuel, %
0 20 40 60 80 100
100.0
100.0
100.0
100.0
100.0
2008
2004
2005
2006
2007
Share of high!octane gasoline intotal output of motor gasoline, %
0 20 40 60 80 100
100.0
100.0
100.0
100.0
100.0
2008
2004
2005
2006
2007
Railroad (79.6%)
Road (20.4%)
Shipment by transport type fromthe Ploiesti Refinery (2008)
Depth of refining, %
0 20 40 60 80 100
96.8
94.9
90.4
96.8
97.02008
2004
2005
2006
2007
Light products yield, %
0 20 40 60 80
72.9
75.5
63.4
79.5
78.42008
2004
2005
2006
2007
Throughput and petroleum product output atBurgas Refinery
2004 2005 2006 2007 2008
Refinery throughput,mln tons 5.26 6.17 7.06 7.06 7.12Throughput of fuel oil fromOdessa Refinery, mln tons 0.41 0.27 0.03 0.00 0.00
Petrochemical productoutput, th. tons 353.4 372.5 384.7 385.0 321.7
Petroleum productoutput, mln tons 4.72 5.34 6.18 6.04 6.21
Structure of petroleum product output, %
Motor gasoline 29.7 25.8 25.2 24.3 25.3
Diesel fuel 38.3 39.7 37.4 36.7 36.7
Jet fuel 3.0 2.7 2.4 3.0 3.2
Ship fuel 0.3 0.3 0.0 0.0 0.2
Heating oil 1.7 2.2 3.1 2.4 1.8
Vacuum gas oil 0.0 0.0 0.0 0.0 0.0
Naphta 0.9 0.8 2.0 2.0 2.2
Fuel oil 20.1 22.4 23.8 25.0 23.9
Bitumen 2.8 3.4 3.3 3.4 3.1
Lubricants 0.0 0.0 0.0 0.0 0.0
Coke 0.0 0.0 0.0 0.0 0.0
Other 3.2 2.7 2.8 3.2 3.6
Main operating indicators2004 2005 2006 2007 2008
Depth of refining, % 75.5 76.1 75.0 75.3 76.1
Light products yield, % 61.5 59.2 63.7 59.1 61.2
Share of high!octane gasolinein total output of motorgasoline, % 100.0 100.0 100.0 100.0 100.0
Share of clean diesel intotal output of diesel fuel, % 84.7 83.2 81.8 85.1 87.8
41
BURGAS REFINERY
Shipment by transport type fromthe Burgas Refinery (2008)
Railroad (19.4%)
Pipeline (10.5%)
Road (17.5%)
Water (52.6%)
Share of clean diesel (Euro!2 and higher) in total output of diesel fuel, %
0 20 40 60 80 100
87.8
81.8
83.2
84.7
85.1
2008
2004
2005
2006
2007
Share of high!octane gasoline intotal output of motor gasoline, %
0 20 40 60 80 100
100.0
100.0
100.0
100.0
100.02008
2004
2005
2006
2007
Depth of refining, %
0 20 40 60 80
2008
2004
2005
2006
76.1
2007
75.0
76.1
75.5
75.3
Light products yield, %
0 20 40 60 80
61.2
63.7
59.2
61.5
59.1
2008
2004
2005
2006
2007
REFINING AND GAS PROCESSING
Throughput and petroleum product output atOdessa Refinery
2004 2005 2006 2007 2008
Refinery throughput,mln tons 2.45 1.39 – 0.01 2.04
Petroleum productoutput, mln tons 2.34 1.35 – 0.01 1.96
Structure of petroleum product output, %
Motor gasoline 12.0 13.3 – – 14.3
Diesel fuel 28.1 27.6 – – 33.9
Jet fuel 3.2 3.4 – – 0.0
Ship fuel 0.0 0.0 – – 0.0
Heating oil 0.0 0.0 – – 0.0
Vacuum gas oil 4.8 3.9 – – 20.6
Naphta 1.7 0.5 – – 0.0
Fuel oil 44.3 46.4 – – 28.0
Bitumen 5.1 3.9 – – 1.8
Lubricants 0.0 0.0 – – 0.0
Coke 0.0 0.0 – – 0.0
Other 0.8 1.0 – – 1.4
Main operating indicators
2004 2005 2006 2007 2008
Depth of refining, % 56.0 53.5 – – 71.6
Light products yield, % 43.0 43.4 – – 46.2
Share of high!octane gasolinein total output of motorgasoline, % 82.5 81.1 – – 92.2
Share of clean diesel intotal output of diesel fuel, % 35.7 0.2 – – 98.3
ANALYST DATABOOK 2009
42
ODESSA REFINERY
Depth of refining, %
0 20 40 60 80
–
–
53.5
56.0
71.62008
2004
2005
2006
2007
Light products yield, %
0 10 20 30 40 50
–
–
43.4
43.0
46.22008
2004
2005
2006
2007
Share of clean diesel (Euro!2 and higher) in total output of diesel fuel, %
0 25 50 75 100
–
–
0.2
35.7
98.32008
2004
2005
2006
2007
Share of high!octane gasoline intotal output of motor gasoline, %
0 20 40 60 80 100
2008
2004
2005
2006
–
–
81.1
82.5
92.2
2007
Shipment by transport type fromthe Odessa Refinery (2008)
Railroad (26.7%)
Pipeline (0.2%)
Road (14.4%)
Water (58.7%)
43
ISAB REFINERY COMPLEX
2008
Complex capacitymln tons per year 16
including
Northern Refinery 5
Southern Refinery 11
Complex capacityth. barrels per day 320
Nelson Index 9.3
Throughput and petroleum product output at the ISAB complex*
2008Refinery throughput,mln tons 0.52
Petroleum productoutput, mln tons 0.58
Structure of petroleum product output, %
Motor gasoline 19.0
Diesel fuel 47.1
Jet fuel 0.6
Ship fuel 0.0
Heating oil 0.0
Vacuum gas oil 0.0
Naphta 0.0
Fuel oil 17.8
Bitumen 0.0
Lubricants 0.0
Coke 0.0
Other 15.5
Main operating indicators
2008
Depth of refining, % 85.5
Light products yield, % 74.6
LUKOIL purchased a 49% stake in a joint venture for management of theISAB Refinery complex (Italy) in 2008 . Value of the deal – 1.45 billion euros(about $1.83 billion)
ISAB consists of 2 oil refineries joined by a system of oil pipelines and inte!grated in a single operating complex, as well as three sea wharfs and a tankbattery with capacity of 3.7 mcm
Acquisition of a share in the complex increased LUKOIL’s overall refiningcapacity by 13% and refining capacities abroad by 60%
* Group’s share for December 2008.
