55% 101 2.20 23,602 70% - LUKOIL · LUKOIL in Russia and the World LUKOIL Is a majOR InteRnatIOnaL...

ANALYST DATABOOK

2012

0.85.5

2.20

19.2

0.7

24%

70%

14,340

23,602

7,655

10155%0.85.519.2

2.200.7

24%

70%

14,340

23,602

7,655

10155%

0.20.2

Analyst Databook 2012

1

LUKOIL In RUssIa and the wORLd 2

Exploration and Production 4

Geological Exploration 4

Hydrocarbon Reserves 6

Oil Reserves 8

Gas Reserves 10

FIeLd deveLOpment and pROdUctIOn 12

Field Development 12

Hydrocarbon Production 16

Oil Production 17

Gas Production 19

Major fields of LUKOIL Group in Russia 20

International projects 1 of LUKOIL Group 26

ReFInIng and gas pROcessIng 30

Oil Refining 30

Gas Processing 40

Gas Production and Supply Structure 41

Power Generation 42

Petrochemicals 44

maRKetIng 46

Trade Balance of LUKOIL Subsidiaries (2011) 46

IndUstRIaL saFety and envIROnment pROtectIOn 51

FInances 52

Company Shares 52

Macroeconomic Environment and Tax Environment 55

Consolidated Financial Statements 57

Financial Ratios 62

appendIx 70

Glossary 70

Reference Information 72

2

LUKOIL in Russia and the World

LUKOIL Is a majOR InteRnatIOnaL veRtIcaLLy-IntegRated OIL and gas cOmpany

geological exploration, preparation for production

production of Oil, gas & gas condensate

petrochemicals

Oil Refining and gas processing

power generation

marketing

share of LUKOIL group in the global oil & gas industry, %

share of Russian entities of LUKOIL group in the Russian oil & gas industry, %

2007 2008 2009 2010 2011 Proved oil reserves 1.25 1.09 1.03 0.96 0.81Proved gas reserves 0.45 0.45 0.35 0.36 0.32Proved hydrocarbon reserves

0.88

0.80

0.72

0.69

0.60

Oil production 2.35 2.30 2.40 2.23 2.20 Gas production 0.56 0.64 0.59 0.58 0.57 Hydrocarbon production

1.70

1.68

1.73

1.72

1.57

Refining capacities 1.34 1.51 1.58 1.56 1.58 Refinery throughputs

1.39

1.50

1.71

1.78

1.73

2007 2008 2009 2010 2011 Proved oil reserves 20.5 18.7 17.6 16.4 14.5 Proved gas reserves 1.5 1.5 1.0 1.1 1.1 Proved hydrocarbon reserves

5.7

5.3

4.7

4.5

4.5

Oil production wells 17.5 17.7 17.8 17.9 18.0Oil production 18.54 18.41 18.59 17.77 16.61Gas production 2.09 2.14 2.12 2.61 2.60Hydrocarbon production

10.09

10.14

10.61

10.72

9.34

Oil exports 16.66 16.52 17.08 16.43 14.71Refining capacities 16.2 16.0 16.1 16.4 16.0 Refinery throughputs

18.69

18.75

18.88

18.17

17.66

Petroleum product exports

22.35

22.36

22.33

19.66

19.20

3


comparison of LUKOIL group indicators in Russia with national averages

2007 2008 2009 2010 2011

Flow rate of oil wells, tons per day

LUKOIL 11.0 10.5 10.6 10.2 9.5

National average 10.2 9.9 9.9 10.0 9.9

Share of idle wells in total oil production wells, %

LUKOIL 15.3 14.7 14.9 14.6 12.8

National average 16.4 16.0 16,3 15.3 15.1

Watercut of oil wells, %

LUKOIL 80.9 82.2 82.1 83.3 84.7


Depth of refining, %

LUKOIL 74.0 76,0 74.8 75.0 73.7


Light products yield, %

LUKOIL 49.9 50.4 50.1 48.5 51.9


Share of high-octane gasoline in overall production of motor gasoline, %

LUKOIL 83.5 87.0 89.7 93.9 96.2


4

Exploration and Production

2d seismic prospecting, km

3d seismic prospecting, km2

proved hydrocarbon reserve extensions and discoveries, mln boe

geo electrics, km

geOLOgIcaL expLORatIOn

geological exploration

2007 2008 2009 2010 2011 2D seismic prospecting, km 7,736 6,266 2,446 6,178 6,0613D seismic prospecting, km2 5,451 2,973 4,548 5,840 4,312VSP 1, wells. 30 15 9 8 15Geoelectrics, km 2,513 3,603 2,267 793 247

1 Vertical seismic profiling.

exploration drilling by regions, th. meters 2007 2008 2009 2010 2011 Total 143 150 80 119 159 Russia 130 123 63 102 121

Western Siberia 54 63 29 45 43 Urals 9 9 8 14 15 Volga 31 17 11 14 20

including Caspian 4 6 2 4 6 Timan-Pechora 18 18 10 9 21 Bolshekhetskaya Depression 6 4 – 3 9 Other 12 12 5 17 13

International 13 27 17 17 38

number and average depth of exploration wells drilled in Russia 2007 2008 2009 2010 2011 Number of wells 49 41 36 26 48Average depth, meters 2,797 2,553 2,632 2,675 2,722

number of newly discovered fields and strata at existing fields

2007 2008 2009 2010 2011 Fields 7 8 1 6 6

Oil (including oil, gas and condensate)

7 8 1 4 6

Gas – – – – – Gas condensate – – – 2 –

Strata 17 18 17 25 20 Oil 13 18 17 25 20 Gas – – – – – Gas condensate 4 – – – –

proved reserve extensions and discoveries, mln boe 2007 2008 2009 2010 2011 Oil 518 529 540 570 520Gas 141 72 77 55 92Hydrocarbons 659 601 617 625 612

5


proved reserve replacement by extensions and discoveries, %1

2007 2008 2009 2010 2011 Oil 73 75 75 81 77Gas 146 63 73 44 70Hydrocarbons 81 74 75 75 76

1 Starting from 2006 reserves are calculated on the basis of total gas production including losses, own use and reinjection.

exploration expenses, mln USD

2007 2008 2009 2010 2011 Total expenses 558 679 394 435 873 Subsidiaries 546 670 383 419 865

Russia 366 313 162 199 358 International 180 357 221 220 507

Affiliates 12 9 11 16 8 Russia 12 9 10 16 8 International – – 1 – –

Finding & development costs of LUKOIL group subsidiaries

Finding and development costs = Exploration expenses + Development expenses + Acquisition of unproved reserves

Proved reserve extensions and discoveries

2005–2007 2006–2008 2007–2009 2008-2010 2009-2011Reserve extensions and discoveries, mln barrels 1,899 1,824 1,833 1,824 1,841Exploration expenses, mln USD 1,437 1,684 1,599 1,472 1,667Acquisition of unproved reserves, mln USD 2,347 1,341 590 92 272Development expenses, mln USD 13,547 18,201 17,981 15,908 14,340F&D costs, USD per barrel 9.13 11.64 11.00 9.58 8.84

exploration drilling by region, %

6

hydROcaRbOn ReseRves

proved hydrocarbon reserves of LUKOIL group by regions, % proved hydrocarbon reserves in international projects (31.12.2011)

hydrocarbon reserves of LUKOIL group (end of year), mln boe

2007 2008 2009 2010 2011 Proved 20,369 19,334 17,504 17,255 17,269

Developed 11,402 10,490 10,126 10,270 10,352Undeveloped 8,967 8,844 7,377 6,985 6,917

Probable 12,187 11,767 9,820 8,455 8,415Possible 6,301 5,282 5,054 3,167 3,939Total 38,857 36,383 32,378 28,877 29,623

proved hydrocarbon reserves of LUKOIL group (end of year), mln boe

2007 2008 2009 2010 2011 Total 20,369 19,334 17,504 17,255 17,269Russia 19,030 17,580 15,736 15,495 15,628

Western Siberia 8,977 8,085 7,622 7,614 7,524

Urals 2,230 2,165 2,124 2,033 2,169Volga 1,699 1,670 895 845 974

Including Caspian 1,417 1,386 648 623 734Timan-Pechora 3,465 3,017 2,735 2,533 2,550Bolshekhetskaya Depression 2,410 2,409 2,129 2,247 2,188Other 249 234 231 223 224

International projects 1,339 1,754 1,768 1,760 1,641Hydrocarbon reserves replacement ratio,% 101 -27 -122 70 102Hydrocarbon reserves to production ratio, years 25 25 25 25 25

7


proved hydrocarbon reserves in international projects, mln boe

3p hydrocarbon reserves of LUKOIL group and contingent resources, bln boe

proved hydrocarbon reserves of LUKOIL group, % (31.12.2011)

probable hydrocarbon reserves of LUKOIL group (end of year), mln boe

2007 2008 2009 2010 2011 Total 12,187 11,767 9,820 8,455 8,415Russia 11,960 11,493 9,624 8,254 8,234

Western Siberia 7,087 6,789 6,094 5,716 5,928Urals 416 418 461 489 554Volga 3,286 3,394 1,961 971 732Timan-Pechora 1,120 845 1,057 1,030 961Other 52 47 51 48 59

International projects 227 274 196 201 181

possible hydrocarbon reserves of LUKOIL group (end of year), mln boe 2007 2008 2009 2010 2011 Total 6,301 5,282 5,054 3,167 3,939Russia 6,185 5,233 5,023 3,052 3,838

Western Siberia 1,729 978 1,627 1,654 2,415Urals 1,141 514 793 763 204Volga 168 176 194 128 344Timan-Pechora 3,081 3,517 2,378 483 842Other 66 49 31 24 33


Factors of change in proved hydrocarbon reserves, mln boe 2007 2008 2009 2010 2011 Reserves at start of year 20,360 20,369 19,334 17,504 17,255

Extensions and discoveries 659 601 617 625 612Production -809 -817 -824 -834 -801Acquisition and sale of reserves

-31

274

148

62

7

Revision of previous estimates 190 -1,093 -1,771 -102 196Reserves at end of year 20,369 19,334 17,504 17,255 17,269


proved hydrocarbon reserves in international projects (end of year), mln boe 2007 2008 2009 2010 2011 Azerbaijan

Shakh-Deniz 90 107 103 65 54Kazakhstan

Tengiz and Korolevskoye 142 145 262 248 247Kumkol 80 70 71 57 46Karachaganak 347 556 389 394 335Arman 2 1 1 1 1Karakuduk 34 33 32 31 30North Buzachi 41 35 38 37 35Kazakhoil-Aktobe 35 32 36 29 27

EgyptMeleiha 3 4 5 4 4WEEM 5 7 5 4 3WEEM ext – – – – 0.2

Uzbekistan Kandym – Khauzak – Shady 554 513 526 569 593South-West Gissar – 250 300 259 202

Colombia Condor 6 1 – – –

Iraq West Qurna-2 – – – 62 64

Total 1,339 1,754 1,768 1,760 1,641

8

OIL ReseRves

Oil reserves of LUKOIL group (end of year), mln barrels

2007 2008 2009 2010 2011 Proved 15,715 14,458 13,696 13,319 13,403



proved oil reserves of LUKOIL group (end of year), mln barrels

2007 2008 2009 2010 2011 Total 15,715 14,458 13,696 13,319 13,403Russia 15,220 13,866 13,080 12,687 12,817

Western Siberia 8,616 7,798 7,305 7,222 7,089

Urals 2,151 2,082 2,040 1,940 2,064Volga 657 623 669 623 749

Including Caspian 407 376 450 429 540Timan-Pechora 3,346 2,912 2,649 2,445 2,457Bolshekhetskaya Depression 203 219 187 236 238Other 247 232 230 221 221

International projects 495 592 616 632 586Oil reserves replacement ratio,% 70 -79 -6 47 113Oil reserves to production ratio, years 22.0 20.6 19.0 18.8 20

proved oil reserves of LUKOIL group by regions, %

9


proved oil reserves of LUKOIL group in international projects, mln barrels

3p oil reserves of LUKOIL group, bln barrels

proved oil reserves in international projetcs, % (12.31.2011)

probable oil reserves of LUKOIL group (end of year), mln barrels

2007 2008 2009 2010 2011 Total 8,679 8,083 7,293 6,474 6,669Russia 8,554 8,015 7,265 6,361 6,568

Western Siberia 5,813 5,469 4,776 4,366 4,631Urals 405 407 450 415 479Volga 1,191 1,266 954 527 462Timan-Pechora 1,093 826 1,034 1,005 939Other 52 47 51 48 57


possible oil reserves of LUKOIL group (end of year), mln barrels 2007 2008 2009 2010 2011 Total 4,446 3,333 3,683 2,780 3,531Russia 4,373 3,309 3,669 2,675 3,446

Western Siberia 1,481 757 1,414 1,357 2,079Urals 164 172 189 116 198Volga 1,538 1,826 1,262 445 318Timan-Pechora 1,124 505 773 733 819Other 66 49 31 24 32


Factors of change in proved oil reserves, mln barrels 2007 2008 2009 2010 2011 Reserves at start of year 15,927 15,715 14,458 13,696 13,319

Extensions and discoveries 518 529 540 570 520Production -713 -703 -720 -708 -671Acquisition and sale of reserves

-31

41

124

62

7

Revision of previous estimates 14 -1,124 -706 -301 228Reserves at end of year 15,715 14,458 13,696 13,319 13,403

proved oil reserves in international projects (end of year), mln barrels 2007 2008 2009 2010 2011 Azerbaijan


Tengiz and Korolevskoye 117 120 217 206 206Kumkol 78 68 69 55 43Karachaganak 157 246 167 166 144Arman 2 1 1 1 1Karakuduk 34 33 30 29 28North Buzachi 41 35 38 36 34Kazakhoil-Aktobe 35 32 31 28 26

Egypt Meleiha 3 4 5 4 4WEEM 5 7 5 4 3WEEM ext. – – – – 0.2

Uzbekistan Kandym – Khauzak – Shady 6 10 6 6 8South-West Gissar – 17 31 23 15

Colombia Condor 6 1 – – –

Iraq West Qurna-2 – – – 62 64

Total 495 592 616 632 586

10

gas ReseRves

proved gas reserves of LUKOIL group by regions, %

gas reserves of LUKOIL group (end of year), bcf

2007 2008 2009 2010 2011 Proved 27,921 29,253 22,850 23,615 23,196



proved gas reserves of LUKOIL group (end of year), bcf

2007 2008 2009 2010 2011 Total 27,921 29,253 22,850 23,615 23,196Russia 22,853 22,281 15,939 16,847 16,865

Western Siberia 2,163 1,726 1,899 2,354 2,610

Urals 471 496 505 558 630Volga 6,255 6,278 1,354 1,332 1,348

Including Caspian 6,057 6,060 1,191 1,165 1,165Timan-Pechora 709 631 515 527 559Bolshekhetskaya Depression 13,243 13,138 11,658 12,064 11,700Other 12 12 8 12 18

International projects 5,068 6,972 6,911 6,768 6,331Gas reserves replacement ratio, % 329 294 – 202 46Gas reserves to production ratio, years 48.2 42.6 36.5 31.4 29.7

11


proved gas reserves of LUKOIL group in international projects, tcf

3p gas reserves of LUKOIL group, tcf

proved gas reserves in international projects (12.31.2011)

probable gas reserves of LUKOIL group (end of year), bcf

2007 2008 2009 2010 2011 Total 21,048 22,103 15,163 11,888 10,476Russia 20,438 20,865 14,153 11,360 9,992

Western Siberia 7,642 7,916 7,906 8,103 7,785Urals 65 63 67 443 446Volga 12,569 12,769 6,042 2,664 1,623Timan-Pechora 161 116 137 149 135Other 1 1 1 1 3

International projects 610 1,238 1,010 528 484

possible gas reserves of LUKOIL group (end of year), bcf 2007 2008 2009 2010 2011 Total 11,134 11,694 8,226 2,318 2,453Russia 10,877 11,545 8,125 2,257 2,358

