LUKoil to increase oil exports

LUKoil is planning to considerably increase its exports of oil and oil products by 2005, a source in the company reported to RBC. The share of exports in the structure of the company's supplies is expected to grow from 56 percent up to 70 percent in 2001-2005. LUKoil is intending to diversify its export flows increasing its supplies of oil products to foreign countries. By 2005, the share of oil products in the company's exports is to amount to 50 percent growing from 40 percent of the total volume of oil product production in 2001, and the share of oil exports is to reach 41 percent against the current 33 percent.

The wish to expand the share of its oil product exports is caused by the estimation of the company's sales structure executed by LUKoil specialists this year. The results of this research demonstrated that the company's focusing on meeting the domestic demand influenced the 2001 financial results of the holding negatively. At the same time, LUKoil has a considerable reserve for export growth due to an increase in the volume of oil processing at its affiliate refineries, which are currently under reconstruction, and the limited demand for oil products on the Russian market.

The goal of increasing oil product exports is stated in the primary program of restructuring the company adopted by the LUKoil board of directors.

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