REFINING AND GAS PROCESSING
44
ANALYST DATABOOK 2009
GAS PROCESSING
Processing and marketable product output at Gas"processing plants of LUKOIL Group2004 2005 2006 2007 2008
Processing of petroleum and fat gas, mcm 2,344.7 2,382.6 2,646.7 3,316.9 3,248.6NGL processing, th. tons 379.0 478.8 628.5 881.7 866.2Marketable products
NGL, th. tons 349.8 362.5 427.3 653.4 639.1LPG, th. tons 482.2 574.5 705.9 960.1 965.3Stable gas naphta, th. tons 106.9 136.3 185.3 194.6 157.6Acyclic hydrocarbons, th. tons – – – 4.1 –Stripped gas, mcm 1,902.8 1,890.1 2,038.3 2,595.2 2,567.9Isopentane, th. tons 18.2 18.2 18.8 20.9 43.8Sulfur, th. tons 0.7 0.4 – – –Sodium bisulfite, th. tons 0.0 0.7 0.6 1.2 2.0
Processing and marketable product output at Korobkovsky Gas"processing plant2004 2005 2006 2007 2008
Petroleum gas processing, mcm 420.7 428.0 440.6 445.0 459.9NGL processing, th. tons 38.4 41.7 44.9 59.7 62.8Marketable products
LPG, th. tons 72.1 72.5 74.1 86.3 89.4Stable gas naphta, th. tons 44.2 47.8 48.9 57.3 55.0Stripped gas, mcm 336.6 333.7 329.9 353.4 382.5
Processing and marketable product output at Permneftegazpererabotka2004 2005 2006 2007 2008
Processing of petroleum and fat gas, mcm 478.2 497.6 541.9 586.5 583.6NGL processing, th. tons 340.6 437.1 583.6 822.0 803.4Marketable products
LPG, th. tons 410.0 500.5 629.8 871.4 873.6Stable gas naphta, th. tons 61.2 79.4 98.5 95.1 59.3Acyclic hydrocarbons, th. tons – – – 4.1 –Isopentane, th. tons 18.2 18.2 18.8 20.9 43.8Stripped gas, mcm 369.8 347.8 374.0 417.2 418.6Sulfur, th. tons 0.7 0.4 – – –Sodium bisulfite, th. tons 0.0 0.7 0.6 1.2 2.0
Processing and marketable product output at Lokosovsky Gas"processing plant2004 2005 2006 2007 2008
Petroleum gas processing, mcm 1,134.7 1,214.5 1,399.2 2,038.1 1,993.9Marketable products
NGL, th. tons 349.8 362.5 427.3 653.4 639.1Stable gas naphta, th. tons 0.0 5.5 34.5 38.9 39.6LPG, th. tons 0.0 1.1 1.4 1.6 1.7Stripped gas, mcm 896.4 973.4 1,088.7 1,669.6 1,570.6
Processing and marketable product output at Usinsky Gas"processing plant2004 2005 2006 2007 2008
Petroleum gas processing, mcm 311.1 242.5 265.0 247.3 211.2Marketable products
Stripped gas, mcm 300.0 235.2 245.7 154.9 196.2LPG, th. tons 0.1 0.4 0.6 0.8 0.6Stable gas naphta, th. tons 1.5 3.6 3.4 3.4 3.7
Processing and production of petrochemicals at LUKOIL Group petrochemical plants, th. tons
2004 2005 2006 2007 2008Processing* 2,442.0 2,355.5 2,187.7 2,190.3 1,568.2Marketable products, total 2,243,5 2,178.7 2,038.3 2,040.5 1,461.6Polymers and monomers 858.9 853.8 797.8 844.2 615.0
Polyethylene 442.7 469.9 447.3 477.8 425.5Vinyl chloride 236.0 190.2 179.2 171.5 70.9Polypropylene 64.8 67.9 70.2 82.9 67.4Vinyl acetate 40.9 53.1 35.0 51.3 38.8Synthetic fiber 31.9 31.8 30.9 25.3 2.8Synthetic rubber 19.8 19.6 20.2 21.4 5.3Latex 12.0 12.8 11.8 11.0 2.9Alfamethylstyrene 2.4 2.7 3.0 2.9 0.7Styrene 7.9 5.8 0.2 0.1 0.7Polystyrene 0.5 0.0 0.0 0.0 0.0
Products of organic synthesis 676.7 690.6 647.5 578.3 462.9Benzene 179.1 173.5 140.6 110.2 114.5Acrylonitrile 139.5 149.3 138.2 143.2 157.8Hydrate of sodium 115.9 100.6 91.6 47.0 20.2Ethylene glycol 71.3 75.8 77.3 83.1 70.2Ammonia sulphate 63.3 64.5 63.9 62.1 18.7Phenol 37.5 38.9 38.2 37.7 8.8Toluene 20.1 29.5 31.4 30.7 26.1Methyl methacrylate 26.3 26.6 26.5 25.8 7.8Xylene 11.8 18.1 18.0 18.3 14.3Ethanol amines 3.9 4.5 13.4 12.7 11.8Acetone 3.8 4.9 4.2 3.6 1.5Acetonitrile 4.2 4.4 4.2 3.9 3.6Sodium cyanide – – – – 7.6
Pyrolysis products and fuel fractions 692.9 622.8 584.2 611.4 365.8Liquid pyrolysis fractions 255.6 247.2 210.2 251.6 149.8Propylene 238.8 238.9 232.5 225.1 157.9Heavy oil fuel 172.7 119.0 98.1 88.3 53.3Ethylene 22.9 14.2 40.1 43.7 2.3Pyrolene 2.9 3.5 3.3 2.7 2.5
Other 15.0 11.5 8.8 6.6 17.9* Excluding Burgas Refinery.
Processing and production of petrochemicals at Stavrolen, th. tons2004 2005 2006 2007 2008
Processing 906.5 1,025.5 889.1 992.1 979.2Marketable product output 692.4 787.8 672.9 752.9 724.1
Polyethylene 274.3 307.8 267.8 301.6 308.1Liquid pyrolysis fractions 133.6 154.1 174.4 212.3 139.3Propylene 128.9 146.9 126.9 121.4 120.1Polypropylene – – – 19.3 18.6Benzene 78.2 83.6 36.3 14.0 64.4Vinyl acetate 40.9 53.1 35.0 51.3 38.8Heavy oil fuel 36.5 41.2 31.6 31.9 33.6Other – 1.1 0.9 1.1 1.2
45
PETROCHEMICALS
REFINING AND GAS PROCESSING
ANALYST DATABOOK 2009
46
Production of petrochemicals at Burgas Refinery, th. tons2004 2005 2006 2007 2008
Marketable product output 353.4 372.5 384.7 385.0 321.7Ethylene glycol 71.3 75.8 77.3 83.1 70.2Polyethylene 70.3 68.2 71.5 74.2 69.0Polypropylene 64.8 67.9 70.2 63.6 48.8Benzene 20.0 25.4 31.6 30.9 30.8Toluene 20.1 29.5 31.4 30.7 26.1Synthetic rubber 19.8 19.6 20.2 21.4 5.3Acrylonitrile 20.8 21.0 18.4 20.7 25.1Xylene 11.8 18.1 18.0 18.3 14.3Ethanol amines 3.9 4.5 13.4 12.7 11.8Latex 12.0 12.8 11.8 11.0 2.9Synthetic fiber 9.6 9.7 10.7 10.0 0.0Pyrolene 2.9 3.5 3.3 2.7 2.5Acetonitrile 0.7 0.6 0.7 0.6 0.6Ethylene oxide 0.7 1.2 0.3 0.0 0.0Styrene 7.9 5.8 0.2 0.1 0.7Ethylene 3.3 0.4 0.0 0.0 0.0Pyrolene 0.5 0.3 0.0 0.0 0.0Polystyrene 0.5 0.0 0.0 0.0 0.0Other 12.5 8.2 5.7 5.0 13.6
Processing and production of petrochemicals at Saratovorgsintez, th. tons2004 2005 2006 2007 2008
Processing 415.2 436.6 411.8 392.3 287.7Marketable product output 279.6 292.8 281.2 273.7 186.7
Acrylonitrile 118.7 128.3 119.8 122.5 132.7Ammonia sulphate 63.3 64.5 63.9 62.1 18.7Phenol 37.5 38.9 38.2 37.7 8.8Methyl methacrylate 26.3 26.6 26.5 25.8 7.8Synthetic fiber 22.3 22.0 20.1 15.3 2.8Acetone 3.8 4.9 4.2 3.6 1.5Acetonitrile 3.5 3.8 3.5 3.3 3.0Alfamethylstyrene 2.4 2.7 3.0 2.9 0.7Isopropylbenzene 0.0 0.0 0.8 0.0 0.0Methyl acrylate 0.8 0.8 0.7 0.4 0.0Acetone cyanohydride 1.0 0.2 0.4 0.0 3.1Sodium cyanide 0.0 0.0 0.0 0.0 7.6Carbon fibre precursor 0.0 0.1 0.1 0.1 0.0
Processing and production of petrochemicals at Karpatneftekhim, th. tons2004 2005 2006 2007 2008
Processing 1,120.3 893.4 886.8 805.9 301.3Marketable product output 918.1 725.6 699.5 628.9 229.1
Vinyl chloride 236.0 190.2 179.2 171.5 70.9Polyethylene 98.1 93.9 108.0 102.0 48.4Propylene 109.4 91.7 105.6 103.7 37.8Hydrate of sodium 115.9 100.6 91.6 47.0 20.2Benzene 80.9 64.5 72.7 65.3 19.3Heavy oil fuel 136.2 77.8 66.5 56.4 19.7Ethylene 19.6 13.8 40.1 43.7 2.3Liquid pyrolysis fractions 122.0 93.1 35.8 39.3 10.5
47
MARKETING
MARKETING OF OIL, PETROLEUM PRODUCTS AND PETROCHEMICALS
4
Crude oil sales2004 2005 2006 2007 2008
mln USD
Export and sales on international markets 10,940 16,367 17,649 19,258 24,007
Including export and sales to near!abroadcountries 602 778 790 912 1,625
Domestic sales 181 120 376 440 600
Total 11,121 16,487 18,025 19,698 24,607
th. tons
Export and sales on international markets 46,030 45,916 41,017 39,407 37,437
Including export and sales to near!abroadcountries 4,076 3,254 2,958 2,712 4,315
Domestic sales 1,637 672 1,823 1,604 2,102
Total 47,667 46,588 42,840 41,011 39,539
Export of crude oil using Transneft export routes 38,909 38,529 41,478 39,995 36,070
Export of crude oil bypassing Transneft 7,389 7,288 2,655 2,158 3,225
Total crude oil exports from Russia 46,298 45,817 44,133 42,153 39,295
Realized average sales price, USD per ton2004 2005 2006 2007 2008
Export and sales on international markets 237.7 356.5 430.3 488.7 641.3
Including export and sales to near!abroadcountries 147.6 239.2 267.2 336.2 376.6
Domestic sales 110.6 179.2 206.4 274.4 285.7
Total 233.3 353.9 420.8 480.3 622.3
Oil purchases, th. tons2004 2005 2006 2007 2008
Crude oil purchases in Russia 2,839 1,468 1,850 47 236
Crude oil purchases internationally 8,826 9,430 5,101 4,475 10,379
Total 11,665 10,898 6,951 4,522 10,615
Petroleum product sales2004 2005 2006 2007 2008
mln USD
Export and sales on international markets 15,317 29,216 37,459 47,154 62,542
Wholesale 11,403 22,923 30,302 37,971 50,553
Retail 3,914 6,293 7,157 9,183 11,989
Domestic sales 4,665 6,725 8,151 9,583 13,872
Wholesale 3,429 4,753 5,431 5,862 8,049
Retail 1,236 1,972 2,720 3,721 5,823
Total 19,982 35,941 45,610 56,737 76,414
ANALYST DATABOOK 2009
48
Petroleum product sales2004 2005 2006 2007 2008
th. tons
Export and sales on international markets 41,426 56,666 64,729 72,304 75,869
Wholesale 35,946 49,549 57,558 64,394 67,669
Retail 5,480 7,117 7,171 7,910 8,200Domestic sales 19,724 19,970 19,150 18,557 19,278
Wholesale 16,981 16,421 15,155 13,704 13,314
Retail 2,743 3,549 3,995 4,853 5,964Total 61,150 76,636 83,879 90,861 95,147
Realized average petroleum product sales price, USD per ton2004 2005 2006 2007 2008
Export and sales on international markets 369.7 515.6 578.7 652.2 824.3
Wholesale 317.2 462.6 526.5 589.7 747.1
Retail 714.2 884.3 998.1 1,160.9 1,462.1Domestic sales 236.5 336.8 425.6 516.4 719.6
Wholesale 201.9 289.4 358.4 427.7 604.6
Retail 450.6 555.8 680.8 766.7 976.4Total 326.8 469.0 543.8 624.4 803.1
Petroleum product exports by type, %2004 2005 2006 2007 2008
Naphta 4.7 4.0 5.0 4.0 3.5
Diesel fuel 40.1 39.2 37.4 33.9 34.9
Vacuum gas oil 14.2 19.2 19.3 17.8 21.7
Fuel oil 28.0 29.2 28.6 35.2 33.8
Lubricants 4.4 3.5 3.3 2.8 2.6
Other 18.6 4.9 6.4 6.3 3.5
Petroleum product exportsfrom Russia, mln tons 14.1 16.6 20.5 25.1 25.8
Petroleum product exports by type of transport, %2004 2005 2006 2007 2008
Railroad 62.5 64.6 75.5 82.9 82.7
River 18.4 22.3 18.4 13.4 9.7
Pipeline 19.1 13.1 6.1 3.7 7.6
LUKOIL retail network* (end of year), filling stations2004 2005 2006 2007 2008
Total 5,405 5,830 5,793 6,090 6,748
Russia 1,711 1,694 1,658 1,815 2,106
Owned and leased 1,449 1,517 1,538 1,714 2,013
Franchised 262 177 120 101 93
Europe 1,171 1,578 1,654 2,041 2,399
Baltics 178 181 196 195 202
Near!abroad countries 310 412 442 461 517USA 2,035 1,965 1,843 1,578 1,524
* Owned, leased and franchised.
