Oil and gas exploration and production form the central link in LUKOIL Group operations and are the main creators of value for the Company. We possess a high-quality portfolio of assets that are diversified in terms of both geography and type of reserve.

Proven oil and gas reserves consist primarily of those in the conventional category. In 2018 these stood at 15.9 billion BOE, of which oil made up 76%. In the reporting year, the main increases in proven oil and gas reserves were achieved in West Siberia and Timan-Pechora.

The production of hydrocarbons (excluding the West Qurna-2 project) rose by 3.8% compared to 2017, mainly as a result of the advanced development of gas projects in Uzbekistan. Annual oil production, taking into account external constraints, remained at the 2017 level, while production growth was seen at high-production fields in the Caspian Sea and at mature fields in Western Siberia and Timan-Pechora, as a result of effective production management.

• The gas processing plant at the Kandym group of fields in Uzbekistan was put into operation ahead of schedule.
• The V. Filanovsky field reached planned capacity, and a final investment decision was made on the infrastructure development project at the Rakushechnoye field (both fields are in the Caspian Sea).
• A water steam production plant was put into operation at the Yaregskoye field to further increase the extraction of tight reserves.