Power generation and renewable energy
Our power-generating and distribution assets provide heat and electricity to both external consumers (commercial power generation) and for own needs (supply power generation). Our power stations operate on natural gas (of these the largest producer of electricity is LUKOIL-Kubanenergo), while the largest suppliers of heat are LUKOIL-Volgogradenergo and LUKOIL-Rostovenergo.
We strive to use all contemporary methods of energy generation, including renewable energy. We have solar and wind energy facilities (in Bulgaria and Romania) and hydroelectric power facilities (in Russia).
Despite external limitations on oil production as part of an agreement with OPEC, and increases in rates of excise and mineral extraction tax in Russia, LUKOIL achieved good financial results in 2017. Progress made during the reporting year was secured by increasing the share of high-margin projects in the structure of oil production, growth in gas production in Russia and Uzbekistan, an improved product output structure at refineries, and reduced costs.