Western Siberia 1,493 1,323 1,281 1,776 2,017Urals 23 23 28 71 40Volga 9,259 10,144 6,698 230 159Timan-Pechora 100 54 118 179 141Other 2 1 – 1 1


Factors of change in proved gas reserves, bcf 1 2007 2008 2009 2010 2011 Reserves at start of year 26,597 27,921 29,253 22,850 23,615

Extensions/discoveries 844 435 458 328 550Production -579 -686 -626 -753 -781Acquisition and sale of reserves

5

1,399

143

–

1

Revision of previous estimates 1,054 184 -6,378 1,190 -189Reserves at end of year 27,921 29,253 22,850 23,615 23,196


proved gas reserves in international projects (end of year), bcf 2007 2008 2009 2010 2011 Azerbaijan


Tengiz and Korolevskoye 151 152 267 252 245Karachaganak 1,137 1,861 1,332 1,367 1,148Kumkol 14 13 13 9 15Karakuduk – – 14 12 11Kazakhoil-Aktobe – – 27 8 9North Buzachi – – – 4 10Arman – – – 1 –

Uzbekistan Kandym – khauzak– Shady 3,290 3,019 3,119 3,379 3,512South-West Gissar – 1,395 1,616 1,417 1,119

Total 5,068 6,972 6,911 6,768 6,331

12

Field Development and Production

production drilling, th. meters

development expenses, mln USD

Oil production wells in use by regions (12.31.2011)

FIeLd deveLOpment

number of fields put into operation and their reserves (at the end of year when they were put into operation) 2007 2008 2009 2010 2011 Fields 13 11 8 11 4Reserves (proved, probable and possible), mln boe

354

1,016

116

528

225

production drilling by regions, th. meters 2007 2008 2009 2010 2011 Total 2,968 3,572 2,740 2,732 2,953 Russia 2,641 2,981 2,385 2,286 2,493

Western Siberia 2,197 2,563 1,961 1,814 1,992 Urals 98 137 162 171 191 Volga 5 3 – 12 22 Timan-Pechora 254 231 199 213 213 Bolshekhetskaya Depression 37 – 18 35 43 Other 50 47 45 41 32


development expenses, mln USD 2007 2008 2009 2010 2011 Total 6,660 7,288 4,421 4,486 5,817Subsidiaries 6,557 7,149 4,275 4,371 5,694

Russia 5,887 6,430 3,726 3,686 4,726International projects 670 719 549 685 968

Share in affiliates 103 139 146 115 123

drilled wells at oil and gas fields, %

13


drilled wells at oil & gas fields of LUKOIL group, th. wells

steam injection wells

Oil production wells in use, th. wells

number and average depth of production wells drilled in Russia 2007 2008 2009 2010 2011 Number of production wells 941 1,151 885 881 1,202Average depth, meters 2,722 2,625 2,697 2,562 2,349

new oil wells put into operation 2007 2008 2009 2010 2011 Wells 1,193 1,510 1,124 1,077 1,006

Oil production wells (end of year), wells 2007 2008 2009 2010 2011 Total 28,468 29,417 29,759 30,343 30,835Russia 27,451 28,097 28,237 28,605 28,930

Western Siberia 16,372 16,797 16,831 17,008 17,140Urals 6,255 6,393 6,498 6,595 6,694Volga 906 869 857 948 1,026Timan-Pechora 3,286 3,387 3,370 3,358 3,337Other 632 651 681 696 733

International projects 1,017 1,320 1,522 1,738 1,905

Oil production wells in use (end of year), wells 2007 2008 2009 2010 2011 Total 24,099 25,112 25,383 25,999 26,966Russia 23,238 23,964 24,038 24,416 25,238

Western Siberia 14,337 14,775 14,911 15,011 15,361Urals 5,225 5,375 5,372 5,703 5,876Volga 790 785 782 781 788Timan-Pechora 2,266 2,394 2,300 2,245 2,491Other 620 635 673 676 722

International projects 861 1,148 1,345 1,583 1,728

number of steam injection wells at oil fields 1 (end of year), wells 2007 2008 2009 2010 2011 Wells 152 164 162 158 165

1 LUKOIL-Komi is the only LUKOIL subsidiary operating steam injection wells. production drilling of LUKOIL group by regions, %

14

share of idle wells in total oil production wells (end of year), %

2007 2008 2009 2010 2011 Total 15.3 14.6 14.7 14.3 12.5 Russia 15.3 14.7 14.9 14.6 12.8

Western Siberia 12.4 12.0 11.4 11.7 10.4 Urals 16.5 15.9 17.3 13.5 12.2 Volga 12.8 9.7 8.8 17.6 23.2 Timan-Pechora 31.0 29.3 31.8 33.1 25.4 Other 1.9 2.5 1.2 2.9 1.5

International projects 15.3 13.0 11.6 8.9 9.3

Injection wells at oil fields (end of year), wells 2007 2008 2009 2010 2011 Operating wells 9,064 9,552 9,906 10,321 10,938

Russia 8,859 9,303 9,603 9,963 10,488International projects 205 249 303 358 450

Wells under pressure 6,656 7,047 7,634 8,120 8,743Russia 6,471 6,835 7,372 7,803 8,331International projects 185 212 262 317 412

Share of idle wells, % 26.6 26.2 22.9 21.3 20.1Russia 27.0 26.5 23.2 21.7 20.6International projects 9.8 14.9 13.5 11.5 8.4

gas production wells (end of year), wells 2007 2008 2009 2010 2011 Total 376 387 394 397 404Russia 297 299 304 306 297

Western Siberia 5 6 2 2 2Urals 73 73 71 74 75Volga 123 124 131 130 130Timan-Pechora 35 35 34 34 24Bolshekhetskaya Depression 61 61 66 66 66


drilled wells at oil fields (end of year), %

drilled wells at oil fields of LUKOIL group, th. wells

gas production wells in use by regions (12.31.2011)

15


gas production wells in use (end of year), wells 2007 2008 2009 2010 2011 Total 277 278 274 286 296Russia 221 209 211 213 215

Western Siberia 1 2 2 1 2Urals 71 71 70 74 75Volga 87 83 74 73 73Timan-Pechora 1 2 2 2 2Bolshekhetskaya Depression 61 51 63 63 63


share of idle wells in gas production wells (end of year), % 2007 2008 2009 2010 2011 Total 26.3 28.2 30.5 28.0 26.7 Russia 25.6 30.1 30.6 30.4 27.6

Western Siberia 80.0 66.7 – 50.0 –Urals 2.7 2.7 1.4 – –Volga 29.3 33.1 43.5 43.8 43.8Timan-Pechora 97.1 94.3 94.1 94.1 91.7Bolshekhetskaya Depression – 16.4 4.5 4.5 4.5

International projects 29.1 21.6 30.0 19.8 24.3

Injection wells at gas fields (end of year), wells 2007 2008 2009 2010 2011 Total 35 35 37 36 45Russia 20 20 21 21 21International 15 15 16 15 24

drilled wells at gas fields (end of year), %

drilled wells at gas fields of LUKOIL group, th. wells

gas production wells in use, wells

16

hydROcaRbOn pROdUctIOn

LUKOIL group hydrocarbon production, mln boe

2007 2008 2009 2010 2011 Oil 713 703 720 708 671 Gas 1 96 114 104 126 130 Total production by LUKOIL Group 809 817 824 834 801 Total production by LUKOIL Group, th. boe per day 2,218 2,232 2,258 2,284 2,197 Production of marketable hydrocarbons (including marketable gas2) 795 803 807 817 781 Production of marketable hydrocarbons, th. boe per day 2,178 2,194 2,212 2,239 2,140

1 Includes gas for sale, reinjection and own consumption as well as production and transportation losses. 2 Includes gas for sale, does not include reinjection and own consumption as well as production and transportation losses.

LUKOIL’s maIn hydROcaRbOn pROdUctIOn RegIOns

17


marketable hydrocarbon production by regions, mln boe

2007 2008 2009 2010 2011 Total production by LUKOIL Group 795 803 807 817 781 Russia 743 738 738 741 707

Western Siberia 459 431 410 397 385 Bolshekhetskaya Depression 45 49 35 49 49 Urals 87 90 92 96 100 Volga 28 28 26 27 29 Timan-Pechora 108 124 159 157 130

Other 16 16 16 15 14 International 52 65 69 76 74 Subsidiaries 775 783 786 789 755 Russia 740 735 736 738 704

Western Siberia 458 431 410 397 385 Bolshekhetskaya Depression 45 49 35 49 49 Urals 86 89 92 95 99 Volga 27 26 24 25 27 Timan-Pechora 108 124 159 157 130

Other 16 16 16 15 14 International 35 48 50 51 51 Share in production by affiliates 20 20 21 28 26 Russia 3 3 2 3 3

Western Siberia 1 – – – –Bolshekhetskaya Depression – – – – –Urals 1 1 – 1 1 Volga 1 2 2 2 2 Timan-Pechora – – – – –

Other – – – – – International 17 17 19 25 23

hydrocarbon lifting costs of LUKOIL group subsidiaries, USD per boe 2007 2008 2009 2010 2011 Total 3.58 4.12 3.56 4.12 4.71

Russia 3.55 4.11 3.53 4.11 4.70International 4.16 4.32 3.99 4.29 4.85

hydrocarbon production by LUKOIL group, mln boe

OIL pROdUctIOn

Oil production by LUKOIL group

2007 2008 2009 2010 2011 Th. tons 96,645 95,240 97,615 95,992 90,917Mln barrels 713 703 720 708 671Th. tons per day 265 260 267 263 249Th. barrels per day 1,953 1,921 1,972 1,940 1,840

Oil production by LUKOIL group, mln barrels

2007 2008 2009 2010 2011 LUKOIL Group production, total 713 703 720 708 671Subsidiaries 694 684 700 684 649

Russia 668 660 673 658 623

International 26 24 27 26 26Share in production by affiliates 19 19 20 24 22

18

Oil production by regions, th. tons 2007 2008 2009 2010 2011 LUKOIL Group production, total 96,645 95,240 97,615 95,992 90,917 Russia 91,100 89,945 91,868 89,767 84,966

Western Siberia 59,917 56,187 52,962 50,934 49,102 Urals 11,257 11,625 12,042 12,500 12,937 Volga 3,240 3,263 3,072 3,137 3,203 Timan-Pechora 14,576 16,685 21,662 21,175 17,547

Other 2,110 2,185 2,130 2,021 1,953International 5,545 5,295 5,747 6,225 5,951 Subsidiaries 94,147 92,846 95,075 92,891 88,022 Russia 90,735 89,646 91,560 89,431 84,609

Western Siberia 59,849 56,187 52,962 50,934 49,102 Urals 11,183 11,548 11,958 12,385 12,805 Volga 3,017 3,041 2,848 2,916 3,203 Timan-Pechora 14,576 16,685 21,662 21,175 17,547

Other 2,110 2,185 2,130 2,021 1,953 International 3,412 3,200 3,515 3,460 3,413 Share in production by affiliates 2,498 2,394 2,540 3,101 2,896 Russia 365 299 308 336 357

Western Siberia 68 – – – – Urals 74 77 84 115 132 Volga 223 222 224 221 225 Timan-Pechora – – – – –

Other – – – – – International 2,133 2,095 2,232 2,765 2,539

Flow rate of oil wells of LUKOIL group, tons per day 2007 2008 2009 2010 2011 Group, total 14.6 14.2 14.7 14.5 13.8 Russia: New wells 33.0 36.1 31.8 33.3 36.6 Old wells 10.6 10.0 10.2 9.8 9.2 Total wells : 11.0 10.5 10.6 10.1 9.5


watercut of oil wells of LUKOIL group, % 2007 2008 2009 2010 2011 Group, total 76.1 77.3 76.8 77.9 79.6 Russia: New wells 35.1 32.1 34.1 31.4 40.5 Old wells 83.0 83.1 82.8 83.9 80.1 Total wells 80.9 82.2 82.1 83.3 84.7


application of enhanced oil recovery methods and latest technologies 2007 2008 2009 2010 2011 Drilling of horizontal wells 109 112 91 101 235 Average flow rate, tons per day 65.5 58.4 78.2 156.6 49.8 Drilling of sidetracks 188 260 264 224 241 Average increase flow rate, tons per day 19.2 18.1 16.8 19.7 20.4 Hydrofracturing 762 711 634 690 681 Average increase flow rate, tons per day 8.9 9.4 9.6 10.8 10.1

additional oil production from application of enhanced oil recovery methods in Russia, mln tons 2007 2008 2009 2010 2011 LUKOIL Group in Russia, total 23.75 22.95 23.04 22.16 22.28


Oil production by regions, %

average flow rate of LUKOIL group oil wells, tons per day

drilling of horizontal wells

19


gas pROdUctIOn

marketable gas production by LUKOIL group 1

2007 2008 2009 2010 2011 Mcm 13,955 17,020 14,898 18,554 18,621 Bcf 493 601 526 655 657 Mln boe 82 100 88 109 110 Mcm per day 38 47 41 51 51 Mcf per day 1,350 1,642 1,441 1,795 1,800 Th. boe per day 225 273 240 299 300

natural gas production, mcm 2007 2008 2009 2010 2011 Total production of natural gas 2 10,787 13,888 11,444 13,936 14,082 Production of marketable natural gas 1 9,652 12,671 10,218 12,770 12,761 including: Subsidiaries 9,652 12,671 10,218 12,770 12,761 Russia 8,161 8,711 6,341 8,532 8,609

Western Siberia – – – – – Bolshekhetskaya Depression 7,719 8,313 5,936 8,146 8,272 Urals 322 291 302 304 262 Volga 119 106 102 81 74 Timan-Pechora 1 1 1 1 1 Other – – – – –

International 1,491 3,960 3,877 4,238 4,152Share in production by affiliates – – – – – Russia – – – – – International – – – – –

associated petroleum gas production, mcm

2007 2008 2009 2010 2011 Total production of associated petroleum gas 2

5,610

5,549

6,273

7,392

7,941

Production of marketableassociated petroleum gas 1

4,303

4,349

4,680

5,784

5,860

including: Subsidiaries 4,079 4,084 4,342 5,131 5,209 Russia 4,079 4,084 4,295 5,067 5,149

Western Siberia 2,528 2,549 2,888 3,492 3,470 Urals 575 576 604 614 680 Volga 403 426 345 415 413 Timan-Pechora 564 524 448 535 572 Other 9 9 10 11 14

International 0 0 47 64 60 Share in production by affiliates 224 265 338 653 651 Russia 33 33 27 36 37 International 191 232 311 617 614 Utilization rate of associated petroleum gas, %

69.0

70.4

71.1

77.5

79.3

natural and associated petroleum gas production, mcm 2007 2008 2009 2010 2011 Total production of gas 2 16,397 19,437 17,717 21,328 22,023 Production of marketable gas 1 13,955 17,020 14,898 18,554 18,621 including: Subsidiaries 13,731 16,755 14,560 17,901 17,970 Russia 12,240 12,795 10,636 13,599 13,758

Western Siberia 2,528 2,549 2,888 3,492 3,470 Bolshekhetskaya Depression 7,719 8,313 5,936 8,146 8,272 Urals 897 867 906 918 942 Volga 522 532 447 496 487 Timan-Pechora 565 525 449 536 573 Other 9 9 10 11 14

International 1,491 3,960 3,924 4,302 4,212 Share in production by affiliates 224 265 338 653 651 Russia 33 33 27 36 37 International 191 232 311 617 614

1 Includes gas for sale, does not include reinjection and own consumption as well as production and transportation losses.2 Includes gas for sale, reinjection and own consumption as well as production and transportation losses.

gas production by regions, %

20

majOR FIeLds OF LUKOIL gROUp In RUssIa

OIL FIeLds 1

2007 2008 2009 2010 2011

Western Siberia

Total LUKOIL production of oil in Western Siberia, th. tons 59,917 56,187 52,962 50,934 49,102 Oil production from 14 major oil fields of the Group in the region, th. tons 43,697 41,365 39,763 38,444 36,680 Share, % 72.9 73.6 75.1 75.5 74.7LUKOIL proved oil reserves in Western Siberia, mln barrels 7,305 7,222 7,088Proved oil reserves of 14 major oil fields of the Group in the region, mln barrels

