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PRESS-RELEASE
07.04.2016
LUKOIL BECOMES A PRIORITY MOTOR OIL SUPPLIER IN RUSSIA

Lube plants of PJSC “LUKOIL” in Vienna, Perm and Volgograd have successfully completed the certification process for ISO/TS 16949:2009 international car industry standard.

LUKOIL is now the only lube producer in Russia and CIS, complying with international requirements of car manufacturers to motor oils producers, qualifying for alternative lube suppliers. The fact that LUKOIL operates more than one plant guarantees continuous supplies and is seen by car manufactures as an important advantage when selecting a producer of first filling oil.

Earlier in 2015, LUKOIL certified LUKOIL Lubricants Austria, its lube plant in Vienna, as complying with VDA 6.3 standard of the German Association of the Automotive Industry. This allowed the company in the ranks of priority suppliers for the German car industry.

For reference:

ISO/TS 16949:2009 is the principal international industry standard, establishing up-to-date requirements on quality management at plants, supplying products to car manufacturers. As of today, all major car manufacturers give preference to lube producers, complying with ISO/TS 16949:2009.

PRESS-RELEASE
06.04.2016
LUKOIL GRANTED RIGHT TO USE SUBSOIL AREA OF FEDERAL IMPORTANCE IN THE BALTIC SEA

In accordance with Directive of the Russian Federation Government OOO “LUKOIL-Kaliningradmorneft” (a 100% subsidiary of PJSC “LUKOIL”) was granted the right to use a subsoil block of federal significance which includes D29 and D41oil fields located in the Baltic Sea for the purpose of hydrocarbon exploration and production.

The fields were discovered in 2015. Exploration wells were drilled with a jack-up drilling rig “Arktichesksaya” of OOO “Gazprom Flot”.

Recoverable oil reserves are estimated as 2.126 mln tons at D29 field and 2.003 mln tons at D41 field.

PRESS-RELEASE
04.04.2016
LUKOIL EBITDA FOR 2015 REACHED 769 BLN RUB, PROFIT FOR THE YEAR REACHED 291 BLN RUB, OIL PRODUCTION INCREASED BY 3.6 % 

PJSC LUKOIL publishes its first consolidated financial statements prepared in accordance with International Financial Reporting Standards (''IFRS''). Transition to IFRS was made in line with requirements of Federal Law ?208-FZ dated 27.07.2010 «On Consolidated Financial Statements». The date of transition to IFRS is 1 January 2014.

EBITDA for 2015 amounted to 769 billion rubles. Profit for the year amounted to 291 billion rubles, profit for the year excluding one-off non-cash items reached 452 billion rubles.

Capital expenditures in 2015 were 607 billion rubles. Free cash flow amounted to 248 billion rubles.

In 2015, LUKOIL Group total hydrocarbon production* increased by 2.8 % y-o-y and reached 2.379 million boe per day. Crude oil production* increased by 3.6 % y-o-y to 100.7 million tons. The increase was mainly due to the production from West Qurna-2 project in Iraq.

* -produced by the Group including our share in equity affiliates.

Consolidated Statement of Profit or Loss and Other Comprehensive Income

 

2015

2014

 
 

(millions of rubles)

   

Revenues

     

Sales (including excise and export tariffs)

5,749,050

5,504,856

 

Costs and other deductions

     

Operating expenses

(446,719)

(368,505)

 

Cost of purchased crude oil, gas and products

(2,891,674)

(2,781,856)

 

Transportation expenses

(297,977)

(215,198)

 

Selling, general and administrative expenses

(168,669)

(146,550)

 

Depreciation, depletion and amortization

(350,976)

(293,052)

 

Taxes other than income taxes

(522,620)

(467,732)

 

Excise and export tariffs

(575,509)

(807,401)

 

Exploration expenses

(29,177)

(12,228)

 

Profit from operating activities

465,729

412,334

 

Finance income

17,763

10,999

 

Finance costs

(48,224)

(29,727)

 

Equity share in income of affiliates

7,047

19,888

 

Foreign exchange gain

110,912

167,235

 

