uzbekistan offers a refreshingly ancient cultural feast

West qurna-2 world’s second-largest untapped field to begin production

LUKOIL becomes first company to tap into newly-opened market following governmental industry reforms 6

Mexico makes big impact

Vibrant bazaars, amazing architecture and a rich past strewn around the Silk Route make for a fascinating trip 8

LUKOIL cements long-term commitment to Iraq through investment in education and employment 3

T h e w orld of LU KOIL’s intern ation al upstr eam pr oj e c ts

Going globalLUKOIL Overseas strategy focuses on diversity, expansion 4-5

OIL JOurnaLFebruary 2014

West Qurna-2 contract amended to reduce target production level from 1.8 million barrels per day to 1.2 million over 25, rather than 20, years.

2BusinessInsight

A Year in Review: 2013

First appraisal well completed at Independence field in Côte d'Ivoire.

LUKOIL Overseas relocation to Dubai;First 41 students of Corporate Leader Programme graduate from the Skolkovo School of Management in Moscow.

Exploration drilling commences in Sierra Leone; LUKOIL Overseas passes a company milestone, extracting 20 billion cubic meters of gas in Uzbekistan.

The first group of 150 students completes its 1.5-year programme at the training centre in Basra, Iraq; they are assigned to work on the West Qurna-2 project.

LUKOIL is awarded two licenses in the the Barents Sea;Acquires 65% stake in an exploration, production and development project in Côte D’Ivoire.

LUKOIL Overseas and its partners discover a new oilfield at Rosa North in Egypt.

JuneJanuary February August September October December

Global energy consumption to rise 41% by 2030, says BP

BP has predicted a near doubling of energy consumption by 2030, with 95% of growth coming from emerging economies, which is slower than in previous decades. However, thanks to improving efficiency, the oil major sees technology and investment allowing production to match demand.

OPEC’s global market share shrinks

OPEC’s share of the world oil market fell to 32.6% in December, with output hitting 29.44 mbpd, down 20,000 from November. The drop is largely due to oil production growth in non-OPEC countries such as the US, Canada and Brazil. Meanwhile, OPEC predicts global economic growth of 3.5% this year, up from 2.9% in 2013.

When most people talk about big oil, they mention names such as Shell, BP and ExxonMobil. LU-KOIL — despite being the world’s

second largest company in terms of proven oil reserves — has not yet entered global day-to-day parlance. For us, the success of the West Qurna-2 project this year, which will increase our production of crude by over 40%, will help make LUKOIL recognised among the world’s true oil majors.

West Qurna-2 is the single largest-capacity oilfield in the whole of the LUKOIL Group. It’s a true mega-project, and its successful launch will be no small accomplishment. Nor will it go unnoticed by the rest of the world. Working alongside the world’s largest energy compa-nies in Iraq is providing us with unprecedented benchmark feedback that improves profitabil-ity and optimises operating costs. I’m happy to report that, in comparison to the other majors, we’re already in good shape. Our costs are be-low the figures we projected, meaning the ef-ficiency is there.

Changing dynamics Meanwhile, the era of gas in the global en-

ergy market is rapidly approaching. Develop-ment of shale deposits in the United States has transformed that country’s energy balance sheet and the competitiveness of its other sec-tors in the world economy. I’m convinced that a low gas price is one of the factors contributing to the US recovery from the Great Recession.

We now know there are significant shale gas reserves in China. If and when the Chinese de-cide to tap those resources, the repercussions will be felt by suppliers from North Africa and the Middle East to Russia.

That is why LUKOIL Overseas is rebalanc-ing its production in favor of gas via existing projects in Uzbekistan. We will double gas production there to reach 9 million tons of hy-drocarbon equivalent by 2016 (and this figure

doesn’t include the shares of our partners), while the significance of gas among our over-all hydrocarbon production will increase from 37% today to 56% within two years.

In West Africa, we’re engaged in the kind of exploration projects that are critical for the future of LUKOIL Overseas. Statistics will tell you that the success of such ventures varies between 15 and 30%. It’s a high-risk, high-value and high-cost business. But they’re important because exploration projects lead to future growth, enable us to generate additional re-serves on our balance sheet and create value for the company.

