West qurna-2 world’s second-largest untapped field to begin production
Mexico makes big impact
uzbekistan offers a refreshingly ancient cultural feast
LUKOIL cements long-term commitment to Iraq through investment in education and employment 3
LUKOIL becomes first company to tap into newly-opened market following governmental industry reforms 6
Vibrant bazaars, amazing architecture and a rich past strewn around the Silk Route make for a fascinating trip 8 February 2014
OIL Journal The world of LUKOIL’s international upstream projects
Going global LUKOIL Overseas strategy focuses on diversity, expansion 4-5
2 Business
Insight
A Year in Review: 2013 January West Qurna-2 contract amended to reduce target production level from 1.8 million barrels per day to 1.2 million over 25, rather than 20, years.
February LUKOIL Overseas and its partners discover a new oilfield at Rosa North in Egypt.
June
August
September
October
December
LUKOIL is awarded two licenses in the the Barents Sea; Acquires 65% stake in an exploration, production and development project in Côte D’Ivoire.
The first group of 150 students completes its 1.5year programme at the training centre in Basra, Iraq; they are assigned to work on the West Qurna-2 project.
Exploration drilling commences in Sierra Leone; LUKOIL Overseas passes a company milestone, extracting 20 billion cubic meters of gas in Uzbekistan.
LUKOIL Overseas relocation to Dubai; First 41 students of Corporate Leader Programme graduate from the Skolkovo School of Management in Moscow.
First appraisal well completed at Independence field in Côte d'Ivoire.
A word from the President of LUKOIL Overseas
Global energy consumption to rise 41% by 2030, says BP
Corbis
BP has predicted a near doubling of energy consumption by 2030, with 95% of growth coming from emerging economies, which is slower than in previous decades. However, thanks to improving efficiency, the oil major sees technology and investment allowing production to match demand.
OPEC’s global market share shrinks OPEC’s share of the world oil market fell to 32.6% in December, with output hitting 29.44 mbpd, down 20,000 from November. The drop is largely due to oil production growth in non-OPEC countries such as the US, Canada and Brazil. Meanwhile, OPEC predicts global economic growth of 3.5% this year, up from 2.9% in 2013.
While this testifies to the role of international upstream projects as the Group’s key growth points and catalysts for globalisation, it also places an enormous responsi-
Andrey Kuzyaev President of LUKOIL Overseas
To Win Big, You Have to Bet Big Against the backdrop of a rapidly-changing energy industry, LUKOIL has sown the seeds to become a household name in the coming years
‘‘ I’m convinced that
B y G at i A l -J e b o u r i
a low gas price is one of the factors contributing to the US recovery.”
W
hen most people talk about big oil, they mention names such as Shell, BP and ExxonMobil. LUKOIL — despite being the world’s second largest company in terms of proven oil reserves — has not yet entered global day-today parlance. For us, the success of the West Qurna-2 project this year, which will increase our production of crude by over 40%, will help make LUKOIL recognised among the world’s true oil majors. West Qurna-2 is the single largest-capacity oilfield in the whole of the LUKOIL Group. It’s a true mega-project, and its successful launch will be no small accomplishment. Nor will it go unnoticed by the rest of the world. Working alongside the world’s largest energy companies in Iraq is providing us with unprecedented benchmark feedback that improves profitability and optimises operating costs. I’m happy to report that, in comparison to the other majors, we’re already in good shape. Our costs are below the figures we projected, meaning the efficiency is there. Changing dynamics Meanwhile, the era of gas in the global energy market is rapidly approaching. Development of shale deposits in the United States has transformed that country’s energy balance sheet and the competitiveness of its other sectors in the world economy. I’m convinced that a low gas price is one of the factors contributing to the US recovery from the Great Recession. Editor-in-Chief: Artem Zagorodnov Email: oiljournal@lukoil-overseas.com Address: LUKOIL Overseas Service BV, Dubai Properties Group Building, TECOM, Dubai Website: lukoil-overseas.com (digital version)
Yana Ageeva
Corbis
n Start of commercial hydrocarbon production at West Qurna-2 n Implementation of the Kandym Early Gas and Complete Development of Gissar projects in Uzbekistan n Implementation of geologic exploration programmes in Iraq, West Africa, Romania
bility on us at LUKOIL Overseas. This year will, after all, demonstrate how independently and effectively we are able to realise the massive international greenfield projects that are so critical to our development strategy. To meet these challenges, our company continues to change and grow. Having relocated to Dubai, LUKOIL Overseas has become even more international and dynamic, and the need for more effective communication platforms easily accessible to all of our diverse employees is greater than ever. The launch of our first English-language corporate newspaper is an essential step in this direction.
