Lukoil Success Story

Name : Lukoil
Founded : 1991
Founder : Vagit Alekperov
CEO : Vagit Alekperov
Industry : Business
Sector : Public
Country : Russia

We must balance conspicuous consumption with conscious capitalism. Lukoil is the second largest oil company in Russia. It is also the second largest producer of oil in the world. Lukoil is headquartered in Moscow, Russia. In terms of oil and gas reserves, it is the second largest public company in the world. The company operates in around 40 countries across the globe. Lukoil was founded in 1991. The main person behind the foundation is Vagit Alekperov, the Soviet deputy minister. Lukoil is one of the first companies in Russia to get listed on the London Stock Exchange.

Lukoil is also the first company to offer shares on the Russian Trading System. ConocoPhillips purchased 7.6 percent of shares of the company in 2004. The company had 14.5 billion barrels of oil as founded in the year 2009. Lukoil is the largest company for oil production in Russia and sells petrol in around 59 areas. 

lukoil founder

It has 197 tank farms by the end of 2006. The 4 main oil refineries are operated by Lukoil in Russia. The company also purchased Getty Oil in 2000 and then converted almost all the Getty oil stations to Lukoil stations. The international projects of the company account for around 9.4 percent of the company’s hydrocarbon reserves.

Lukoil purchased Akpet, a petroleum distribution company in Turkey. This purchase increases the market share of the company by around 5%. By the year 2003, the company was able to split off three billion US dollars of non-core and non-oil assets in the United States and started the IFD Kapital Group. 

Lukoil’s top managers control the major share of the company and around 20%of the shares are owned by ConocoPhillips. The remaining shares are just floating free. ConocoPhillips stated in 2010 that it would start selling the major half of its stake.

Lukoil is also involved in the sponsorship of some of the major sports in the world like Football, Motorsports and Bandy. The Lukoil Racing team is one of the best and the leading Russian Motorsport organization. The company had been involved in motor sports for more than 10 years. The team has achieved success, both in Russia and the Europe and has won more than 60 championships till now.

lukoil headquarters russia

Innovation and application new technology are the main strengths of Lukoil. The specialists in the company always try to use the latest technology thereby enhancing the current working technologies. Lukoil produces wide range of high quality petroleum and various gas products and also involves in the wholesale selling of its products in over 30 countries all over the world. The overall capacity of the refineries in Russia by the end of 2012 was 45.7 million tons each year.

Lukoil’s most of the activity is involved in the Russian Federation only. The company had also taken part in some of the major oil and gas projects outside Russia. The power generation sector of the company comprises of all the aspects of the power generation in Russia and across the globe. 

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