More broadly, 2014 is about establishing a basis for major growth in hydrocarbon produc-tion across all of LUKOIL Overseas’ assets. The move to Dubai is facilitating an improvement in our administrative expenses and overall effi-ciency, while our experience implementing the new Integrated Project Management System (iPms) at West Qurna-2 is being applied across all assets. West Qurna-2 is, after all, not our last big project; it’s only the first. To win big in the oil business, you have to bet big.

To Win Big, You Have to Bet Big

B y G at i a l -J e B o u r i

Gati Al-Jebouri Senior Vice-President, LUKOIL Overseas

Against the backdrop of a rapidly-changing energy industry, LUKOIL has sown the seeds to become a household name in the coming years

I’m convinced that a low gas price is one of the factors contributing to the US recovery.”

‘‘

At the OAO LUKOIL board of directors meeting on January 16th in Moscow, three of the company’s priorities for 2014 went to its Overseas subsidiary:

n Start of commercial hydrocarbon pro-duction at West Qurna-2

n Implementation of the Kandym Early Gas and Complete Development of Gissar projects in Uzbekistan

n Implementation of geologic explora-tion programmes in Iraq, West Africa, Ro-mania

While this testifies to the role of interna-tional upstream projects as the Group’s key growth points and catalysts for globalisa-tion, it also places an enormous responsi-

bility on us at LUKOIL Overseas. This year will, after all, demonstrate how indepen-dently and effectively we are able to realise the massive international greenfield pro-jects that are so critical to our development strategy.

To meet these challenges, our company continues to change and grow. Having re-located to Dubai, LUKOIL Overseas has be-come even more international and dynamic, and the need for more effective communi-cation platforms easily accessible to all of our diverse employees is greater than ever. The launch of our first English-language corporate newspaper is an essential step in this direction.

Andrey KuzyaevPresident of LUKOIL Overseas

A word from the President of LUKOIL Overseas

Editor-in-Chief: Artem ZagorodnovEmail: oiljournal@lukoil-overseas.comAddress: LUKOIL Overseas Service BV, Dubai Properties Group Building, TECOM, DubaiWebsite: lukoil-overseas.com (digital version)

Publishing Director: Nirmala JanssenEditor: Anshuman JoshiDeputy Editor: Eduan R. MaggoPages Editor: Priya MathewSub Editor: Riaz NaqviDesign Editor: Biplob RoyDeputy Design Editor: Nicholas D’Souza

Designers : Pranith Ratheesan, Pranuti Raote

Published and printed by Al Nisr Publishing LLC. Private circulation only

Oil Journal is LUKOIL Overseas’ official

English-language monthly newsletter.

Questions? Comments? Let us hear your voice!oiljournal@lukoil-overseas.com

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When Soviet geologists uncov-ered one of the world’s largest untapped oil fields in Iraq’s Basra region in 1973, they had

no idea of the impending turmoil that would hinder West Qurna-2’s development for dec-ades. Thirty-six years later, LUKOIL Overseas is set to turn a new page.

Currently ranked the world’s second-larg-est untapped oil field with an estimated 13 bil-lion barrels of reserves, West Qurna-2 is key to LUKOIL Overseas’ strategy of doubling oil production over the next five years. The com-pany’s investments in the project will cross $4 billion by the end of 2014, and may top $30 bil-lion as it approaches the planned 1.2 million-barrel future daily production target.

The community aspectThe project is more than just oil produc-

tion. Russia’s largest private oil company has committed to fostering a long-term relation-ship with the communities of Iraq. “LUKOIL Overseas is about long-term development with the communities we engage. It’s one

of our competitive advantages in the global energy market,” says Egor Sobolev, Head of LUKOIL Overseas’ strategic planning division.

Through West Qurna-2, LUKOIL Overseas has committed major investments in educa-tion, healthcare and athletics in Basra. The company has compensated over 1,000 people residing on or near the production site for land rights; employed more than 11,000 peo-ple, two-thirds of them local Iraqis; worked with more than a dozen Iraqi contractors; provided computers to 32 local schools and high-tech diagnostics equipment to regional hospitals; constructed football facilities; and assisted in constructing low-income hous-ing, in consultation with local authorities.

LUKOIL Overseas recently saw the first batch of 350 local students graduate from its West Qurna-2 training centre (see page 7).

In 2012, LUKOIL Overseas formed a con-sortium with Japan’s INPEX oil corporation for exploration of the 5,500-square-kilometre Block 10 oil field located 120 kilometres west of Basra. The project envisions a minimum investment of $100 million.

