Russia’s second largest oil company: Lukoil PJSC LUKOIL (LUKOY)

PJSC Lukoil Oil Company (OTC PINK: LUKOY, MCX: LKOH, LSE: LKOD, FWB: LUK) was founded on November 25, 1991 and is headquartered in Moscow, Russia, with 110,000 full-time employees (2014). Russia’s second largest oil company, oil production is also the second largest. Luke is the second largest company in the world with crude oil reserves.

Lukoil logo


PJSC Lukoil is a Russian multinational energy company headquartered in Moscow, specializing in oil and natural gas extraction, processing, transportation, refining, sales and distribution.

PJSC Lukoil was founded in 1991, when three state-owned West Siberian companies were named after the respective towns of Khanty-Mansi Autonomous Okrug. These companies were located in Langepasneftegaz, Urayneftegaz and Kogalymneftegaz. Their name is a combination of the acronym LUK (Langepas, Uray, the first letter of the oil-producing city of Kogalym) and the English word “oil”.

Lukoil is the second largest company in Russia after Gazprom . It is also the country’s largest non-state-owned enterprise (revenue of US$4.744 billion). Internationally, it is one of the world’s largest crude oil producers. In 2012, the company produced 89.856 million tons of oil per day (1.813 million barrels). The company has operations and subsidiaries in more than 40 countries around the world.

The exploration and production department of Lukoil is responsible for the exploration, development and production of crude oil. Lukoil’s refining, marketing and distribution departments process crude oil into refined products; purchase, sell and transport crude oil and refined petroleum products; refine and sell chemical products; and produce and distribute steam and electricity, and provide related services.

Lukoil operates 5,556 gas stations in 35 countries and sells its own third-party crude oil and refined products through wholesale and retail channels in Russia, Europe, Southeast Asia, Central America and North America, and internationally.

Lukoil PJSC LUKOIL (LUKOY) History (2000-present):

  • In 2000, Lukoil acquired the American oil company Getty Oil, thereby controlling the US gas station network and Lukoil entering the US oil market for the first time.
  • In September 2004, ConocoPhillips acquired a 7.6% stake in Lukoil for approximately US$2 billion. According to reports, the sale of the transaction took place before a private meeting between Russian President Vladimir Putin and ConocoPhillips President and CEO James Mulva. After the auction, Lukoil and ConocoPhillips announced the establishment of a strategic alliance. Later, the American company increased its equity to 20% of Lukoil and sold it to the Russian company’s gas station network in the United States and Western Europe. The two oil companies also agreed to jointly develop an oil and gas field in the Timan-Pechora region (Komi Republic) in northern Russia.
  • On August 30, 2006, Ergash Shaismatov, Deputy Prime Minister of Uzbekistan, announced that the Uzbek government and an international consortium composed of state-owned Uzbekneftegaz, Lukoil Overseas, Petronas, Korea National Petroleum Corporation and China National Petroleum Corporation signed a production sharing agreement to Explore and develop Aral Sea oil and gas fields.
  • In December 2006, Lukoil announced the acquisition of ConocoPhillips ’ 376 gas stations in six European countries: Belgium, Czech Republic, Finland, Hungary, Poland and Slovakia.
  • In 2007, Lukoil established a joint venture with the Russian energy company Gazprom , and in 2008 established a joint venture with the Italian oil company ERG SpA.
  • In 2009, Lukoil and Statoil, a Norwegian oil company , won an offer to acquire the West Qurna oil field in Iraq. However, in early 2012, Statoil withdrew from the project, and Lukoil occupied 75% of the oilfield development.
  • From 2010 to February 2011, due to financial difficulties, ConocoPhillips sold all its 20% shares in Lukoil.
  • In September 2012, Lukoil established a shared service center in the Czech Republic to provide accounting services for its subsidiaries in Belgium, Poland and Bulgaria.
  • In December 2012, LUKOIL purchased the Imilor oil field in the Khanty-Mansi Autonomous Region at a price of 50.8 billion to explore and develop the hydrocarbon deposits located there.
  • In February 2013, Lukoil sold its Odessa Oil Refinery (Odessa Oil Refinery) to the Ukrainian “East European Fuel and Energy Company” (VETEK).
  • In April 2013, Lukoil agreed to acquire the Russian subsidiary of Hess Corporation for US$2.05 billion .
  • In 2014, Lukoil’s retail sales in Ukraine dropped sharply by 42% due to Russia’s occupation of Crimea, Ukraine. Therefore, Lukoil announced at the end of July 2014 that the management agreed to sell 100% of its subsidiary Lukoil Ukraine to the Austrian company AMIC Energy Management.
  • In 2014, Lukoil sold its service stations in the Czech Republic, Slovakia and Hungary.
  • In 2015, Lukoil sold its service stations in Estonia and Ukraine.
  • In 2016, Lukoil sold its service stations in Latvia, Lithuania, Poland and Cyprus.
Notify of
Inline Feedbacks
View all Intels

Bank holding company: First Bancorp (FBP) (1948)

Russia’s fifth largest steel company: Chelyabinsk Steel Mechel PAO (MTL) (2003)