5,432

5,282

5,070

Share, % 74.4 73.1 38.2

Tevlinsko-Russkinskoye fieldProved oil reserves, mln barrels 727 705 707Oil production, th. tons 9,486 8,608 8,306 7,589 6,927Cumulative oil production, mln tons 134.1 142.7 151.0 158.5 165,4Total wells 2,297 2,407 2,515 2,538 2,593

Production wells 1,404 1,423 1,490 1,500 1,519Production wells in use 1,300 1,333 1,399 1,409 1,446

Average flow rate per well, tons per day 20.3 17.9 16.7 14.7 13,3Watercut, % 70.4 75.4 77.1 81.2 84,3

Vat-Yeganskoye fieldProved oil reserves, mln barrels 1,229 1,146 1,099Oil production, th. tons 8,086 7,626 7,069 6,535 6,030Cumulative oil production, mln tons 8,086 7,626 7,069 6,535 6,030

Total wells 160.8 168.4 175.5 182.0 188,0Production wells 3,722 3,834 3,887 3,942 3,980Production wells in use 2,310 2,357 2,310 2,278 2,277

Average flow rate per well, tons per day 2,017 2,074 2,015 1,953 1,976Watercut, % 11.0 10.2 9.6 9.0 8.4Proved oil reserves, mln barrels 83.0 85.0 86.0 88.0 89.1

Povkhovskoye fieldProved oil reserves, mln barrels 776 773 752Oil production, th. tons 6,183 5,898 5,761 5,934 5,829Cumulative oil production, mln tons 178.1 184.0 189.7 195.6 201.4Total wells 3,261 3,268 3,308 3,358 3,393


Average flow rate per well, tons per day 11.8 10.7 10.1 10.2 10.2Watercut, % 71.2 73.4 74.1 76.0 77.6

Yuzhno-Yagunskoye field Proved oil reserves, mln barrels 580 551 543Oil production, th. tons 3,141 2,810 2,674 2,508 2,291Cumulative oil production, mln tons 3,141 2,810 2,674 2,508 2,291Total wells 124.3 127.1 129.9 132.4 134.7

Production wells 1,810 1,879 1,873 1,874 1,869Production wells in use 975 990 992 975 978

Average flow rate per well, tons per day 860 883 909 885 890Watercut, % 10.0 8.7 8.3 7.8 7.2Proved oil reserves, mln barrels 86.7 89.6 90.2 91.5 92.4

1 Group’s share. If Group’s share in reserves is less than 100% it is indicated in a separate line.

Summary production data are stated in accordance with the share of the Group.

21


2007 2008 2009 2010 2011

Pokachevskoye field Proved oil reserves, mln barrels 339 303 306Oil production, th. tons 3,582 3,125 2,571 2,392 2,137Cumulative oil production, mln tons 143.3 146.4 149.0 151.3 153.4Total wells 2,243 2,272 2,284 2,303 2,330



Kogalymskoye field Proved oil reserves, mln barrels 278 276 265Oil production, th. tons 2,793 2,846 2,776 2,689 2,777Cumulative oil production, mln tons 28.8 31.6 34.4 37.1 39.9Total wells 553 574 598 650 716

Production wells 294 308 323 372 412Production wells in use 275 287 302 342 386


Uryevskoye fieldProved oil reserves, mln barrels 303 318 314Oil production, th. tons 2,227 2,394 2,618 2,861 3,094Cumulative oil production, mln tons 80.8 83.2 85.8 88.7 91.8Total wells 2,076 2,200 2,287 2,370 2,358

Production wells 921 945 951 1,001 1,061Production wells in use 818 833 894 902 965


Nong-Yeganskoye field Proved oil reserves, mln barrels 159 160 131Oil production, th. tons 1,340 1,026 906 900 1,039Cumulative oil production, mln tons 31.6 32.6 33.5 34.4 35.4Total wells 454 469 480 482 484



Druzhnoye fieldProved oil reserves, mln barrels 156 147 155Oil production, th. tons 1,655 1,477 1,306 1,286 1,185Cumulative oil production, mln tons 46.1 47.6 48.9 50.2 51.4Total wells 966 998 988 999 991



Nivagalskoye fieldProved oil reserves, mln barrels 359 345 235Oil production, th. tons 1,330 1,632 1,366 1,235 1,099Cumulative oil production, mln tons 18.9 20.5 21.9 23.1 24.2Total wells 936 968 984 977 960



22

2007 2008 2009 2010 2011 Sredne-Khulymskoye fieldProved oil reserves, mln barrels 36 31 27Oil production, th. tons 969 840 701 581 451Cumulative oil production, mln tons 4.4 5.2 5.9 6.5 7.0Total wells 138 142 145 146 146

Production wells 93 96 95 93 88Production wells in use 89 91 90 82 79.0


Severo-Pokachevskoye fieldProved oil reserves, mln barrels 76 71 66Oil production, th.tons 1,093 1,036 898 778 686Cumulative oil production, mln tons 3.6 4.6 5.5 6.3 7.0Total wells 154 204 215 205 201



Kamenny license area (eastern part of the Kamennaya area of the Krasnoleninskoye field)Proved oil reserves, mln barrels 211 210 218Oil production, th. tons 1,081 1,079 1,225 1,091 968Cumulative oil production, mln tons 4 5.0 6 7.3 8.3Total wells 332 434 452 478 457


Average flow rate per well, tons per day 18 14.7 12 6.8 9.2Watercut, % 50.4 62.0 68.9 72.9 76.4

Kechimovskoye fieldProved oil reserves, mln barrels 203 246 252Oil production, th. tons 731 968 1,586 2,065 2,166Cumulative oil production, mln tons 4.7 5.7 7.2 9.3 11.5Total wells 200 327 440 573 588



2007 2008 2009 2010 2011

Timan-Pechora

Total LUKOIL production of oil in Timan-Pechora, th. tons 14,576 16,685 21,662 21,175 17,547 Oil production from 8 major oil fields of the Group in the region, th. tons 9,759 11,600 16,627 15,959 12,051 Share, % 67.0 69.5 76.8 75.4 68.7LUKOIL proved oil reserves in Timan-Pechora, mln barrels 2,649 2,445 2,456 Proved oil reserves of 8 major oil fields of the Group in the region, mln barrels

1,601

1,495

1,305

Share, % 60.4 61.1 53.1

Yuzhnaya Khylchuya fieldProved oil reserves, mln barrels 364 311 142Oil production, th. tons – 1,527 6,962 6,888 3,316Cumulative oil production, mln tons – 1.6 8.5 15.4 18.7Total wells – 68 82 89 90

Production wells – 22 30 33 33Production wells in use – 22 26 31 30

Average flow rate per well, tons per day – 539.9 775.8 668.5 296.0Watercut, % – 2.0 2.1 31.4 68.4

23


2007 2008 2009 2010 2011 Kharyaginskoye fieldProved oil reserves, mln barrels 287 267 257Oil production, th. tons 2,874 2,901 2,788 2,609 2,493Cumulative oil production, mln tons 36.2 39.1 41.9 44.5 47.0Total wells 356 365 369 380 427



Usinskoye fieldProved oil reserves, mln barrels 530 543 531Oil production, th. tons 2,113 2,109 2,107 2,318 2,471Cumulative oil production, mln tons 154.9 157.0 159.2 161.5 163.9Total wells 1,745 1,730 1,729 1,726 1,713

Production wells 1,241 1,247 1,239 1,171 1,151Production wells in use 757 793 766 763 889


Yuzhno-Shapkinskoye fieldProved oil reserves, mln barrels 66 83 44Oil production, th. tons 1,299 903 759 651 551

Group’s share, th. tons 1,299 903 759 651 551Cumulative oil production, mln tons 6.0 6.9 7.7 8.3 8.9Total wells 62 68 70 76 79



Vozeiskoye fieldProved oil reserves, mln barrels 153 121 133Oil production, th. tons 1,138 1,278 1,289 1,157 1,060Cumulative oil production, mln tons 99.0 100.3 101.6 102.8 103.8Total wells 1,585 1,583 1,572 1,571 1,572



Tedinskoye fieldProved oil reserves, mln barrels 70 51 70Oil production, th. tons 1,099 1,042 835 698 579Cumulative oil production, mln tons 4 5 6 7 7.3Total wells 50 58 63 64 64


Average flow rate per well, tons per day 80 65 48 39 32.6Watercut, % 54.0 65.5 74.6 81.4 86.0

Pashshorskoye field Proved oil reserves, mln barrels 27 28 33Oil production, th. tons 629 954 877 731 563Cumulative oil production, mln tons 0.8 1.7 2.6 3.3 3.9Total wells 14 21 25 25 27



24

2007 2008 2009 2010 2011 Kyrtayelskoye fieldProved oil reserves, mln barrels 104 91 95Oil production, th. tons 607 886 1,010 907 1,018Cumulative oil production, mln tons 4.6 5.5 6.5 7.4 8.4Total wells 64 76 83 99 122



2007 2008 2009 2010 2011

Urals

Share of the Unvinskoye field in LUKOIL oil production in Urals, % 12.3 11.9 11.8 12.1 12.9 Share of the Unvinskoye field in LUKOIL proved oil reserves in Urals, % 8.0 7.8 7.5

Unvinskoye fieldProved oil reserves, mln barrels 163 151 155Oil production, th. tons 1,385 1,385 1,421 1,509 1,674Cumulative oil production, mln tons 25.3 26.7 28.1 29.6 31.3Total wells 428 420 417 429 426



2007 2008 2009 2010 2011

Volga

Share of the Pamyatno-Sasovskoye field in LUKOIL oil production in Volga, %

76.0

73.2

71.9

76.7

70.8

Share of the Pamyatno-Sasovskoye field in LUKOIL proved oil reserves in Volga (excluding Caspian), %

58.9

55.2

54.1

Pamyatno-Sasovskoye fieldProved oil reserves, mln barrels 129 107 105Oil production, th. tons 2,667 2,585 2,404 2,406 2,425

Group’s share, th. tons 2,464 2,390 2,210 2,216 2,232Cumulative oil production, mln tons 32.4 35.0 37.4 39.8 42.2Total wells 65 65 65 65 62

Production wells 49 49 49 49 51Production wells in use 49 48 45 46 48.0


25


2007 2008 2009 2010 2011

Kaliningrad region

Share of the Kravtsovskoye field in LUKOIL oil production in Kaliningrad region, % 61.7 59.1 56.8 56.2 55.0 Share of the Kravtsovskoye field in LUKOIL proved oil reserves in Kaliningrad region, %

49.5 45.0 41.9

Kravtsovskoye field Proved oil reserves, mln barrels 32 27 25Oil production, th. tons 877 842 748 677 615Cumulative oil production, mln tons 2.4 3.2 4.0 4.6 5.3Total wells 18 19 19 19 19



gas FIeLds

2007 2008 2009 2010 2011

Nakhodkinskoye fieldProved natural gas reserves, bcf 3,392 3,080 2,778Natural gas production, mcm 7,798 8,408 5,968 8,186 8,312Cumulative natural gas production, bcm 16.8 25.2 31.2 39.3 47.6Total wells 65 65 65 65 62


26

International Projects 1 of LUKOIL Group International projects 1, total

2007 2008 2009 2010 2011 Proved oil reserves, mln barrels 495 592 616 632 586 Proved gas reserves, bcf 5,068 6,972 6,911 6,768 6,331Hydrocarbon reserves, mln boe 1,339 1,754 1,768 1,760 1,641Oil production, th. tons 5,545 5,295 5,747 6,225 5,951 Marketable gas production, mcm 1,682 4,192 4,235 4,919 4,826 Marketable hydrocarbon production, mln boe 52 65 69 76 74

1 Group’s share.

InteRnatIOnaL pROjects OF LUKOIL gROUp

geological exploration, preparation for production

production of Oil, gas & gas condensate

27


2007 2008 2009 2010 2011

Kazakhstan

KarachaganakProved oil reserves, mln barrels 157 246 167 166 144 Proved gas reserves, bcf 1,137 1,861 1,332 1,367 1,148 Hydrocarbon reserves, mln boe 347 556 389 394 335 Oil production, th. tons 1,601 1,565 1,628 1,497 1,502 Marketable gas production, mcm 1,046 1,069 1,132 1,038 1,010 Marketable hydrocarbon production, mln boe 19 18 19 17 18

KumkolProved oil reserves, mln barrels 78 68 69 55 43 Proved gas reserves, bcf 14 13 13 9 15 Hydrocarbon reserves, mln boe 80 70 71 57 46 Oil production, th. tons 1,756 1,628 1,590 1,470 1,247 Marketable gas production, mcm 44 42 42 49 54 Marketable hydrocarbon production, mln boe 14 13 12 11 10

TengizProved oil reserves, mln barrels 117 120 217 206 206 Proved gas reserves, bcf 151 152 267 252 245 Hydrocarbon reserves, mln boe 142 145 262 248 247 Oil production, th. tons 376 466 642 1,296 1,292 Marketable gas production, mcm 147 190 269 568 560 Marketable hydrocarbon production, mln boe 4 5 7 13 13

North BuzachiProved oil reserves, mln barrels 41 35 38 36 34 Proved gas reserves, bcf – – – 4 10 Hydrocarbon reserves, mln boe 41 35 38 37 35 Oil production, th. tons 524 428 479 497 493 Marketable gas production, mcm – – – – – Marketable hydrocarbon production, mln boe 4 3 3 4 4

ArmanProved oil reserves, mln barrels 2 0.6 1 1 1 Proved gas reserves, bcf – – – 1 0.4Hydrocarbon reserves, mln boe 2 1 1 1 1 Oil production, th. tons 44 26 24 21 19 Oil production, mln barrels 0.3 0.2 0.2 0.2 0.1

KarakudukProved oil reserves, mln barrels 34 33 30 29 28Proved gas reserves, bcf – – 14 12 11Hydrocarbon reserves, mln boe 34 33 32 31 30Oil production th, tons 668 636 714 719 696Marketable gas production, mcm – – 47 64 60Marketable hydrocarbon production, mln boe 5 5 6 6 5

Kazakhoil-AktobeProved oil reserves, mln barrels 35 32 31 28 26 Proved gas reserves, bcf – – 27 8 10 Hydrocarbon reserves, mln boe 35 32 36 29 27 Oil production, th. tons 286 190 234 244 285 Oil production, mln barrels 2 1 2 2 2

28

2007 2008 2009 2010 2011

Egypt

MeleihaProved oil reserves, mln barrels 3 4 5 4 4Oil production, th. tons 46 47 79 69 55Oil production, mln barrels 0.4 0.4 1.0 1.0 0.4

WEEMProved oil reserves, mln barrels 5 7 5 4 3Oil production, th. tons 154 144 168 159 137Oil production, mln barrels 1 1 1 1 1

WEEM ExtensionProved oil reserves, mln barrels – – – – 0.2Oil production, th. tons – – – 4 3

Oil production, mln barrels – – – 0 0

2007 2008 2009 2010 2011

Azerbaijan

Shakh-DenizProved oil reserves, mln barrels 11 18 16 12 10Proved gas reserves, bcf 476 532 523 319 262Hydrocarbon reserves, mln boe 90 107 103 65 54Oil production, th. tons 88 147 139 149 135Marketable gas production, mcm 309 551 518 545 513Marketable hydrocarbon production, mln boe 2 4 4 4 4

2007 2008 2009 2010 2011

Uzbekistan

Kandym-Khauzak-ShadyProved oil reserves, mln barrels 6 10 6 6 8 Proved gas reserves, bcf 3,290 3,019 3,119 3,379 3,512 Hydrocarbon reserves, mln boe 554 513 526 569 593 Oil production, th. tons 2 12 12 10 9 Marketable gas production, mcm 136 2,340 2,227 2,655 2,625 Marketable hydrocarbon production, mln boe 1 14 13 16 16

South-West GissarProved oil reserves, mln barrels – 17 31 23 15Proved gas reserves, bcf – 1,395 1,616 1,417 1,119Hydrocarbon reserves, mln boe – 250 300 259 202Oil production, th. tons – 6 38 88 77Oil production, mln barrels – 0.1 0.3 1.0 1.0

29


2007 2008 2009 2010 2011

Iraq

West Qurna-2Proved oil reserves, mln barrels – – – 62 64Proved gas reserves, bcf – – – – –Hydrocarbon reserves, mln boe – – – 62 64

2007 2008 2009 2010 2011

Colombia

CondorProved oil reserves, mln barrels 6 1 – – –Proved gas reserves, bcf – – – – –Hydrocarbon reserves, mln boe 6 1 – – –Oil production, th. tons – 6 38 2 1Oil production, mln barrels – 0.1 0.3 0.01 0,01

share of international hydrocarbon reserves in LUKOIL group total hydrocarbon reserves, %

share of international production in LUKOIL group’s total hydrocarbon production, %

30

Refining and Gas Processing

OIL ReFInIng

LUKOIL gROUp ReFIneRIes

Input capacity of LUKOIL facilities, th. barrels per day

Crude

Vacuum distillation Coking

Thermal operations

Catalytic cracking

Catalytic reforming

Catalytic hydrocracking

Catalytic hydrotreating

Perm 259.0 116.3 18.9 – 9.3 36.9 65.2 146.3 Volgograd 225.2 68.2 18.5 – – 43.7 – 95.9 Nizhny Novgorod 337.1 132.4 – 42.2 41.0 47.1 – 209.1 Ukhta 73.4 18.1 – 14.1 – 9.2 – 29.4 Burgas 195.0 76.9 – 26.4 37.1 14.4 – 166.9 Ploiesti 47.8 21.8 10.5 – 18.5 10.1 – 45.7 Odessa 55.7 25.5 – 12.3 – 11.5 – 33.9 Total 1,193.2 459.2 47.9 95.0 105.9 172.9 65.2 727.2

1 Capacity and refining volumes at Zeeland (for oil) are shown as the Company’s share (45%). In addition, 2.17 million tonnes of vacuum gasoil were processed at Zeeland in 2011.2 Including refining of 0.74 million tonnes of fuel oil in 2011. 3 Capacity and refining volumes at ISAB (for oil and fuel oil) are shown as the Company’s share (60%).