Going Deep in West Africa

“The energy industry is clearly working at the frontiers of geol-ogy, geography and technology,” Tony Hayward, former CEO,

British Petroleum, told Spiegel follow-ing the disastrous 2010 oil spill in the Gulf of Mexico. However, deepwater drilling had recovered worldwide to pre-spill highs within two years and is now expected to grow at a compound annual growth rate of 9% over the next decade, according to Wood Mackenzie.

LUKOIL Overseas ended 2013 by drilling over 4,500 metres into the first appraisal well at the Independance field in Côte d’Ivoire.

“Deepwater has accounted for most of the discovered volumes during the last decade, but this has not been with-out increasing technical and commer-cial challenges,” says Malcolm Forbes-Cable, Senior Management Consultant at Wood Mackenzie.

“There are very few companies or even governments in the world that can afford to invest in geological research that may only pay off in 10-12 years,” explains Vadim Voevodkin, LUKOIL Overseas Vice-President for Explora-tion. “We are one of them.”

“To meet the forecasted well de-mand the fleet will require 95 addition-al deepwater rigs to be constructed be-tween 2016 and 2022, representing $65 billion of investment,” says Forbes–Ca-ble. Since July 2006, LUKOIL Overseas has developed eight prospective off-shore projects in Côte D’Ivoire, Ghana and Sierra Leone that could potentially deliver four billion barrels.

Central to this effort has been the re-cently established Houston-based LU-KOIL Overseas Offshore Projects and its Managing Director, Kevin Black. He takes pride in having formed a project management team in 2013 that “placed LUKOIL Overseas among the world’s largest oil and gas companies in the deepwater exploration frontier”.

By Pavel Bogomolov, Houston

3BusinessInsight

West Qurna-2A Historic First Step

LUKOIL Board of Directors emphasises environmentOn January 13, LUKOIL’s Board of Directors noted that the company has spent $3.7 billion on environmental measures since 2009. LUKOIL’s volume of atmospheric pollution has been reduced by 90,000 tons, alongside a three-fold reduction in water consumption. The ambitious programme through 2018 calls for reducing atmospheric emissions by a further 130,000 tons and water consumption by 7.6 million cubic meters.

As it prepares to open one of the world’s largest oil fields, LUKOIL Overseas renews its strategic commitment to Iraq

A ripe source

Iraq is one of the most attrac-tive countries in the world for oil production, ranked

fourth in terms of proven oil reserves (140 billion barrels) after coming through years of international sanctions and civil strife with some of the most accessible untapped reservoirs on the planet. This places the country on the top ten list of fastest growing oil producers, according to Bloomberg Visual Data.

December

2009LUKOIL, in a consortium with Norway’s Statoil, wins a tender for developing the West Qurna-2 oil field. The deal envisages a service contract for 20 years with the opportunity to expand it for an additional five.

May

2012 LUKOIL acquires Statoil’s stake in West Qurna-2, bringing its overall share to 75%.

January

2013LUKOIL signs an amended agreement with Iraqi government, cutting the target production level to 1.2 million barrels daily and extending the contract to 25 years.

First half of

2014Launch of production at West Qurna-2.

B y F e d o r K l i m K i n

LUKOIL Overseas President Andrey Kuzyaev inspects West Qurna-2

Unexplored potential West Qurna-2 is currently ranked as the world’s second largest untapped oil field with an estimated 13 billion barrels of reserves

Deepwater has accounted for most of the discovered volumes during the last decade.”

‘‘

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West Quma Oil Field

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LUKOIL makes history in DubaiLUKOIL Overseas embraces a geocentric approach as it relocates its headquarters to a region that accounted for two-thirds of investment last year

When LUKOIL Group acquired its first assets abroad in Azer-baijan in 1994, few could imag-ine the changes the company’s

international division would go through in establishing Russia’s footprint in the global oil and gas market. Founded in 1997, LU-KOIL Overseas has morphed into LUKOIL Group’s “engine for development”, in the words of Egor Sobolev, Head of the Strate-gic Planning Division. It now accounts for 10% of LUKOIL’s production. An ambitious investment programme foresees a doubling of that figure by 2018.

“Our annual production is equivalent to 80 billion barrels. We want to increase pro-duction at over 10% annually at a time when similar growth in most oil and gas companies won’t exceed a few percentage points. This is a huge challenge for the company, which it will realise through major investment pro-jects such as West Qurna-2 in Iraq and Kand-ym in Uzbekistan,” explains Sobolev.