LUKOIL Archives
At the OAO LUKOIL board of directors meeting on January 16th in Moscow, three of the company’s priorities for 2014 went to its Overseas subsidiary:
Gati Al-Jebouri Senior Vice-President, LUKOIL Overseas
We now know there are significant shale gas reserves in China. If and when the Chinese decide to tap those resources, the repercussions will be felt by suppliers from North Africa and the Middle East to Russia. That is why LUKOIL Overseas is rebalancing its production in favor of gas via existing projects in Uzbekistan. We will double gas production there to reach 9 million tons of hydrocarbon equivalent by 2016 (and this figure
Publishing Director: Nirmala Janssen Editor: Anshuman Joshi Deputy Editor: Eduan R. Maggo Pages Editor: Priya Mathew Sub Editor: Riaz Naqvi Design Editor: Biplob Roy Deputy Design Editor: Nicholas D’Souza
Designers : Pranith Ratheesan, Pranuti Raote Published and printed by Al Nisr Publishing LLC. Private circulation only
doesn’t include the shares of our partners), while the significance of gas among our overall hydrocarbon production will increase from 37% today to 56% within two years. In West Africa, we’re engaged in the kind of exploration projects that are critical for the future of LUKOIL Overseas. Statistics will tell you that the success of such ventures varies between 15 and 30%. It’s a high-risk, high-value and high-cost business. But they’re important because exploration projects lead to future growth, enable us to generate additional reserves on our balance sheet and create value for the company. More broadly, 2014 is about establishing a basis for major growth in hydrocarbon production across all of LUKOIL Overseas’ assets. The move to Dubai is facilitating an improvement in our administrative expenses and overall efficiency, while our experience implementing the new Integrated Project Management System (iPms) at West Qurna-2 is being applied across all assets. West Qurna-2 is, after all, not our last big project; it’s only the first. To win big in the oil business, you have to bet big. Oil Journal is LUKOIL Overseas’ official English-language monthly newsletter. Questions? Comments? Let us hear your voice! oiljournal@lukoil-overseas.com
3 Business
LUKOIL Board of Directors emphasises environment
West Qurna-2
December
2009
LUKOIL, in a consortium with Norway’s Statoil, wins a tender for developing the West Qurna-2 oil field. The deal envisages a service contract for 20 years with the opportunity to expand it for an additional five.
A Historic First Step As it prepares to open one of the world’s largest oil fields, LUKOIL Overseas renews its strategic commitment to Iraq
May
2012
LUKOIL acquires Statoil’s stake in West Qurna-2, bringing its overall share to 75%.
TURKEY
January
LUKOIL Archives
Erbil
LUKOIL Overseas President Andrey Kuzyaev inspects West Qurna-2
Insight
Corbis
On January 13, LUKOIL’s Board of Directors noted that the company has spent $3.7 billion on environmental measures since 2009. LUKOIL’s volume of atmospheric pollution has been reduced by 90,000 tons, alongside a three-fold reduction in water consumption. The ambitious programme through 2018 calls for reducing atmospheric emissions by a further 130,000 tons and water consumption by 7.6 million cubic meters.
Corbis
2013
LUKOIL signs an amended agreement with Iraqi government, cutting the target production level to 1.2 million barrels daily and extending the contract to 25 years.
IRAN Baghdad
Going Deep in West Africa
First half of
2014
IRAQ
“
The energy industry is clearly working at the frontiers of geology, geography and technology,” Tony Hayward, former CEO, British Petroleum, told Spiegel following the disastrous 2010 oil spill in the Gulf of Mexico. However, deepwater drilling had recovered worldwide to pre-spill highs within two years and is now expected to grow at a compound annual growth rate of 9% over the next decade, according to Wood Mackenzie. LUKOIL Overseas ended 2013 by drilling over 4,500 metres into the first appraisal well at the Independance field in Côte d’Ivoire. “Deepwater has accounted for most of the discovered volumes during the last decade, but this has not been without increasing technical and commercial challenges,” says Malcolm ForbesCable, Senior Management Consultant at Wood Mackenzie.