49
4
Average fuel sales per filling station, tons per day2004 2005 2006 2007 2008
Russia 6.4 7.6 8.1 9.4 9.8
Europe and near!abroad countries 4.4 4.9 5.5 6.8 7.4USA 8.1 8.4 8.1 7.9 6.8
Total 6.3 7.0 7.2 7.9 7.3
LUKOIL share of motor fuel market in Russian federal districts, %Share of wholesale market Share of retail market
2006 2007 2008 2006 2007 2008Central 7 7 3 6 7 10North!West 19 20 15 23 24 28Urals 17 17 12 20 19 24South 16 14 6 15 17 23Volga 24 25 13 21 21 24
LUKOIL share of motor fuel market in Russia and other countries, %Share of wholesale market Share of retail market
2006 2007 2008 2006 2007 2008Russia* 15 15 8 15 15 19Azerbaijan 24 14 18 11 10 13Belarus 29 6 19 16 20 20Belgium 0 0 0 0 9 8Bulgaria** 74 67 67 39 45 31Hungary 4 3 12 2 7 7Georgia 20 30 63 16 22 22Cyprus 8 5 4 8 9 12Lithuania 45 48 56 26 23 31Latvia 22 20 21 10 11 13Macedonia 7 19 52 0 2 8Moldova 30 37 48 32 35 40Poland 0 3 1 0 6 4Romania 19 28 23 17 25 11Serbia 15 33 41 15 14 18Slovakia 0 0 0 0 5 5USA * 0 0 0 5 5 5Turkey 0 6 7 0.3 0.2 6Ukraine 7 7 9 7 6 8Finland 0 28 28 25 24 41Croatia 0 0 3 0 0 2Montenegro 0 0 20 0 0 9Czech Republic 0 0 0 0 4 4Estonia 9 10 9 5 11 11
* Share in the regions where LUKOIL has retail business** Berofe 2008 retail market share including filling stations of Petrol!Bulgaria.
Petrochemical product sales2004 2005 2006 2007 2008
mln USD
Export and sales on international markets 1,021 1,134 1,260 1,569 1,232Domestic sales 332 469 569 733 880
Total 1,353 1,603 1,829 2,302 2,112
th. tonsExport and sales on international markets 1,575 1,414 1,395 1,449 1,062Domestic sales 541 624 639 716 767
Total 2,116 2,038 2,034 2,165 1,829
MARKETING
MARKETING
51
4
ANALYST DATABOOK 2009
50
“Total oil” is before LUKOIL’s own consumption and transportation losses. Other figures take account of refining, transportation and storage losses as well as changes in stocks.
INTERNATIONAL
RUSSIA
3.2 mln tons
44.2 mln tons
Wholesale salesof petroleum products
Retail salesof petroleum products
1.1 mln tons
1.1 mln tons
8.2 mln tons
67.7 mln tons
0.6 mln tons
6.0 mln tons
13.3 mln tons
0.9 mln tons
77.9 mln tons
25.8 mln tons
46.6 mln tons
37.4 mln tons
2.8 mln tons
11.6 mln tons
38.7 mln tons
52.9 mln tons
39.3 mln tons
3.2 mln tons
10.4 mln tons
2.1 mln tons
1.6 mln tons
89.9 mln tons89.6 mln tons
0.2 mln tons
Total petrochemical products
Sales of petrochemical products
Exports of petrochemical products0.2 mln tons
0.8 mln tons
1.0 mln tons
Total petrochemical products
Sales of petrochemical products
Processing at petrochemical plants
Wholesale salesof petroleum products
Retail salesof petroleum products
Processing at petrochemical plants
Total petroleum products
Total petroleum products
Exports of petroleum products
Purchases of petroleum products
Refining at own refineries
Refining at third!party refineries
Oil sales
Purchases of petroleum products
Refining at own refineries
Refining at third!party refineries and ISAB Complex
Oil sales
Oil purchases
Total oil
Oil exports
Oil production
Oil purchases
Total oilOil production
TRADE BALANCE OF LUKOIL SUBSIDIARIES(2008)
ANALYST DATABOOK 2009
52
COMPANY SHARES
0 25 50 75 100
Main shareholders of LUKOIL, %
2005
2004
2006
2007
2008
ZAO KB Citibank
ING BANK (Eurasia)
DK URALSIBSDK GARANT
National Depositary CenterDepositary!Clearing CompanyBrunswick UBS Warburg
Main common shareholders (end of year), shares
Shareholder’s name 2004 2005 2006 2007 2008
ING BANK (Eurasia)* (ADRs and GDRs) 535,975,699 552,427,066 548,189,159 600,052,544 585,245,353
ZAO KB Citibank* 66,322,006 68,313,541 67,149,334 67,431,596 69,274,981
Depositary!Clearing Company* 17,982,613 19,159,472 39,104,964 60,124,748 67,184,973
National Depositary Center* 22,056,584 14,736,859 29,692,658 32,607,234 48,689,475
SDK GARANT* 87,986,591 83,105,166 74,002,498 35,375,790 31,028,284
DK URALSIB* 69,560,926 74,802,000 60,529,689 20,667,261 19,627,533
Brunswick UBS Warburg* 4,843,084 – – – –
State ownership – – – – –
*Nominee.