Other expenses

(164,123)

(95,874)

 

Profit before income taxes

389,104

484,855

 

Current income taxes

(100,335)

(103,303)

 

Deferred income taxes

3,976

12,524

 

Total income tax expense

(96,359)

(90,779)

 

Profit for the year

292,745

394,076

 

(Profit) loss for the year attributable to non-controlling interests

(1,610)

1,449

 

Profit for the year attributable to PJSC LUKOIL shareholders

291,135

395,525

 
           

Earning per share of common stock attributable to PJSCLUKOIL (in rubles):

     

Basic

408.36

554.79

 

Diluted

405.15

541.90

 

Full version of consolidated financial statements of PJSC LUKOIL for the 2015 prepared in accordance with IFRS is available on the Company’s web sites: www.lukoil.com and www.lukoil.ru

 

PRESS-RELEASE
05.04.2016
PRESS SERVICE STATEMENT

The Press Service of PJSC LUKOIL would like to inform all concerned parties that on 31.03.2016 a legal entity was incorporated called Limited Liability Company LUKOIL-REZERVNEFTEPRODUKT (abbreviated company name OOO LUKOIL-REZERVNEFTEPRODUKT, OGRN 1167746323580, INN 7723439522, address: 232-118 Lyublinskaya Street, Moscow, 119144, sole shareholder Aleksey Victorovich Vykhodtsev, INN 772334755720) which has no relation to the LUKOIL Group.

The Press Service of the Company reports that PJSC LUKOIL Group includes Limited Liability Company LUKOIL-Rezervnefteprodukt (abbreviated company name OOO LUKOIL-Rezervnefteprodukt, OGRN 1097746100187, INN 7709825967, registered address: 1 Bolshaya Ordynka Street, Moscow, Russia, sole shareholder PJSC LUKOIL, OGRN 1027700035769, INN 7708004767).

PJSC LUKOIL and LUKOIL Group entities have no legal relations with OOO LUKOIL-REZERVNEFTEPRODUKT (OGRN 1167746323580, INN 7723439522) and are not responsible for any undesirable implications which may arise for any third parties as a result of their dealings with LUKOIL-REZERVNEFTEPRODUKT (OGRN 1167746323580, INN 7723439522) and/or any persons representing it.

PJSC LUKOIL is undertaking a package of legal measures as provided by the effective legislation of the Russian Federation to prevent potential negative consequences of LUKOIL-REZERVNEFTEPRODUKT's activities, the improper use of the company name which is identical to the brand name of the right holder as well as other actions aimed at restoring the violated rights and legal interests of OOO LUKOIL-Rezervnefteprodukt as a result of the above circumstances.

PRESS-RELEASE
01.04.2016
LUKOIL ADOPTS UNIQUE MULTI-STAGE HYDROFRACTURING TECHNOLOGY TTS

PJSC LUKOIL has successfully introduced TTS technology in multi-stage hydrofracturing in horizontal wells. The technology was implemented at Western Siberia oil fields. TTS technology in multi-stage hydrofracturing (MSF) helps increasing the productivity of low permeability formations by creating an artificial reservoir.


The application of this innovative approach has resulted in increased oil production rates by 1.2-1.6 times compared to the conventional MSF which allowed for a more effective development of pay zones. 


OOO LUKOIL-Western Siberia (
? wholly-owned subsidiary of PJSC LUKOIL) operates 20 horizontal wells involving multi-stage fracturing based on TTS technology, including 10 wells on the Imilorsko-Istochnoye field with an average flow rate of 68 tons/day and 10 wells on the Tevlinsko-Russkinskoye, Potochnoye and Severo-Pokachevskoye fields.


Implementation of this unique technology has allowed for increasing well production rates at average 32% and improving the technical and economic parameters of tight reservoir development.


In 2015-2016, TTS multi-stage fracturing technology is included in field development design and process documentation as design solution.

For reference:

PJSC LUKOIL was the first in Russia to successfully put the multi-stage hydrofracturing technology in full-scale use in horizontal wells on its Western Siberia fields in 2011. LUKOIL has been using TTS technology since 2013.