LUKOIL was created in 1991 as an enterprise owned by the government through the merger of three companies, the state-run, while former deputy minister of Soviet oil production, Vagit Alekperov believes that the only way the Russian oil company. can successfully compete with Western companies to integrate vertically three core elements of their business in the exploration, refining and distribution. In the old Soviet These components are separated strictly, strictly
following the establishment of its LUKOIL moved quickly to establish this integration in 1993, the government approved the privatization plan of LUKOIL and less than 9 percent of ownership. the most personal by giving shares to its employees in the following year, LUKOIL shares personally for the first time through an auction in which the government holds shares lower percentage of 80.59 governments share fell to 33 percent in 1996, a hundred. 20 percent in 2000 and 0 in 2004 when ConocoPhillips. The final purchase 7.59 percent of the Company's interim government in LUKOIL to sell over the counter in New York and through the exchange of many Germans in 2002 LUKOIL became the first Russian company listed on the London Stock Exchange. Reduction of government shares some arising from the sale of government by issuing new shares at a discounted government-owned. After being fully processed. ConocoPhillips upped to 20 percent, but the owners sold the holding in years. 2010
The Russian government is not a shareholder to maintain a close relationship with LUKOIL important because -LUKOIL. Economic control about 19 percent of Russia's total production and refining, and its political significance as a symbol of Russia's prestige in the international market. An illustration of the latter was President attendance Vladimir Putin to open LUKOIL filling stations in New York City, LUKOIL started a project abroad for the first time in 1994 when it took a stake in oilfields in Azerbaijan. It has expanded so it now operates in 37 countries through a combination of exploration (10 countries), refining (5 countries) and the distribution or transfer (27 countries).
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