Launch of production at West Qurna-2.
Garraf Oil Field West Quma Oil Field
Basra
SAUDI ARABIA
Garraf Oil Field
‘‘ Deepwater has
By Fedor Klimkin
W
hen Soviet geologists uncovered one of the world’s largest untapped oil fields in Iraq’s Basra region in 1973, they had no idea of the impending turmoil that would hinder West Qurna-2’s development for decades. Thirty-six years later, LUKOIL Overseas is set to turn a new page. Currently ranked the world’s second-largest untapped oil field with an estimated 13 billion barrels of reserves, West Qurna-2 is key to LUKOIL Overseas’ strategy of doubling oil production over the next five years. The company’s investments in the project will cross $4 billion by the end of 2014, and may top $30 billion as it approaches the planned 1.2 millionbarrel future daily production target. The community aspect The project is more than just oil production. Russia’s largest private oil company has committed to fostering a long-term relationship with the communities of Iraq. “LUKOIL Overseas is about long-term development with the communities we engage. It’s one
of our competitive advantages in the global energy market,” says Egor Sobolev, Head of LUKOIL Overseas’ strategic planning division. Through West Qurna-2, LUKOIL Overseas has committed major investments in education, healthcare and athletics in Basra. The company has compensated over 1,000 people residing on or near the production site for land rights; employed more than 11,000 people, two-thirds of them local Iraqis; worked with more than a dozen Iraqi contractors; provided computers to 32 local schools and high-tech diagnostics equipment to regional hospitals; constructed football facilities; and assisted in constructing low-income housing, in consultation with local authorities. LUKOIL Overseas recently saw the first batch of 350 local students graduate from its West Qurna-2 training centre (see page 7). In 2012, LUKOIL Overseas formed a consortium with Japan’s INPEX oil corporation for exploration of the 5,500-square-kilometre Block 10 oil field located 120 kilometres west of Basra. The project envisions a minimum investment of $100 million.
A ripe source
I
raq is one of the most attractive countries in the world for oil production, ranked fourth in terms of proven oil reserves (140 billion barrels) after coming through years of international sanctions and civil strife with some of the most accessible untapped reservoirs on the planet. This places the country on the top ten list of fastest growing oil producers, according to Bloomberg Visual Data.
Kirill Kuzyaev
Unexplored potential West Qurna-2 is currently ranked as the world’s second largest untapped oil field with an estimated 13 billion barrels of reserves
accounted for most of the discovered volumes during the last decade.”
“There are very few companies or even governments in the world that can afford to invest in geological research that may only pay off in 10-12 years,” explains Vadim Voevodkin, LUKOIL Overseas Vice-President for Exploration. “We are one of them.” “To meet the forecasted well demand the fleet will require 95 additional deepwater rigs to be constructed between 2016 and 2022, representing $65 billion of investment,” says Forbes–Cable. Since July 2006, LUKOIL Overseas has developed eight prospective offshore projects in Côte D’Ivoire, Ghana and Sierra Leone that could potentially deliver four billion barrels. Central to this effort has been the recently established Houston-based LUKOIL Overseas Offshore Projects and its Managing Director, Kevin Black. He takes pride in having formed a project management team in 2013 that “placed LUKOIL Overseas among the world’s largest oil and gas companies in the deepwater exploration frontier”. By Pavel Bogomolov, Houston
4 Special
Businesses that have made the move Haliburton: The energy services giant, famous for its ex-CEO former US Vice-President Dick Cheney, relocated from Houston in 2007 to be closer to its Middle Eastern assets. Aquaterra Energy: The UK-based energy engineering company shifted to take advantage of shallow-water opportunities in the region. Corbis
Report
Starwood Hotels & Resorts: The hospitality chain temporarily relocated to Dubai last year in order to secure contracts for 100 new hotels in the Mena region by 2015.
