the RUSSIA oil & gas competitive intelligence report - Report Buyer

Russia Oil and Gas Competitive Intelligence Report 2010
Lukoil
Company Analysis
SWOT Analysis
Lukoil is the leading private Russian oil company and
should remain so – particularly now that ConocoPhillips
is on board as a strategic investor and upstream partner.
Domestic volume growth is beginning to slow, but new
projects, such as the Yuzhnoye Khylchuyu field in the
Timan-Pechora region and fields in Uzbekistan and
Iraq, provide growth potential. The downstream
portfolio is also benefiting from international
investment, putting Lukoil into a position of secure
medium- and long-term revenue and earnings
expansion.
Strengths: Leading role in Russian oil supply
Rising share of Caspian production
Substantial domestic downstream business
Strong portfolio of CEE downstream interests
Conoco strategic partnership
Weaknesses: Slower domestic growth than other producers
Rising investment requirement
Cost and efficiency disadvantages
Opportunities: Growth in Russia/Caspian oil production
Financial Statistics
Revenues
• US$81.5bn (2009)
• US$107.7bn (2008)
• US$82.2bn (2007)
• US$68.1bn (2006)
• US$56.2nn (2005)
Net income
• US$7.0bn (2009)
• US$9.1bn (2008)
• US$9.5bn (2007)
• US$7.5bn (2006)
• US$6.4bn (2005)
Operating Statistics
Net domestic oil production (inc.
equity shares):
• 1.84mn b/d (2009)
• 1.93mn b/d (2008)
• 1.95mn b/d (2007)
Net domestic sale gas production:
• 6.3bcm (2009)
• 8.7bcm (2008)
• 8.2bcm (2007)
Refining throughput (group total):
• 893,000,000b/d (2009)
• 894,000b/d (2008)
• 976,000b/d (2007)
Proven oil and gas reserves:
• 17.5boe (2009)
• 19.3bn boe (2008)
Rise in CEE regional oil consumption
Cost cutting/asset upgrading potential
Massive Iraq development
Threats:
Sustainability of Russian oil growth
Oversupply in CEE refining capacity
Changes in national energy policy
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