ANNUAL REPORT 2005 - Lukoil

ANNUAL REPORT, 2005
Gas Production by Regions
Western Siberia
3,341 mcm
44.2%
International
projects
1,835 mcm
24.2%
Other
20 mcm
0.3%
Gas
100%
Total
7,569 mcm
Timan-Pechora
833 mcm
11.0%
Urals
909 mcm
12.0%
Volga
631 mcm
8.3%
Gas production by LUKOIL in 2005 was 7,569 million cubic meters (732 million cubic feet per day)*,
of which 7,267 million cubic meters was produced by subsidiaries. Average daily production by the
Company rose by 17.3% compared with 2004.
Production of natural gas was 2,628 million cubic meters, representing an increase of 43.8% compared
with 2004. The share of associated gas in total production was 65.3% or 4,941 million cubic
meters.
Utilization rate of associated gas was 79%, which is unchanged from 2004. The Company is building
gas turbine power generating stations adjacent to gas flares at its fields in order to increase use of
associated gas. This will reduce gas flaring, lower spending on electricity and thus cut oil production
costs. The Company is implementing a program of measures to increase rates of associated gas use
at LUKOIL enterprises to 95%.
The Company's operating gas wellstock at the end of 2005 consisted of 365 wells, of which 239 were
in production.
Russia
Gas production in Russia in 2005 was 5,734 million cubic meters, of which 5,659 million cubic meters
were produced by subsidiaries. Natural gas production was 1,022 million cubic meters and associated
gas production was 4,712 million cubic meters, or 82.2% of the Group's Russian total. The utilization
rate of associated gas at Russian fields was 79%. Operating gas well stock at the end of 2005
was 302 wells, of which 194 were in production.
* In accordance with US GAAP, including production by subsidiaries and share of production by affiliates. Natural gas output includes natural
gas for sales, own consumption and reinjection, as well as technological losses.
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