LUKOIL common share price on the RTS, USD
2003 2004 2005
min max end min max end min max end
1Q 13.77 15.86 13.80 23.85 31.05 31.05 28.90 34.95 33.85
2Q 13.90 19.75 19.75 24.55 33.15 26.30 31.65 36.85 36.78
3Q 16.70 20.60 20.60 25.72 31.70 31.00 37.50 57.75 57.75
4Q 19.25 24.10 23.25 26.25 33.00 30.35 51.05 61.60 59.40
LUKOIL share capital
Common Change, y!o!y shares
December 31, 2002 850,563,255
No changes
December 31, 2003 850,563,255
No changes
December 31, 2004 850,563,255
No changes
December 31, 2005 850,563,255
No changes
December 31, 2006 850,563,255
No changes
December 31, 2007 850,563,255
No changes
December 31, 2008 850,563,255
FINANCE
53
5
LUKOIL market capitalization (end of year)
2004 2005 2006 2007 2008
Common share priceon the RTS, USD 30.35 59.40 87.95 87.00 32.00
Number of common shares,mln shares 850.6 850.6 850.6 850.6 850.6
Market capitalization,mln USD 25,815 50,523 74,807 73,999 27,218
20082004 2005 2006 20070
30
60
120
90
Share of LUKOIL stocks intotal MICEX volumes, %
0 5 10 15 20 25
2008
2004
2005
2006
8.1
14.6
21.8
12.7
2007
12.8
LUKOIL market capitalization(end of year), bln USD
0 20 40 60 80
2008
2004
2005
2006 74.8
50.5
25.8
2007 74.0
27.2
LUKOIL common share price on the RTS, USD
2006 2007 2008
min max end min max end min max end
1Q 59.40 86.45 83.20 76.00 86.50 86.40 64.40 87.00 85.50
2Q 63.00 94.80 83.60 72.80 86.00 76.70 83.00 113.20 98.20
3Q 72.15 92.60 76.20 71.90 85.90 83.30 55.00 98.40 59.45
4Q 71.50 91.80 87.95 82.00 95.00 87.00 24.90 58.00 32.00
LUKOIL share performance and the RTS Index (based on daily changes)
2004 2005 2006 2007 2008 2004–2008
LUKOIL standard deviation, % 2.23 1.69 2.62 1.84 4.69 3.04
RTS standard deviation, % 1.88 1.27 2.01 1.38 3.42 2.28
Correlation 0.878 0.891 0.908 0.880 0.905 0.898
Beta coefficient 1.042 1.188 1.182 1.169 1.240 1.195
ANALYST DATABOOK 2009
54
LUKOIL share price and the RTS Index, %
20
50
80
110
140
2008
LUKOIL RTS
jan feb mayaprmar sepjul augjun oct nov dec
2006
100
120
140
160
180
jan jun decfeb mayaprmar sepjul aug oct nov
2005
jan jun decfeb mayaprmar sepjul aug oct nov90
110
130
150
170
190
2102004
jan jun decfeb mayaprmar sepjul aug oct nov90
100
110
120
130
140
150
2007
100
120
140
160
180
jan jun decfeb mayaprmar sepjul aug oct nov
55
FINANCE
5
Tickers of LUKOIL common shares
Ticker Market
LKOH RTS (Russian Trading System)
LKOH MICEX (Moscow Interbank Currency Exchange)
LKOD LSE (London Stock Exchange)*
LUK FSE (Frankfurt Stock Exchange)*
LUKOY US OTC (US over!the!counter market)*
* ADRs on LUKOIL shares.
Distribution of trading in LUKOILshares and depositary receipts (2008)
RTS (0.9%)
MICEX (40.1%)
US OTC market (3.4%)
LSE (55.6%)
LSE RTSMICEX US OTC market
0
20
60
34.2435.46
38.76
21.9019.90
9.6511.29
9.7510.298.37
28.42
33.36
36.3740
32.8934.09
12.73
17.37
50.45
54.17
38.90 1
Q 2
008
2Q 2
008
3
Q 2
008
4Q 2
008
1Q
200
4
1Q
200
5
1Q
200
6
1Q
200
7
2Q
200
5
2Q 2
004
2Q
200
7
2Q 2
006
3Q 2
004
4Q 2
004
3Q 2
005
4Q 2
005
3Q 2
006
4Q 2
006
3Q 2
007
4Q 2
007
Share of common shares convertedinto ADRs and GDRs, %
69.64
63.84
64.30
62.32
68.04
0 20 40 60 80
2008
2004
2005
2006
2007
Share of LUKOIL ADRs inLSE trading of foreign stocks(IOB system), %
0 5 10 15 20 25
2008
2004
2005
2006
17
2007
24
25
20
16
LUKOIL International oil & gas majors
20082004 2005 2006 20070
100
200
300
400
500
Volume of trading in LUKOIL shares and ADRs, bln USD
LUKOIL share performance compared with internationaloil & gas majors (2004–2008), %
ANALYST DATABOOK 2009
56
MACROECONOMIC AND TAX ENVIRONMENT
Dividend per common share, RUR
0 18 36 54
2008
38.0
33.0
28.0
50.0
42.02007
2004
2005
2006
Dividend yield, %
0.0 1.2 2.4 3.6
2008
2004
2005
2006
2.0
1.7
2.8
3.4
2007
2.8
Total shareholders’ return, %
!80 !60 !40 !20 0 20 40 60 80 100
2008
2004
2005
2006 50.1
99.0
34.1
!61.2
2007 0.6
15% 20% 25% 30%
Dividends accrued on common stock,mln USD and as % of net income inthe respective period, %
0 400 800 1,200 1,600
2008
2004
2005
2006
1,223
1,009
795
681
2007
1,510
LUKOIL dividend policy
2004 2005 2006 2007 2008
Dividend per commonshare, RUR. 28.0 33.0 38.0 42.0 50.0
Dividends accrued forthe previous year, mln USD 681 795 1,009 1,223 1,510
Dividend payments,mln USD 612 800 1,015 1,230 1,437Dividend yield, %* 2.9 1.3 1.8 2.1 2.8* Dividend yield is calculated based on the average market price for LUKOIL shares and average exchangerate for the year the dividens are paid for.
Crude oil and petroleum product prices2004 2005 2006 2007 2008
USD per barrelBrent crude 38.27 54.31 65.16 72.39 97.26Urals crude (CIF Mediterranean) 34.50 50.67 61.37 69.38 94.76Urals crude (CIF Rotterdam) 34.13 50.12 61.23 69.16 94.83
USD per tonFuel oil 3.5% (FOB Rotterdam) 151.81 229.92 286.91 339.00 459.74Diesel fuel (FOB Rotterdam) 349.37 505.01 577.92 634.09 901.53High!octane gasoline (FOB Rotterdam) 400.33 534.11 619.29 695.97 836.79
Macroeconomic environment2004 2005 2006 2007 2008
Rouble inflation (CPI), % 11.7 10.9 9.1 11.9 13.3
Nominal appreciation of the roubleagainst US dollar, % 5.8 (3.7) 8.5 6.8 (19.7)
Real appreciation of the roubleagainst US dollar, % 18.5 6.9 19.3 20.0 17.4
Average exchange ratefor the period, RUR/USD 28.82 28.29 27.19 25.58 24.86
Exchange rate at the end ofthe period, RUR/USD 27.75 28,78 26.33 24.55 29.38
FINANCE
57
5
Average rates of main taxes levied on oil companies in the Russian Federation
2004 2005 2006 2007 2008Corporate income tax % 24 24 24 24 24Corporate property tax % 2.2 2.2 2.2 2.2 2.2 Value added tax % 18 18 18 18 18Unified social tax % 35.6 26.0 26.0 26.0 26.0Mineral extraction tax (MET) (oil) RUR/ton 1,052.8 1,876.3 2,265.7 2,472.7 3,328.4MET (natural gas) RUR/th. cubic meters 107 135 147 147 147Oil export tariff USD/ton 55.8 130.6 197.0 206.7 355.1Natural gas export tariff % 30 30 30 30 30Petroleum product export tariffs
Light distillates, medium distillates and gas oil USD/ton 37.93 92.26 143.40 151.59 251.53Liquid fuel USD/ton 36.64 52.73 77.27 81.64 135.51
Petroleum product excisesHigh!octane gasoline RUR/ton 3,360 3,629 3,629 3,629 3,629Low!octane gasoline RUR/ton 2,460 2,657 2,657 2,657 2,657Diesel fuel RUR/ton 1,000 1,080 1,080 1,080 1,080Motor oils RUR/ton 2,732 2,951 2,951 2,951 2,951
Income tax payment by LUKOIL, mln USD2004 2005 2006 2007 2008
Current income tax 1,614 2,301 2,906 3,410 4,167Russia 1,511 2,194 2,419 2,940 3,614Abroad 103 107 487 470 553
Deferred income tax 146 166 (133) 97 (945)Russia 76 61 (40) 135 (754)Abroad 70 105 (93) (38) (191)
Total income tax expense 1,760 2,467 2,773 3,507 3,222
Payment of taxes other than income taxes, mln USD2004 2005 2006 2007 2008
Mineral extraction tax 2,971 5,590 7,281 8,482 12,267Social taxes and contributions 330 324 356 442 512Property tax 111 233 247 313 405Other taxes and contributions 93 187 191 130 280Total taxes other than income tax 3,505 6,334 8,075 9,367 13,464
Excises and export tariffs, mln USD2004 2005 2006 2007 2008
In Russia 3,460 7,244 10,724 11,548 16,986Excise tax and sales taxes on refined products 547 654 610 734 956Export tariffs 2,913 6,590 10,114 10,814 16,030
International 1,788 2,687 2,846 3,485 4,354Excise tax and sales taxes on refined products 1,774 2,679 2,835 3,468 3,984Export tariffs 14 8 11 17 370
Total 5,248 9,931 13,570 15,033 21,340Excise tax and sales taxes on refined products 2,321 3,333 3,445 4,202 4,940Export tariffs 2,927 6,598 10,125 10,831 16,400
Tax burden of LUKOIL Group2004 2005 2006 2007 2008
Share of total taxes in sales after cost ofpurchased crude oil and petroleum products, % 44.3 51.8 54.2 51.8 54.5Share of total taxes and contributionsin income before their payment, % 71.2 74.4 76.5 74.6 80.6
ANALYST DATABOOK 2009
58
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated income statements, mln USD
2004 2005 2006 2007 2008
REVENUES
Sales (including excise and export tariffs) 33,845 55,774 67,684 81,891 107,680
COSTS AND OTHER DEDUCTIONS
Operating expenses (2,880) (3,443) (4,652) (6,172) (8,126)
Cost of purchased crude oil, gas and products (10,124) (19,590) (22,642) (27,982) (37,851)
Transportation expenses (2,784) (3,371) (3,600) (4,457) (5,460)
Selling, general and administrative expenses# (2,024) (2,578) (2,885) (3,207) (3,860)
Depreciation, depletion and amortization (1,075) (1,315) (1,851) (2,172) (2,958)
Taxes other than income taxes (3,505) (6,334) (8,075) (9,367) (13,464)
Excise and export tariffs (5,248) (9,931) (13,570) (15,033) (21,340)
Exploration expenses (171) (317) (209) (307) (487)
(Loss) gain on disposals and impairments of assets (213) 52 (148) (123) (425)
Income from operating activities 5,821 8,947 10,052 13,071 13,709
Interest expense (300) (275) (302) (333) (391)
Interest and dividend income 180 96 111 135 163Equity share in income of affiliates 213 441 425 347 375
