Lukoil/LUKoil is Russia's second largest oil company and its second largest producer of oil.
In 2009, the company produced 97.615 million tons of oil; 1.972 million barrels per day (313,500 m3/d). Headquartered in Moscow, Lukoil is the second largest public company (next to ExxonMobil) in terms of proven oil and gas reserves. In 2008, the company had 19.3 billion barrels of oil equivalent per SPE standards. This accounts to some 1.3% of global oil reserves. The company has operations in more than 40 countries around the world.
History
Lukoil was formed in 1991, when three staterun, western Siberian companies, Langepasneftegaz, Urayneftegaz, and Kogalymneftegaz, merged. The initials of the three companies are preserved in the name Lukoil.The central figure in the company's founding was the Soviet deputy minister of oil production Vagit Alekperov. He came to believe the only way Russians could compete against Western companies was to copy their business model. That meant vertically integrating the three branches of the industry exploration, refining, and distribution that were strictly separate under the old Soviet system. In 1994, Lukoil became the first company to begin offering shares of stock on the new Russian Trading System
Exploration and production
Lukoil carries out exploration and/or production of oil and gas in Russia and (as of 2008) thirty other countries: Kazakhstan, Azerbaijan,Uzbekistan, Egypt, Iran, Iraq, Colombia, Venezuela, Belgiu m, Saudi Arabia, Bulgaria and more. In September 2004, ConocoPhillips purchased a 7.6 percent stake in Lukoil and signed an agreement that could increase this figure in the future to up to 20 percent. The two oil companies have agreed to develop jointly an oil and gas field in the northern TimanPechora area of Russia (Komi Republic) and intend to secure the rights to
develop the West Quran Field in Iraq, one of the country's largest
General Organization structure
COMPANY MANAGEMENT STRUCTURE
Management Committee
President
Board of Directors
Chairman
Vagit Alekperov
Valery Grayfer
Oil and Gas Production
First VicePresident
Refining and Marketing
First VicePresident
Economy and Finance
First VicePresident
Accounts
Chief Accountant
Ravil Maganov
Vladimir Nekrasov
Sergey Kukura
Lubov Khoba
Main Division of Oil and Gas Production
VicePresident
Main Division of Coordination of Petroleum Products Production and Marketing in Russia
VicePresident
Main Treasury and Corporate Finance Division
VicePresident
Jevan Cheloyants
Alexander Matytsyn
Main Division of Strategic Development and Investment Analysis
VicePresident
Vladimir Vorobiev
Leonid Fedun
Main Division of Geology and Development
VicePresident
Main Division of Coordination of Petroleum Products Production and Marketing Abroad
VicePresident
Main Division of
Corporate Budget and
Economic Planning and Investment
VicePresident
Anatoly Novikov
Main Division of General Issues, Corporate Security and Communications
VicePresident
Nikolai Cherny
Anatoly Kozyrev Anatoly Barkov
Department of Economy of Exploration and Oil & Gas Production
Head
Main Division of Sales and Supplies
ViceHead
Valery Subbotin
Main Division of Control and Internal Audit
VicePresident
Pavel Kaufman Vagit Sharifov
Department for Production and Sale of Lubricants and Special Petroleum Products
Head
Main Division of Human Resources
Head
Maxim Donde
Anatoly Moskalenlo
Department of Refining and Marketing Control and Development
Head
Main Division of Legal Affairs
Head
Ivan Masliaev
Andrei Bycheko
Department of Technical Support Division for Refining and Marketing
Head
Industrial Security,
Ecology, Science and Technology
Head
Vladimir Rakitsky
Igor Zaikin
CORPORATE GOVERNANCE
COMMITTEES OF THE BOARD OF DIRECTORS
Board of Directors
Audit Committee
Oleg Kutafin Mikhail Berezhnoi Sergei Mikhailov
Strategy and Investment Committee
Richard Matzke Ravil Maganov Kevin Meyers Igor Sherkunov
Personnel and Remuneration Committee
Alexander Shokhin Sergei Mikhailov Nikolai Tsvetkov
Purpose: to make recommendations to the BoD concerning independent external and internal audit of financial accounts and appraisal of Company property
Purpose: to make recommendations to the BoD on design of strategic development goals for the Company and to coordinate strategic planning activities with the BoD
Responsibilities:
To prepare recommendations to the BoD concerning: analysis of concepts, programs and plans for strategic development of the Company; assessment of Company policy in relations
with investors and shareholders; decisions on the level of dividends to be recommended to shareholders, and procedure for dividend payment;
Purpose: to prepare recommendations to the BoD on Company policy regarding personnel and regarding remuneration of managers and of the Companys auditing commission
Responsibilities:
To prepare recommendations to the BoD concerning: selection of candidates for appointment as Company Auditor from among internationally recognized auditors with high professional reputation; supervision of any competition (tender) for choice of the Auditor, if such a competition is held; analysis and discussion with the Auditor of any significant questions arising during conduct of independent external audit of the Company; acquaintance with the Auditors conclusions before the latter are presented to shareholders at the General Meeting of Shareholders; review of the most significant amend ments to the Companys accounts as a result of the audit; efficiency of the Companys system of internal control and audit; assessment of the Companys risk management system;
possible preliminary approval of the Companys annual report by the BoD; observance of audit procedures and assessment of the level of objectivity and independence of the Company Auditor; definition of a limit for the Auditors remuneration, depending on the type and volume of his work, including services,
Responsibilities:
To prepare recommendations to the BoD concerning: Company actions to do with personnel and remuneration of managers and of the Companys auditing commission; assessment of candidates to positions in the respective management positions in the Company;
design of criteria for determining independence of any director in the BoD;
distribution of Company profit and loss at the end of each year; Company policy with respect to its own securities;
plans for Company reorganization; participation in holding companies, financialindustrial groups, associations and any other unified commercial organizations; major transactions, involving property that is equal in value to 2550% of the balance sheet value of Company assets on the day,
analysis of results of work by members of Company management bodies and of the audit commission , particularly as concerns possible increase of remuneration paid to them and any other types of incentive; decision on a recommended level of remuneration to be paid to members of the auditing commission; advisability of reappointing members of the auditing commission;
design of longterm programs of remuneration to Company employees, based on Company shares;
when the decision on such transaction is taken;
creation of Company subsidiaries and opening of representative offices, and closure of the same in the Russian Federation and foreign countries;
significant conditions of contracts with members of the Companys executive bodies.
use of Company reserves;
use of noncore assets of the Company; change in the structure of Company asset
management.
which complement the actual audit.
