Many Russian citizens would like to know who owns Lukoil, one of the largest private oil companies in our country. The recent international economic forum in St. Petersburg shed light on this mystery. The head and co-owner of PAO made a statement. He spoke about who owns Lukoil. Vagit Alekperov previously reported that 50% of the company is owned by foreign investors, he personally owns only 20%, and another 10% of the shares are held by the vice president, Leonid Fedun.
How it was
At a summit on technological innovations and changes in the global energy market, President Vladimir Putin confidently stated that 25% of all Russian oil is produced by companies in which foreign investors participate. He stressed that we do not have a single large company without foreign participation. Even the state-owned Rosneft is a joint stock company. This fragment of the speech of V.V. Putin was published by the media.
After this statement, the President of the Russian Federation directly addressed Vagit Alekperov with a specific question: "To whom does Lukoil really belong? How many foreigners do you have?" The head of the oil company called the figure - 50%. V. Alekperov himself is the owner of a 20% stake. But it was not always so.
Earlier, the largest foreign holder of Lukoil shares was the American company ConocoPhillips. In the spring of 2010, she sold her package (just about 20%). Buyer information was not disclosed. It is only known that the sale process was completely completed in early 2011.
And now we have to figure out who owns Lukoil at the moment. There are still rumors on the Internet that ConocoPhillips is still a strategic partner of this oil company. Allegedly, she owns a blocking stake, and her representatives are members of the board of directors and participate in joint projects. However, it is not.
Success
International vertically integrated company is the largest not only in our country, but also in the whole world. It occupies the top positions in hydrocarbon reserves. Now a little specificity. The company's oil reserves are the largest in the world. All experts know this.
PJSC Oil Company Lukoil produces hydrocarbons not only in Russia, but also far beyond its borders. Where exactly? The company owns numerous oil and gas refineries both in Western Europe and Eastern. Therefore, it is not so easy to determine who owns Lukoil " in fact.
The company sells products through its distribution networks in more than 20 countries. In any case, in the USA, Lukoil refueling stations are the first by the number of gas stations among other manufacturers. The shares of this company are traded not only on Russian, but also on foreign exchanges, are among the so-called "blue chips" delivered from the Russian stock market. Where is the head office of Lukoil? Address (legal): Moscow, Sretensky Boulevard, building No. 11.
Structure
The competitiveness of a company depends on the effectiveness of corporate governance. And it is provided by more than one president of PJSC Lukoil. Development is impossible without a well-established management structure that would determine the relationship between shareholders, the executive body and the Board of Directors. Only in this case, investors will be confident in the reasonableness of the funds spent by management. A properly built management structure effectively contributes to the growth of the company's capitalization.
The system of PJSC Lukoil created reliable and trusting relationships between the community of shareholders and investors. Therefore, their cooperation is strong, effective and long. The investment attractiveness of the company is increasing year by year.
The principles of interaction between shareholders and the company itself are as transparent as possible. What does it mean? Shareholders of PJSC Lukoil can trace how the general management is carried out, as well as obtain relevant information on financial transactions.
Board of Directors
Who is at the head of the corporation management system? This is a board of directors that manages shareholders and investors. It consists of independent directors. Such an approach helps to form an objective opinion of the Council on any of the issues discussed. These factors also strengthen the confidence of shareholders and investors in PJSC Lukoil.
Each unit of the general structure has its own director. Each of them was elected to the Council at the general meeting of shareholders in June 2017. It is they who now determine the priority areas of the oil company’s activity, are engaged in the development of its strategic, medium-term and annual planning, and will also summarize the results of all work. How many directors are on the board? Only eleven people, including three foreigners (two of them are engaged in personnel policy and remuneration, and one is engaged in investments).
Persons
The president of the company is Vagit Yusufovich Alekperov, who is an executive member of the Board of Directors and chairman of the board of the company. There is a lot of writing about this person in the media. He has been a member of the Council since 1993.
The Chairman of the Board of Directors is Valery Isaakovich Graifer. This is not his only position. V. Graifer also presides over the Board of Directors of RITEK JSC. At PJSC Lukoil, he was elected to the Board of Directors in 1996.
His deputy is Ravil Ulfatovich Maganov, who is an executive member of the board, investment and strategy committee, and also a member of the company’s board. He was the first executive vice president of exploration and production. Member of the Board of Directors since 1993.
Blazheev Viktor Vladimirovich is a member of the Board of Directors, chairman of the audit committee and member of the human resources committee. In combination, he works as a rector of the Moscow State Law University named after Kutafin (Moscow State Law University). Member of the Board of Directors since 2009.
It is impossible not to single out another person. This is Igor Sergeevich Ivanov. He is a member of the Board of Directors, chairman of the investment and strategy committee, and sits on the audit committee. In addition, I. Ivanov presides over the Non-Profit Partnership of the INF Treaty. Member of the Board of Directors since 2009. The company management considers him a valuable employee.
Other representatives of the Board of Directors
Roger Mannigs is a member of the British-Russian Chamber of Commerce. He is a member of the Board of Directors and chairs the Human Resources Committee. He is also an independent member of the Board of Directors of Sistema JSFC, the largest publicly diversified financial company in Russia and the CIS, engaged in telecommunications, insurance, finance, the media business, retail, the oil industry, radio electronics, and mechanical engineering. This is not a complete list. Mr. Mannigs has been on the Board of Directors of PJSC Lukoil since 2015.
Introducing another foreign specialist - American Toby Trister Gati. She joined the Board of Directors a year later than Mannigs. Now the woman is a member of the investment and strategy committee, simultaneously being the president of TTG Global LLC. And before that, she was the US Under Secretary of State for Research and Intelligence, and also an adviser to Bill Clinton (when he was president) on Russian affairs.
