LUKOIL Board of Directors approves key indicators for LUKOIL group 2014-2016 mid-term plan

The draft plan for the Exploration&Production business segment provides for stabilizing the production of hydrocarbons in the company’s traditional regions of activity, for higher volumes of production as a result of commissioning such fields as West Qurna-2 in Iraq, Filanovsky in the Caspian, Imilorskoye in Western Siberia and also due to expansion of the Gissar project in Uzbekistan. In the Refining&Marketing business segment, the draft plan calls for an optimal volume of crude supplies to the company’s refineries in Russia, its most efficient business.

The Board of Directors also considered the benchmark results coming out of the analysis by Solomon of LUKOIL Group’s 2012 performance efficiency. The group’s refineries have been part of the studies on a regular basis since 2004. A stable trend towards lower power consumption was registered during the entire period of the studies. The equipment-integrity index demonstrates a positive tendency. The average index across LUKOIL Group refineries, which characterizes reliability, i.e. “mechanical availability”, exceeds the industry average. The index, which characterizes the effects of labor on fuel production, i.e. “personnel index”, also demonstrates a stable downward trend. LUKOIL Group refineries hold steady positions in the 1st quartile (among refineries with minimum operating expenditures). A slight increase in the operating expenditures registered during the whole period of studies was due to inflation and followed the general trend for the industry.