31


production capacity of LUKOIL facilities, th. barrels per day

Alkylation Aromatics Isomerization Lubricants Oxygenates

Hydrogen, mcf per day

Sulfur, tons per day Bitumen

Perm – 2.2 12.0 9.4 – 153.6 213.7 12.1 Volgograd – 1.8 9.8 11.3 – 111.8 4.2 Nizhny Novgorod 9.5 – 15.2 4.5 – 42.4 376.0 20.7 Ukhta – – 3.2 – – – 11.0 4.4 Burgas 8.1 3.3 1.3 – 1.9 25.9 164.4 4.8 Ploiesti – – 3.8 – 2.6 9.4 54.8 –Odessa – – 3.2 – – – 21.1 3.3 Total 1 17.6 7.3 48.5 25.2 4.5 231.3 952.8 49.5

1 Excluding mini-refineries, ISAB and TRN.

capital expenses in refining, mln USD

2007 2008 2009 2010 2011 Expenses 830 1,023 828 702 783

Refining expenses, mln USD

2007 2008 2009 2010 2011 Group refineries 880 1,115 923 1,121 1,444Third-party refineries 242 439 713 724 897

Refinery throughputs at LUKOIL group refineries, mln tons

2007 20081 20091 20102 20112 Throughputs 52.16 56.28 62.70 66.12 64.93

Russian refineries 42.55 44.18 44.46 45.21 45.28 Including mini-refineries 0.19 0.20 0.19 0.19 0.16

Foreign refineries 9.61 12.10 18.24 20.91 19.65 Throughputs, th. barrels per day 1,047 1,127 1,335 1,331 1,308

structure of petroleum products output at LUKOIL group refineries1, %

2007 2008 2009 20102 20112 Gasoline 18.5 18.3 18.5 19.6 21.6 Medium distillates 37.0 37.2 36.5 37.8 38.3 Fuel oil 26.2 24.6 25.8 23.1 23.6 Vacuum gas oil 9.3 11.2 12.1 11.3 7.4 Lubricants 2.3 2.1 2.0 1.9 1.9 Other 6.7 6.6 5.1 6.3 7.2

1 Including LUKOIL share in mini-refineries, ISAB (starting in December 2008) and Zeeland (September 2009), Group’s share.

2 Including LUKOIL share in refinery throughputs at the ISAB complex and Zeeland Refinery.

production and blending of lubricants at LUKOIL refineries, th. tons

2007 2008 2009 2010 2011 Total production (full cycle) 1,120 1,128 1,058 1,193 1,151Mixing of lubricants 93 76 63 87 87Packaged lubricants output 223 231 205 251 254

Refinery throughput by LUKOIL group refineries (2011)

1 Excluding mini-refineries, ISAB and Zeeland.

share of clean diesel (euro-3 and higher) in total output of diesel fuel at LUKOIL group refineries, %1

32

basIc petROLeUm pROdUcts OUtpUt at LUKOIL gROUp ReFIneRIes (2011), %

share of high-octane gasoline in total output of motor gasoline at LUKOIL group refineries, %1

volgograd Refinery

nizhny novgorod Refinery

Refinery at ploiesti

perm Refinery

Ukhta Refinery

Refinery at burgas

Light products yield at LUKOIL group refineries, % 1

1 Excluding mini-refineries, ISAB and Zeeland.

33


vOLgOgRad ReFIneRy

peRm ReFIneRy

throughput and petroleum product output at volgograd Refinery

2007 2008 2009 2010 2011 Refinery throughput, mln tons 9.61 10.74 11.26 10.97 10.98 Petroleum product output, mln tons 9.06 10.18 10.69 10.39 10.43 Structure of petroleum product output, %

Gasoline 19.0 18.7 18.5 17.1 17.5 Medium distillates 39.3 40.1 40.6 39.4 40.1 Fuel oil 22.5 18.8 17.7 17.2 16.8 Vacuum gas oil 9.2 12.8 14.2 15.8 15.9 Lubricants 5.1 4.7 4.3 5.2 4.8 Other 4.9 4.9 4.7 5.3 4.8

main operating indicators

2007 2008 2009 2010 2011 Light products yield, % 56.6 57.0 57.2 54.6 55.0Share of high-octane gasoline in total output of motor gasoline, %

77.7

84.1

86.4

87.7

93.7

Share of clean diesel in total output of diesel fuel, %

15.7

15.8

17.0

21.1

29.5

structure of shipment from volgograd refinery, %

structure of shipment from perm refinery, %

share of high-octane gasoline in total output of motor gasoline, %

share of clean diesel in total output of diesel fuel, %


throughput and petroleum product output at perm Refinery



34


2007 2008 2009 2010 2011 Light products yield, % 58.1 57.6 57.3 56.2 58.0 Share of high-octane gasoline in total output of motor gasoline, % 84.6 87.4 90.8 92.4 95.9 Share of clean diesel in total output of diesel fuel, %

91.3

92.9

98.5

100.0

99.7







nIzhny nOvgOROd ReFIneRy

throughput and petroleum product output at nizhny novgorod Refinery

2007 2008 2009 2010 2011 Refinery throughput, mln tons 16.67 16.97 16.10 16.93 17.06 Petroleum product output, mln tons 15.97 16.33 15.49 16.41 16.21Structure of petroleum product output, %



2007 2008 2009 2010 2011 Light products yield, % 42.6 43.1 42.3 41.0 49.3 Share of high-octane gasoline in total output of motor gasoline, %

86.6

90.3

92.0

94.0

98.2


72.2

63.3

57.8

91.0

85.7

structure of shipment from nizhny novgorod refinery, %

35


UKhta ReFIneRy

mInI-ReFIneRy In URay

throughput and petroleum product output at Ukhta Refinery




2007 2008 2009 2010 2011 Light products yield, % 40.3 40.4 39.7 38.8 38.9Share of high-octane gasoline in total output of motor gasoline, %

80.2

77.4

85.1

88.3

92.9


55.4

50.1

41.2

32.9

30.2

structure of shipment from Ukhta refinery, %





throughput and petroleum product output at Urayneftegaz mini-refinery

2007 2008 2009 2010 2011 Crude oil inputs, th. tons 99.7 100.0 103.0 103.3 97.2 Returned to oil, th. tons 61.1 58.6 62.6 64.4 72.9 Oil refining, th. tons 38.6 41.4 40.4 39.0 22.3 Output of petroleum products, th. tons 36.1 38.8 37.3 36.1 21.3 Structure of petroleum product output, %

Gasoline 34.0 32.1 32.7 31.5 0.0Diesel fuel 66.0 67.9 67.3 68.5 100.0


2007 2008 2009 2010 2011 Light products yield, % 36.2 38.8 36.2 34.9 22.4

36

mInI-ReFIneRy In KOgaLym

pLOIestI ReFIneRy

throughput and petroleum product output at Kogalymneftegaz mini-refinery

2007 2008 2009 2010 2011 Crude oil inputs, th. tons 381.3 393.4 383.6 373.5 376.9 Returned to oil, th. tons 227.1 236.3 232.2 225.3 235.7 Oil refining, th. tons 154.2 157.1 151.4 148.2 141.1 Output of petroleum products, th. tons 144.4 146.4 140.6 137.5 133.6 Structure of petroleum product output, %

Gasoline 29.1 29.8 29.5 29.3 28.1 Diesel and jet fuel 69.4 69.0 68.8 69.4 69.5 Bitumen 1.5 1.2 1.7 1.3 2.4


2007 2008 2009 2010 2011 Light products yield, % 37.3 36.8 36.0 38.3 34.6


structure of shipment from ploiesti refinery, %




throughput and petroleum product output at ploiesti Refinery

2007 2008 2009 2010 2011 Refinery throughput, mln tons 2.54 2.42 2.21 2.52 2.38 Blending and packaging of lubricants, mln tons

0.03

0.02

0.02

0.03

0.02

Petroleum product output, mln tons 2.39 2.22 2.06 2.40 2.31 Structure of petroleum product output, %

Gasoline 35.4 34.8 30.7 30.5 31.8 Medium distillates 49.6 50.4 54.2 50.4 47.6 Fuel oil – – – 1.3 3.1 Vacuum gas oil – – – – – Lubricants – – – – – Other 15.0 14.8 15.1 17.8 17.5



100.0

100.0

100.0

100.0

100.0


100.0

100.0

100.0

100.0

100.0

37


bURgas ReFIneRy

Odessa ReFIneRy

throughput and petroleum product output at burgas Refinery

2007 2008 2009 2010 2011 Refinery throughput, mln tons 7.06 7.12 6.28 5.95 5.81 Throughput of fuel oil, mln tons 0.00 0.00 0.06 0.05 0.74 Petrochemical product output, th. tons 385.0 321.7 165.6 49.3 63.4 Petroleum product output, mln tons 6.04 6.21 5.77 5.17 5.50 Structure of petroleum product output, %

Gasoline 26.3 27.5 29.2 27.1 32.8 Medium distillates 42.2 41.6 39.7 43.0 34.8 Fuel oil 25.0 24.2 24.2 23.8 25.2 Vacuum gas oil – – – – – Lubricants – – – – – Other 6.5 6.7 6.9 6.1 7.2



100.0

100.0

100.0

100.0

100.0


85.4

87.8

97.2

95.8

98.3

structure of shipment from burgas refinery





throughput and petroleum product output at Odessa Refinery

2007 2008 2009 2010 2011 Refinery throughput, mln tons 0.01 2.04 2.05 1.45 –Petroleum product output, mln tons 0.01 1.96 1.97 1.40 –Structure of petroleum product output, %

Gasoline – 14.3 13.7 14.6 – Medium distillates – 33.9 35.1 35.9 – Fuel oil – 28.0 26.9 24.2 – Vacuum gas oil – 20.6 22.8 22.6 – Lubricants – – – – – Other – 3.2 1.5 2.7 –

38


2007 2008 2009 2010 2011 Light products yield, % – 46.2 46.8 48.9 – Share of high-octane gasoline in total output of motor gasoline, %

–

92.2

98.7

99.0

–


–

98.3

66.7

76.1

–




Isab cOmpLex

• LUKOIL acquired 49% in the JV operating ISAB refining complex (Italy) in 2008. Transaction value was 1.45 billion euros (approximately $1.83 billion).

• In 2011 LUKOIL increases its stake in the JV operating ISAB refining complex from 49% to 60%. Price of the acquisition was 205 million euros ($342 million).

• The ISAB complex consists of 2 refineries joined by a system of pipelines and integrated into a single technological complex as well as three sea tanker wharfs, a tank battery with storage capacity for 3.7 mcm.

Light products yield, % main operating indicators

2008 2009 2010 2011 Complex capacity, mln tons per year 16 16 16 16 including Northern refinery capacity 5 5 5 5 Southern refinery capacity 11 11 11 11 Complex capacity, mln tons per year 1 7.8 7.8 7.8 9.6 Complex capacity, th. barrels per day 1 157 157 157 192 Nelson complexity index 9.3 9.3 9.3 9.3

throughput and petroleum product output at Isab complex 1

2008 2009 2010 2011 Refinery throughput, mln tons 0.52 6.17 6.57 6.95 Petroleum product output, mln tons 0.58 6.15 6.54 7.10 Structure of petroleum product output, %

Gasoline 19.0 27.3 27.5 26.5 Medium distillates 47.7 49.5 49.9 49.9 Fuel oil 17.8 8.3 7.4 7.6 Vacuum gas oil – 4.3 4.4 4.5 Lubricants – – – – Other 15.5 10.6 10.8 11.5


2008 2009 2010 2011 Light products yield, % 74.6 74.4 74.5 73.0

1 Group’s share.

39


zeeLand ReFIneRy

• Lukoil acquired 45% in the JV operating Zeeland Refinery (the Netherlands) in September 2009. Transaction value was $700 million.

• Zeeland also owns 22% of the Maasvlakte Olie oil terminal (Rotterdam), which has 3.5 million tons capacity.

• Acquisition of the stake increased LUKOIL’s overall refining capacity by 5%, refining capacities abroad by 16%.