Corporate RestructuringTo be closer to these key assets, several

months ago LUKOIL Overseas made history by becoming the first major Russian corpo-ration to relocate abroad, bringing around 300 employees and their families to the busi-ness oasis of Dubai. “The move was success-ful and unique,” says Inna Gubareva, Head of

LUKOIL Overseas’ HR and Organisational Development Division. “When another ma-jor oil company, Gazprom Neft, moved its headquarters to St Petersburg from Moscow, over half the employees chose to leave the company rather than be transferred. For us this figure was 10%, and under 6% if you take into account that LUKOIL Overseas continued to employ persons unable to re-locate. Our international consultants were so impressed that they said our experience should be included as a case study in busi-ness textbooks.”

“In addition to being closer to our assets, the major reason for coming to Dubai had to do with de-offshorisation of tax legisla-

tion in Russia,” says Sobolev, referring to a legal initiative in Russia aimed at increas-ing corporate transparency. “We began de-offshorisation of our activities long before the Russian President’s statements on the issue,” says LUKOIL Overseas Senior Vice-President Gati Al-Jebouri. “We did this work not out of fear, but honesty, taking into ac-count economic trends, aiming for greater transparency and efficiency while taking into account the best world practices along with our colleagues at LUKOIL Group and consultants KPMG and Ernst & Young.”

“We’re now closer to our international partners abroad and better able to retain talented staff from a multitude of back-grounds,” says Sobolev.

4

n “Our international

consultants were so

impressed

[with our move to

Dubai] that they said it

should be included as

a case study in

business textbooks.”

Inna GubarevaHead of HR and Organisational Development, LUKOIL Overseas n

“The success of

our oil and gas projects in

Iraq and Uzbekistan will

largely determine the future

of LUKOIL Overseas.”

Andrey KuzyaevPresident LUKOIL Overseas

SpecialReport

B y A r t e m Z A g o r o d n o v

Businesses that have made the moveHaliburton: The energy services giant, famous for its ex-CEO former US Vice-President Dick Cheney, relocated from Houston in 2007 to be closer to its Middle Eastern assets.

Aquaterra Energy: The UK-based energy engineering company shifted to take advantage of shallow-water opportunities in the region.

Starwood Hotels & Resorts: The hospitality chain temporarily relocated to Dubai last year in order to secure contracts for 100 new hotels in the Mena region by 2015.

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“Easy-to-get oil is gone, and easy-to-get gas is almost gone, while the role of both is increasing with growing global energy de-mand,” explains Sobolev. “That means we require ever more complicated engineering solutions to extract those hydrocarbons, and it’s why recruiting and retaining talented

personnel is at the core of our strategy. In the 1990s — when oil prices were low — oil and gas companies weren’t hiring personnel. Now there’s a shortage.”

“As we learn to manage large capital pro-jects on the basis of West Qurna-2, optimise our management system and develop new

technologies in geological research and deepwater drilling, we will be able to take advantage of all the opportunities in the market rather than simply remain a tradi-tional source of oil and gas,” he says.

LUKOIL Overseas is planning to increase production from approximately 80 million barrels of oil equivalent today to a level of 180 million by 2020. This foresees an increase in annual investment from $1-2 billion to $5-8 billion, with substantial sums directed into advanced technologies. “Having completed our move to Dubai, we will have to be per-sistent in improving managerial efficiency, perfecting our corporate culture and in-creasing our competitiveness in the global oil and gas business,” says LUKOIL Overseas President Andrey Kuzyaev. “The success of our oil and gas projects in Iraq and Uz-bekistan will largely determine the future of LUKOIL Overseas.”

The LUKOIL advantage“LUKOIL Overseas’ competitive advan-

tage is that we look far into the future. To have skilled professionals for our projects in the coming years, we are actively recruit-ing and training young talent today,” ex-plains Sobolev.

“We have a sound fiscal position and our personnel can work in any conditions, oc-casionally in dangerous environments, to move mountains. That’s why the company has a bright future. There’s a lot of work to be done, and we’ll do it.”

