Download Report (PDF; 3.90 Mb) - Lukoil

SUSTAINABILITY REPORTcomplex for advanced oil refining which permits production ofEURO-4 diesel fuel. This is the first such complex in Russia andthe seventh in the world.In the Povolzhye Region, fuel and chemical industry represents 3–7%of the economy in Nizhny Novgorod Oblast and up to 60% of the economyof Astrakhan Oblast.In Volgograd and Nizhny Novgorod oblasts, the output of theCompany's refineries has a major impact on regional budgets. For example,in 2004 a growth of the output at OAO LUKOIL-Nizhegorodnefteorgsintezand in sales at OAO LUKOIL-Volganefteprodukt producedan increase in oblast and local tax revenues of up to 1.5 billion roubles (or3%). "Those assets allowed us to pay salaries in the budget sector and tocarry out social programmes," acknowledged the Governor of NizhnyNovgorod Oblast, G. Khodyrev.OAO LUKOIL-Nizhegorodnefteorgsintez is a winner of the fourthannual national competition, Russian Organisations with BeneficialSocial Impact. The factory received an award "for significant input intothe Nizhny Novgorod Oblast and Russian economy, payment of taxes,revenues and other contributions to budgets at all levels in 2004."LUKOIL's development strategy places great importance onAstrakhan Oblast. During the last five years, the Company discovereda new oil field there. The Company is performing exploratory drilling,and production will start in 2008. Once pumping starts on the Caspianshelf, the budget of Astrakhan Oblast will increase by 40% and 5,000new jobs will be created. The Company's plans also include large commissionsfor the shipbuilding and ship repairing enterprises of theregion. The oblast government sees LUKOIL not only as its trustworthystrategic partner but also as an element of state policy in theCaspian region.Kaliningrad Oblast has significant low-sulphur oil resources. OOOLUKOIL-Kaliningradmorneft is developing 25 of the 30 fields discoveredin the region. In July 2004, LUKOIL-Kaliningradmorneft startedindustrial production at the Kravtsovskoye field (Project D-6).Exclusive engineering solutions that make the project environmentallysafe and economically efficient are being used on the productionplatform.22