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OAO Lukoil

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In early April 2010, UPI reported that Lukoil had announced it was halting its gasoline shipments to Iran (UPI, April 8, 2010).

According to Reuters, Lukoil partnered with China’s Zhuhai Zhenrong to resume gasoline sales to Iran. Traders at the company had been instructed to halt all activity with Iran, however Lukoil’s trading arm delivered 250,000 barrels of gasoline to Iran’s Bandar Abbas in August 2010. A spokesman claimed that the delivery was part of a previously signed contract (Reuters, August 11, 2010).

In a company press release, Lukoil responded to an open letter from two U.S. Congressmen commenting "that LUKOIL has not invested in Iran for many years and the Company's commercial involvement with Iran has steadily and substantially diminished in recent years in all respects" (Lukoil Press Release, September 15, 2010).

Date: 1996 – Ongoing

Deal: In May 1996, Iran's Oil Industries Engineering and Construction Company (OIEC), a subsidiary of the National Iranian Oil Company (NIOC) took a 10 percent stake in Azerbaijan's Shakh-Deniz oilfield with SOCAR, BP, Statoil and TPAO (The Middle East and North Africa 2004, p. 403). According to a report on Lukoil's website, the company entered into this project under a 25-year agreement (Lukoil Analyst Databook, 2005).

Lukoil increased its investment in the Shakh-Deniz oil field when it purchased Italian firm ENI's 50 percent stake in LukAgip, according to an industry publication (APS Review Downstream Trends, September 6, 2004).

An industry publication reported that in May 2002, the OIEC sold its stake in the project to NaftIran, a Swiss-based Iranian company (APS Review Gas Market Trends, July 3 2006).

Date: September 2003 - October 2007

Deal: According to Norwegian firm Norsk Hydro, Lukoil bought 25 percent of Norsk Hydro's 100 percent stake in developing the Anaran oil block in Iran. NIOC approved the deal (Hydro Company Press Release, September 29, 2003). According to Reuters, Lukoil suspended work on the Anaran block in October 2007 because of U.S. sanctions (Reuters, October 22, 2007).

Date: February 2006 – Unclear

Deal: According to Lukoil's 2006 annual report, the company signed a contract with NIOC for the geophysical and geological study of the Mogan and Lali oil blocks in Iran. The joint operations include reprocessing and interpretation of drilling, log, seismic, gravitational and magnetic survey, and geochemical rock analysis data (Lukoil 2006 Annual Report).

Date: November 2009 – Present

Deal: According to the Tehran Times, Iran's Oil Exploration Operations Company (OEOC) signed two contracts with Lukoil and Malaysia's Petronas for projects in Uzbekistan. Under one of the deals, worth $15 million, Lukoil will conduct 3D seismic operations in the Gissar oil block in Uzbekistan. The operations are set to be complete in 12 months (Tehran Times, November 2, 2009).

Ties to U.S. Business: According to USASpending.gov, in 2005, Lukoil – Belorussia had two contracts worth a total of $10,000 to provide fuel to the U.S. Department of State (USASpending.gov, accessed July 1, 2010).

Lukoil operates in the United States through its subsidiaries Lukoil Americas and Getty Petroleum Marketing Inc., according to Lukoil Americas' website. The company sells 2 billion gallons of gasoline per year in over 2,000 facilities in 13 states (Lukoil Americas Website, accessed July 1, 2010). According to an industry publication, Lukoil bought 800 Mobil stations in New Jersey and Pennsylvania in 2004 (CSP Daily News, September 5, 2006).

According to a company report, ConocoPhillips bought a 20 percent stake in Lukoil in 2004, and together, the two companies created a joint venture to develop oil and natural gas resources in Russia's Timan-Pechora province (ConocoPhillips Website, 2009).

In March 2010, ConocoPhillips announced in a press release that as part of its plan to reduce debt and fund a 10 percent increase in dividends, it would be halving its 20 percent stake in Lukoil (ConocoPhillips Press Release, March 24, 2010).

Last Updated: July 17, 2014