New hub Dubai offers an ideal base for LUKOIL Overseas to monitor and manage its growing international portfolio

New headquarters LUKOIL Overseas has relocated its corporate service centre to Dubai in order to be closer to new international projects such as West Qurna-2 in Iraq

20132010200920062005200420032001199719951994LUKOIL Group

acquires its

first assets

abroad in

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The group

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first assets

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in Egypt, at

Meleiha.

LUKOIL

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established;

company

enters West

Qurna-2

project in Iraq.

Corporate

service centre

formed in

Moscow;

Caspian

pipeline

consortium

begins work.

LUKOIL

Overseas

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first Russian

oil company

to launch a

project in

Latin America.

The company

enters

Uzbekistan

with Kandym-

Khauzak-

Shady-

Kungrad

project.

LUKOIL

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acquires

Nelson

Petroleum in

Kazakhstan.

Offshore

exploration

begins in

West Africa.

A consortium

of LUKOIL

and Norway’s

Statoil win

tender for

development

of Iraq’s West

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Becomes the

first Russian

company

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offshore

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Dubai delivers

chris weafer, head of moscow-based macro advisory

consultancy says, “I’m happy to see a realisation of a geocentric approach to business be embraced in russia’s corporate culture through the re-location of LukoIL over-seas to Dubai.”

Why companies relocate to Dubaigeography: Located at a convenient crossroads of western culture and booming asian markets, Dubai offers short flights to key destinations.

globalisation: with just 15% of the population as citizens, an overwhelm-ing majority of people in the city come from across the globe. In this sense, Dubai offers di-verse talent at any local company’s doorstep.

Infrastructure: everything from the airport to the metro system is con-stantly being modernised and improved to accom-modate the influx of trav-ellers and expats.

taxes: Zero income tax and some of the world’s lowest corporate and prof-it tax rates make Dubai a haven for expense-opti-mising companies.

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Courtesy of Chris Weafer

Energy and water critical for future

At the Abu Dhabi Sustainability Week (ADSW), Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces General Shaikh Mohammed bin Zayed Al Nahyan said long-term energy and water development are crucial for sustainability.

Global energy investment down 50%

The EIC trade association reports that investment in upstream, midstream, downstream, renewables and power energy projects dropped by 48% to $222.3 billion. “Despite lower investment, in the broader context of the past six months, project numbers have returned to similar levels found in Q2 2013 following a sharp rise in activity in Q3 2013,” wrote Chief Executive Claire Miller.

LUKOIL Overseas’ exploration partner Statoil has established its presence in Houston. Ola Morten Aanestad, Vice-President, North American Commu-

nications, Development & Production, talks about the advantages of working in the oil capital of the world.

Why did Statoil set up its office in Houston, Texas?Houston is the oil capital of the world, and a natural place to have a significant presence. The proximity to peers, service companies, universities, a large pool of available talent and commercial opportunities all play a part.

Statoil’s Houston office was originally set up to manage our portfolio in the Gulf of Mexico. Later, US onshore interests were also managed from the Houston office, and from 2011 North America became a separate business area, responsible for development and production in the continent.

International The Mexican oil and gas sector has opened up for private investment after 75 years

6Industry Voices

LUKOIL, Pemex ink cooperation agreementLUKOIL President Vagit Alekperov and Pemex General Director Emilio Lozoya signed a cooperation agreement at the World Economic Forum in Davos on January 24. This will see cooperation in production and exploration, and foresees the companies exchanging environmental protection experience.

The Revolutionary Party of Mexi-co (PRI) made headlines when it opened the country’s oil and gas sec-tor to private investment for the first

time in 75 years. While global oil prices have increased from an average of $20 to $100 a barrel since 2004, Mexico’s production of oil has dropped 27%. Meanwhile, production in the US state of Texas, right across the border, has increased by 150%, overtaking the entire

Mexican output, stoking fears that the coun-try could soon become a net importer of oil.

The big winner of the reforms will be deep-water oil production, says Arturo Henriquez, President and Chief Executive Officer of the Houston-based PPI, the international procure-ment arm of Pemex Group, Mexico’s state-owned oil company. “From a value standpoint, the part where there’s the most upside poten-tial is exploration and production. There will

be tens of billions of dollars in investment over the next five years. The future for offshore is in deepwater and ultra deepwater.”

