ANNUAL REPORT 2005 - Lukoil

LUKOIL bought share stakes in 2005, which
gave the Company sole control of the Finnish
companies Oy Teboil Ab and Suomen Petrooli
Oy. The acquisitions cost $160 million. The
principal business of Oy Teboil Ab and
Suomen Petrooli Oy is management of a network
of 289 filling stations and 132 retail
diesel fuel outlets. The companies are also
fuel wholesalers, as well as blending and selling
lubricants.
In March 2005 LUKOIL bought 15 filling stations
in Hungary from the Austrian company
ABA, increasing the number of LUKOIL stations
in Hungary to 26 (more than 3% of the
Hungarian retail fuel market).
Structure of Petroleum Product Sales by LUKOIL Regional
Marketing Organizations in Europe and the Near-abroad
Countries (wholesale and retail, 2005)
Ukraine 9.9%
Belarus 8.8%
Romania 13.3%
Serbia 4.1%
Lithuania 6.6%
Moldova 3.1%
Poland 2.4%
Estonia 1.3%
Georgia 1.5%
Hungary 1.5%
Azerbaijan 2.8%
Latvia 2.4%
Bulgaria 25.7%
Cyprus 0.9%
Finland 12.2%
Turkey 3.5%
REFINING, PETROCHEMICALS AND MARKETING
By the end of 2005 foreign divisions of the Company in Europe, near-abroad countries and the USA
had 57 tank farms with reservoir capacity of 1.18 million cubic meters and 4,136 filling stations.
Optimization of the international filling station network helped to increase daily fuel sales per station
in Europe and the near-abroad countries by 11% to 4.9 tonnes. The average daily figure at US stations
was 8.4 tonnes.
Petroleum product sales on international markets in 2005 were 56.67 million tonnes, of which 7.12
million tonnes were sold through the Company's retail network (29.9% more than in 2004).
LUKOIL spent $533 million on development of its international retail network in 2005.
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