LUKOIL makes history in Dubai
houston
LUKOIL Overseas embraces a geocentric approach as it relocates its headquarters to a region that accounted for two-thirds of investment last year
“Our international consultants were so impressed [with our move to Dubai] that they said it should be included as a case study in business textbooks.” Inna Gubareva Head of HR and Organisational Development, LUKOIL Overseas
By Artem Zagorodnov
W
hen LUKOIL Group acquired its first assets abroad in Azerbaijan in 1994, few could imagine the changes the company’s international division would go through in establishing Russia’s footprint in the global oil and gas market. Founded in 1997, LUKOIL Overseas has morphed into LUKOIL Group’s “engine for development”, in the words of Egor Sobolev, Head of the Strategic Planning Division. It now accounts for 10% of LUKOIL’s production. An ambitious investment programme foresees a doubling of that figure by 2018. “Our annual production is equivalent to 80 billion barrels. We want to increase production at over 10% annually at a time when similar growth in most oil and gas companies won’t exceed a few percentage points. This is a huge challenge for the company, which it will realise through major investment projects such as West Qurna-2 in Iraq and Kandym in Uzbekistan,” explains Sobolev.
Corporate Restructuring
To be closer to these key assets, several months ago LUKOIL Overseas made history by becoming the first major Russian corporation to relocate abroad, bringing around 300 employees and their families to the business oasis of Dubai. “The move was successful and unique,” says Inna Gubareva, Head of
Yana Ageeva
n
LUKOIL Overseas’ HR and Organisational Development Division. “When another major oil company, Gazprom Neft, moved its headquarters to St Petersburg from Moscow, over half the employees chose to leave the company rather than be transferred. For us this figure was 10%, and under 6% if you take into account that LUKOIL Overseas continued to employ persons unable to relocate. Our international consultants were so impressed that they said our experience should be included as a case study in business textbooks.” “In addition to being closer to our assets, the major reason for coming to Dubai had to do with de-offshorisation of tax legisla-
tion in Russia,” says Sobolev, referring to a legal initiative in Russia aimed at increasing corporate transparency. “We began deoffshorisation of our activities long before the Russian President’s statements on the issue,” says LUKOIL Overseas Senior VicePresident Gati Al-Jebouri. “We did this work not out of fear, but honesty, taking into account economic trends, aiming for greater transparency and efficiency while taking into account the best world practices along with our colleagues at LUKOIL Group and consultants KPMG and Ernst & Young.” “We’re now closer to our international partners abroad and better able to retain talented staff from a multitude of backgrounds,” says Sobolev.
n “The success of our oil and gas projects in Iraq and Uzbekistan will largely determine the future of LUKOIL Overseas.” Andrey Kuzyaev President LUKOIL Overseas
1994
1995
1997
2001
2003
2004
2005
2006
2009
2010
2013
LUKOIL Group
The group
LUKOIL
Corporate
LUKOIL
The company
LUKOIL
Offshore
A consortium
Becomes the
Company is
acquires its
acquires its
Overseas
service centre
Overseas
enters
Overseas
exploration
of LUKOIL
first Russian
restructured,
first assets
first assets
established;
formed in
becomes
Uzbekistan
acquires
begins in
and Norway’s
company
with the
abroad in
outside post-
company
Moscow;
first Russian
with Kandym-
Nelson
West Africa.
Statoil win
to drill in a
corporate
Azerbaijan
Soviet space
enters West
Caspian
oil company
Khauzak-
Petroleum in
tender for
deepwater
service centre
(Azeri–
in Egypt, at
Qurna-2
pipeline
to launch a
Shady-
Kazakhstan.
development
offshore
relocated to
Chirag–
Meleiha.
project in Iraq.
consortium
project in
Kungrad
of Iraq’s West
continental
Dubai from
begins work.
Latin America.
project.
Qurna-2 field.
shelf in
Moscow.
Guneshli).
West Africa.
Dubai delivers Moscow
Vienna
6 ho urs 15
baghdad Basra
2
h 2
1 hour 30 minu tes Dammam top) tes (1 s minu 5 1 rs hou
minutes
minu tes
urs 20 5 ho
11
tes
tes nu mi 45 s rs our h ou
16 hou rs 30
mi nu
Courtesy of Chris Weafer
m s 30 ou r h 3
s inute
C
Tashkent
hris Weafer, Head of Moscow-based Macro Advisory consultancy says, “I’m happy to see a realisation of a geocentric approach to business be embraced in Russia’s corporate culture through the relocation of LUKOIL Overseas to Dubai.”