A lack of flexibility and resources has meant that Pemex has only drilled five ultra deepwater wells since 2010, compared to 52 drilled in the US. Globally, the deepwater sec-tor has eclipsed both onshore and shallow wa-ter oil development over the past ten years in terms of discovered volumes (41%) and value created ($351 billion), according to Wood Mac-kenzie. The consultancy predicts global well spend to increase from $42 billion in 2012 to $114 billion in 2022 as the sector becomes in-creasingly vital to global energy sustainability.

Having recently joined the Greater Hou-ston Partnership (GHP), an economic devel-opment organisation fostering connections between international government officials and businesses, LUKOIL Overseas brings deep-water drilling experience from West Africa. “The business community in Houston is focused on the opportunities associated with the [Mexican] reform,” said Javier Jativa, Director, Americas for the GHP. “Our com-panies are eager to contribute their capital, brainpower and expertise to the development of Mexico’s energy sector.”

B y R o s e M a lt B y , Houston

Major energy reform puts LUKOIL Overseas’ Houston office at the front door of deepwater drilling bonanza

Mexico makes deep impact

Going Global, One Step at a TimeHow did the employees react to being transferred to Houston?

The Houston office currently employs 800 people. To utilise company expertise and ensure transfer of our culture and pro-cesses, a relatively high number of expats were initially employed in Houston, but the majority of recruitments are now from the local market. Houston is generally per-ceived as an attractive posting, people enjoy the city and there is much enthusiasm in be-ing part of a growing organisation.

Has Statoil faced any criticism at home after expanding its portfolio of interna-tional assets?

Overall, there is good understand-ing for Statoil’s global expansion among shareholders and the general Norwegian population. Around a third of our global production now comes from countries out-side Norway.

Dream location Ola Marten Aanestad believes a strong industry presence and a large pool of talent make Houston an ideal base for Statoil

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Second-stage construction for Filanovsky field ongoingConstruction has started on the living quarters platform in the Vladimir Filanovsky oilfield in the Caspian Sea, marking the continuation of the second stage of development. The Vladimir Filanovsky is the biggest field in terms of oil reserves to be discovered in Russia in the last 20 years. LUKOIL is expected to begin offshore oil production on the site in 2015.

As the global oil and gas industry continues to modernise, there is a growing responsibility that compa-nies have towards the communities

in which they operate. Public opinion — and good practice — necessitates that companies accept a level of social responsibility to im-prove the lives of the great number of people directly affected by the operations they carry out. At LUKOIL, we believe that fulfilling that duty gives us a social license to operate, with-out which we would lose credibility and trust.

Underlying this is an ever-growing chal-lenge: finding qualified, trained employees to work at development projects. Fortunately, this gives LUKOIL an opportunity to fulfil our social contract. By providing cutting-edge training to residents, we can create a forward-looking, uniquely skilled workforce that will support the communities in which we work for years to come. This commitment is best exem-plified in our project at West Qurna-2, in Iraq.

Production at West Qurna-2 is slated to be-gin in the first half of 2014, and it is expected to be one of the highest-producing oil fields in the Middle East. It will require a highly trained and committed workforce. To address this, LUKOIL has established a state-of-the-art training centre in the North Rumaila area of Basra that can be considered equal to any in the industry.

The training programme lasts eighteen months. It in-cludes all required technical disciplines in theory and prac-tice, taught in a modular struc-ture, to cover work at facilities of West Qurna-2 in production, oil and gas treatment, electri-cal and mechanical equipment operation, and more. Follow-ing the programme, specialists work in various facilities of West Qurna-2, guided by expe-rienced engineers and technical personnel.

Aside from technical, site-specific exper-tise, the course also aims to develop a holistic set of abilities, with professional training that will endure beyond one particular project. To that end, the programme includes industrial and occupational safety courses, environ-

mental protection courses, labour protection and leadership development training.

The training centre includes nine class-rooms, six laboratories for computer and English language training, a library, technical support office, a training shop, administration facilities, and instructor premises, cafeteria, recreation areas as well as a fully-equipped

medical station.The centre can handle up

to 350 students, with more than 500 having already trained. The first 170 gradu-ated last summer, while a second group of 150 will do so by this summer, with an-other 200 starting in March-April. All are Basra resi-dents, showcasing LUKOIL’s commitment to developing local talent.

