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In 2021 LUKOIL Group's hydrocarbon production excluding the West Qurna-2 project was 2,161 thousand boe per day, which is 4.7% higher year-on-year, while in the fourth quarter of 2021 hydrocarbon production increased by 7.6% quarter-on-quarter. The production growth was attributable to the dynamics of the external limitations on oil production due to the OPEC+ agreement, as well as higher gas production volumes.

In 2021 oil production excluding the West Qurna-2 project was 79.3 million tonnes, which is 3.0% higher year-on-year in average daily terms, while in the fourth quarter of 2021 oil production increased by 5.3% quarter-on-quarter and amounted to 21.1 million tonnes. Oil production dynamics was driven by the OPEC+ agreement concluded in April 2020, which led to limitations on oil production by the Group in Russia and at certain international projects. Due to the agreement, oil production by the Group in Russia was cut in May 2020 by approximately 310 thousand barrels per day, or by 19%, as compared to the level of the first quarter of 2020, and has been gradually recovering subsequently. As a result, in the fourth quarter of 2021 oil production by the Group in Russia was approximately 270 thousand barrels per day higher compared to May 2020 level.

Despite the external limitations on crude oil production volumes, development of the priority projects continued. In particular, in West Siberia total oil and gas condensate production in 2021 at the V. Vinogradov, Imilorskoye, Sredne-Nazymskoye and Pyakyakhinskoye fields increased by 8.1% year-on-year, to 4.5 million tonnes.

In 2021, gas production increased in average daily terms by 11.2% year-on-year to 32.2 billion cubic meters. The growth was driven by recovery of gas production in Uzbekistan after temporary decline in 2020 due to lower demand from China for gas produced in Uzbekistan amid the COVID-19 pandemic.

In the fourth quarter of 2021, gas production increased by 12.7% quarter-on-quarter and amounted to 8.6 billion cubic meters. The increase was mainly attributable to seasonal growth of demand for gas, as well as higher associated petroleum gas production following an increase in oil production.

In 2021, refinery throughput at LUKOIL Group's refineries was 63.0 million tonnes, which is 7.4% higher year-on-year. The increase in refinery throughput volumes both in and outside Russia was attributable to higher refineries utilization rates due to better market environment in 2021, as well as scheduled maintenance works in 2020. In the fourth quarter of 2021 refinery throughput was 15.5 million tonnes, which is 10.5% lower quarter-on-quarter due to scheduled maintenance works at the refineries outside Russia, as well as seasonal throughput optimization in Russia.

Note:
LUKOIL will release its Audited Consolidated Financial Statements prepared in accordance with IFRS and MD&A for the fourth quarter and twelve months of 2021 on March 10, 2022.
The information in this press release is an estimate of the LUKOIL Group's results for the fourth quarter and twelve months of 2021 and therefore constitutes forward-looking statements. This information is preliminary and based on information available at the date of this document, and may be revised after statistical, financial, tax and accounting statements become available. The information on the LUKOIL Group's operational results in this press release are subject to many external factors which may cause the actual results to differ materially from those expressed or forecasted in this press release for the fourth quarter and twelve months of 2021. The LUKOIL Group assumes no obligation to update or alter its forward-looking statements, whether as a result of new information, subsequent events or otherwise, except to the extent required by applicable law.
This document does not constitute or form part of an invitation or inducement to engage in investment activity with, or any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of, the LUKOIL Group, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of, or any investment in, the LUKOIL Group.
Information about the Company:
PJSC “LUKOIL” is one of the largest publicly traded, vertically integrated oil and gas companies in the world in terms of proved hydrocarbon reserves and production; and the second largest producer of crude oil in Russia. Established in 1991, the Company currently operates in more than 30 countries with core upstream assets located in Russia. The full production cycle includes oil and gas exploration, production and refining; production of petrochemicals and lubricants; power generation; marketing and distribution. The Company’s shares are listed in Russia on Moscow Exchange under the ticker “LKOH” and depositary receipts are listed on the London Stock Exchange under the ticker “LKOD”.

Press Releases

Oil Company "LUKOIL"

LUKOIL reports preliminary operating data for the fourth quarter and twelve months of 2021
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