DUBAI
Flight times from Dubai
Why companies relocate to Dubai New hub Dubai offers an ideal base for LUKOIL Overseas to monitor and manage its growing international portfolio
“Easy-to-get oil is gone, and easy-to-get gas is almost gone, while the role of both is increasing with growing global energy demand,” explains Sobolev. “That means we require ever more complicated engineering solutions to extract those hydrocarbons, and it’s why recruiting and retaining talented
personnel is at the core of our strategy. In the 1990s — when oil prices were low — oil and gas companies weren’t hiring personnel. Now there’s a shortage.” “As we learn to manage large capital projects on the basis of West Qurna-2, optimise our management system and develop new
technologies in geological research and deepwater drilling, we will be able to take advantage of all the opportunities in the market rather than simply remain a traditional source of oil and gas,” he says. LUKOIL Overseas is planning to increase production from approximately 80 million barrels of oil equivalent today to a level of 180 million by 2020. This foresees an increase in annual investment from $1-2 billion to $5-8 billion, with substantial sums directed into advanced technologies. “Having completed our move to Dubai, we will have to be persistent in improving managerial efficiency, perfecting our corporate culture and increasing our competitiveness in the global oil and gas business,” says LUKOIL Overseas President Andrey Kuzyaev. “The success of our oil and gas projects in Iraq and Uzbekistan will largely determine the future of LUKOIL Overseas.”
Yana Ageeva
The LUKOIL advantage
New headquarters LUKOIL Overseas has relocated its corporate service centre to Dubai in order to be closer to new international projects such as West Qurna-2 in Iraq
“LUKOIL Overseas’ competitive advantage is that we look far into the future. To have skilled professionals for our projects in the coming years, we are actively recruiting and training young talent today,” explains Sobolev. “We have a sound fiscal position and our personnel can work in any conditions, occasionally in dangerous environments, to move mountains. That’s why the company has a bright future. There’s a lot of work to be done, and we’ll do it.”
Yana Ageeva
abidjan
Geography: Located at a convenient crossroads of Western culture and booming Asian markets, Dubai offers short flights to key destinations. Globalisation: With just 15% of the population as citizens, an overwhelming majority of people in the city come from across the globe. In this sense, Dubai offers diverse talent at any local company’s doorstep. Infrastructure: Everything from the airport to the metro system is constantly being modernised and improved to accommodate the influx of travellers and expats. Taxes: Zero income tax and some of the world’s lowest corporate and profit tax rates make Dubai a haven for expense-optimising companies.
6
LUKOIL, Pemex ink cooperation agreement
Industry Voices
Corbis
LUKOIL President Vagit Alekperov and Pemex General Director Emilio Lozoya signed a cooperation agreement at the World Economic Forum in Davos on January 24. This will see cooperation in production and exploration, and foresees the companies exchanging environmental protection experience.
Corbis
International The Mexican oil and gas sector has opened up for private investment after 75 years
At the Abu Dhabi Sustainability Week (ADSW), Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces General Shaikh Mohammed bin Zayed Al Nahyan said long-term energy and water development are crucial for sustainability.
Corbis
Energy and water critical for future
Mexico makes deep impact Major energy reform puts LUKOIL Overseas’ Houston office at the front door of deepwater drilling bonanza B y R o s e M a lt b y , Houston
T
he Revolutionary Party of Mexico (PRI) made headlines when it opened the country’s oil and gas sector to private investment for the first time in 75 years. While global oil prices have increased from an average of $20 to $100 a barrel since 2004, Mexico’s production of oil has dropped 27%. Meanwhile, production in the US state of Texas, right across the border, has increased by 150%, overtaking the entire
Mexican output, stoking fears that the country could soon become a net importer of oil. The big winner of the reforms will be deepwater oil production, says Arturo Henriquez, President and Chief Executive Officer of the Houston-based PPI, the international procurement arm of Pemex Group, Mexico’s stateowned oil company. “From a value standpoint, the part where there’s the most upside potential is exploration and production. There will
Global energy investment down 50%
Going Global, One Step at a Time
L
UKOIL Overseas’ exploration partner Statoil has established its presence in Houston. Ola Morten Aanestad, VicePresident, North American Communications, Development & Production, talks about the advantages of working in the oil capital of the world.
