The Company’s oil processing and petrochemical plants are located in Russia and four European countries A deal to sell a 100 percent stake in LUKOIL Chemical B.V., which was owned by OOO Karpatneftekhim (Ukraine), was finalized in February 2017. G4-13 (Romania, Bulgaria, Italy and the Netherlands The Company owns a 45 percent stake in the Zeeland oil refinery. ), close to the key markets. G4-6
The Company makes a wide range of petroleum products, commercially refined gas and petrochemical products.
The main products G4-4
Russian refinery upgrade program
The large-scale program to upgrade Russian refineries concluded in 2016, resulting in a greater conversion rate, new products, decreased heavy oil and vacuum gas oil concentrations alongside increased production of light oils. Today, LUKOIL refineries exceed the Russian average in terms of capacity, efficiency and environmental protection.
A new product, ECTO 100 gasoline, was readied for industrial production in 2016. Large-scale projects implemented during the reporting period include the 2015 launch of the oil residue processing unit at the Perm refinery, and the 2016 launch of Russia’s largest vacuum gas oil deep processing complex at the Volgograd refinery. The conclusion of the upgrade program marked the complete fulfillment by the Company of its obligations under the 2011 quadruple agreement between oil companies, the Russian Federal Antimonopoly Service, the Federal Service for Environmental, Technological, and Nuclear Supervision (Rostekhnadzor) and the Federal Agency for Technical Regulation and Metrology (Rosstandart).
In 2012, all Russian refineries of the LUKOIL Group transferred to EURO 5 (European emission standard 5) car fuels, which is mandatory for Europe and became mandatory in Russia in 2016.
The LUKOIL Neftohim Burgas refinery in Bulgaria also underwent a large-scale upgrade, which saw a unique complex being constructed from 2012 to 2015 to process hard residues using the H-oil tar hydrocracking technology. The facility converts high sulphur residual tar to Euro 6 standard light oil and the pollutant emission levels during the refining process are significantly below normative values.
|Primary oil processing, thousand tons||68,419||65,385||66,805|
|Petroleum product output, thousand tons||65,805||61,750||63,069|
|Natural gas treatment, million cubic meters||14.3||284.4||366.8|
|NGL processing, thousand tons||710.0||550.1||392.0|
Lubricants are produced at Russian plants in Perm, Volgograd and Tyumen, at Company-owned plants in Romania, Finland, Turkey and Austria (managed by OOO LLK-International), and by joint enterprises. A plant with a 100,000 ton annual capacity is being built in Kazakhstan.
There are 600 lubricants and oils, including products that were designed by the Company’s R&D. Many products have won the approval of leading carmakers and equipment manufacturers and represent a quality alternative to imported products in Russia. Consumers include, among others, carmakers, authorized service centers, and public transport companies.