Around 80 operators from the first batch of 170 graduates attended an additional three-month hands-on training programme in Singapore with live processing facilities, fine-tuning practical skills in an ac-tive, purpose-built plant. Vladimir Spiridonov is Head of the Profession-al Development Department at West Qurna-2

Jassim Ahmed Abdul Hussein, 27, technical college graduate, Electricity Department

I didn’t have any ex-perience in my field,

so I think that joining LUKOIL’s training programme will give me the necessary experience. Among the most valuable things that I’ve benefited from through this train-ing program was mastering English.

Wael Naamat Al-Mashaal, 27, technical college graduate, Electricity Department

I joined the training program in order to

develop my skills and my English in addition to significant employment opportunities that will be provided by LUKOIL. English lan-guage and technical experience were the most valuable benefits I gained.

Wali Fadhel Abbas, 23, technical college graduate, College of Chemical industries

Job search and skills development —

that’s what attracted and encouraged me

to join LUKOIL’s training programme. I’m looking forward to attending prac-tical classes in the oilfield that will increase my experience. Many things have changed through our training in this center, since I was able to develop both my English skills and technical experience.

Ola Rahim Ali, 34, technical college graduate, mechanics

I joined the training course in LUKOIL

because it will pro-vide the necessary

experience in the oil industry, which is the basis for the country's economy. More than that, I'll be working in my specialty field. Now I possess more ac-curate information, particularly in my specialty field, and this helped me to improve my technical knowledge.

Yasser Abdallah Ab-boud, 27, graduate of College of Chemical Industries

When joining the Company’s

training program, I was targeting self-de-

velopment. I also adore my specialty and finally it’s a good job opportunity. Learning English was the most im-portant thing we have benefited from during the course, while our technical skills are constantly escalating.

Jabbar Sobeih Abbas, 29, graduate of Faculty of Science, Depart-ment of Chemistry

LUKOIL is a global oil company, and in

my opinion, working in the field of oil is the

most important specialty ever, not to speak of its material benefits. That’s what motivated me to join the train-ing programme.

The global oil and gas business is dynamic. Old knowledge quickly becomes obsolete as new technolo-gies, management practices and

communication strategies come to the fore-front of this rapidly developing sector. The skills that specialists learned in various uni-versity programmes years ago are no longer enough to ensure their professional success in a fast-changing business environment.

That is why LUKOIL Overseas, and its ap-proach to education, must remain equally vibrant. As the company implements a new project-based approach to management, a new generation of strong leaders must come to the helm. In 2012, LUKOIL Overseas ini-tiated a leadership training programme with the SKOLKOVO Moscow School of Manage-ment. The programme includes customised

EMBA modules in every subject from finance to HR, as well as hands-on work on real pro-jects of strategic significance to the company. Participants work with top LUKOIL and in-dustry specialists and defend their projects before the company’s senior management.

This year we continue our multilevel training program on project management for different categories of personnel as part of the company’s commitment to the pro-fessional development of its employees. LUKOIL Overseas’ HR staff, along with the managers of various departments, are devel-oping programs to train specialists in each functional area from geological research to oil and gas production based on the results of competency testing.

No less important is the work LUKOIL Overseas conducts in the communities where it operates. By investing in the po-tential of local workers via its international training programmes, LUKOIL Overseas both provides confidence to that community in its long-term development and attracts the skills necessary to become a global leader in energy. As the company motto goes — Always moving forward! By Natalya Voloshina Head of Training and Youth Communica-tions Department, HR and Organisational Development Division

Flow of knowledge

Iraqi training centre brings big social benefitsLUKOIL’s state-of-the-art training centre in Basra provides skills and professional opportunities for the local populace

Learning leadership The SKOLKOVO School of Management, Moscow, is delivering training programmes tailored for LUKOIL Overseas employees

Learning the ropes LUKOIL’s Iraqi trainees study a modular programme that balances theory with practical skills

500 Is the number of Iraqi

students that have already trained at

LUKOIL’s Basra centre

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Photo of the Month

8 LUKOIL expands via European gas stationsWith the purchase of ten OREAL automated filling stations in Belgium and the purchase of 21 ROTONDE stations in the Netherlands nearing completion, the total number of LUKOIL gas stations in Belgium, the Netherlands and Luxembourg (Benelux) will reach 250. They will be rebranded under the LUKOIL Express name.