Light products yield, % main operating indicators

2009 2010 2011 Complex capacity, mln tons per day 1 3.6 3.6 3.6Complex capacity, th. barrels per day 1 72 72 7.2Nelson complexity index 8.4 8.4 8.4

throughput and petroleum product output at zeeland Refinery 1

2009 2010 2011 Refinery throughput, mln tons 1.53 4.48 4.51 Petroleum product output, mln tons 1.53 4.47 4.52 Structure of petroleum product output, %

Gasoline 23.2 21.9 21.6 Medium distillates 47.0 50.4 50.7 Fuel oil 24.0 24.0 21.2 Vacuum gas oil – 0.9 – Lubricants – – – Other 5.4 2.8 6.5

1 Group’s share.


2009 2010 2011 Light products yield, % 69.5 72.3 72.3

40

gas pROcessIng

processing and marketable product output at gas-processing plants of LUKOIL group

2007 2008 2009 2010 2011 Processing of petroleum and fat gas, mcm 3,316.9 3,248.6 2,961.7 3,178.4 3,199.2 NGL processing, th. tons 881.7 866.2 718.1 760.0 742.1 Marketable products

NGL, th. tons 653.4 639.1 624.9 671.3 703.7 LPG, th. tons 960.1 965.3 785.3 846.0 853.6 Stable gas naphta, th. tons 194.6 157.6 156.9 162.4 138.9 Acyclic hydrocarbons, th. tons 4.1 – – – – Stripped gas, mcm 2,595.2 2,567.9 2,345.5 2,537.4 2,460.3 Isopentane, th. tons 20.9 43.8 56.2 55.2 6.7 Sodium bisulfite, th. tons 1.2 2.0 1.4 1.0 0.8

Korobkovsky Gas-processing Plant

Processing and production of marketable products at Korobkovsky Gas-processing Plant2007 2008 2009 2010 2011

Gas processing, mcm 445.0 459.9 363.4 449.2 449.5 NGL processing, th. tons 59.7 62.8 70.2 76.0 72.5 Marketable products

LPG, th. tons 86.3 89.4 95.8 100.0 98.8 Stable gas naphta, th. tons 57.3 55.0 51.6 55.7 55.2 Stripped gas, mcm 353.4 382.5 282.8 360.8 357.6

Permneftegazpererabotka

Processing and production of marketable products at Permneftegazpererabotka2007 2008 2009 2010 2011

Processing of petroleum and fat gas, mcm 586.5 583.6 539.6 556.9 548.5 NGL processing, th. tons 822.0 803.4 647.9 684.0 669.6 Marketable products

LPG, th. tons 871.4 873.6 687.6 744.2 753.0 Stable gas naphta, th. tons 95.1 59.3 65.8 61.7 39.0 Acyclic hydrocarbons, th. tons 4.1 – – – – Isopentane, th. tons 20.9 43.8 56.2 55.2 6.7 Stripped gas, mcm 417.2 418.6 387.5 403.2 398.6 Sodium bisulfite, th. tons 1.2 2.0 1.4 1.0 0.8

Lokosovsky Gas-processing Plant

Processing and production of marketable products at Lokosovsky Gas-processing Plant2007 2008 2009 2010 2011

Gas processing, mcm 2,038.1 1,993.9 1,860.5 1,976.9 2,009.9 Marketable products

NGL, th. tons 653.4 639.1 624.9 671.3 655.2 Stable gas naphta, th. tons 38.9 39.6 36.0 41.4 40.6 LPG, th. tons 1.6 1.7 1.7 1.7 1.6 Stripped gas, mcm 1,669.6 1,570.6 1,487.2 1,649.6 1,583.3

Usinsky Gas-processing Plant

Processing and production of marketable products at Usinsky Gas-processing Plant2007 2008 2009 2010 2011

Gas processing, mcm 247.3 211.2 198.2 195.3 191.3 Marketable products

Stripped gas, mcm 154.9 196.2 188.0 123.9 120.8 LPG, th. tons 0.8 0.6 0.2 0.1 0.2 Stable gas naphta, th. tons 3.4 3.7 3.5 3.6 3.8

41


natURaL gas

natURaL gas

assOcIated gas

assOcIated gas

Gas Production and Supply Structure

InteRnatIOnaL

RUssIa

42

pOweR geneRatIOn

summary data

2008 2009 2010 2011 Installed capacity of combined heating plants, MWh 3,009 2,967 4,384 3,524 Installed capacity of hydropower plants, MWh 297 297 295 295 Installed heating capacity, Gcal/h 10,237 9,819 14,343 12,382 Installed capacity of boiler plants, Gcal/h 2,007 2,027 2,028 1,909 Electricity output, mln KWh 14,660 13,137 14,638 12,703 Heat production, th. Gcal 15,488 15,072 15,310 15,194

LUKOIL-Volgogradenergo

2008 2009 2010 2011 Installed capacity of combined heating plants, MWh 1,205 1,205 1,225 1,153 Installed heating capacity, Gcal/h 5,079 5,079 5,109 4,862 Electricity output, mln KWh 3,539 3,245 3,286 3,463 Heat production, th. Gcal 6,995 6,544 5,762 5,874 Equivalent fuel rate, g/KWh 329 329 327 325 Equivalent fuel rate, kg/Gcal 146 146 144 144

LUKOIL-Rostovenergo

2008 2009 2010 2011 Installed capacity of combined heating plants, MWh 676 634 843 592 Installed capacity of hydropower plants, MWh 209 209 209 – Installed heating capacity, Gcal/h 3,148 2,730 3,222 1,780 Installed capacity of boiler plants, Gcal/h 1,328 1,348 1,348 1,230 Electricity output, mln KWh 2,955 2,569 2,281 1,677 Heat production, th. Gcal 5,009 5,135 4,974 4,539 Equivalent fuel rate, g/KWh 324 316 315 309 Equivalent fuel rate, kg/Gcal 144 145 145 144

LUKOIL-Kubanenergo

2008 2009 2010 2011 Installed capacity of combined heating plants, MWh 648 648 832 744 Installed capacity of hydropower plants, MWh 88 88 86 – Installed heating capacity, Gcal/h 856 856 781 781 Electricity output, mln KWh 5,228 4,773 4,766 4,097 Heat production, th. Gcal 1,023 1,003 972 1,165 Equivalent fuel rate, g/KWh 374 382 379 379 Equivalent fuel rate, kg/Gcal 149 151 148 148

Installed capacity of combined heating plants, MWh

Installed capacity of hydropower plants, MWh

Installed heating capacity, Gcal/h

43


LUKOIL-Astrakhanenergo

2008 2009 2010 2011 Installed capacity of combined heating plants, MWh 480 480 480 490 Installed heating capacity, Gcal/h 1,154 1,154 1,833 1,899 Installed capacity of boiler plants, Gcal/h 679 679 680 679 Electricity output, mln KWh 2,938 2,550 2,564 2,576 Heat production, th. Gcal 2,461 2,390 2,078 2,185 Equivalent fuel rate, g/KWh 368 368 380 347 Equivalent fuel rate, kg/Gcal 152 153 160 155

LUKOIL-Energy & Gas Romania

2010 2011 Installed capacity of combined heating plants, MWh 61 61 Installed heating capacity, Gcal/h 452 452 Electricity output, mln KWh 120 207 Heat production, th. Gcal 795 710

LUKOIL-Energy & Gas Bulgaria

2010 2011 Installed capacity of combined heating plants, MWh 257 257 Installed heating capacity, Gcal/h 1,548 1,548 Electricity output, mln KWh 173 180 Heat production, th. Gcal 679 703

LUKOIL-Energy & Gas Ukraine

2010 2011 Installed capacity of combined heating plants, MWh 18 18 Installed heating capacity, Gcal/h 50 50 Electricity output, mln KWh 48 45 Heat production, th. Gcal 50 18

Small-scale generating

2010 2011 Installed capacity of combined heating plants, MWh 668 549 Electricity output, mln KWh 1,400 2,201

share of small-scale generating in total installed capacity of combined heating plants

share of small-scale generating in total electricity output

44

petROchemIcaLs

processing and production of petrochemicals at LUKOIL group petrochemical plants, th. tons

2007 2008 2009 2010 2011 Processing 1 2,190.3 1,568.2 1,036.3 1,366.3 1,836.0 Marketable products, total 2,040.5 1,461.6 901.9 1,036.3 1,392.7 Polymers and monomers 844.2 615.0 405.8 531.7 682.5

Polyethylene 477.8 425.5 292.1 329.6 396.2 Suspension polyvinyl chloride – – – – 83.8 Vinyl chloride 171.5 70.9 – 31.2 61.5 Polypropylene 82.9 67.4 100.5 148.0 122.3Vinyl acetate 51.3 38.8 13.2 22.9 18.7Synthetic fiber 25.3 2.8 – – – Synthetic rubber 21.4 5.3 – – – Latex 11.0 2.9 – – – Alfamethylstyrene 2.9 0.7 – – – Styrene 0.1 0.7 – – – Polystyrene – – – – –

Products of organic synthesis 578.3 462.9 292.1 234.0 365.5 Benzene 110.2 114.5 72.8 71.5 98.1 Acrylonitrile 143.2 157.8 138.6 125.3 142.5 Hydrate of sodium 47.0 20.2 – 21.5 107.0 Ethylene glycol 83.1 70.2 37.6 – – Ammonia sulphate 62.1 18.7 – – – Phenol 37.7 8.8 – – – Toluene 30.7 26.1 15.2 – – Methyl methacrylate 25.8 7.8 – – – Xylene 18.3 14.3 9.3 – – Ethanol amines 12.7 11.8 2.4 – – Acetone 3.6 1.5 – – – Acetonitrile 3.9 3.6 3.1 3.0 3.3 Sodium cyanide – 7.6 13.1 12.7 14.6

Pyrolysis products and fuel fractions 611.4 365.8 200.3 268.8 343.2Liquid pyrolysis fractions 251.6 149.8 121.3 149.9 173.4 Propylene 225.1 157.9 49.4 63.9 93.3 Heavy oil fuel 88.3 53.3 28.7 43.7 70.5 Ethylene 43.7 2.3 – 11.3 6.0 Pyrolene 2.7 2.5 0.9 – –

Other 6.6 17.9 3.7 1.8 1.5

1 Excluding Burgas refinery.

Stavrolen

Processing and production of petrochemicals at Stavrolen, th. tons2007 2008 2009 2010 2011

Processing 992.1 979.2 778.2 918.5 897.9 Marketable product output 752.9 724.1 581.5 684.0 677.7

Polyethylene 301.6 308.1 248.1 296.1 293.5 Liquid pyrolysis fractions 212.3 139.3 121.3 141.8 132.7 Propylene 121.4 120.1 40.0 22.3 11.7 Polypropylene 19.3 18.6 71.9 113.6 122.3 Benzene 14.0 64.4 57.4 57.4 66.5 Vinyl acetate 51.3 38.8 13.2 22.9 18.7 Heavy oil fuel 31.9 33.6 28.7 28.4 30.8 Other 1.1 1.2 0.9 1.5 1.5

45


Burgas Refinery

Production of petrochemicals at Burgas Refinery, th. tons2007 2008 2009 2010 2011

Marketable product output 385.0 321.7 165.6 49.3 63.4 Ethylene glycol 83.1 70.2 37.6 – – Polyethylene 74.2 69.0 44.0 – – Polypropylene 63.6 48.8 28.6 34.3 52.1 Benzene 30.9 30.8 15.5 – –Toluene 30.7 26.1 15.2 – – Synthetic rubber 21.4 5.3 – – – Acrylonitrile 20.7 25.1 – – – Xylene 18.3 14.3 9.3 – – Ethanol amines 12.7 11.8 2.4 – – Latex 11.0 2.9 – – – Synthetic fiber 10.0 – – – – Pyrolene 2.7 2.5 0.9 – – Acetonitrile 0.6 0.6 – – – Ethylene oxide – – – – – Styrene 0.1 0.7 – – – Ethylene – – – – –Propylene – – 9.4 15.0 10.7 Polystyrene – – – – –Other 5.0 13.6 2.7 – 0.6

Saratovorgsintez

Processing and production of petrochemical products at Saratovorgsintez, th. tons2007 2008 2009 2010 2011

Processing 392.3 287.7 258.1 235.4 268.9 Marketable product output 273.7 186.7 154.8 141.0 160.4

Acrylonitrile 122.5 132.7 138.6 125.4 142.5 Ammonia sulphate 62.1 18.7 – – –Phenol 37.7 8.8 – – –Methyl methacrylate 25.8 7.8 – – –Synthetic fiber 15.3 2.8 – – –Acetone 3.6 1.5 – – –Acetonitrile 3.3 3.0 3.1 2.9 3.3 Alfamethylstyrene 2.9 0.7 – – –Isopropylbenzene – – – – –Methyl acrylate 0.4 – – – –Acetone cyanohydride – 3.1 – – –Carbon fibre precursor 0.1 – – – –Sodium cyanide – 7.6 13.1 12.7 14.6

Karpatneftekhim

Processing and production of petrochemicals at Karpatneftekhim, th. tons2007 2008 2009 2010 2011

Processing 805.9 301.3 – 207.5 669.3 Marketable product output 628.9 229.1 – 163.4 554.6

PVC-S – – – – 83.8Vinyl chloride 171.5 70.9 – 31.2 61.5 Polyethylene 102.0 48.4 – 33.5 102.7 Propylene 103.7 37.8 – 27.1 81.6 Caustic soda 47.0 20.2 – 23.4 107.0 Benzene 65.3 19.3 – 14.1 31.6 Heavy oil fuel 56.4 19.7 – 14.7 39.6 Ethylene 43.7 2.3 – 11.3 6.0 Liquid pyrolysis fractions 39.3 10.5 – 8.2 40.7

46

Trade Balance of LUKOIL Subsidiaries (2011)

RUssIa

InteRnatIOnaL

Marketing

47


48

crude oil sales, mln USD

2007 2008 2009 2010 2011 Export and sales on international markets 19,258 24,007 19,914 26,342 32,522

including export and sales to near-abroad countries 912 1,625 1,638 1,091 2,390 Domestic sales 440 600 735 956 1,571 Total 19,698 24,607 20,649 27,298 34,093

crude oil sales, th. tons

2007 2008 2009 2010 2011 Export and sales on international markets 39,407 37,437 46,982 47,742 43,796

including export and sales to near-abroad countries 2,712 4,315 5,335 3,176 6,184 Domestic sales 1,604 2,102 2,989 3,634 4,461 Total 41,011 39,539 49,971 51,376 48,257

crude oil exports from Russia, th. tons

2007 2008 2009 2010 2011 Export of crude oil using Transneft export routes 39,995 36,070 33,000 31,586 29,414 Export of crude oil bypassing Transneft 2,158 3,225 9,019 9,004 5,285 Total crude oil exports 42,153 39,295 42,019 40,590 34,699

Realized average sales prices, USD per ton

2007 2008 2009 2010 2011 Export and sales on international markets 488.7 641.3 423.9 551.8 742.6

including export and sales to near-abroad countries 336.2 376.6 307.1 343.5 386.5 Domestic sales 274.4 285.7 245.9 263.1 352.2 Total 480.3 622.3 413.2 531.3 706.5

Oil purchases, th. tons

2007 2008 2009 2010 2011 Crude oil purchases in Russia 47 236 606 306 547 Crude oil purchases internationally 4,475 10,379 20,499 21,386 20,703 Total 4,522 10,615 21,105 21,692 21,250

crude oil exports from Russia, mln tons

49


petROLeUm pROdUct maRKetIng

Petroleum product sales, mln USD

2007 2008 2009 2010 2011 Export and sales on international markets

47,154

62,542

46,888

60,018

76,335

Wholesale 37,971 50,553 37,716 50,340 65,060Retail 9,183 11,989 9,172 9,678 11,275

Domestic sales 9,583 13,872 8,101 10,928 15,242Wholesale 5,862 8,049 3,820 5,427 7,349Retail 3,721 5,823 4,281 5,501 7,893

Total 56,737 76,414 54,989 70,946 91,577

petroleum product sales, th. tons


72,304

75,869

84,748

87,357

83,258

Wholesale 64,394 67,669 76,351 80,043 76,313 Retail 7,910 8,200 8,397 7,314 6,945

Domestic sales 18,557 19,278 16,012 17,999 19,328 Wholesale 13,704 13,314 9,796 10,977 11,024 Retail 4,853 5,964 6,216 7,022 8,304

Total 90,861 95,147 100,760 105,356 102,586

Realized average petroleum product sales prices, USD per ton


652.2

824.3

553.3

687.0

916.8

Wholesale 589.7 747.1 494.0 628.9 852.5Retail 1,160.9 1,462.1 1,092.3 1,323.2 1,623.5

Domestic sales 516.4 719.6 505.9 607.1 788.6Wholesale 427.8 604.6 389.9 494.4 666.6Retail 766.7 976.4 688.7 783.4 950.5

Total 624.4 803.1 545.7 673.4 892.7

petroleum product export, %

2007 2008 2009 2010 2011 Naphta 4.0 3.5 3.5 2.5 3.4Diesel fuel 33.9 34.9 33.5 29.8 30.8Vacuum gas oil 17.8 21.7 21.4 25.1 17.6Fuel oil 35.2 33.8 34.5 36.6 41.1Lubricants 2.8 2.6 2.6 3.1 3.2Other 6.3 3.5 4.5 2.9 3.9Petroleum product exports from Russia, mln tons

25.1

25.8

27.8

25.8

24.0

petroleum product export by transport types, %

2007 2008 2009 2010 2011 Rail 81.7 82.7 80.6 80.0 79.0River 12.4 9.7 10.3 11.0 12.0Pipeline 5.9 7.6 9.1 9.0 9.0

petroleum product exports from Russia, mln tons

structure of petroleum products exports, %

50

company’s retail network 1 (end of year), filling stations

2007 2008 2009 2010 2011 Total 6,090 6,748 6,620 6,508 5,994 Russia 1,815 2,106 2,170 2,242 2,336

owned and leased 1,714 2,013 2,055 2,130 2,188 franchised 101 93 115 112 148

Europe 2,041 2,399 2,349 2,309 2,359 Baltics 195 202 204 214 216 CIS 461 517 563 570 496 USA 1,578 1,524 1,334 1,173 587