Øvyind Hagen
The EIC trade association reports that investment in upstream, midstream, downstream, renewables and power energy projects dropped by 48% to $222.3 billion. “Despite lower investment, in the broader context of the past six months, project numbers have returned to similar levels found in Q2 2013 following a sharp rise in activity in Q3 2013,” wrote Chief Executive Claire Miller.
be tens of billions of dollars in investment over the next five years. The future for offshore is in deepwater and ultra deepwater.” A lack of flexibility and resources has meant that Pemex has only drilled five ultra deepwater wells since 2010, compared to 52 drilled in the US. Globally, the deepwater sector has eclipsed both onshore and shallow water oil development over the past ten years in terms of discovered volumes (41%) and value created ($351 billion), according to Wood Mackenzie. The consultancy predicts global well spend to increase from $42 billion in 2012 to $114 billion in 2022 as the sector becomes increasingly vital to global energy sustainability. Having recently joined the Greater Houston Partnership (GHP), an economic development organisation fostering connections between international government officials and businesses, LUKOIL Overseas brings deep-water drilling experience from West Africa. “The business community in Houston is focused on the opportunities associated with the [Mexican] reform,” said Javier Jativa, Director, Americas for the GHP. “Our companies are eager to contribute their capital, brainpower and expertise to the development of Mexico’s energy sector.”
Dream location Ola Marten Aanestad believes a strong industry presence and a large pool of talent make Houston an ideal base for Statoil
Why did Statoil set up its office in Houston, Texas? Houston is the oil capital of the world, and a natural place to have a significant presence. The proximity to peers, service companies, universities, a large pool of available talent and commercial opportunities all play a part. Statoil’s Houston office was originally set up to manage our portfolio in the Gulf of Mexico. Later, US onshore interests were also managed from the Houston office, and from 2011 North America became a separate business area, responsible for development and production in the continent.
How did the employees react to being transferred to Houston? The Houston office currently employs 800 people. To utilise company expertise and ensure transfer of our culture and processes, a relatively high number of expats were initially employed in Houston, but the majority of recruitments are now from the local market. Houston is generally perceived as an attractive posting, people enjoy the city and there is much enthusiasm in being part of a growing organisation. Has Statoil faced any criticism at home after expanding its portfolio of international assets? Overall, there is good understanding for Statoil’s global expansion among shareholders and the general Norwegian population. Around a third of our global production now comes from countries outside Norway.
7
Second-stage construction for Filanovsky field ongoing Construction has started on the living quarters platform in the Vladimir Filanovsky oilfield in the Caspian Sea, marking the continuation of the second stage of development. The Vladimir Filanovsky is the biggest field in terms of oil reserves to be discovered in Russia in the last 20 years. LUKOIL is expected to begin offshore oil production on the site in 2015.
Flow of knowledge
LUKOIL Archives
T
Learning leadership The SKOLKOVO School of Management, Moscow, is delivering training programmes tailored for LUKOIL Overseas employees
EMBA modules in every subject from finance to HR, as well as hands-on work on real projects of strategic significance to the company. Participants work with top LUKOIL and industry specialists and defend their projects before the company’s senior management.
This year we continue our multilevel training program on project management for different categories of personnel as part of the company’s commitment to the professional development of its employees. LUKOIL Overseas’ HR staff, along with the managers of various departments, are developing programs to train specialists in each functional area from geological research to oil and gas production based on the results of competency testing. No less important is the work LUKOIL Overseas conducts in the communities where it operates. By investing in the potential of local workers via its international training programmes, LUKOIL Overseas both provides confidence to that community in its long-term development and attracts the skills necessary to become a global leader in energy. As the company motto goes — Always moving forward! By Natalya Voloshina Head of Training and Youth Communications Department, HR and Organisational Development Division
Iraqi training centre brings big social benefits LUKOIL’s state-of-theart training centre in Basra provides skills and professional opportunities for the local populace By Vladimir Spiridonov
A
s the global oil and gas industry continues to modernise, there is a growing responsibility that companies have towards the communities in which they operate. Public opinion — and good practice — necessitates that companies accept a level of social responsibility to improve the lives of the great number of people directly affected by the operations they carry out. At LUKOIL, we believe that fulfilling that duty gives us a social license to operate, without which we would lose credibility and trust. Underlying this is an ever-growing challenge: finding qualified, trained employees to work at development projects. Fortunately, this gives LUKOIL an opportunity to fulfil our social contract. By providing cutting-edge training to residents, we can create a forwardlooking, uniquely skilled workforce that will support the communities in which we work for years to come. This commitment is best exemplified in our project at West Qurna-2, in Iraq.
