Key strategic goals and points

G4-2

In the long-term, the LUKOIL Group is focused on consistent value creation, as well as on increasing the level of environmental, industrial and social security.

Strategic goals of the LUKOIL Group:

  • Strengthening positions in the industry.
  • Financial stability.
  • Optimal balance.
  • High corporate responsibility.

The Company has set the following key strategic points:

  • financial stability and reasonable balance between current shareholders’ profits and long-term capital investment;
  • a balanced portfolio of projects that fully uses the potential of diversification and vertical integration and ensures the best return-risk ratio;
  • development of technological competence and increased energy efficiency;
  • planning activities around the principles of social and economic responsibility.

Key strategic points are formulated at the level of business sectors and business segments and are broken down by project portfolios and strategic groups of assets. This helps design balanced branch-wise development programs and build an optimal investment project portfolio on their basis.

Key strategic points
Upstream Business Segment Downstream Business Segment
Upstream in Russia Business Sector Oil Refining in Russia Business Sector
  • Ensuring a stable increase in hydrocarbon production.
  • Revival of the resource base: continuation of geological surveys in the Company’s regions of presence.
  • Increasing the operational efficiency of older deposits and introducing more efficient production at newer ones, which are currently low-margin.
  • Enhancement of technological efficiency of reserve development and introduction of new, highly efficient technologies for cost-effective development of hard-to-recover reserves.
  • Implementation of targeted projects to increase the conversion rate and production of premium fuels.
  • Ensuring optimal refining load, based on a balanced production program in view of market conditions
Petrochemicals Business Sector
Increasing production efficiency through synergy with oil processing
Product Marketing in Russia Business Sector
Improving business consumer focus
Power Engineering Business Sector
Increasing the efficiency and reliability of commercial generation facilities, optimizing low-efficiency assets, upgrading thermal generation assets
Upstream Abroad Business Sector Oil Processing Abroad Business Sector
  • Development of the resource base: continuation of geological surveys in Norway, Iraq and Mexico.
  • Development of priority projects: construction of the Kandym Gas Processing Complex (Uzbekistan), implementation of the Gissar. Full Development Project (Uzbekistan)
Ensuring optimal refining load, based on a balanced production program in view of market conditions
Lubricant production
Optimizing low-margin areas, expanding delivery range, increasing the range of the oil product portfolio
Product Marketing Abroad Business Sector
Optimizing European marketing assets that are not integrated into the general business model As of the Report publication date the program has been completed.
On top