Currency translation gain (loss 135 (134) 169 93 (1,163)
Other non!operating (expense) income 21 (44) (118) (240) (244)
Minority interest (62) (121) (80) (55) (83)
Income before income taxes 6,008 8,910 10,257 13,018 12,366
Current income taxes (1,614) (2,301) (2,906) (3,410) (4,167)
Deferred income taxes (146) (166) 133 (97) 945
Total income tax expense (1,760) (2,467) (2,773) (3,507) (3,222)
Net income 4,248 6,443 7,484 9,511 9,144
Net income per common share (USD)
Basic 5.20 7.91 9.06 11.48 10.88
Diluted 5.13 7.79 9.04 11.48 10.88
FINANCE
59
5
Consolidated balance sheet (as of December 31), mln USD
2003 2004 2005 2006 2007 2008A S S E T S
Current assets
Cash and cash equivalents 1,435 1,257 1,650 752 841 2,239
Short!term investments 251 149 111 44 48 505
Accounts and notes receivable, net 3,790 3,867 5,533 5,158 7,467 5,069
Inventories 1,243 1,759 2,619 3,444 4,609 3,735
Prepaid taxes and other expenses 897 1,242 2,107 3,693 4,109 3,566
Other current assets 255 300 287 406 625 519
Assets held for sale 52 – 190 75 70 –
Total current assets 7,923 8,574 12,497 13,572 17,769 15,633
Investments 594 779 1,110 1,442 1,086 3,269
Property, plant and equipment 16,859 19,329 25,464 31,316 38,056 50,088
Deferred income tax assets 117 138 181 362 490 521
Goodwill and other intangible assets 523 610 680 791 942 1,159
Other non!current assets 558 331 413 754 1,289 791
Total assets 26,574 29,761 40,345 48,237 59,632 71,461
L I A B I L I T I E S A N D S T O C K H O L D E R S ’ E Q U I T Y
Current liabilities
Accounts payable 1,564 1,787 2,167 2,759 4,554 5,029
Short!term borrowings and currentportion of long!term deb 1,412 1,265 853 1,377 2,214 3,232
Customer deposits and other borrowingsof banking subsidiaries 1,007 3 – – – –
Taxes payable 943 1,238 2,087 1,663 2,042 1,564
Other current liabilities 345 252 729 1,132 918 750
Total current liabilities 5,271 4,545 5,836 6,931 9,728 10,575
Long!term debt 2,392 2,609 4,137 4,807 4,829 6,577
Deferred income tax liabilities 497 698 1,830 2,116 2,079 2,116
Asset retirement obligations 210 307 387 608 811 718
Other long!term liabilities 249 338 332 352 395 465
Minority interest in subsidiary companies 483 453 1,019 523 577 670
Total liabilities 9,102 8,950 13,541 15,337 18,419 21,121
Stockholders’ equity
Common stock 15 15 15 15 15 15
Treasury stock, at cost (435) (706) (527) (1,098) (1,591) (282)
Additional paid!in capital 3,522 3,564 3,730 3,943 4,499 4,694
Retained earnings 14,371 17,938 23,586 30,061 38,349 45,983
Accumulated other comprehensive loss (1) – – (21) (59) (70)
Total stockholders’ equity 17,472 20,811 26,804 32,900 41,213 50,340
Total liabilities and stockholders’ equity 26,574 29,761 40,345 48,237 59,632 71,461
ANALYST DATABOOK 2009
60
Consolidated statements of cash flows, mln USD
2004 2005 2006 2007 2008CASH FLOWS FROM OPERATING ACTIVITIESNet income 4,248 6,443 7,484 9,511 9,144
Adjustments for non!cash items:Depreciation, depletion and amortization 1,075 1,315 1,851 2,172 2,958
Equity share in income of affiliates, net of dividends received (169) (397) (106) 209 (238)
Dry hole write-offs 42 170 91 143 317
(Loss (gain) on disposals and impairments of assets 213 (52) 148 123 425
Deferred income taxes 146 166 (133) 97 (945)
Non!cash currency translation loss (gain) (4) (26) 86 193 (423)
Non!cash investing activities (123) (133) (123) (36) (29)
All other items – net 97 258 89 297 404
Changes in operating assets and liabilities:Accounts and notes receivable (795) (1,337) 388 (2,297) 2,647
Inventories (571) (735) (816) (1,148) 963
Accounts payable 306 245 592 1,599 (989)
Taxes payable 310 705 (430) 386 (521)
Other current assets and liabilities (595) (418) (1,355) (368) 599
Net cash provided by operating activities 4,180 6,204 7,766 10,881 14,312
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of licenses – (3) (7) (255) (12)
Capital expenditures (3,248) (3,979) (6,419) (9,071) (10,525)
Proceeds from sale of property, plant and equipment 99 51 310 72 166
Purchases of investments (540) (242) (312) (206) (398)
Proceeds from sale of investments 242 234 216 175 636
Sale of interests in subsidiaries and affiliated companies 183 588 71 1 136 3
Acquisitions of subsidiaries and minority shareholding interest (including advances related to these acquisitions), net of cashacquired (477) (2,874) (1,374) (1,566) (3,429)
Net cash used in investing activities (3,741) (6,225) (7,515) (9,715) (13,559)
CASH FLOWS FROM FINANCING ACTIVITIES
Net movements of short!term borrowings (170) (638) 700 (59) 974
Cash received under sales!leaseback transaction – – – – 235
Proceeds from issuance of long!term debt 1,191 2,474 1,092 2,307 2,884
Principal repayments of long!term debt (778) (704) (1,077) (1,632) (1,547)
Dividends paid (661) (853) (1,134) (1,308) (1,605)
Dividends paid on company common stock (612) (800) (1,015) (1,230) (1,437)
Dividends paid to minority (49) (53) (119) (78) (168)
Financing from related party and third party minority shareholders – 101 – 177 39
Purchase of treasury stock (502) – (782) (712) (219)
Proceeds from sale of treasury stock 273 46 – 129 –
Other – net (3) 6 15 – 2
Net cash (used in) provided by financing activities (650) 432 (1,186) (1,098) 763
Effect of exchange rate changes on cashand cash equivalents 33 (18) 37 21 (118)
Net (decrease) increase in cash and cash equivalents (178) 393 (898) 89 1,398
Cash and cash equivalents at beginning of year 1,435 1,257 1,650 752 841
Cash and cash equivalents at end of year 1,257 1,650 752 841 2,239
Consolidated statements of stockholders’ equity and comprehensive income, mln USD
2004 2005 2006 2007 2008
Common stock
Balance as of January 1 15 15 15 15 15
Balance as of December 31 15 15 15 15 15
Treasury stock
Balance as of January 1 (435) (706) (527) (1,098) (1,591)
Stock purchased (502) – (782) (712) (219)
Stock disposed 231 179 211 219 1,528
Balance as of December 31 (706) (527) (1,098) (1,591) (282)
Additional paid!in capital
Balance as of January 1 3,522 3,564 3,730 3,943 4,499
Premium on non!outstanding shares issued – 47 22 – 20
Effect of stock compensation plan – – – 103 103
Proceeds from sale of treasury stock in excessof carrying amount 42 119 191 453 72
Balance as of December 31 3,564 3,730 3,943 4,499 4,694
Retained earnings
Balance as of January 1 14,371 17,938 23,586 30,061 38,349
Net income (comprehensive income) 4,248 6,443 7,484 9,511 9,144
Net income (stockholders’ equity) 4,248 6,443 7,484 9,511 9,144
Dividends on common stock (681) (795) (1,009) (1,223) (1,510)
Balance as of December 31 17,938 23,586 30,061 38,349 45,983
Accumulated other comprehensive loss, net of tax
Balance as of January 1 (1) – – (21) (59)
Foreign currency translation adjustment(comprehensive income) 1 – – – –
Foreign currency translation adjustment(stockholders’ equity) 1 – – – –
Pension benefits:
Prior service cost (comprehensive income) – – – (16) (5)
Prior service cost (stockholders' equity) – – – (16) (5)
Actuarial loss (comprehensive income) – – – (22) (6)
Actuarial loss (stockholders' equity) – – – (22) (6)
Effect of initial adoption of SFAS No. 158 – – (21) – –
Balance as of December 31 – – (21) (59) (70)
Total comprehensive income for the year 4,249 6,443 7,484 9,473 9,133
Total stockholders’ equity as of December 31 20,811 26,804 32,900 41,213 50,340
FINANCE
61
5
ANALYST DATABOOK 2009
62
Share activity, mln shares2004 2005 2006 2007 2008
Common stock, issued
Balance as of January 1 850.563 850.563 850.563 850.563 850.563
Balance as of December 31 850.563 850.563 850.563 850.563 850.563
Treasury stock
Balance as of January 1 (26.336) (33.884) (21.667) (23.632) (23.321)
Purchase of treasury stock (17.846) – (9.017) (8.756) (2.899)
Disposal of treasury stock 10.298 12.217 7.052 9.067 22.384
Balance as of December 31 (33.884) (21.667) (23.632) (23.321) (3.836)
Capital expenditures*, mln USD2004 2005 2006 2007 2008
Capital expenditures
Exploration and production 2,289 2,918 5,120 7,262 7,889
Russia 2,100 2,487 4,334 6,391 6,813
International 189 431 786 871 1,076
Refining, marketing and distribution 1,070 1,129 1,475 1,822 2,150
Russia 677 654 916 1,177 1,377
International 393 475 559 645 773
Chemicals 71 77 172 171 121
Russia 55 59 121 73 23
International 16 18 51 98 98
Other 17 53 119 117 429
Total capital expenditures 3,447 4,177 6,886 9,372 10,589
Acquisitions of companies and Group investments**
Exploration and production 166 2,737 1,560 434 361
Russia 23 778 1,469 77 4
International 143 1,959 91 357 357
Refining, marketing and distribution 306 256 122 1,196 2,033
Russia 1 27 122 685 636
International 305 229 – 511 1,397
Chemicals – – – – –
Other 5 – 32 38 3,194***
Less cash acquired – (119) (26) (102) (190)
Total acquisitions of companies and Group investments 477 2,874 1,688 1,566 5,398
* Including non!cash transactions.