1 Owned, leased and franchised. Before 2008 Europe includes Petrol-Bulgaria filling stations.

average fuel sales per filling station, tons per day

2007 2008 2009 2010 2011 Russia 9.4 9.8 9.3 10.2 11.7Europe and near-abroad countries 6.8 7.4 7.0 6.5 6.8USA 7.9 6.8 6.8 7.0 6.1Total 7.9 7.3 7.8 8.1 8.9

LUKOIL share in petroleum product markets of Russian federal districts, %

Share in wholesale market 2009 2010 2011 Central 3 3 2North-West 15 13 17Urals 18 22 13South 15 13 12Volga 12 10 9

Share in retail market 2009 2010 2011 Central 14 16 14 North-West 28 32 25 Urals 21 24 20 South 26 31 30 Volga 23 28 26

petrochemical product sales, mln USD


1,569

1,232

574

642

1,095

Domestic sales 733 880 514 728 914 Total 2,302 2,112 1,088 1,370 2,009

petrochemical product sales, th. tons


1,449

1,062

763

552

900

Domestic sales 716 767 706 710 756 Total 2,165 1,829 1,469 1,262 1,656

average fuel sales per filling station, tons per day

LUKOIL share in petroleum product markets in Russia and other countries, %

2009 2010 2011

Russia* 21 24 23

Azerbaijan 13 13 11

Belarus 13 14 16

Belgium 8 8 8

Bulgaria 25 20 25

Hungary 7 7 7

Georgia 20 15 19

Cyprus 13 13 12

Lithuania 23 23 22

Latvia 10 11 11

Macedonia 12 15 21

Moldova 37 37 36

Poland 4 4 4

Romania 25 20 20

Serbia 20 14 18

Slovakia 4 4 4

Turkey 5 7 7

Ukraine 8 5 6

Finland 38 41 41

Croatia 2 3 5

Montenegro 13 12 13

Czech Republic 4 4 4

Estonia 9 6 6

1 Share in the regions where LUKOIL has retail business

51


Industrial Safety and Environment Protection

main indicators of industrial injuries

2007 2008 2009 2010 2011 Number of loss of working hours incidents

149

117

84

59

44

Number of accidents 62 51 54 43 19 Number of injuries 67 60 60 49 25 Number of fatalities 7 13 5 2 –

main indicators of environmental impact

2007 2008 2009 2010 2011 Air emissions, th. tons 580.9 813.7 774.7 795.0 842,7 Waste water discharge, million cubic meters

13.7

11.6

9.1

4.8

2.2

Recycling and burial of toxic waste, th. tons

815.6

808.7

837.1

920.3

774.1

Area of contaminated lands, ha 137.1 137.4 144.9 296.0 685.2 Number of accidents with environmental damage

67

45

124

80

48

environmental spending, $ million

2007 2008 2009 2010 2011 Spending 600 705 419 715 718

waste water discharge, million cubic meters

number of accidents

environmental spending, mln USD

52

Finances

cOmpany shaRes

LUKOIL share capital

Change, y-o-y Common shares

December 31, 2004 No changes 850,563,255








LUKOIL shareholders

main shareholders of common stock (end of year) Shareholder’s name 2007 2008 2009 2010 2011 «ING BANK (Eurasia)» (ADRs and GDRs) 1 600,052,544 585,245,353 588,130,232 645,159,254 645,877,294 Depositary-Clearing Company 1 60,124,748 67,184,973 75,790,805 69,483,048 72,002,391 ZAO KB «Citibank» 1 67,431,596 69,274,981 66,536,986 – –National Depositary Center 1 32,607,234 48,689,475 38,176,573 52,526,643 46,976,333 SDK «GARANT» 1 35,375,790 31,028,284 33,177,732 33,411,404 33,427,724 DK «URALSIB» 1 20,667,261 19,627,533 13,574,885 12,065,926 12,049,529 State ownership – – – – –

1 Nominee.

LUKOIL common share price on mIcex, rUb

2006 2007 2008

Min Max End Average Min Max End Average Min Max End Average

1Q 1704.52 2431.77 2303.95

2214.40

1991.78 1991.78 2236.81

2078.30

1613.21 2072.43 1992.75

1747.002Q 1706.24 1706.24 2229.04 1871.95 2236.81 1969.62 1960.94 2682.25 2318.01

3Q 1904.38 2450.59 2026.51 1858.61 2178.17 2079.46 1364.81 2283.14 1520.00

4Q 1909.35 2392.26 2287.00 2030.89 2324.77 2067.10 755.21 1500.96 965.11

2009 2010 2011

Min Max End Average Min Max End Average Min Max End Average

1Q 961.60 1419.13 1267.81

1492.74

1518.22 1749.35 1671.49

1678.06

1753.53 2090.00 2032.70

1681.752Q 1297.62 1756.27 1379.48 1404.04 1768.04 1621.56 1680.00 2084.10 1777.30

3Q 1302.07 1693.74 1631.34 1553.41 1799.80 1731.27 1500.00 1925.10 1637.60

4Q 1600.09 1955.74 1694.00 1682.15 1849.56 1742.00 1517.00 1819.00 1701.00

53


LUKOIL share performance and the mIcex Index (based on daily changes)

2007 2008 2009 2010 2011 2007–2011LUKOIL standard deviation, % 1.44 4.22 2.71 1.20 1.85 3.03MISEX standard deviation, % 1.26 3.74 2.48 1.22 1.72 2.72Correlation 0.88 0.92 0.91 0.77 0.82 0.86Beta coefficient 1.02 1.13 1.01 0.83 0.89 0.98

LUKOIL market capitalization (end of year)

2007 2008 2009 2010 2011 Common share price on the MICEX, RUB

2067.10

965.11

1694.00

1742.00

1701.00

Number of common shares, mln 850.56 850.56 850.56 850.56 850.56Market capitalization 1, mln USD 71,628 27,940 47,640 48,616 44,937

1 Market capitalization is calculated based on price for LUKOIL common shares on the MICEX and US dollar exchange rate

on December 31.

LUKOIL dividend policy

2007 2008 2009 2010 2011 Dividend per common share, RUB 42.0 50.0 52.0 59.0 75.0Dividends accrued for the previous year, mln USD

1,223

1,510

1,360

1,428

1,647

Dividend payments, mln USD 1,230 1,437 1,337 1,471 1,714 Dividend yield, % 1 2.02 2.86 3.48 3.52 4.17Total stockholder return, % 2 -7.8 -50.9 80.9 6.3 2.0

1 Dividend yield is calculated based on the average market price for LUKOIL common shares on the MICEX.

2 Cumulative effect of changes in equity prices and investment income. (Value of common share at the end of period – value

of common share at the beginning of period + Dividend per share) / Value of common share at the beginning of period.

tickers of LUKOIL common shares

Ticker Trading platformLKOH MICEX-RTS Stock ExchangeLKOD London Stock Exchange 1

LUK Frankfurt Stock Exchange 1

LUKOY US OTC market 1

1 LUKOIL shares in ADR form.

LUKOIL common share price on mIcex (2011), rUb

LUKOIL market capitalization (end of year) bln USD

divident yield, %

dividend per common share, rUb

54

LUKOIL share price compared with bloomberg Oils Index and mIcex Index in 2011, %

LUKOIL shares (adRs) trading volume in 2011, bln USD

total stockholder return (tsR), %

dividend payout ratio, %

distribution of LUKOIL shares and adRs trading volume in 2011

55


macROecOnOmIc and tax envIROnment

crude oil and petroleum product prices, USD per barrel

2007 2008 2009 2010 2011 Brent crude 72.39 97.26 61.67 79.50 111.26 Urals crude (CIF Mediterranean) 69.38 94.76 61.22 78.29 109.10 Urals crude (CIF Rotterdam) 69.16 94.83 61.15 78.26 109.08

crude oil and petroleum product prices, USD per ton

2007 2008 2009 2010 2011 Fuel oil 3.5% (FOB Rotterdam) 339.00 459.74 345.72 442.35 609.51 Diesel fuel (FOB Rotterdam) 634.09 901.53 534.84 688.46 958.73 High-octane gasoline (FOB Rotterdam) 695.97 836.79 579.01 735.24 984.12

macroeconomic environment

2007 2008 2009 2010 2011 Ruble inflation (CPI), % 11.9 13.3 8.9 8.7 6.1 Nominal appreciation of the ruble against US dollar, % 6.8 (19.7) (2.9) (0.8) (5.6)

Real appreciation of the ruble against dollar, % 20.0 17.4 (12.4) 11.6 12.0Average exchange rate for the period, RUB/USD 25.6 24.9 31.7 30.4 29.4 Exchange rate at the end of the period, RUB/USD 24.6 29.4 30.2 30.5 32.2

average rates of main taxes levied on oil companies in the Russian Federation

2007 2008 2009 2010 2011

Corporate income tax, % 24.0 24.0 20.0 20.0 20.0Corporate property tax, % 2.2 2.2 2.2 2.2 2.2

Value added tax, % 18.0 18.0 18.0 18.0 18.0Social contributions (before 01.2010 – Unified social tax), %

26.0

26.0

26.0

26.0

34.0

Mineral extraction tax (MET) (oil), RUB/ton 2,472.7 3,329.1 2,302.9 3,075.8 4,456.5

MET (natural gas), RUB/th.cm 147.0 147.0 147.0 147.0 237.0Oil export tariff, USD/ton 206.7 355.1 179.9 273.5 409.2

Natural gas export tariff, % 30.0 30.0 30.0 30.0 30.0 Petroleum product export tariffs

Light distillates, middle distillates and gas oil, USD/ton 151.6 251.5 133.5 196.6 274.3

Liquid fuel, USD/ton 81.6 135.5 71.9 105.9 208.5

Petroleum product excises Gasoline

Below Euro-3 (low-octane), RUB/ton 2,657.0 2,657.0 2,657.0 2,923.0 5,995.0

Below Euro-3 (high-octane), RUB/ton 3,629.0 3,629.0 3,629.0 3,992.0 5,995.0

Euro-3, RUB/ton 3,629.0 3,629.0 3,629.0 3,992.0 5 672,0

Euro-4 and -5, RUB/ton 3,629.0 3,629.0 3,629.0 3,992.0 5 143,0

Diesel fuelBelow Euro-3, RUB/ton 1,080.0 1,080.0 1,080.0 1,188.0 2,753.0

Euro-3, RUB/ton 1,080.0 1,080.0 1,080.0 1,188.0 2,485.0

Euro-4 and -5, RUB/ton 1,080.0 1,080.0 1,080.0 1,188.0 2,247.0

Motor oils, RUB/ton 2,951.0 2,951.0 2,951.0 3,246.1 4,681.0

Straight-run gasoline, RUB/ton 2,657.0 2,657.0 3,900.0 4,290.0 6,089.0

56

Income tax payment by LUKOIL, mln USD

2007 2008 2009 2010 2011 Current income tax 3,410 4,167 1,922 2,104 2,678

Russia 2,940 3,614 1,677 1,693 2,158 Abroad 470 553 245 411 520

Deferred income tax 39 -700 72 247 615 Russia 77 -523 98 299 581 Abroad -38 -177 -26 -52 34

Total income tax 3,449 3,467 1,994 2,351 3,293

payment of taxes other than income tax, mln USD

2007 2008 2009 2010 2011 Mineral extraction tax 8,482 12,267 5,452 7,864 11,594 Social taxes and contributions 442 512 399 429 587 Property tax 313 405 470 518 573

Other taxes and contributions 130 280 153 167 164 Total taxes other than income tax 9,367 13,464 6,474 8,978 12,918

excises and export tariffs, mln USD

2007 2008 2009 2010 2011 In Russia 11,548 16,986 9,320 15,038 18,452

Excise tax and sales taxes on refined products 610 734 956 763 951Export tariffs 10,814 16,030 8,557 14,087 16,742

International 3,485 4,354 3,738 3,840 3,765Excise tax and sales taxes on refined products 2,835 3,468 3,984 3,524 3,700Export tariffs 17 370 214 140 320

Total 15,033 21,340 13,058 18,878 22,217Excise tax and sales taxes on refined products 3,445 4,202 4,940 4,287 4,651 Export tariffs 10,831 16,400 8,771 14,227 17,062

tax burden of LUKOIL group

2007 2008 2009 2010 2011 Share of taxes in sales after cost of purchased crude oil and petroleum products, %

51.7

54.8

43.6

49.0

52.0

Share of total taxes and contributions in income before their payment, %

74.4

80.6

75.3

77.0

78.7

57


cOnsOLIdated FInancIaL statements

consolidated Income statements, mln USD

REVENUES 2007 2008 2009 2010 2011 Sales (including excise and export tariffs) 81,891 107,680 81,083 104,956 133,650 COSTS AND OTHER DEDUCTIONS Operating expenses -6,172 -8,126 -7,340 -8,298 -9,055 Cost of purchased crude oil, gas and products -27,982 -37,851 -31,761 -43,250 -59,694 Transportation expenses -4,457 -5,460 -4,830 -5,608 -6,121 Selling, general and administrative expenses -3,207 -3,860 -3,306 -3,558 -3,822 Depreciation, depletion and amortization -2,172 -2,958 -3,937 -4,154 -4,473 Taxes other than income taxes -9,367 -13,464 -6,474 -8,978 -12,918 Excise and export tariffs -15,033 -21,340 -13,058 -18,878 -22,217 Exploration expenses -307 -487 -218 -336 -532 (Loss) gain on disposal and impairment of assets -123 -425 -381 -363 -1,663 Income from operating activities 13,071 13,709 9,778 11,533 13,155 Interest expense -333 -391 -667 -712 -694 Interest and dividend income 135 163 134 174 211 Equity share in income of affiliates 347 375 351 472 690 Currency translation gain (loss) 35 -918 -520 -122 -301 Other non-operating (expense) income -240 -244 -13 125 58 Income before income taxes 13,015 12,694 9,063 11,470 13,119 Current income taxes -3,410 -4,167 -1,922 -2,104 -2,678 Deferred income taxes -39 700 -72 -247 -615 Total income tax expense -3,449 -3,467 -1,994 -2,351 -3,293 Net income 9,566 9,227 7,069 9,119 -9,826 Less: net income attributable to non-controlling interests -55 -83 -58 -113 531 Net income attributable to OAO LUKOIL 9,511 9,144 7,011 9,006 10,357 Net income per share of common stock (US dollars)

Basic 11.48 10.88 8.28 10.95 13.30 Diluted 11.48 10.88 8.28 10.94 13.04

58

consolidated balance sheets (as of december 31), mln USD

ASSETS 2006 2007 2008 2009 2010 2011 Current assetsCash and cash equivalents 752 841 2,239 2,274 2,368 2,753 Short-term investments 44 48 505 75 168 157 Accounts and notes receivable, net 5,158 7,467 5,069 5,935 8,219 8,921 Inventories 3,444 4,609 3,735 5,432 6,231 7,533 Prepaid taxes and other expenses 3,693 4,109 3,566 3,549 2,934 3,219 Other current assets 406 625 519 574 697 946 Assets held for sale 75 70 – – – –Total current assets 13,572 17,769 15,633 17,839 20,617 23,529 Investments 1,442 1,086 3,269 5,944 5,637 5,952 Property, plant and equipment 31,316 38,056 50,088 52,228 54,629 56,803 Deferred income tax assets 362 490 521 549 676 591 Goodwill and other intangible assets 791 942 1,159 1,653 1,446 1,344 Other non-current assets 754 1,289 791 806 1,012 2,973 Total assets 48,237 59,632 71,461 79,019 84,017 91,192 LIABILITIES AND STOCKHOLDERS’ EQUITYCurrent liabilities Accounts payable 2,759 4,554 5,029 4,906 5,607 5,995 Short-term borrowings and current portion of long-term debt