Jassim Ahmed Abdul Hussein, 27, technical college graduate, Electricity Department
have any exIsodidn’t perience in my field, I think that joining
LUKOIL’s training programme will give me the necessary experience. Among the most valuable things that I’ve benefited from through this training program was mastering English. Wael Naamat AlMashaal, 27, technical college graduate, Electricity Department
joined the training Idevelop program in order to my skills and
my English in addition to significant employment opportunities that will be provided by LUKOIL. English language and technical experience were the most valuable benefits I gained. Wali Fadhel Abbas, 23, technical college graduate, College of Chemical industries
ob search and skills Jthat’s development — what attracted
and encouraged me to join LUKOIL’s training programme. I’m looking forward to attending practical classes in the oilfield that will increase my experience. Many things have changed through our training in this center, since I was able to develop both my English skills and technical experience. Ola Rahim Ali, 34, technical college graduate, mechanics
joined the training Ibecause course in LUKOIL it will pro-
Learning the ropes LUKOIL’s Iraqi trainees study a modular programme that balances theory with practical skills
Production at West Qurna-2 is slated to bemental protection courses, labour protection gin in the first half of 2014, and it is expected and leadership development training. to be one of the highest-producing oil fields The training centre includes nine classin the Middle East. It will require a highly rooms, six laboratories for computer and trained and committed workforce. To address English language training, a library, technical this, LUKOIL has established a state-of-thesupport office, a training shop, administration art training centre in the North Rumaila area facilities, and instructor premises, cafeteria, of Basra that can be considered equal to any recreation areas as well as a fully-equipped in the industry. medical station. The training programme The centre can handle up Site stats lasts eighteen months. It into 350 students, with more cludes all required technical than 500 having already disciplines in theory and practrained. The first 170 gradutice, taught in a modular strucated last summer, while a ture, to cover work at facilities second group of 150 will do of West Qurna-2 in production, by this summer, with anIs the number of Iraqi so oil and gas treatment, electriother 200 starting in Marchstudents that have cal and mechanical equipment April. All are Basra resialready trained at operation, and more. Followdents, showcasing LUKOIL’s ing the programme, specialists LUKOIL’s Basra centre commitment to developing work in various facilities of local talent. West Qurna-2, guided by expeAround 80 operators rienced engineers and technical personnel. from the first batch of 170 graduates attended Aside from technical, site-specific experan additional three-month hands-on training tise, the course also aims to develop a holistic programme in Singapore with live processing set of abilities, with professional training that facilities, fine-tuning practical skills in an acwill endure beyond one particular project. To tive, purpose-built plant. that end, the programme includes industrial Vladimir Spiridonov is Head of the Professionand occupational safety courses, environal Development Department at West Qurna-2
500
LUKOIL Archives
he global oil and gas business is dynamic. Old knowledge quickly becomes obsolete as new technologies, management practices and communication strategies come to the forefront of this rapidly developing sector. The skills that specialists learned in various university programmes years ago are no longer enough to ensure their professional success in a fast-changing business environment. That is why LUKOIL Overseas, and its approach to education, must remain equally vibrant. As the company implements a new project-based approach to management, a new generation of strong leaders must come to the helm. In 2012, LUKOIL Overseas initiated a leadership training programme with the SKOLKOVO Moscow School of Management. The programme includes customised
Responsibility Pictures: Hasan Hasan Maan
Corbis
Corporate
vide the necessary experience in the oil industry, which is the basis for the country's economy. More than that, I'll be working in my specialty field. Now I possess more accurate information, particularly in my specialty field, and this helped me to improve my technical knowledge. Yasser Abdallah Abboud, 27, graduate of College of Chemical Industries
hen joining W the Company’s training program, I
was targeting self-development. I also adore my specialty and finally it’s a good job opportunity. Learning English was the most important thing we have benefited from during the course, while our technical skills are constantly escalating. Jabbar Sobeih Abbas, 29, graduate of Faculty of Science, Department of Chemistry
UKOIL is a global L oil company, and in my opinion, working
in the field of oil is the most important specialty ever, not to speak of its material benefits. That’s what motivated me to join the training programme.
8 Global
LUKOIL expands via European gas stations
Perspective
Corbis
With the purchase of ten OREAL automated filling stations in Belgium and the purchase of 21 ROTONDE stations in the Netherlands nearing completion, the total number of LUKOIL gas stations in Belgium, the Netherlands and Luxembourg (Benelux) will reach 250. They will be rebranded under the LUKOIL Express name.
