Company report
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21 Pages

LUKOIL corporate report

LUKOIL corporate report

Report summary

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.

What's included?

This report includes 2 file(s)

  • LUKOIL corporate report PDF - 763.54 KB 21 Pages, 7 Tables, 21 Figures
  • LUKOIL Corporate report.xls XLS - 3.14 MB


The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Company report offers thought-provoking insight into corporate financial health, investment strategy and operational outlook supported by our proprietary asset data and energy research experts.

Widely used by both the energy and financial sectors, our report gives you a unique perspective on key strategic and financial challenges, as well as opportunities facing this oil and gas company.

Wood Mackenzie provides an independent evaluation and expert opinion on the operational performance, strategy and future of the world's top oil and gas companies. Our unique, objective analysis helps you understand, validate, compare and challenge market and corporate views so you can assess strategic opportunities.

  • Executive summary
  • Strategy
    • Current strategic positioning
    • Strategic priorities
      • 1. Russia oil: stabilize Russia production, with greenfield providing growth
      • 2. Exploration focus highlights long-term growth strategy
      • 3. Growth through new business development
  • Financial health
  • Investment
  • Resources, reserves and production
    • Production
    • Reserves and resources
  • Key success factors
  • Economic assumptions

In this report there are 28 tables or charts, including:

  • Executive summary
    • SWOT analysis
  • Strategy
    • Benchmark: share price performance
    • Benchmark: market rating
    • Strategic fit of upstream regions
    • Benchmark: % NPV,10 by resource theme
    • LUKOIL: production outlook
    • LUKOIL: Russian production by region
    • LUKOIL: key Russian growth projects
    • Benchmark: Deepwater acreage
    • Benchmark: reported organic reserve replacement
  • Financial health
    • Benchmark: cash flow breakeven
    • LUKOIL: year-end net-debt
    • LUKOIL: upstream cash flow by country
    • Benchmarking: upstream base-case cash-flow outlook
  • Investment
    • Benchmarking: return on discretionary projects
    • Benchmarking: capital investment (2017 to 2021)
  • Resources, reserves and production
    • Reported historic and Wood Mackenzie forecast total production
    • Reserves and resource detail
    • Benchmark: reserves and resources detail
    • Benchmark: reserves and resource life
  • Key success factors
    • Key assets
  • Economic assumptions
    • Base price assumptions (nominal terms)
    • Base price assumptions (nominal terms)
    • Base, high, and low Brent (nominal terms)
    • High price assumptions
    • Low price assumptions
    • Value assumptions
    • Foreign exchange rate assumptions
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