** Including prepayments related to acquisitions of subsidiaries and buyout of minorities.
*** Including $1,969 million of non!cash part of consideration for acquisition of TGK!8.
63
Specific financial ratios2004 2005 2006 2007 2008
Sales per boe of production*, USD per barrel 50.9 80.0 86.4 103.0 134.1Income from operating activities perboe of production*, USD per barrel 8.8 12.8 12.8 16.4 17.1EBITDA per boe of production*, USD per barrel 10.8 14.9 15.7 19.4 19.4Net income per boe of production*, USD per barrel 6.4 9.2 9.6 12.0 11.4Capital expenditures in exploration and productionper boe of production*, USD per barrel 3.4 4.2 6.5 9.1 9.8Capitalization per boe of reserves, USD per barrel 1.3 2.5 3.7 3.6 1.4Capitalization per boe of production*, USD per barrel 38.8 72.5 95.5 93.1 33.9* Of marketable hydrocarbons.
Profitability and efficiency ratiosIncome margin
2004 2005 2006 2007 2008Sales, mln USD 33,845 55,774 67,684 81,891 107,680Income from operating activities, mln USD 5,821 8,947 10,052 13,071 13,709
Income before taxes, mln USD 6,008 8,910 10,257 13,018 12,366
Net income, mln USD 4,248 6,443 7,484 9,511 9,144
Operating margin, % 17.2 16.0 14.9 16.0 12.7Pretax margin, % 17.8 16.0 15.2 15.9 11.5Net margin, % 12.6 11.6 11.1 11.6 8.5
EBIT and EBITDA
2004 2005 2006 2007 2008 Income before taxes, mln USD 6,008 8,910 10,257 13,018 12,366
Interest expense, mln USD 300 275 302 333 391
Interest and dividend income, mln USD. 180 96 111 135 163
EBIT, mln USD 6,128 9,089 10,448 13,216 12,594
Depreciation, depletion and amortization, mln USD 1,075 1,315 1,851 2,172 2,958
EBITDA, mln USD 7,203 10,404 12,299 15,388 15,552
EBIT margin, % 18.1 16.3 15.4 16.1 11.7
EBITDA margin, % 21.3 18.7 18.2 18.8 14.4
FINANCIAL RATIOS
EBIT = Income before income tax + Interest expense – Interest and dividend incomeEBITDA = EBIT + Depreciation, depletion and amortization
Income margin =Sales
Income
5
Net margin, %
20082004 2005 2006 20077
9
11
13
Market capitalization to provedhydrocarbon reserves, USD per boe
0
1
2
4
3
20082004 2005 2006 2007
Net income to production, USD per boe
20082004 2005 2006 20072
4
6
8
10
12
FINANCE
ANALYST DATABOOK 2009
64
Return on equity
2003 2004 2005 2006 2007 2008
Equity, mln USD 17,472 20,811 26,804 32,900 41,213 50,340
Net income, mln USD 4,248 6,443 7,484 9,511 9,144
Return on equity, % 22.2 27.1 25.1 25.7 20.0
Return on assets
2003 2004 2005 2006 2007 2008
Assets, mln USD 26,574 29,761 40,345 48,237 59,632 71,461
Net income, mln USD 4,248 6,443 7,484 9,511 9,144
Return on assets, % 15.1 18.4 16.9 17.6 14.0
Return on non!current assets
2003 2004 2005 2006 2007 2008
Non!current assets, mln USD 18,651 21,187 27,848 34,665 41,863 55,828
Net income, mln USD 4,248 6,443 7,484 9,511 9,144
Return on non!current assets, % 21.3 26.3 23.9 24.9 18.7
Return on assets =Average assets for the year
Net income
Return on non!current assets =Average non!current assets for the year
Net income
10
15
20
25
ROACE, %
20082004 2005 2006 2007200
300
350
20082004 2005 2006 2007
Assets turnover, days
250
20082004 2005 2006 2007
Turnover of accounts receivableand accounts payable, days
0
15
45
30
60
Accounts payableAccounts receivable
Return on equity =Average equity for the year
Net income
10
20
25
30
Return on equity, %
15
20082004 2005 2006 200710
15
20
25
30
20082004 2005 2006 2007
Return on non!current assets, %Return on assets, %
5
10
15
20
20082004 2005 2006 2007
65
ROACE
2003 2004 2005 2006 2007 2008
Equity, mln USD 17,472 20,811 26,804 32,900 41,213 50,340
Long!term debt, mln USD 2,392 2,609 4,137 4,807 4,829 6,577
Short!term debt, mln USD 1,412 1,265 853 1,377 2,214 3,232
Minority interest in subsidiarycompanies, mln USD 483 453 1,019 523 577 670
Net income, mln USD 4,248 6,443 7,484 9,511 9,144
Interest expense, mln USD 300 275 302 333 391
Minority interest, mln USD 62 121 80 55 83
Effective income tax rate*, % 29.0 27.3 26.8 26.8 25.9
ROACE, % 19.3 23.3 21.5 22.2 17.4
* Income taxes to income before income taxes before deduction of minority interest.
