by
Antonio W. Romero
Although a sustainable development strategy and expansion of the portfolio of projects remain key to long-term success, factors such as costs- optimization and improvement in overall business efficiencies, coupled with a strive to minimize adverse environmental impacts are gaining vital importance to companies, where technological innovation offers essential solutions and provides a competitive edge.
In this context, few can carry on with business as usual and the most effective companies use this opportunity to overhaul their approach to doing business. Special attention is paid to those companies that are not only able to withstand current uncertainties, but to successfully grow.
LUKOIL is one of these companies. LUKOIL is a privately owned and publicly traded company, with its shares and securities traded worldwide. With over 2% share in global oil production and about 1% of hydrocarbon reserves, LUKOIL is among the largest vertically integrated oil and gas companies in the world. It employs around 106 thousand people. With headquarters in Russia, the company operates in 35 countries on four continents, participating in projects across the globe - from Siberia to Mexico, from Norway to Iraq.
LUKOIL is at the point of completion of its latest large-scale investment cycle that has prepared and adapted it to the current low oil price period. In 2015 alone, for example, over $3 billion worth of fixed assets were put into operation in oil refining business, including the commissioning of the new technologically advanced hydrocracking complex in Burgas, Bulgaria.
In the same year, LUKOIL reduced its overall emissions by nearly 18%, with the utilization of associated gas emissions at the upstream now at 92% and effective measures in place to cut emissions further. Similarly, waste water discharge was further cut by 5.9%, with both cuts in consumption and waste of water to progress in the years to come.
LUKOIL’s ambitious plans and investments in the area of environmental protection and climate can be perceived as a competitive edge in international tenders for hydrocarbon development. When considered in conjunction with its efficiency in exploration and production, its high environmental standards are welcomed by the authorities. The latest recognition of LUKOIL’s standards was noted by the Norwegian Ministry of Petroleum and Energy when issuing the company with 20% stake in an offshore field development license.
LUKOIL was among the first to introduce the so called “zero discharge” principle at all its projects. The principle obligates that all waste and other contaminants from an offshore platform are collected and transported on shore for recycling. This includes both industrial and domestic waste.
The company also receives recognition of its innovation and technological expertise from the professional community. One of the latest examples is LUKOIL receiving top prize in the "Technical Innovation" category at the annual SeaTrade Maritime Awards. SeaTrade experts noted the company's contribution to the development of lubricants for marine navigation. In particular, LUKOIL has developed a new line of biodegradable synthetic oils, meeting the most stringent requirements and modern standards of safety, as well as intellectual iCOlube cylinder lubrication system.
LUKOIL’s constant drive to improve every aspect of its value chain through cost-effective implementation of technological solutions is the cornerstone of its current resilience on the market. A pioneer among its peers throughout its history, the company fully reflects its slogan “Always moving forward”.
By: N. Peter Kramer
