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Tell us about LUKOIL
1.3% of global oil reserves and 2.3% of global oil production 18.6% of Russian oil production and 18.1% of Russian oil refining
The 2nd largest non-state publicly traded oil company worldwide by proven reserves of hydrocarbons The 6th largest non-state publicly traded oil company worldwide by production of hydrocarbons The largest Russian oil business group with annual turnover of over US$80 billion and net income of US$9.5 billion The company with second largest trading volumes among foreign companies traded on the London Stock Exchange (IOB) in 2007 A leader among Russian oil companies for openness and transparency. The first Russian company to receive full listing on the London Stock Exchange The only private Russian oil company whose share capital is dominated by minority stakeholders One of the largest tax payers of the Russian Federation . The total amount of taxes paid in 2007 is US$ 28 billion What about International Exploration and Production
Exploration and production of oil & gas is LUKOIL\'s main business and delivers the largest share of Company value (almost 50% of consolidated net profit of LUKOIL Group). LUKOIL has a high-quality E&P asset portfolio, which is highly diversified in terms of geography, reserve type, and levels of depletion.
The emphasis in geological exploration work abroad is to prepare the resource base for rapid launch of production as part of the Companyís strategy for intensive development of its international business. 2D seismic work in international projects totalled 1,470 km in 2007, 3D work was 2,822 km2 and overall exploration drilling was 13,000 meters. Spending on geological exploration outside Russia was $180 million. The Company continued rapid development of its international Exploration & Production business. The Group was involved in 15 geological exploration projects outside Russia during 2007: in Azerbaijan, Colombia, Iran, Kazakhstan, Saudi Arabia, Uzbekistan, Venezuela, and Cote díIvoire. LUKOIL Group constantly monitors opportunities for participation in new, promising international projects, and the Company acquired stakes in three new projects during 2007: an agreement was signed in April with the American oil & gas company, Vanco Energy, for acquisition of a 56.66% stake in three projects for geological exploration of promising offshore blocks in the Gulf of Guinea (Western Africa).
LUKOILís share of production in international projects was 5.545 million tonnes in 2007, which is 2.3% less than in 2006. The volume reduction was due to completion of the transaction for sale of a 50% stake in Caspian Investments Resources Ltd. Daily oil production by Caspian Investments Resources Ltd. At the time of the sale (based on its share in projects) was about 46,000 barrels.
Production drilling in the Companyís international projects was 327,000 meters, which is 49% more than in 2006. The large growth of production drilling in 2007 reflects intensive field development as part of projects involving Caspian Investments Resources Ltd. and as part of the Kumkol project.
In Egypt 13 new wells were launched as part of the Meleiha project. They gave average daily oil flow of 43 tonnes. An extension of the concession agreement for the Meleiha block up to 2024 came into force in 2007. A further 32 wells are to be drilled in 2008. Test production was carried out at the first exploration well as part of the Condor project in Colombia and 1,400 tonnes of high-quality Vasconia crude was produced. Work began on a development plan and a schedule for field preparation.