Assets turnover (as of December 31)
2003 2004 2005 2006 2007 2008
Sales, mln USD 33,845 55,774 67,684 81,891 107,680
Assets, mln USD 26,574 29,761 40,345 48,237 59,632 71,461
Asset turnover, days 305 229 239 240 222
Accounts payable turnover (as of December 31)
2003 2004 2005 2006 2007 2008
Sales, mln USD 33,845 55,774 67,684 81,891 107,680
Accounts payable, mln USD 1,564 1,787 2,167 2,759 4,554 5,029
Accounts payable turnover, days 18 13 13 16 16
Accounts receivable turnover (as of December 31)
2003 2004 2005 2006 2007 2008
Sales, mln USD 33,845 55,774 67,684 81,891 107,680
Accounts receivable, mln USD 3,790 3,867 5,533 5,158 7,467 5,069
Accounts receivable turnover, days 41 31 29 28 21
Accounts payable turnover =Sales
Average accounts payable " 365 days
Accounts receivable turnover =Sales
Average accounts receivable " 365 days
Asset turnover =Sales
Average assets for the year " 365 days
ROACE =Average for the year (Equity + Long!term debt + Short!term debt + Minority interest)
Net income + Interest expense " (1 – Effective income tax rate) + Minority interest
5
FINANCE
Gearing ratios
Total debt to total capital (as of December 31)
2004 2005 2006 2007 2008
Total debt, mln USD 3,877 4,990 6,184 7,043 9,809
Equity, mln USD 20,811 26,804 32,900 41,213 50,340
Total capital, mln USD 24,688 31,794 39,084 48,256 60,149
Total debt to total capital, % 15.7 15.7 15.8 14.6 16.3
Total debt to equity (as of December 31)
2004 2005 2006 2007 2008
Total debt, mln USD 3,877 4,990 6,184 7,043 9,809
Equity, mln USD 20,811 26,804 32,900 41,213 50,340
Total debt to equity, % 18.6 18.6 18.8 17.1 19.5
Total debt to EBITDA (as of December 31)
2004 2005 2006 2007 2008
Total debt, mln USD 3,877 4,990 6,184 7,043 9,809
EBITDA, mln USD 7,203 10,404 12,299 15,388 15,552
Total debt to EBITDA, % 53.8 48.0 50.3 45.8 63.1
Financial guarantees, mln USD 642 473 418 361 161
Adjusted total debt,mln USD 4,519 5,463 6,602 7,404 9,970
Adjusted total debtto EBITDA, % 62.7 52.5 53.7 48.1 64.1
Short!term debt to total debt (as of December 31)
2004 2005 2006 2007 2008
Short!term debt, mln USD 1,265 853 1,377 2,214 3,232
Total debt, mln USD 3,877 4,990 6,184 7,043 9,809
Short!term debtto total debt, % 32.6 17.1 22.3 31.4 32.9
Secured debt to total debt (as of December 31)
2004 2005 2006 2007 2008
Secured debt, mln USD 2,171 1,672 715 378 453
Total debt, mln USD 3,877 4,990 6,184 7,043 9,809
Secured debt to total debt, % 56.0 33.5 11.6 5.4 4.6
ANALYST DATABOOK 2009
66
20082004 2005 2006 2007
Total debt to total capital, %
14
15
20
25
35
30
20082004 2005 2006 2007
Adjusted total debt to EBITDA, %
50
0
100
250
200
350
300
150
20082004 2005 2006 2007
Short!term debt to total debt, %
15
25
35
45
67
Financial guarantees to adjusted total debt (as of December 31)2004 2005 2006 2007 2008
Financial guarantees, mln USD 642 473 418 361 161
Adjusted total debt, mln USD 4,519 5,463 6,602 7,404 9,970
Financial guarantees to adjusted total debt, % 14.2 8.7 6.3 4.9 1.6
Fixed debt to total debt* (as of December 31)2004 2005 2006 2007 2008
Fixed debt, mln USD 1,074 907 2,214 3,947 4,440
Total debt*, mln USD 3,874 4,990 6,184 7,043 9,809
Fixed debt tototal debt, % 27.7 18.2 35.8 56.0 45.3
* Excluding liabilities of banking subsidiaries.
Net debt (as of December 31)
2004 2005 2006 2007 2008 Long!term debt, mln USD 2,609 4,137 4,807 4,829 6,577
Short!term debt, mln USD 1,265 853 1,377 2,214 3,232
Customer deposits and otherborrowings of banking subsidiaries, mln USD 3 0 0 0 0
Cash and cash equivalents, mln USD 1,257 1,650 752 841 2,239
Net debt, mln USD 2,620 3,340 5,432 6,202 7,570
Cash of banking subsidiaries in roublesand other currencies, mln USD 176 102 130 47 132
Financial guarantees, mln USD 642 473 418 361 161
Adjusted net debt, mln USD 3,438 3,915 5,980 6,610 7,863
Net debt to equity (as of December 31)2004 2005 2006 2007 2008
Net debt, mln USD 2,620 3,340 5,432 6,202 7,570
Equity, mln USD 20,811 26,804 32,900 41,213 50,340
Net debt to equity, % 12.6 12.5 16.5 15.0 15.0
Adjusted net debt, mln USD 3,438 3,915 5,980 6,610 7,863
Adjusted net debt to equity, % 16.5 14.6 18.2 16.0 15.6
20082004 2005 2006
Secured debt to total debt, %
0
20
40
60
2007 2004 2005 2006 2007
Financial guarantees to adjustedtotal debt, %
3
0
6
9
15
2008
12
20082004 2005 2007
Fixed debt to total debt*, %
152025
404550
6055
3530
2006
Net debt = Long!term debt + Customer deposits of banking subsidiaries + Short!term debt – Cash
5
* Excluding liabilities of banking subsidiaries.
FINANCE
ANALYST DATABOOK 2009
68
Net debt to cash flow from operating activities (as of December 31)2004 2005 2006 2007 2008
Net debt, mln USD 2,620 3,340 5,432 6,202 7,570
Cash flow from operatingactivities, mln USD 4,180 6,204 7,766 10,881 14,312
Net debt to cash flowfrom operating activities, % 62.7 53.8 71.1 57.0 52.9Adjusted net debt, mln USD 3,438 3,915 5,980 6,610 7,863Adjusted net debt to cash flowfrom operating activities, % 82.2 63.1 78.3 60.7 54.9
EBITDA interest coverage2004 2005 2006 2007 2008
EBITDA, mln USD 7,203 10,404 12,299 15,388 15,552Interest expense, mln USD. 300 275 302 333 391EBITDA interest coverage 24.0 37.8 40.7 46.2 39.8
Free cash flow2004 2005 2006 2007 2008
Cash flow from operatingactivities, mln USD 4,180 6,204 7,766 10,881 14,312
Capital expenditures*, mln USD 3,248 3,982 6,426 9,326 10,537Free cash flow, mln USD 932 2,222 1,340 1,555 3,775* Including acquisition of licenses.
20082004 2005 2006 2007
Net debt to cash flow fromoperating activities, %
40
70
100
130
20082004
Structure of cash flow fromoperating activities, bln USD
0
3
6
9
12
15
20072005 2006
Free cash flowCapital expenditures
10
20
40
0
50
20082004 2005 2006 2007
EBITDA interest coverage
30
Net debt, bln USD
2
4
6
8
2004 2005 2006 2007 2008
Adjusted net debt to equity, %
10
20
50
60
40
30
2004 2005 2006 2007 2008
69
Liquidity ratios
Cash ratio (as of December 31)
2004 2005 2006 2007 2008 Cash and cash equivalents,mln USD 1,257 1,650 752 841 2,239
Current liabilities, mln USD 4,545 5,836 6,931 9,728 10,575
Cash ratio 0.28 0.28 0.11 0.09 0.21
Quick ratio (as of December 31)
2004 2005 2006 2007 2008
Cash and cash equivalents,mln USD 1,257 1,650 752 841 2,239
Short!term investments,mln USD 149 111 44 48 505
Accounts receivable, mln USD 3,867 5,533 5,158 7,467 5,069
Current liabilities, mln USD 4,545 5,836 6,931 9,728 10,575
Quick ratio 1.16 1.25 0.86 0.86 0.74
Current ratio (as of December 31)
2004 2005 2006 2007 2008 Current assets, mln USD 8,574 12,497 13,572 17,769 15,633
Current liabilities, mln USD 4,545 5,836 6,931 9,728 10,575
Current ratio 1.89 2.14 1.96 1.83 1.48
Assets to equity (as of December 31)2004 2005 2006 2007 2008
Assets, mln USD 29,761 40,345 48,237 59,632 71,461
Equity, mln USD 20,811 26,804 32,900 41,213 50,340
Assets to equity 1.43 1.51 1.47 1.45 1.42
Cash ratio
0.05
0.10
0.15
0.20
0.25
0.30
20082004 2005 2006 20071.2
1.4
2.0
2.2
Current ratio
1.6
1.8
20082004 2005 2006 20071.40
1.45
1.50
1.55
1.60
Assets to equity
20082004 2005 2006 2007
Quick ratio =Current liabilities
Cash + Short!term investments + Accounts and notes receivable
Current ratio =Current liabilities
Current assets
Cash ratio =Current liabilities
Cash and cash equivalents
5
FINANCE
ANALYST DATABOOK 2009
70
Market valuation of the Company
Enterprise value (EV) (as of December 31)
2004 2005 2006 2007 2008
Market capitalization, mln USD 25,815 50,523 74,807 73,999 27,218
Long!term debt, mln USD 2,609 4,137 4,807 4,829 6,577
Short!term debt, mln USD 1,265 853 1,377 2,214 3,232
Cash and cash equivalents,mln USD. 1,257 1,650 752 841 2,239
EV, mln USD 28,432 53,863 80,239 80,201 34,788
EV/EBITDA (as of December 31)
2004 2005 2006 2007 2008
EV, mln USD 28,432 53,863 80,239 80,201 34,788
EBITDA, mln USD 7,203 10,404 12,299 15,388 15,552
EV/EBITDA 3.95 5.18 6.52 5.21 2.24
EV/DACF (as of December 31)
2004 2005 2006 2007 2008
EV, mln USD 28,432 53,863 80,239 80,201 34,788
Cash flow from operatingactivities, mln USD 4,180 6,204 7,766 10,881 14,312
Interest expense, mln USD 300 275 302 333 391
Interest expense adjusted by effectiveincome tax rate, mln USD 213 200 221 244 290
DACF, mln USD 4,393 6,404 7,987 11,125 14,602
EV/DACF 6.5 8.4 10.0 7.2 2.4
EV/DACF = Cash flow from operating activities + Interest expense adjusted for income tax
EV
EV = Market capitalization + Long!term debt + Short!term debt – Cash
0
20
60
80
100
40
EV, bln USD
20082004 2005 2006 20072
3
5
6
7
20082004 2005 2006 2007
4
EV/EBITDA
20082004 2005 2006 2007
EV/DACF
2
8
11
5
71
Price to earnings (P/E) (as of December 31)
2004 2005 2006 2007 2008
Share price, USD 30.35 59.40 87.95 87.00 32.00
Basic earnings per share, USD 5.20 7.91 9.06 11.48 10.88
#/E 5.84 7.51 9.71 7.58 2.94
Price to sales (P/S) (as of December 31)
2004 2005 2006 2007 2008
Market capitalization, mln USD 25,815 50,523 74,807 73,999 27,218
Sales, mln USD 33,845 55,774 67,684 81,891 107,680
Price to sales 0.76 0.91 1.11 0.90 0.25
Price to assets (as of December 31)
2004 2005 2006 2007 2008
Market capitalization, mln USD 25,815 50,523 74,807 73,999 27,218
Assets, mln USD 29,761 40,345 48,237 59,632 71,461
Price to assets 0.87 1.25 1.55 1.24 0.38
Price to book (P/B) (as of December 31)
2004 2005 2006 2007 2008
Market capitalization, mln USD 25,815 50,523 74,807 73,999 27,218
Equity, mln USD 20,811 26,804 32,900 41,213 50,340
Price to book 1.24 1.88 2.27 1.80 0.54
1
4
7
10
20082004 2005 2006 2007
$/% Market capitalization to sales
0
0.4
1.2
0.8
20082004 2005 2006 2007
Market capitalization to equity
0.5
1.0
1.5
2.5
2.0
20082004 2005 2006 2007 5
FINANCE
ANALYST DATABOOK 2009
72
Exploration and production
2D seismic survey – study of strata formation using a system of sensors and explosive devices to obtain a two!dimensional
strata model. In 2D exploration, sensors are placed along certain lines (sections) and the study is carried out along the depth
of the section.