Photo of the Month
C
onstructed over a nine-year period before its opening in 2007, Shaikh Zayed Grand Mosque is the largest in the UAE and eighth-largest in the world and spans an area roughly equivalent to that of five football fields. The mosque also houses a record-size 1,981-square-metre handwoven carpet. The carpet, callled Qasr al-Alam, was designed by Iranian artist Ali Khaliqi and created by a thousand-strong team of weavers. Non-muslim visitors are welcome to tour the mosque and visit its in-house cultural learning centre at designated hours.
Yana Ageeva
Winning shot
Where to Stay n The Intercontinental and Miran International hotels in Tashkent offer rooms for $180-$200 a night. You can stay at the four-star Dedeman for $160. The three-star Omar Khayyam hotel in Bukhara will take you in for $60 a night.
Where to Eat n A lunch at the Bukhara chain of restaurants in Tashkent will set you back $6-7. Kebabs, samsas, plovs and shurpas are a must.
Uzbekistan
Traversing the Ancient Silk Road This ancient cross-cultural melting pot leaves no visitor unmoved
n Beck offers an interesting array of dishes such as the cauldron kebab and quail broth.
A colourful history
n Don’t miss the Tashkent Plov Centre, where hundreds of kilogrammes of traditional wedding plov are prepared daily in giant pots for lunchtime only. A portion with salad and tea will come in at $4-5. n If you’re looking for more upmarket fusion fare, try Manas Art Café in Tashkent. It’s pricey, but you can enjoy gourmet Euro-Uzbek in a yurt (traditional tent).
LUKOIL Uzbekistan With over 600 personnel, the LUKOIL office is located at Olmazor St. 1A. The street name translates roughly as apple, and with good reason: over 200 young apple trees have grown in its picturesque vicinity. Phone: +998 71 140 40 40
Weather permitting, don’t miss the chance to go hiking, biking or trekking in Uzbekistan’s beautiful Chimgan and Nuratin mountainous landscapes. The latter hosts a 1,500-year-old living tree in the shape of an arch with a 24-metre trunk circumference. Afterwards, indulge in world-famous delicacies such as plov (rice pilaf), manty (dumplings), lagman (soup), shourpa kebab (barbecue meat) or samsa (stuffed bread).
D
iscovered by Alexander the Great on his march through Asia, invaded by Genghis Khan from the opposite direction and praised by explorer Marco Polo, Uzbekistan contains some of Central Asia’s most prominent ancient trading posts. The cities of Samarkand, Bukhara and Khiva are inextricably linked with the Silk Route, once a vital artery for a Western civilisation opening up to the outside world. Heavily influenced by Arab culture to this day, the country was introduced to Islam in the eighth century. Today, Uzbekistan is home to hundreds of architectural monuments amid a modern brush-up of hotels, cafes and restaurants. At any time of the year you are likely to find yourself strolling between minarets, mosques and ancient mausoleums while enjoying the vibrancy of colourful oriental bazaars.
With its 2,750-year history, Samarkand fascinates visitors with the famous jade tomb of legendary conqueror of West, South and Central Asia, Tamerlane. The city’s Registan Square is another attraction. Located on a dried-out riverbed, it was host to various festivals and holidays in ancient times. The city is also home to the Hazrat Khizar and BibiKhanym (one of the largest mosques in the world). Samarkand is linked to Tashkent by a relatively inexpensive high-speed train. Bukhara hosts the famous 50-metre tall Kalyan minaret. Legend has it that Genghis Khan was so impressed by the minaret that he decided not to raze the city. Omar Khayyam, Ferdowsi and Rudaki were among the creative geniuses who lived in the city. Khiva, with its ancient centres for astronomy, mathematics and medicine, is like an open-air museum. Its ancient buildings still thrive with life. A highlight is the wood-carved columns of the Djuma Mosque.
Each month, Oil Journal will publish a travel piece from a country where LUKOIL Overseas operates. For feedback or contributions, write to oiljournal@lukoil-overseas.com
Corbis
In Focus
This photo was taken by Yana Ageeva, Senior Specialist, PR Department while standing in the mosque’s central courtyard, to win the company’s photo of the month competition. It manages to capture one of the mosque’s impressive minarets, saveral of its 82 domes and the floral mural painted on the courtyard floor in a single panoramic vista. LUKOIL employees who are handy with a camera can send photos snapped in any of the countries we operate in to oiljournal@lukoil-overseas.com.
Traditional Uzbek folk dancing in Bukhara