The devaluation of the rouble has protected LUKOIL through the oil price crash. While many of its peers have struggled with raising debt levels, LUKOIL has emerged from the down-turn relatively unscathed. The company has one of the strongest balance sheets in the sector. If oil prices continue to recover, we forecast it will generate strong free cash flow, thanks to its legacy asset base in Russia. With continuing market uncertainty, LUKOIL's near term goal will be to maximise cashflow, through an emphasis on capital discipline. An up-tick in the oil price has triggered the company to re-engage in drilling its brown fields in Western Siberia. Decelerating the rate of declines from its legacy asset base will be crucial if it is to demonstrate there is good running room left in its mature portfolio. Continued investment in EOR at its legacy fields, combined with ramp-up of a number of green-field developments in Russia and Central Asia underpin a robust production out-look to 2020.