LukOil Reports Preliminary Operating Data for 2016

Lukoil Announces Consolidated 2016 IFRS Results

LUKOIL REPORTS PRELIMINARY OPERATING DATA FOR THE FOURTH QUARTER AND TWELVE MONTHS OF 2016

The LUKOIL Group oil production for the fourth quarter and twelve months of 2016 was 22.7 and 92.0 million tonnes, respectively. Production for the fourth quarter excluding compensation crude oil from West Qurna-2 project in Iraq increased by 2.5% compared to the third quarter of 2016.

Oil production dynamics in Russia was positively impacted by launches of V. Filanovsky and Pyakyakhinskoe fields in the second half of 2016, an increase in production drilling volumes in West Siberia, as well as growth in production volumes in Timan-Pechora and Ural regions.

Oil production dynamics outside of Russia was influenced by the divestment of our share in Caspian Investment Resources Ltd. in Kazakhstan in 2015, as well as a decrease in compensation crude oil volume from the West Qurna-2 project.

 

Oil production, thousand tonnes

4Q 2016

 3Q 2016

2016

2015

22,104

21,560


Total
(excluding West-Qurna 2 project)

 

86,928

89,963

21,146

20,660

Russia

83 177

85,612

20,889

20,414

Subsidiaries

82 206

84,866

257

246

Share in affiliates

971

746

958

900

Outside of Russia

3,751

4,351

504

533

Subsidiaries

2,037

1,887

454

367

Share in affiliates

1 714

2,464

587

967

Compensation oil from West Qurna-2 project

5,064

10,725

22,691

22,527

Total

91,992

100,688

 

The LUKOIL Group marketable gas production for the fourth quarter of 2016 increased to 5.1 billion cubic meters, or by 8.3% compared to the third quarter 2016. Gas production for the twelve months of 2016 remained practically unchanged year-on-year at 20.3 billion cubic meters. Production volume was positively influenced by development of projects in Kazakhstan, Azerbaijan and Uzbekistan.

Marketable gas production, million cubic meters

4Q 2016

3Q 2016

2016

2015

5,131

4,737

Total

20,315

20,251

3 144

2,985

Russia

12 739

13,235

3 125

2,969

Subsidiaries

12 676

13,190

19

16

Share in affiliates

63

45

1,987

1,752

Outside of Russia

7,576

7,016

1,847

1,637

Subsidiaries

7,056

6,450

140

115

Share in affiliates

520

566

 

Refinery throughput at the LUKOIL Group refineries for the fourth quarter and twelve months of 2016 was 16.7 and 66.1 million tonnes, respectively. The year-on-year positive dynamics was mainly attributable to the increase in utilization rate at our refineries in Italy and Romania, while the volume of refinery throughput at our Russian refineries remained at 2015 level. The quarter-on-quarter dynamics was driven by planned maintenance works at our Volgograd refinery.

Refinery throughput at refineries, thousand tonnes

4Q 2016

3Q 2016

2016

2015

16,722

17,119

Total for LUKOIL Group refineries

66,061

64,489

10,723

11,092

Russia

41,752

41,855

5,999

6,027

Outside of Russia

24,309

22,634

5,456

5,362

Oil processing

20,356

18,832

543

665

Refined products processing

3,953

3,802

499

80

Third party refineries abroad

744

896

 

The information in this press release is an estimate of the LUKOIL Group’s results in the fourth quarter and twelve months of 2016 and therefore constitutes forward-looking statements. This information is preliminary and based on information available at the date of this document, and may be revised after statistical, financial, tax and accounting statements become available. The information on the LUKOIL Group’s operational results in this press release are subject to many external factors which may cause the actual results to differ materially from those expressed or forecasted in this press release for the fourth quarter and twelve months of 2016. The LUKOIL Group assumes no obligation to update or alter its forward-looking statements, whether as a result of new information, subsequent events or otherwise, except to the extent required by applicable law.

This document does not constitute or form part of an invitation or inducement to engage in investment activity with, or any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of, the LUKOIL Group, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of, or any investment in, the LUKOIL Group.

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