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OAO LUKOIL presented the indicators of its production and social  performance in the Southern Federal Okrug (SFO), in Astrakhan today, and also  an outlook for the corporate development in the district. The ceremony was  attended by Vladimir Ustinov, Presidential Plenipotentiary Envoy to the Southern  Federal District; Alexander Zhilkin, Astrakhan Region Governor;  Aleksey Orlov, Head of the Republic of Kalmykia; Igor Stefanenko, Volgograd Region First Deputy Governor;and Alexander Stetsenko, Chief Federal Inspector for the Astrakhan  Region.

Heads of OAO LUKOIL and those of the major organizations of LUKOIL Group  operating in the Southern Federal District (RITEK, LUKOIL-Nizhnevolzhskneft, LUKOIL-Volgogradneftepererabotka,  LUKOIL-Nizhnevolzhsknefteprodukt, LUKOIL-Engineering, a number of energy  companies) spoke about their key performance indicators, the results they had  achieved and the plans they had.

The presentation also covered such issues as the development of the  fuel-and-energy complex of the Southern Federal  District and the results of interaction between OAO LUKOIL and the  regional executive authorities.

“The Southern Federal District is very  promising for our company in terms of oil and gas production, including offshore  production, and in terms of power engineering and hydrocarbon processing. Also  helpful here are the favorable investment climate and the efficient terms of the  private-public partnership”, OAO LUKOIL President Vagit Alekperov  commented.

Beginning from 2014, the event in Astrakhan is the third time LUKOIL presents the  performance indicators of its production and social activities in one of the  districts where it operates.

Production of ethylene and propylene was  resumed today at  the Stavrolen petrochemical complex (a wholly-owned  OAO LUKOIL subsidiary) in Budennovsk (Stavropol Territory).

Thus,  LUKOIL has completed its repair-and-maintenance operations at the  ethylene-production unit damaged by fire on February 26, 2014.

The repair-and-renewal operations were conducted according to the  approved schedule. Polypropylene production from imported feedstock was resumed  as far back as last October.

Re-equipment of ethylene production was  conducted as part of the repair-and-renewal operations in order to expand the  gas-feedstock processing capacity. The re-equipment included the reconstruction  of cracking furnaces, fuel-gas skids, gas-feedstock evaporation complexes and  water-flush columns.

For  reference:

OOO  Stavrolen is Russia’s second largest low-pressure  polyethylene manufacturer and the third largest polypropylene  manufacturer.

Yearly, the enterprise processes over 900 thousand tons of pyrolysis  feedstock (straight-run naphtha and liquefied petroleum gas) supplied by rail  from LUKOIL Group's oil refineries and gas-processing plants in  Russia.

???  Stavrolen produces more than 300 thousand tons of polyethylene, 80 thousand tons  of benzene, 50 thousand tons of vinyl acetate and 120 thousand tons of  polypropylene.

Low-pressure polyethylene (of high and medium density) is its core  product.

LITASCO SA, the exclusive international marketing and trading  company of OAO LUKOIL, together with its Joint Venture partner Burando Maritime  Services, a leading maritime services provider in the  Amsterdam-Rotterdam-Antwerp region have entered into an agreement to sell 100%  of their respective shares of Service Terminal Rotterdam v.o.f. (“STR”) to iCON  Infrastructure Partners II, L.P..  The transaction was entered into  following two months of exclusive discussions and is expected to close at the  end of April 2015.
STR is a modern, purpose built bunker fuel terminal  strategically located in the Port of Rotterdam (Netherlands) with  242,000m3 storage capacity across two tank farms and a total quay  length of 450 meters. The project was implemented by a joint venture (50/50)  established in 2003 between LITASCO and the Dutch company Burando Maritime  Services.
In line with the agreement and its development  strategy, LITASCO will remain the primary user of STR under a long-term  exclusive contract.

??? LLK-International (a wholly-owned subsidiary of OAO LUKOIL) will  supply LUKOIL-branded lubricants to the assembly facility and the service  centers of OOO MAN Truck & Bus RUS. The lubes will be used in trucks and  buses of the MAN and NEOPLAN brands manufactured and serviced here. 

“Cooperation with MAN Truck & Bus RUS is an important  stage in the implementation of an OAO LUKOIL program of import substitution for  lubricants. Cooperation with the Russian office of Germany’s leading auto group  will considerably strengthen the  positions of OOO LLK-International in the lube markets both in Russia and internationally, thus  helping to achieve a whole new level of interaction with  the global carmaker”, Maksim Donde, General Director of OOO LLK-International,  commented.

LUKOIL President Vagit Alekperov took part in a meeting between the  Iraqi Prime Minister, Haider al-Abadi, and Mikhail Bogdanov, the Russian  President's Special Representative for the Middle East and Africa,  Russia’s Deputy Minister of Foreign  Affairs. The latter conveyed the RF President’s invitation to the Iraqi leader  to pay an official visit to Moscow.

The letter of invitation says, specifically, “I would like to express  my gratitude for your personal concern about the activities of the Russian oil  business. I am convinced that the profound experience of our oilmen and the  cutting-edge technologies they use will further contribute to the development of  your country’s energy potential”.

The meeting focused on issues related to the activities of Russian  companies operating in Iraq and on the implementation of the West Qurna-2  field-development project – as well issues related to various new initiatiaves.  Messrs. Bogdanov and Alekperov also assured the Iraqi prime minister  that the Russian business was interested in still better cooperation with Iraq and in  broader investments in the country’s economy.