Press release: Lukoil reports preliminary operating data for the third quarter and first nine months of 2018


For the first nine months of 2018 LUKOIL Group's average hydrocarbon production excluding West Qurna-2 project was 2,301 thousand boe per day, which is 3.7% higher year-on-year. The increase was mainly driven by the development of gas projects in Uzbekistan.

In the third quarter of 2018 production increased by 1.7% quarter-on-quarter and averaged 2,327 thousand boe per day mainly driven by higher oil production in Russia.

 Hydrocarbon production, thousand boe per day

3Q 20182Q 2018 9M 20189M 2017
2,327 2,289 Total (excluding West Qurna-2 project) 2,301 2,218

Oil production excluding West Qurna-2 project for the first nine months of 2018 was 63.8 million tonnes, including 21.7 million tonnes produced in the third quarter, which is 1.6% higher quarter-on-quarter in average daily terms. The Company has rapidly ramped up production in Russia since the change of external production limitations on July 1, 2018.

 Oil production, thousand tonnes

3Q 20182Q 2018 9M 20189M 2017
21,717 21,135 Total (excluding West Qurna-2 project) 63,778 64,115
20,865 20,253 Russia 61,123 61,354
20,706 20,096 Subsidiaries 60,649 60,635
159 157 Share in affiliates 474 719
852 882 Outside of Russia 2,655 2,761
457 457 Subsidiaries 1,404 1,477
395 425 Share in affiliates 1,251 1,284
469 318 Compensation oil from West Qurna-2 project 1,238 1,426
22,186 21,453 Total 65,016 65,541

Active development of the priority projects continued. In the third quarter of 2018 the fourth well was launched at the second development stage of the V. Filanovsky field. In the first nine months of 2018 oil production at the field increased by 40% year-on-year, to 4.4 million tonnes.

In the third quarter of 2018 oil production at the Yu. Korchagin field increased by 6% quarter-on-quarter as a result of the first production well launch at the field's second development stage in July 2018. The additional drilling at the field's first development stage also supported the production growth.

Further development of the Yaregskoe field and Permian reservoir of the Usinskoe field, including the launch of new steam-generating capacities, allowed to increase high viscosity oil production for the first nine months of 2018 by 29% year-on-year, to 3.1 million tonnes.

Oil and gas condensate production at the Pyakyakhinskoe field in West Siberia increased by 5% year-on-year, to 1.2 million tonnes.

The share of the abovementioned five projects in the LUKOIL Group's oil production excluding West Qurna-2 project amounted to 15% for the first nine months of 2018, 3 percentage points up year-on-year.

Gas production, million cubic meters

3Q 20182Q 2018 9M 20189M 2017
8,512 8,127 Total 24,638 20,668
4,447 4,456 Russia 13,399 13,595
4,423 4,431 Subsidiaries 13,327 13,524
24 25 Share in affiliates 72 71
4,065 3,671 Outside of Russia 11,239 7,073
3,919 3,493 Subsidiaries 10,755 6,472
146 178 Share in affiliates 484 601

For the first nine months of 2018 LUKOIL Group's gas production was 24.6 billion cubic meters, which is 19.2% higher year-on-year. In the third quarter of 2018 gas production was 8.5 billion cubic meters, 3.6% up quarter-on-quarter in average daily terms.

The main driver of gas production growth was the successful development of projects in Uzbekistan. Due to the launch of new gas treatment facilities, the Group's share in production at Kandym and Gissar projects in the first nine months of 2018 increased to 9.6 billion cubic meters which is 84% higher year-on-year. Kandym gas processing complex has reached its design capacity of 8 billion cubic meters in September 2018.

 Refinery throughput, thousand tonnes

3Q 20182Q 2018 9M 20189M 2017
17,467 16,734 Total for LUKOIL Group refineries 50,314 49,946
10,939 10,668 Russia 32,262 31,963
6,528 6,066 Outside of Russia 18,052 17,983
5,837 5,340 Oil processing 15,726 16,301
691 726 Refined products processing 2,326 1,682
1,622 1,631 Third party refineries abroad 4,913 4,744

For the first nine months of 2018 refinery throughput at LUKOIL Group's refineries increased by 0.7% year-on-year, to 50.3 million tonnes, mainly due to higher utilization rates at the refineries in Perm and Volgograd. Lower processing of oil and higher processing of refined products outside of Russia were mainly attributable to the feedstock optimization at the refineries in Italy and the Netherlands.

In the third quarter of 2018 the Group's refinery throughput was 17.5 million tonnes, 4.4% higher quarter-on-quarter, mainly due to the scheduled maintenance works at refineries in Nizhny Novgorod and Bulgaria in the second quarter of 2018.


LUKOIL will release its Interim Consolidated Financial Statements for the third quarter and the first nine months of 2018 prepared in accordance with IFRS and MD&A on November 28, 2018.

The information in this press release is an estimate of the LUKOIL Group's results for the third quarter and the first nine months of 2018 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 third quarter and the first nine months of 2018. 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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