Mission The Company’s mission is to consistently increase the value of Lukoil stock, by continually increasing efficient oil and gas reserves and production abroad in priority countries and regions of activity. The Company’s main goal is to lead its peer group of transnational corporations in terms of main performance indicators, production volume and scale of operations. This approach forms the basis of Lukoil Overseas’ ten-year strategy adopted in 2007. Lukoil Overseas is successfully meeting this challenge by reinforcing its status on the international energy market and qualitatively improving its production and economic performance.
The main principles of the Company's operations are efficiency, competitiveness, investment attractiveness, and a balanced approach to serving the interests of its shareholders, partners and employees. The Company ensures the full compliance of its activities with international environmental protection requirements and standards for performance, competitiveness and transparency, as well as the social and cultural features of the regions and countries of its operations. History 1994 may be considered the start of OAO Lukoil's international expansion, when a 10% stake was acquired in the project of development of Azerbaijan's largest field in the Caspian Sea, Azeri-Chirag-Guneshli.
Over 1995-1997 Lukoil continued its international activity, joining other oil and gas projects such as Karachaganak, Kumkol and Tengiz (Kazakhstan), Meleiha (Egypt), Shah-Deniz (Azerbaijan) and West Qurna-2 (Iraq). On December 4, 1997, the OAO Lukoil Board of Directors adopted a resolution to establish Lukoil Overseas, headed by Dzhevan Cheloyants, vice president, head of ОАО Lukoil’s Offshore and International Projects Directorate. Recent Achievements Hydrocarbon production set a new record for the history of Lukoil Overseas in 2014, totaling 112 million barrels of oil equivalent (boe). A total of 9.6 million tonnes of oil (2.4 times the level of 2013; the increase was due to the start-up of the West Qurna-2 field in Iraq) and 6.8 billion cubic meters (bcm) of gas were produced.
This boosted the share of Lukoil Overseas in Lukoil's total oil production from 4.4% in 2013 to 10% in 2014, and its share in total hydrocarbon production from 9.5% to 13.3%. Proved, probable and possible reserves audited by Miller and Lents (USA) totaled around 2 billion boe as of 1 January 2015, and contingent resources of all categories exceeded 0.7 billion boe. Production was fully replaced by an increase in proven reserves, mainly from additional exploration of the Gissar, Kandym (Uzbekistan) and Shah Deniz (Azerbaijan) fields. The most significant events of 2014 were the commissioning of the West Qurna-2 field and the beginning of investment recovery for the project via compensation oil exports (more than 30 million barrels shipped by the end of the year).
The field produced 11 million tonnes of oil in 2014 (6.1 million tonnes for Lukoil's share), which exceeded the plan by 6%. The implementation of major gas projects in Uzbekistan continued. In particular, a booster compressor statıon was started up in November at the Khauzak-Shady field, allowing for a 20% increase in production. The Early Gas Kandym large capital project entered an active phase; work was underway on design documentation development, equipment fabrication and delivery, as well as early construction under the Gissar Full Development project. The annual production at the fields in Uzbekistan totaled 4 bcm of gas and over 100,000 tonnes of liquid hydrocarbons.