Toby Triister Gati is not going to completely leave politics. But for now, she is satisfied with the position of senior adviser to the most profitable lobby group in the world - Akin Gump Strauss Hauer & Feld LLP. She adores Brzezinski. Probably, in order to form an opinion on the composition of the leadership of NK Lukoil, this information should be taken into account, since the business policy of our country directly depends on the worldview of its participants.
HR Committee
Richard Matske is on the Board of Directors of PJSC Lukoil for the second time: first from 2002 to 2009, then in 2011 he was re-elected. The committee deals with personnel and remuneration. Also on the advisory board of directors of the American-Russian Chamber of Commerce. That's not all. Richard Matske also sits on the third Board of Directors at PHI, Inc. (Project Harmony Inc.), and on the Board of Directors of the well-known Chinese company PetroChina Company Limited, specializing in oil exploration, production and refining.
Audit and development strategies
Ivan Pictet is a successful Swiss banker. He has been on the Board of Directors of Lukoil since 2012. He works in the audit committee. In addition, he chairs the Boards of Directors of Symbiotics, as well as PSA International SA. In addition, Ivan Pictet is the president of two foundations - Fondation pour Geneve and Fondation Pictet pour le development. He is a member of the AEA European Advisory Board. We talked about foreigners.
Two more members of the Board of Directors are Russians. This is Leonid Arnoldovich Fedun, who is a member of the Committee on Investments and Strategy, as well as holding the position of vice president of strategic development of the company since 2013. And the second person is Lyubov Nikolaevna Khoba. In addition to membership on the board of directors, he is the chief accountant of PJSC Lukoil and its vice president.
About Committees
In August 2003, committees were created under the Board of Directors. Each of them had their own goals and objectives. Igor Sergeevich Ivanov - Chairman of the Investment and Strategy Committee. Together with him are Toby Trister Gati, Ravil Ulfatovich Maganov and Leonid Arnoldovich Fedun. The audit committee is chaired by Viktor Vladimirovich Blazheev. And his colleagues are Igor Sergeevich Ivanov and Ivan Pictet. The HR and Remuneration Committee is led by Roger Manning. Victor Vladimirovich Blazheev and Richard Matske solve issues with him.
The corporate secretary of PJSC "Lukoil" Natalia Igorevna Podolskaya coordinates the actions of the company’s management. She is also responsible for communication and interaction between the Board of Directors, shareholders and executive management. Under the supervision of the secretary, it is guaranteed that officials and company management comply with all procedural requirements that ensure the implementation of the interests and rights of each shareholder. The corporate secretary is appointed directly by Vagit Yusufovich Alekperov.
Single share
In 1995, a number of others were merged with the structure of the joint-stock company: Research Institute Rostovneftekhimproekt, Volgogradnefteproduktavtomatika and six other oil companies from Nizhnevolzhsk, Perm, Kaliningrad, and Astrakhan. This was both good and difficult for Lukoil: the five divisions of the company had their own shares, which were independently traded on the stock market. Plus shares of the main holding. Exchange players preferred some papers, others did not. And processing plants, unlike mining ones, were not involved in the business of traders. Therefore, they had almost no deals.
When one company has so many diverse securities, the interaction with investors and their search is very difficult. Switching to a single share was a good idea. At that time, not a single Russian oil company had yet decided on such a transformation. Lukoil became the first. Therefore, this process went hard and slowly. The entire transition took two years.
Blue chips
The term "blue chip" came to the stock markets from casino lovers. Where did this name come from? The fact is that chips of this color in the game are more expensive than the rest. Now this expression is used for securities or shares of the most reliable, liquid and large companies. These firms boast stable earnings and dividend ratios. When a single share of Lukoil appeared on the stock market, it immediately received the highest interest from investors.
The state got the opportunity to profitably sell its shares. And Lukoil has registered with the Commission on Exchanges and Securities (SEC) an application for the issuance of first-level receipts for deposits that were intended for sale in the US on the stock market. Bank of New York agreed to act as depositary.
Long way
In 1996, the company's depositary notes were listed on the Berlin and London stock exchanges. At the same time, joint ventures LUKARCO, LUKAgip NV (Italy) were created. Lukoil began to form its own tanker fleet, designed to operate in the Arctic Ocean. By 1999, it was fully commissioned. This was long awaited by Russian experts.
In 1997, there was a huge chagrin of two billion tons of Iraqi oil and a very expensive contract torn up due to the Kuwait conflict. That's not all. In 1998, there was a crisis with a rapid drop in oil prices around the world. The company budget has been revised. Everything that was unprofitable stopped. But shares in domestic and foreign markets still fell, and more than 5 times.
Nevertheless, the company continued acquisitions. On the advice of Dresdner Kleinwort Benson and the IBO NIKoil Bank, financiers, the company KomiTEK was bought, then immediately one hundred percent of the shares of Nobel Oil, then a 50% stake in KomiArcticOil (as agreed with British Gas North Sea Holdings Limited) and so on - up to the present moment. It can only be added that in 2004 Lukoil-USA managed to buy 779 units of Lukoil gas stations from ConocoPhilips, which were located in Pennsylvania and New Jersey. Rather, prior to the acquisition, all gas stations belonged to the Mobil brand, but were quickly transferred under the new brand.
So who owns Lukoil?
This is what many Russians want to know. However, the president of PJSC Lukoil always answered this question evasively. Alekperov said that there is no sole shareholder controlling all processes. And he is not ready to discuss the package belonging to managers. This went on for a long time, until the beginning of 2017.
Now Vagit Yusufovich Alekperov admitted that the main "strength" of the company is management. Although such a goal was not announced, it was already possible to collect a controlling stake.