PJSC LukOil LUKOIL Reports Preliminary Operating Data for 2017 (9897E)

TIDMLKOD

RNS Number : 9897E

PJSC LukOil

15 February 2018

LUKOIL REPORTS PRELIMINARY OPERATING

DATA FOR THE FOURTH QUARTER AND FULL-YEAR 2017

The LUKOIL Group's hydrocarbon production excluding West Qurna-2 project in the fourth quarter of 2017 increased by 2.9% quarter-on-quarter to 2,284 thousand boe per day. The increase was driven by the development of gas projects.

In 2017 production increased by 2.4% year-on-year to 2,234 thousand boe per day.

Hydrocarbon production, thousand boe per day

 
 4Q 2017   3Q 2017                                 12M 2017   12M 2016 
--------  --------  ----------------------------  ---------  --------- 
                     Total (excluding West-Qurna 
   2,284     2,219    2 project)                      2,234      2,181 
--------  --------  ----------------------------  ---------  --------- 
 

In 2017 oil production excluding West Qurna-2 project was 85.6 million tons, including 21.5 million tons produced in the fourth quarter of 2017. Starting January 2017 LUKOIL Group's oil production volumes and dynamics are mainly defined by the external limitations of Russian companies' production volumes.

In the fourth quarter of 2017 oil production at V. Filanovsky field increased 21.2% quarter-on-quarter and reached 4.6 million tons for the full year, outperforming the planned annual level by 170 thousand tonnes. Production growth was driven by the launch of three production and two injection wells during the year. Production drilling at the second stage of the field development started in December, 2017.

Active development of high viscosity oil projects continued in Timan-Pechora. Production at Yaregskoe field and Permian reservoir of Usinskoe field increased by 11.5% and 9.3% quarter-on-quarter respectively.

Successful development of Pyakyakhinskoe field led to an increase in crude oil and gas condensate production to 1.5 million tons for 2017.

Oil production, thousand tons

 
 4Q 2017   3Q 2017                                        12M 2017   12M 2016 
--------  --------  -----------------------------------  ---------  --------- 
                     Total (excluding West-Qurna 
  21,476    21,412    2 project)                            85,591     86,928 
  20,525    20,538          Russia                          81,879     83,177 
  20,360    20,337                  Subsidiaries            80,995     82,206 
     165       201                  Share in affiliates        884        971 
     951       874          Outside of Russia                3,712      3,751 
     524       464                  Subsidiaries             2,001      2,037 
     427       410                  Share in affiliates      1,711      1,714 
                     Compensation oil from 
     396       539    West Qurna-2 project                   1,822      5,064 
  21,872    21,951   Total                                  87,413     91,992 
--------  --------  -----------------------------------  ---------  --------- 
 

In the fourth quarter of 2017 the LUKOIL Group's gas production increased by 12.5% quarter-on-quarter to 8.2 billion cubic meters. As a result, in 2017 production increased by 15.7% year-on-year to 28.8 billion cubic meters.

LUKOIL had achieved significant progress in Uzbekistan gas projects development. In the fourth quarter of 2017 production at Kandym and Gissar projects increased by 30.7% quarter-on-quarter to 2.8 billion cubic meters. The growth was driven by the launch of new gas treatment facilities.

Gas production growth in Russia was mainly attributable to the launch of gas facilities at Pyakyakhinskoe field in January, 2017.

Gas production, million cubic meters

 
 4Q 2017   3Q 2017                                        12M 2017   12M 2016 
--------  --------  -----------------------------------  ---------  --------- 
   8,166     7,257   Total                                  28,834     24,922 
   4,581     4,619          Russia                          18,176     16,496 
   4,556     4,596                  Subsidiaries            18,080     16,407 
      25        23                  Share in affiliates         96         89 
   3,585     2,638          Outside of Russia               10,658      8,426 
   3,386     2,445                  Subsidiaries             9,858      7,654 
     199       193                  Share in affiliates        800        772 
--------  --------  -----------------------------------  ---------  --------- 
 

Refinery throughput at the LUKOIL Group's refineries in the fourth quarter of 2017 was practically flat quarter-on-quarter and amounted to 17.3 million tons. Refinery throughput in 2017 increased by 1.8% year-on-year to 67.2 million tons.

Growth of refinery throughput in Russia in the fourth quarter of 2017 was mainly due to scheduled maintenance works at Nizhny Novgorod refinery in the third quarter of 2017. Quarterly dynamics of refinery throughput at European refineries was attributable to scheduled maintenance works at Zeeland refinery in the fourth quarter of 2017.

In 2017 refinery throughput in Russia increased by 3.2% year-on-year, which was mainly due to Volgograd refinery upgrade, as well as scheduled maintenance works at Nizhny Novgorod and Volgograd refineries in 2016.

Refinery throughput at refineries, thousand tons

 
 4Q 2017   3Q 2017                                                12M 2017   12M 2016 
--------  --------  -------------------------------------------  ---------  --------- 
                     Total for LUKOIL Group 
  17,294    17,356    refineries                                    67,240     66,061 
  11,144    11,010          Russia                                  43,107     41,752 
   6,150     6,346          Outside of Russia                       24,133     24,309 
   5,669     5,823                  Oil processing                  21,970     20,356 
     481       523                  Refined products processing      2,163      3,953 
                     Third party refineries 
   1,803     1,670    abroad                                         6,547        744 
--------  --------  -------------------------------------------  ---------  --------- 
 

Note:

LUKOIL will release its Audited Consolidated Financial Statements prepared in accordance with IFRS and related MD&A for the fourth quarter and full-year 2017 on March 21, 2018.

The information in this press release is an estimate of the LUKOIL Group's results in the fourth quarter and full-year 2017 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 fourth quarter and full-year 2017. 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.

Information about the Company:

PJSC "LUKOIL" is one of the largest publicly traded, vertically integrated oil and gas companies in the world in terms of proved hydrocarbon reserves and production; and the second largest producer of crude oil in Russia. Established in 1991, the Company currently operates in more than 30 countries with core upstream assets located in Russia. The full production cycle includes oil and gas exploration, production and refining; production of petrochemicals and lubricants; power generation; marketing and distribution. The Company's shares are listed in Russia on Moscow Exchange under the ticker "LKOH" and depositary receipts are listed on the London Stock Exchange under the ticker "LKOD".

This information is provided by RNS

The company news service from the London Stock Exchange

END

STRUVRKRWSAUARR

(END) Dow Jones Newswires

February 15, 2018 04:08 ET (09:08 GMT)