1,377

2,214

3,232

2,058

2,125

1,792

Customer deposits and other borrowings of banking subsidiaries

–

–

–

–

–

–

Taxes payable 1,663 2,042 1,564 1,828 2,099 2,271 Other current liabilities 1,132 918 750 902 944 1,050 Total current liabilities 6,931 9,728 10,575 9,694 10,775 11,108 Long-term debt 4,807 4,829 6,577 9,265 9,069 7,300 Deferred income tax liabilities 2,116 2,079 2,116 2,080 2,417 2,790 Asset retirement obligations 608 811 718 1,189 1,788 2,120 Other long-term liabilities 352 395 465 412 360 408 Total liabilities 14,814 17,842 20,451 22,640 24,409 23,726 Equity OAO LUKOIL stockholders’ equity Common stock 15 15 15 15 15 15 Treasury stock, at cost -1,098 -1,591 -282 -282 -3,683 -4,081 Equity-linked notes – – – – -980 -980 Additional paid-in capital 3,943 4,499 4,694 4,699 4,700 4,798 Retained earnings 30,061 38,349 45,983 51,634 59,212 67,940 Accumulated other comprehensive loss -21 -59 -70 -75 -67 -54 Total OAO LUKOIL stockholders' equity 32,900 41,213 50,340 55,991 59,197 67,638 Non-controlling interests 523 577 670 388 411 -172

Total equity 33,423 41,790 51,010 56,379 59,608 67,466 TOTAL LIABILITIES AND EQUITY 48,237 59,632 71,461 79,019 84,017 91,192

59


consolidated statements of cash Flows, mln USD

CASH FLOWS FROM OPERATING ACTIVITIES 2007 2008 2009 2010 2011 Net income 9,511 9,144 7,011 9,006 10,357 Adjustments for non-cash items:

Depreciation, depletion and amortization 2,172 2,958 3,937 4,154 4,473 Equity share in income of affiliates, net of dividends received 209 -238 -213 316 185 Dry hole write-offs 143 317 117 225 417 Loss (gain) on disposal and impairment of assets 123 425 381 363 1,663 Deferred income taxes 39 -700 72 247 615 Non-cash currency translation loss (gain) 251 -668 -57 -44 -214 Non-cash investing activities -36 -29 -20 -67 -6 All other items, net 297 404 138 167 -447

Changes in operating assets and liabilities:

Accounts and notes receivable -2,297 2,647 -1,171 -2,285 -758 Inventories -1,148 963 -1,719 -813 -1,420 Accounts payable 1,599 -989 96 1,508 885 Taxes payable 386 -521 292 274 177 Other current assets and liabilities -368 599 19 490 -413

Net cash provided by operating activities 10,881 14,312 8,883 13,541 15,514 CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of licenses -255 -12 -40 -15 -25 Capital expenditures -9,071 -10,525 -6,483 -6,596 -8,249 Proceeds from sale of property, plant and equipment 72 166 91 128 156 Purchases of investments -206 -398 -216 -137 -101 Proceeds from sale of investments 175 636 478 126 79 Sale of subsidiaries and affiliated companies 1,136 3 92 130 227 Acquisitions of subsidiaries and non-controlling interests (including advances related to these acquisitions), net of cash acquired

-1,566

-3,429

-2,473

-932

-2,860

Net cash used in investing activities -9,715 -13,559 -8,551 7,296 -10,773 CASH FLOWS FROM FINANCING ACTIVITIES

Net movements of short-term borrowings -59 974 -1,281 -213 -633 Cash received under sales-leaseback transaction – 235 – – – Proceeds from issuance of long-term debt 2,307 2,884 5,467 2,515 1 Principal repayments of long-term debt -1,632 -1,547 -2,697 -2,267 -1,372 Dividends paid -1,308 -1,605 -1,422 -1,556 -1,830

Dividends paid on Company’s stock -1,230 -1,437 -1,337 -1,471 -1,714 Dividends paid to non-controlling interest stockholders -78 -168 -85 -85 -116

Financing received from non-controlling interest stockholders 177 39 20 18 3 Purchase of Company’s stock -712 -219 – -3,664 -398 Sale of Company’s stock 129 – – 193 – Purchase of equity-linked notes – -980 – Purchases of non-controlling interests -372 -192 -34

Other – net – 2 – – Net cash provided by (used in) financing activities -1,098 763 -285 -6,146 -4,263 Effect of exchange rate changes on cash and cash equivalents 21 -118 -12 -5 -93 Net (decrease) increase in cash and cash equivalents 89 1,398 35 94 385 Cash and cash equivalents at beginning of year 752 841 2,239 2,274 2,368 Cash and cash equivalents at end of year 841 2,239 2,274 2,368 2,753

60

consolidated statements of stockholders’ equity and comprehensive Income, mln USD

2007 2008 2009 2010 2011 Common stock

Balance at January 1 15 15 15 15 15 Balance as of December 31 15 15 15 15 15 Treasury stock

Balance at January 1 -1,098 -1,591 -282 -282 -3,683 Stock purchased -712 -219 – -3,664 -398 Stock disposed 219 1,528 – 263 –

Balance as of December 31 -1,591 -282 -282 -3,683 -4,081 Equity-linked notes

Balance as of January 1 – – – – -980 Equity-linked notes purchased – – – -980 –

Balance as of December 31 – – – -980 -980 Additional paid-in capital

Balance at January 1 3,943 4,499 4,694 4,699 4,700 Premium on non-outstanding shares issued – – – 1 – Effect of stock compensation plan 103 103 20 98 98 Convertible bonds issue – – - 113 –Changes in non-controlling interests – – -15 -141 – Treasury stock disposed – – – -70 – Proceeds from sale of treasury stock in excess of carrying amount 453 72 – – –

Balance as of December 31 4,499 4,694 4,699 4,700 4,798 Retained earnings

Balance at January 1 30,061 38,349 45,983 51,634 59,212 Net income (comprehensive income) 9,511 9,144 7,011 9,006 10,357 Net income (stockholders' equity) 9,511 9,144 7,011 9,006 10,357 Dividends on common stock -1,223 -1,510 -1,360 -1,428 -1,629

Balance as of December 31 38,349 45,983 51,634 59,212 67,940 Accumulated other comprehensive loss, net of tax

Balance at January 1 -21 -59 -70 -75 -67 Pension benefits: Foreign currency translation adjustment (comprehensive income) -16 -5 -4 12 22 Foreign currency translation adjustment (stockholders' equity) -16 -5 -4 12 22 Actuarial loss (comprehensive income) -22 -6 1 -4 -9 Actuarial loss (stockholders' equity) -22 -6 1 -4 -9 Effect of initial adoption of SFAS No. 158 – – – – – Unrecognized loss on available-for-sale securities (comprehensive income)

–

–

-2

–

–

Unrecognized loss on available-for-sale securities (stockholders' equity)

–

–

-2

–

–

Balance as of December 31 -59 -70 -75 -67 -54 Total comprehensive income for the year 9,473 9,133 7,006 9,014 10,370 Total OAO LUKOIL stockholders’ equity as of December 31 41,213 50,340 55,991 59,197 67,638 Non-controlling interests

Balance as of January 1 523 577 670 388 411 Net income attributable to non-controlling interests (stockholders' equity)

55

83

58

113

-531

Changes in non-controlling interests (stockholders' equity) -1 10 -340 -90 -52 Balance as of December 31 577 670 388 411 -172 Total equity as of December 31 41,790 51,010 56,379 59,608 67,466

Shares activity, mln of shares 2007 2008 2009 2010 2011 Common stock, issued

Balance at January 1 850.563 850.563 850.563 850.563 850.563 Balance as of December 31 850.563 850.563 850.563 850.563 850.563

Treasury stockBalance as of January 1 (23.632) (23.321) (3.836) (3.836) (69.208)Purchase of treasury stock (8.756) (2.899) – (68.912) (6.893)Disposal of treasury stock 9.067 22.384 – 3.540 –

Balance as of December 31 (23.321) (3.836) (3.836) (69.208) (76.101)

61


capital expenditures 1, mln USD

2007 2008 2009 2010 2011 Capital expendituresExploration and production 7,262 7,889 4,625 4,908 6,629

Russia 6,391 6,813 3,855 3,911 5,084 International 871 1,076 770 997 1,545

Refining, marketing and distribution 1,822 2,067 1,316 1,319 1,354 Russia 1,177 1,346 808 944 1,030 International 645 721 508 375 324

Chemicals 171 121 113 76 89 Russia 73 23 13 27 55 International 98 98 100 49 34

Power generation – 364 283 420 196 Other 117 148 197 121 224 Total capital expenditures 9,372 10,589 6,534 6,844 8,492 Acquisitions of companies and Group investments 2

Exploration and production 434 361 300 922 2,512 Russia 77 4 – – 252 International 357 357 300 922 2,260

Refining, marketing and distribution 1,196 2,033 2,281 10 352 Russia 685 636 212 7 10 International 511 1,397 2,069 3 3 342

Power generation – 3,191 4 10 – – Other 38 3 1 – – Less cash acquired -102 -190 -19 – -4 Total acquisitions of companies and Group investments 1,566 5,398 2,573 932 2,860

1 Including non-cash transactions.2 Including prepayments related to acquisitions of subsidiaries and buyout of minorities.3 Including $100 million of non-cash part of consideration for acquisition of Zeeland.4 Including $1,969 million of non-cash part of consideration for acquisition of TGK-8.

62

FInancIaL RatIOs

specific financial ratios

2007 2008 2009 2010 2011 Sales per boe of production 1, USD per barrel 103.0 134.1 100.4 128.4 171.1 Income from operating activities per boe of production 1, USD per barrel 16.4 17.1 12.1 14.1 16.8 EBITDA per boe of production 1, USD per barrel 19.3 19.7 16.7 19.6 23.8 Net income per boe of production 1, USD per barrel 12.0 11.4 8.7 11.0 13.3 Capital expenditures in exploration and production 1 per boe of production, USD per barrel

9.1

9.8

5.7

6.0

8.5

Capitalization per boe of reserves, USD per barrel 3.6 1.4 2.7 2.8 2.6 Capitalization per boe of production 1, USD per barrel 93.1 33.9 59.2 59.1 57.5

1 Of marketable hydrocarbons.

Profitability and Efficiency Ratios Income margin

Income margin

=

Income

Sales

2007 2008 2009 2010 2011 Sales, mln USD 81,891 107,680 81,083 104,956 133,650 Income from operating activities, mln USD

13,071

13,709

9,778

11,533

13,155

Income before taxes, mln USD 13,015 12,694 9,063 11,470 13,119 Net income, mln USD 9,511 9,144 7,011 9,006 10,357 Operating margin, % 16.0 12.7 12.1 11.0 9.8 Pretax margin, % 15.9 11.8 11.2 10.9 9.8 Net margin, % 11.6 8.5 8.6 8.6 7.7

EBIT и EBITDA

EBIT = Income before income tax + Interest expense – Interest and divinded income

EBI TDA = EBIT + Depreciation, depletion and amortization

2007 2008 2009 2010 2011 Net income, mln USD 9,511 9,144 7,011 9,006 10,357 Income tax expense 3,449 3,467 1,994 2,351 3,293 Interest expense, mln USD 333 391 667 712 694 Interest and dividend income, mln USD

-135

-163

-134

-174

-211

EBIT, mln USD 13,158 12,839 9,538 11,895 14,133 Depreciation and amortization, mln USD

2,172

2,958

3,937

4,154

4,473

EBITDA, mln USD 15,330 15,797 13,475 16,049 18,606 EBIT margin, % 16.1 11.9 11.8 11.3 10.6 EBITDA margin, % 18.7 14.7 16.6 15.3 13.9

net margin, %

net income to production, USD per boe

63


Return on equity

Return on equity

=

Net income

Average equity for the year

2007 2008 2009 2010 2011 Equity, mln USD 41,213 50,340 55,991 59,197 67,638 Net income, mln USD 9,511 9,144 7,011 9,006 10,357 Return on equity, % 25.7 20.0 13.2 15.6 16.3

Return on assets

Return on assets

=

Net income

Average assets for the year

2007 2008 2009 2010 2011 Assets, mln USD 59,632 71,461 79,019 84,017 91,192 Net income, mln USD 9,511 9,144 7,011 9,006 10,357 Return on assets, % 17.6 14.0 9.3 11.0 11.8

Return on non-current assets

Return on non-current assets

=

Net income

Average non-current assets for the year

2007 2008 2009 2010 2011 Non-current assets, mln USD 41,863 55,828 61,180 63,400 67,663 Net income, mln USD 9,511 9,144 7,011 9,006 10,357 Return on non-current assets, % 24.9 18.7 12.0 14.5 15.8

ROACE

ROACE =

Net income + Interest expense x (1 – Effective. income tax rate) + Minority interest

Average for the year (Equity + Long-term debt + Short-term debt + Minority interest)

2007 2008 2009 2010 2011 Equity, mln USD 41,213 50,340 55,991 59,197 67,638 Long-term debt, mln USD 4,829 6,577 9,265 9,069 7,300 Short-term debt, mln USD 2,214 3,232 2,058 2,125 1,792 Minority interest in subsidiary companies, mln USD 577 670 388 411 -172 Net income, mln USD 9,511 9,144 7,011 9,006 10,357 Interest expense, mln USD 333 391 667 712 694 Minority interest, mln USD 55 83 58 113 -531 Effective income tax rate 1, % 26.5 27.3 22.0 20.5 25.1ROACE, % 22.2 17.3 11.8 14.0 14.0

1 Income taxes to income before income taxes before deduction of minority interest.

Asset turnover (as of December 31)

Asset turnover =

Average assets for the year x 365 days

Sales

2007 2008 2009 2010 2011 Sales, mln USD 81,891 107,680 81,083 104,956 133,650 Assets, mln USD 59,632 71,461 79,019 84,017 91,192 Asset turnover, days 240 222 339 283 239

market capitalization to proved hydrocarbon reserves, USD per boe

Return on equity, %

64

Accounts payable turnover (as of December 31)

Accounts payable turnover

=

Average accounts payable х 365 days

Sales

2007 2008 2009 2010 2011 Sales, mln USD 81,891 107,680 81,083 104,956 133,650 Accounts payable, mln USD 4,554 5,029 4,906 5,607 5,995 Accounts payable turnover, days 16 16 22 18 16

Accounts receivable turnover (as of December 31)

Accounts receivable turnover

=

Average accounts receivable х 365 days

Sales

2007 2008 2009 2010 2011 Sales, mln USD 81,891 107,680 81,083 104,956 133,650 Accounts receivable, mln USD 7,467 5,069 5,935 8,219 8,921 Accounts receivable turnover, days 28 21 25 25 23

turnover of accounts receivable and accounts payable, days

asset turnover, days

ROace, %

65


Gearing Ratios Total debt to capital (as of December 31)

2007 2008 2009 2010 2011 Total debt, mln USD 7,043 9,809 11,323 11,194 9,092 Equity, mln USD 41,213 50,340 55,991 59,197 67,638 Capital, mln USD 48,256 60,149 67,314 70,391 76,730 Total debt to capital, % 14.6 16.3 16.8 15.9 11.8

Total debt to equity (as of December 31)

2007 2008 2009 2010 2011 Total debt, mln USD 7,043 9,809 11,323 11,194 9,092 Equity, mln USD 41,213 50,340 55,991 59,197 67,638 Total debt to equity, % 17.1 19.5 20.2 18.9 13.4

Total debt to EBITDA (as of December 31)

2007 2008 2009 2010 2011 Total debt, mln USD 7,043 9,809 11,323 11,194 9,092 EBITDA, mln USD 15,330 15,797 13,475 16,049 18,606 Total debt to EBITDA, % 45.9 62.1 84.0 69.7 48.9Financial guarantees, mln USD 361 161 50 – – Adjusted total debt, mln USD 7,404 9,970 11,373 11,194 9,092 Adjusted total debt to EBITDA, % 48.3 63.1 84.4 69.7 48.9