3D seismic survey – study of strata formation using a system of sensors and explosive devices to obtain a three!dimensional
strata model. In 3D exploration, the sensors are placed over the surface of the relevant area. This is one of the most accurate
geophysical techniques, but requires major IT resources and other equipment and expenses. Therefore oil & gas companies
usually carry out 2D seismic in order to ascertain which zones are most deserving of 3D studies.
Vertical seismic profiling (VSP) – a seismic exploration method, which details structure of the space around the well, defines
the nature of geological sections, which are penetrated, and provides a speed model of the environment and level of oil sat!
uration in strata. VSP is carried out by creation of waves on the surface, which are captured in the well by seismic receptors
placed at various depths, and by subsequent study of the results.
Geo!electrics (electromagnetic exploration) – a technique of finding mineral deposits by studying the earth's electromag!
netic fields.
Flow rate of a well – quantity of hydrocarbons obtained from a well in a given period of time (usually one day).
Watercut – quantity of water in mixture extracted from an oil well (usually expressed as a percentage).
Associated petroleum gas – mixture of various gaseous hydrocarbons, dissolved in crude oil, which separate out in the
production and refining processes (mainly consist of propane and butane). Associated petroleum gas can be used as a fuel
and for production of various chemicals.
Natural gas – mixture of gaseous hydrocarbons, whose main component is methane. Natural gas is located in strata in a
gaseous state, either as gas deposits or as a gas cap at oil & gas fields.
Refining
Refinery throughput – volumes of oil despatched to drying and desalination facilities.
Depth of refining – ratio of crude oil volumes processed at primary refining facilities, excluding saleable heating oil, liquid fuel
used in production, and losses in drying and desalination, to total crude oil volumes processed at primary refining facilities.
Light products yield – ratio of the total volume of gasoline, diesel fuel and their fractions (useable as motor oil components),
jet fuel, illuminants and technical kerosene, low!viscosity ship fuel and heating oil (fractions, which vaporize between 28 and
360 degrees Celsius) to the total volume of oil processed at a refinery in a given period.
Naphta – straight!run gasoline, unstable gas naphta, secondary!process gasoline and hydrocarbon inputs for production of
ethylene.
Fuel oil – fuel oil, ship fuel oil, oil residues and raw material for technical carbons.
Lubricants – oils, base oils, packaged oils, etc.
LPG – propane!butane used as vehicle fuel, technical propane, technical butane, technical propane!butane, isobutane.
Compressed gas – gas at pressures required for transportation along trunk pipelines.
GLOSSARY
73
GLOSSARY
Stripped gas – associated petroleum gas, containing ethane, propane and butane fractions, freed from gas naphta components
(C5 and higher).
Alcylation – process for obtaining high!octane gasoline components by interaction of isobutane and olefin hydrocarbons.
Visbreaking – process for refining crude oil residues (tars and semi!tars) by shallow thermal decomposition. The main product
of visbreaking is boiler fuel, which is obtained by lowering viscosity of the inputs through cracking.
Gas fractionation – obtaining separate light hydrocarbons or hydrocarbon fractions with higher degrees of purity from associ!
ated petroleum gas.
Hydrocracking – catalytic cracking by application of medium and high pressure gas with hydrogen content. Choice of catalysts
and technical parameters makes it possible to obtain high!quality components for most petroleum products (liquefied gas, gaso!
line and diesel, oil components, etc.) from virtually any raw hydrocarbons by hydrocracking.
Hydrotreating – process for reducing sulfur and nitrogen elements in petroleum products using a catalyst under pressure from
a gas containing hydrogen.
Isomerization – process for obtaining high!octane isoparaffin fractions by refining low!octane paraffin hydrocarbons from light
gasoline fractions using catalysts.
Catalytic cracking – process for obtaining high!quality and stable gasoline by catalytic decomposition of heavy fractions into
light fractions, carried out at high temperatures (500 degrees Celsius) using a catalyst.
Catalytic reforming – process for obtaining high!octane gasoline components and aromatic compounds by turning low!octane
straight!run gasoline into high!aromatic gasoline fractions with use of a catalyst.
Coking – thermal process for decomposing heavy and compact residual products into lighter products (gasoil and naphtha) and
petroleum coke.
Pyrolysis – high!temperature process of deep thermal refining of petroleum products and/or gas to obtain inputs for petro!
chemical synthesis. The main product of pyrolysis is gas rich in unsaturated hydrocarbons (ethylene, propylene, butadiene).
Thermal cracking – process for obtaining light hydrocarbons from heavier hydrocarbons at high temperatures (for example,
vacuum gasoil can be refined into light products).
6
74
ANALYST DATABOOK 2009
Legal Address and Central Office11, Sretensky Boulevard, Moscow, Russia 101 000
Central Information ServiceTel: +7 (495) 627!44!44, 628!98!41 Fax: +7 (495) 625!70!16
Shareholder Relations DepartmentTel: +7 (495) 627!48!84, (499) 973!73!46Fax: +7 (495) 627!41!91Email: shareholder@lukoil.com
Investor Relations DepartmentTel: + 7 (495) 627!16!96Fax: + 7 (495) 981!72!88Email: ir@lukoil.com
Press ServiceTel: +7 (495) 627!16!77Fax: 7 (495) 627!16!53Email: pr@lukoil.com
LUKOIL Stock & Consulting Center 3 (Building 1), Pokrovsky Boulevard,Moscow, Russia 109 028Tel: + 7 (495) 627!41!91, 627!43!80 Fax:+ 7 (495) 627!41!91
NIKOIL Registrar Company28, 3rd Ulitsa Yamskogo Polya,Moscow, Russia 125 993Tel/fax: +7 (495) 755!90!77 (for legal entities)+ 7 (495) 933!67!39 (for individuals)
LUKOIL PublicationsElectronic versions of the followingreports are available on the Companyweb site (www.lukoil.com)1. Annual Report.2. Consolidated Financial Accounts.3. Quarterly Consolidated FinancialAccounts.4. Management Discussion ofCompany Performance.
REFERENCE INFORMATION
More information about the Company is available at LUKOIL's website at www.lukoil.com (English version) orwww.lukoil.ru (Russian version).
By visiting out site you can find out more about LUKOIL's main businesses and Company results, as well as stayinginformed about new developments in all spheres of LUKOIL's activities. The site also provides information aboutCompany policy and involvement in social and environmental affairs.
A section of the site for investors and shareholders provides the Company's financial results, history of dividend pay!ments, share prices and accounts. A number of presentations for the investment community are also availablethrough this section of the site.
All information in this document is presented as of 31.12.2008. This document does not reflect any changesthat happened after that date, unless specified.
Concepts and Terms Used in the DocumentThe references to LUKOIL, LUKOIL Group, 'the Company', 'we' and 'our' in this document all refer to LUKOIL and/orits subsidiary enterprises, depending upon the context, in which the terms are used.
Sources of information
Abbreviations
Information provided by the Ministry of Industry andEnergy of Russia
Information provided by the State Committee forStatistics of the Russian FederationAnnual reports of major international private oilcompanies
Statistical Review of World Energy 2008 (BritishPetroleum)Annual Statistical Bulletin (OPEC)Worldwide Refineries!Capacities as of January 1,2009 (Oil & Gas Journal)Platt’s
$ or USD — United States Dollarsmln — millionbln — billionth. — thousandboe — barrel of oil equivalent (1 boe = 6,000 t&f of gas)t&f — trillion cubic feet
b&f — billion cubic feetmcf — million cubic feetth. cf — thousand cubic feetbcm — billion cubic metersmcm — million cubic meters