ANNUAL REPORT 2005 - Lukoil

ANNUAL REPORT, 2005
INTERNATIONAL TRADE
LITASCO (LUKOIL International Trading and Supply Company) was set up in 2000 as sole agent for
the Company's international trading operations, carrying out all LUKOIL Group deliveries and trading
operations outside Russia. Transfer of all export operations to a single Company simplified export
arrangements, optimizing export flows and assuring transparency of LUKOIL's oil and product exports.
LITASCO is consistently increasing margins on trade operations by optimizing management of
LUKOIL's delivery channels and by increasing the volume of trade with third parties.
LITASCO has offices in 14 countries and its main trading offices are in Switzerland, the USA,
Germany, the Netherlands, Sweden, UAE and Singapore. LITASCO's trading operations are supported
by the company's own maritime fleet of 25 tankers. LITASCO's business divides into three
main parts.
Export sales of LUKOIL crude oil and petroleum products
LITASCO sells LUKOIL crude oil and petroleum products to customers outside Russia. The main volumes
are exported through Baltic and Black Sea ports, and also through the Druzhba pipeline system.
Sales regions have traditionally been in Central, Eastern and Northern Europe, and the Black Sea and
Mediterranean Basins. However, in the last two years LITASCO has taken advantage of strong commercial
positions in Europe to send increasing export volumes to more distant markets, such as the
USA and China. In the same period LITASCO has significantly increased the share of its sales, which
are made direct to final users (oil refining and marketing companies).
Deliveries to foreign companies of LUKOIL Group
LITASCO makes deliveries to Group companies outside Russia, including refineries in Bulgaria and
Romania. Crude deliveries are matched to the configuration and production requirements of each
refinery in order to achieve maximum efficiency.
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