(Lukoil) -- The OAO Lukoil Board of Directors held a meeting in Moscow today to summarize the Company's preliminary performance results in 2011 and set priorities for 2012 and the near term.
In 2011, hydrocarbon production by Lukoil Group (including what is produced by subsidiaries and the share in affiliated companies' production) is expected to total 112.7 million TRF, which is 4.6 million TRF lower than in 2010. As for crude oil, Lukoil Group's expected production figure is 90.7 million tons, of which 84.7 million tons will be produced in the Russian Federation and 6 million tons abroad.
A technological break-through achieved in 2011 allowed to enhance the forecast of an economic commencement in 2012-2021 of an additional 3.6 billion barrels of oil reserves by way of raising the oil recovery factor at fields within the Russian Federation. Maximum efficiency was achieved thanks to the introduction of new technical and engineering approaches enabling maximum contact with the collector as new production wells and sidetracks of the existing wells are drilled, and also the application of well completion techniques characterized by multi-zone fracturing, which tripled the rates.
The oil stock refining volume for the Company's refineries is expected to be 53.5 million tons in 2011, including 45.3 million tons for the Russian refineries (including mini-refineries) and 8.2 million tons for the overseas refineries, due to the raising of the Company's stake in the ISAB Complex up to 60%.
Yet, as against 2010, the overall volume of refining has gone down by 3% in connection with the scheduled outage at the PAO ⌠Lukoil Odessa Refinery and the lowered loading of the refineries in Bulgaria and Romania, which is part of operational planning aimed at minimizing the operation losses.
Lukoil Group's investments in 2011 are expected to reach USD 9.8 billion (+ 22% to the level of 2010). In the ⌠Geological Exploration&Production business segment, investments will grow 29% to reach USD 7.6 billion. In ⌠Refining&Marketing, investments in 2011 are expected at the level of USD 2 billion, which will allow to produce more gasoline of premium quality.
RUR 4.9 billion was allocated to the financing of science and technology in 2011. The financing volume of the Program for Industrial Safety, Improvement and Protection of Labor Conditions, and Prevention and Response to Emergency Situations topped RUR 7 billion in 2011. Over RUR 20 billion were spent on environmental safety measures in 2011.