GlobalPerspective

Constructed over a nine-year pe-riod before its opening in 2007, Shaikh Zayed Grand Mosque is the

largest in the UAE and eighth-largest in the world and spans an area roughly equivalent to that of five football fields. The mosque also houses a record-size 1,981-square-metre handwoven carpet. The carpet, callled Qasr al-Alam, was designed by Iranian artist Ali Khaliqi and created by a thousand-strong team of weavers. Non-muslim visitors are welcome to tour the mosque and visit its in-house cultural learning centre at designated hours.

Winning shotThis photo was taken by Yana Ageeva,

Senior Specialist, PR Department while standing in the mosque’s central court-yard, to win the company’s photo of the month competition. It manages to cap-ture one of the mosque’s impressive minarets, saveral of its 82 domes and the floral mural painted on the courtyard floor in a single panoramic vista.

LUKOIL employees who are handy with a camera can send photos snapped in any of the countries we operate in to oiljournal@lukoil-overseas.com.

In Focus

Where to Stay n The Intercontinental and Mi-ran International hotels in Tash-kent offer rooms for $180-$200 a night. You can stay at the four-star Dedeman for $160. The three-star Omar Khayyam hotel in Bukhara will take you in for $60 a night.

Where to Eatn A lunch at the Bukhara chain of restaurants in Tashkent will set you back $6-7. Kebabs, samsas, plovs and shurpas are a must.

n Beck offers an interesting array of dishes such as the cauldron ke-bab and quail broth.

n Don’t miss the Tashkent Plov Centre, where hundreds of kilo-grammes of traditional wedding plov are prepared daily in giant pots for lunchtime only. A portion with salad and tea will come in at $4-5.

n If you’re looking for more up-market fusion fare, try Manas Art Café in Tashkent. It’s pricey, but you can enjoy gourmet Euro-Uz-bek in a yurt (traditional tent).

LUKOIL Uzbekistan

With over 600 personnel, the LUKOIL office is located at Ol-mazor St. 1A. The street name translates roughly as apple, and with good reason: over 200 young apple trees have grown in its picturesque vicinity.

Phone: +998 71 140 40 40

Weather permitting, don’t miss the chance to go hiking, biking or trekking in Uz-bekistan’s beautiful Chimgan and Nuratin mountainous landscapes. The latter hosts a 1,500-year-old living tree in the shape of an arch with a 24-metre trunk circumference. Afterwards, indulge in world-famous delica-cies such as plov (rice pilaf), manty (dump-lings), lagman (soup), shourpa kebab (barbe-cue meat) or samsa (stuffed bread).

A colourful historyWith its 2,750-year history, Samarkand fas-

cinates visitors with the famous jade tomb of legendary conqueror of West, South and Central Asia, Tamerlane. The city’s Registan Square is another attraction. Located on a dried-out riverbed, it was host to various fes-tivals and holidays in ancient times. The city is also home to the Hazrat Khizar and Bibi-Khanym (one of the largest mosques in the world). Samarkand is linked to Tashkent by a relatively inexpensive high-speed train.

Bukhara hosts the famous 50-metre tall Kalyan minaret. Legend has it that Genghis Khan was so impressed by the minaret that he decided not to raze the city. Omar Khayy-am, Ferdowsi and Rudaki were among the creative geniuses who lived in the city.

Khiva, with its ancient centres for astronomy, mathematics and medicine, is like an open-air museum. Its ancient build-ings still thrive with life. A highlight is the wood-carved columns of the Djuma Mosque.

Discovered by Alexander the Great on his march through Asia, invaded by Genghis Khan from the opposite direction and praised by explorer

Marco Polo, Uzbekistan contains some of Central Asia’s most prominent ancient trad-ing posts. The cities of Samarkand, Bukhara and Khiva are inextricably linked with the Silk Route, once a vital artery for a Western civilisation opening up to the outside world.

Heavily influenced by Arab culture to this day, the country was introduced to Islam in the eighth century. Today, Uzbekistan is home to hundreds of architectural monu-ments amid a modern brush-up of hotels, cafes and restaurants. At any time of the year you are likely to find yourself strolling be-tween minarets, mosques and ancient mau-soleums while enjoying the vibrancy of col-ourful oriental bazaars.

This ancient cross-cultural melting pot leaves no visitor unmoved

Traditional Uzbek folk dancing in Bukhara

Traversing the Ancient Silk Road

Uzbekistan

Each month, Oil Journal will publish a travel piece from a country where LUKOIL Overseas operates. For feedback or contributions, write to oiljournal@lukoil-overseas.com

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