Short-term debt to total debt (as of December 31)

2007 2008 2009 2010 2011 Short-term debt, mln USD 2,214 3,232 2,058 2,125 1,792 Total debt, mln USD 7,043 9,809 11,323 11,194 9,092 Short-term debt to total debt, % 31.4 32.9 18.2 19.0 19.7

Secured debt to total debt (as of December 31)

2007 2008 2009 2010 2011 Secured debt, mln USD 378 453 1,580 317 271 Total debt, mln USD 7,043 9,809 11,323 11,194 9,092 Secured debt to total debt, % 5.4 4.6 14.0 2.8 3.0

Financial guarantees to adjusted total debt (as of December 31)

2007 2008 2009 2010 2011 Financial guarantees, mln USD 361 161 50 – – Adjusted total debt, mln USD 7,404 9,970 11,373 11,194 9,092 Financial guarantees to adjusted total debt, %

4.9

1.6

0.4

–

–

Fixed debt to total debt (as of December 31)

2007 2008 2009 2010 2011 Fixed debt, mln USD 3,947 4,440 7,186 8,355 7,824 Total debt, mln USD 7,043 9,809 11,323 11,194 9,092 Fixed debt to total debt, % 56.0 45.3 63.5 74.6 86.1

total debt to capital, %

short-term debt to total debt, %

secured debt to total debt, %

net debt, bln USD

66

Net debt (as of December 31)

Net debt = Long-term debt + Customer deposits of banking subsidiaries+ Short-term debt – Cash

2007 2008 2009 2010 2011 Long-term debt, mln USD 4,829 6,577 9,265 9,069 7,300 Short-term debt, mln USD 2,214 3,232 2,058 2,125 1,792 Cash and cash equivalents, mln USD 841 2,239 2,274 2,368 2,753 Net debt, mln USD 6,202 7,570 9,049 8,826 6,339 Cash of banking subsidiaries in roubles and other currencies, mln USD

47 132 131 171 –

Financial guarantees, mln USD 361 161 50 – – Adjusted net debt, mln USD 6,610 7,863 9,230 8,997 6,339

Net debt to equity (as of December 31)

2007 2008 2009 2010 2011 Net debt, mln USD 6,202 7,570 9,049 8,826 6,339 Equity, mln USD 41,213 50,340 55,991 59,197 67,638 Net debt to equity, % 15.0 15.0 16.2 14.9 9.4Adjusted net debt, mln USD 6,610 7,863 9,230 8,997 6,339 Adjusted net debt to equity, % 16.0 15.6 16.5 15.2 9.4

Net debt to cash flow from operating activities (as of December 31)

2007 2008 2009 2010 2011 Net debt, mln USD 6,202 7,570 9,049 8,826 6,339 Cash flow from operating activities, mln USD

10,881

14,312

8,883

13,541

15,514

Net debt to cash flow from operating activities, %

57.0

52.9

101.9

65.2

40.9

Adjusted net debt, mln USD 6,610 7,863 9,230 8,997 6,339 Adjusted net debt to cash flow from operating activities, %

60.7

54.9

103.9

66.4

40.9

EBITDA interest coverage

2007 2008 2009 2010 2011 EBITDA, mln USD 15,330 15,797 13,475 16,049 18,606 Interest expense, mln USD 333 391 667 712 694 EBITDA interest coverage 46.0 40.4 20.2 22.5 26.8

Free cash flow

2007 2008 2009 2010 2011 Cash flow from operating activities, mln USD

10,881 14,312 8,883 13,541 15,514

Capital expenditures 1, mln USD 9,326 10,537 6,523 6,611 8,274 Free cash flow, mln USD 1,555 3,775 2,360 6,930 7,240

1 Including acquisition of licenses.

Fixed debt to total debt, %

ebItda interest coverage

structure of cash flow from operating activities, bln USD

net debt to cash flow from operating activities, %

67


cash ratio

current ratio

Liquidity Ratios Cash ratio (as of December 31)

Cash ratio

=

Cash and cash equivalents

Current liabilities

2007 2008 2009 2010 2011 Cash and cash equivalents, mln USD 841 2,239 2,274 2,368 2,753 Current liabilities, mln USD 9,728 10,575 9,694 10,775 11,108 Cash ratio 0.09 0.21 0.23 0.22 0.25

Quick ratio (as of December 31)

Quick ratio

=

Cash + Short-term investments

+ Accounts and notes receivable

Current liabilities

2007 2008 2009 2010 2011 Cash and cash equivalents, mln USD 841 2,239 2,274 2,368 2,753 Short-term investments, mln USD 48 505 75 168 157 Accounts receivable, mln USD 7,467 5,069 5,935 8,219 8,921 Current liabilities, mln USD 9,728 10,575 9,694 10,775 11,108 Quick ratio 0.86 0.74 0.85 1.00 1.07

Current ratio (as of December 31)

Current ratio =

Current assets

Current liabilities

2007 2008 2009 2010 2011 Current assets, mln USD 17,769 15,633 17,839 20,617 23,529 Current liabilities, mln USD 9,728 10,575 9,694 10,775 11,108 Current ratio 1.83 1.48 1.84 1.91 2.12

Assets to equity (as of December 31)

2007 2008 2009 2010 2011 Assets, mln USD 59,632 71,461 79,019 84,017 91,192 Stockholders’ equity, mln USD 41,213 50,340 55,991 59,197 67,638 Assets to equity 1.45 1.42 1.41 1.42 1.35

68

Market Valuation of the Company Enterprise value (EV) (as of December 31)

EV = Market capitalization + Long-term debt + Short-term debt – Cash

2007 2008 2009 2010 2011 Market capitalization 1, mln USD 71,802 27,839 47,688 48,338 44,937 Long-term debt, mln USD 4,829 6,577 9,265 9,069 7,300 Short-term debt, mln USD 2,214 3,232 2,058 2,125 1,792 Cash and cash equivalents, mln USD 841 2,239 2,274 2,368 2,753 EV, mln USD 78,004 35,409 56,737 57,164 51,276


on December 31. EV/EBITDA (as of December 31)

2007 2008 2009 2010 2011 EV, mln USD 80,201 34,788 56,851 61,900 51,276 EBITDA, mln USD 15,330 15,797 13,475 16,049 18,606 EV/EBITDA 5.23 2.20 4.22 3.86 2.76

EV/DACF (as of December 31)

EV/DACF

=

EV

Cash flow from operating activities

+ Interest expense adjusted for income tax

2007 2008 2009 2010 2011 EV, mln USD 80,201 34,788 56,851 61,900 51,276 Cash flow from operating activities, mln USD

10,881 14,312 8,883 13,541 15,514

Interest expense, mln USD 333 391 667 712 694 Interest expense adjusted for income tax, mln USD

245 284 520 566 520

DACF, mln USD 11,125 14,602 9,403 14,107 16,034 EV/DACF 7.2 2.4 6.0 4.5 3.2

Price to earnings ratio (P/E) (as of December 31)

2007 2008 2009 2010 2011 Share price, RUB 2,072.43 961.60 1,695.47 1,732.02 1,701.00 Basic earnings per share, USD 11.48 10.88 8.28 10.95 13.30 Р/E1 7.35 3.01 6.77 5.19 3.97

1 Calculation is based on price for LUKOIL common shares on the MICEX and US dollar exchange rate on December 31.

Market capitalization to sales (P/S) (as of December 31)

2007 2008 2009 2010 2011 Market capitalization 1, mln USD 73,999 27,218 47,802 48,338 44,937 Sales, mln USD 81,891 107,680 81,083 104,956 133,650 Market capitalization to sales 0.90 0.25 0.59 0.46 0.34


on December 31.

ev, bln USD

ev/ebItda

ev/dacF

69


market capitalization to sales (p/s)

Market capitalization to assets (as of December 31)

2007 2008 2009 2010 2011 Market capitalization 1, mln USD 73,999 27,218 47,802 48,338 44,937 Assets, mln USD 59,632 71,461 79,019 84,017 91,192 Market capitalization to assets 1.24 0.38 0.60 0.58 0.49


on December 31.

Market capitalization to equity (as of December 31)

2007 2008 2009 2010 2011 Market capitalization 1, mln USD 73,999 27,218 47,802 48,338 44,937 Equity, mln USD 41,213 50,340 55,991 59,197 67,638 Market capitalization to equity 1.80 0.54 0.85 0.82 0.66


on December 31.

70

Appendix

gLOssaRy

2D seismic survey – study of strata formation using a system of sensors and explosive devices to obtain a two- dimensional strata model. In 2D explora-tion, sensors are placed along certain lines (sections) and the study is carried out along the depth of the section.

3D seismic survey – study of strata formation using a system of sensors and explosive devices to obtain a three-dimensional strata model. In 3D explo-ration, the sensors are placed over the surface of the relevant area. This is one of the most accurate geophysical techniques, but requires major IT resources and other equipment and expenses. Therefore oil & gas companies usually carry out 2D seismic in order to ascertain which zones are most deserving of 3D studies. Vertical seismic profiling (VSP) – a seismic exploration method, which details structure of the space around the well, defines the nature of geological sections, which are penetrated, and pro-vides a speed model of the environment and level of oil saturation in strata. VSP is carried out by creation of waves on the surface, which are captured in the well by seismic receptors placed at various depths, and by subsequent study of the results.

Geo-electrics (electromagnetic exploration) – a technique of finding mineral deposits by studying the earth’s electromagnetic fields. Flow rate of a well – quantity of hydro-carbons obtained from a well in a given period of time (usually one day). Watercut – quantity of water in mixture extracted from an oil well (usually expressed as a percentage). Associated petroleum gas – mixture of various gaseous hydrocarbons, dissolved in crude oil, which separate out in the production and refining processes (mainly consist of propane and butane). Associated petroleum gas can be used as a fuel and for production of various chemicals. Natural gas – mixture of gaseous hydrocarbons, whose main component is methane. Natural gas is located in strata in a gaseous state, either as gas deposits or as a gas cap at oil & gas fields.

expLORatIOn and pROdUctIOn

71


Refinery throughput – volumes of oil despatched to drying and desalination facilities.

Depth of refining – ratio of crude oil volumes processed at primary refining facilities, excluding saleable heating oil, liquid fuel used in production, and losses in drying and desalination, to total crude oil volumes processed at primary refining facilities. Light products yield – ratio of the total volume of gasoline, diesel fuel and their fractions (useable as motor oil compo-nents), jet fuel, illuminants and technical kerosene, low-viscosity ship fuel and heating oil (fractions, which vaporize between 28 and 360 degrees Celsius) to the total volume of oil processed at a refinery in a given period. Naphta – straight-run gasoline, unstable gas naphta, secondary-process gasoline and hydrocarbon inputs for production of ethylene. Fuel oil – fuel oil, ship fuel oil, oil residues and raw material for technical carbons. Lubricants – oils, base oils, packaged oils, etc. LPG – propane-butane used as vehicle fuel, technical propane, technical butane, technical propane-butane, isobutane. Compressed gas – gas at pressures required for transportation along trunk pipelines.

Stripped gas – associated petroleum gas, containing ethane, propane and butane fractions, freed from gas naphta compo-nents (C5 and higher). Alcylation – process for obtaining high-octane gasoline components by interac-tion of isobutane and olefin hydrocarbons. Visbreaking – process for refining crude oil residues (tars and semi-tars) by shallow thermal decomposition. The main product of visbreaking is boiler fuel, which is obtained by lowering viscosity of the inputs through cracking.

Gas fractionation – obtaining separate light hydrocarbons or hydrocarbon fractions with higher degrees of purity from associated petroleum gas.

Hydrocracking – catalytic cracking by application of medium and high pressure gas with hydrogen content. Choice of catalysts and technical para-meters makes it possible to obtain high-quality components for most petroleum products (liquefied gas, gasoline and diesel, oil components, etc.) from virtually any raw hydrocarbons by hydrocracking. Hydrotreating – process for reducing sulfur and nitrogen elements in petroleum products using a catalyst under pressure from a gas containing hydrogen. Isomerization – process for obtaining high-octane isoparaffin fractions by refining low-octane paraffin hydrocar-bons from light gasoline fractions using catalysts. Catalytic cracking – process for obtain-ing high-quality and stable gasoline by catalytic decomposition of heavy fractions into light fractions, carried out at high temperatures (500 degrees Celsius) using a catalyst. Catalytic reforming – process for obtain-ing high-octane gasoline components and aromatic compounds by turning low-octane straight-run gasoline into high-aromatic gasoline fractions with use of a catalyst. Coking – thermal process for decompos-ing heavy and compact residual products into lighter products (gasoil and naphtha) and petroleum coke. Pyrolysis – high-temperature process of deep thermal refining of petroleum products and/or gas to obtain inputs for petrochemical synthesis. The main product of pyrolysis is gas rich in unsatu-rated hydrocarbons (ethylene, propylene, butadiene). Thermal cracking – process for obtaining light hydrocarbons from heavier hydrocar-bons at high temperatures (for example, vacuum gasoil can be refined into light products).

ReFInIng

72

The most complete and up-to-date infor-mation about LUKOIL can always be found on the Company’s website: www.lukoil.ru (Russian) or www.lukoil.com (English).

The site also provides information about trends and results of LUKOIL’s business, as well as accurate and up-to-date informa-tion about events concerning the Com-pany and the whole spectrum of LUKOIL activities, including details of the Compa-ny’s social and environmental policies.

The Investor Center section of the site presents the company’s financial and industrial results, dividend history, share prices, an investor calculator, presentations for investors, and Company reports.

LegaL addRess and centRaL OFFIce 11, Sretensky Boulevard, Moscow, 101 000, Russia

centRaL InFORmatIOn seRvIce Tel: +7 (495) 627-44-44, 628-98-41 Fax: +7 (495) 625-70-16

shaRehOLdeR ReLatIOns

Tel: +7 (495) 627-48-84, (499) 973-73-46Fax: +7 (495) 627-41-91E-mail: [email protected]

InvestOR ReLatIOns Tel: + 7 (495) 627-16-96Fax: + 7 (495) 981-72-88E-mail: [email protected]

pRess seRvIce Tel: +7 (495) 627-16-77Fax: +7 (495) 627-16-53E-mail: [email protected]

LUKOIL stOcK cOnsULtIng centeR 3 (Building 1), Pokrovsky Boulevard, Moscow, 101 000, RussiaTel: + 7 (495) 627-41-91, 627-43-80Fax: + 7 (495) 627-41-91

nIKOIL RegIstRaR cOmpany 8 Ivana Franko street, Moscow, 121108, Russia Tel/fax for individuals: + 7 (495) 933-67-39Tel/fax for corporates: + 7 (495) 926-81-61

LUKOIL pUbLIcatIOns Electronic versions of the following reports are available on the Company web site (www.lukoil.com)

1. Annual Report.

2. Consolidated Financial Accounts.

3. Quarterly Consolidated Financial Accounts.

4. Management Discussion of Company Performance.

5. Analyst DataBook

6. Fact book

cOncepts and teRms Used In the dOcUment Mentions of ‘OAO LUKOIL’, ‘LUKOIL Group’, ‘the Group’, ‘LUKOIL’, ‘the Company’, ‘we’ and ‘our’ are equivalent for the purposes of this Report and refer to LUKOIL Group of companies, to LUKOIL and/or its subsidiary enterprises, depending upon the context in which the terms are used.

The average rouble/dollar exchange rate for 2011 (30.37 roubles/dollar) is used in conversion of rouble figures for expression in dollars, unless otherwise indicated.

Figures for reserves and production of oil include oil, gas condensate and gas liquids.

Percents of changes in operating results for 2011 in million tons are calculated based on corresponding figures in thousand tons.

abbRevIatIOns $ or USD – United States Dollars boe – barrel of oil equivalent (1 boe = 6,000 сubic feet of gas) trf – tonne of reference fuel (1 toe = 1 tonne of crude oil = 1,000 cubic meters of natural gas)

Reference Information

www.lukoil.com

55% 101 2.20 23,602 70% - LUKOIL · LUKOIL in Russia and the World LUKOIL Is a majOR InteRnatIOnaL...

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