lukoil case study

LUKOIL’s CASE STUDY

2

Introductiono LUKOIL formed in 1991 and the name stands :

Langepasneftegaz Urayneftegaz Kogalymneftegazo The largest IOC in the world by proved oil reserveso 3th largest IOC in the world by oil productiono Implements E&P projects in 13 countrieso Produces and retails petroleum products over 40 countrieso Total R&D in 2013 accounted for more than $150 milliono Owns oil refineries in 6 countrieso Net income in 2013 was $7.8 billion

3

LUKOIL’s mission

Our purpose is to harness natural energy resources for human benefit

We aim to support long-term economic growth, social stability, prosperity and progress in the regions where we operate, as well as caring for the environment and ensuring sustainable use of natural resources

We want to achieve consistent and long-term growth of our business, transforming LUKOIL into a leading global energy company. We want to be a reliable supplier of hydrocarbons on the international energy market

ALWAYS LOOK FORWARD

4

Our Vision - Mission proposal Everyone refers to LUKOIL as one of the biggest oil companies, but our Vision is to establish LUKOIL as THE largest Oil&Gas company in the world.

Lukoil as a major Oil&Gas company, vertically integrated which operates in 60 Russian regions and over 40 countries around the world, actives in the fields of exploration, production, refining and marketing of Oil&Gas products. Using innovation and high technology we aim to be a reliable supplier of hydrocarbons in the international energy market. We are a company that is dedicated to be creative, transparent and environmentally responsible. Being the world leader in oil reserves we are committed to continuously achieving great financial and operating results, supporting long term economic growth and social stability in the regions where we operate.

5

EFE (Upstream) table

6

EFE (Downstream) table

7

IFE (Upstream) table

8

IFE (Downstream) table

9

CPM table

10

CPM analysis

o New deposits and modernization of the existing refineries

o Acquiring new fields, develop products of better quality

o Eavesdrop the international trends of oil market

o Entry new markets where the company is not established

o Achieve greater market share through efficient new strategy

o Provide more funds for advertisingo Maximizing margins of profit

o Maximizing sales and optimization o Achieve the highest possible level of hygiene

and environmental protection

SWOT (Upstream) table

11

12

SWOT (Downstream) table

13

The Internal – External Matrix• Market development • Market penetration• Product development • Backward,Forward or orizontal integrationGrow and build

Hold and maintain• Market penetration• Product development

Harvest or divest• Retrenchment• Divestiture

14

The Grand Strategy Matrix

15

The decision stage

16

QSPM Matrix

17

QSPM Matrix

18

ConclusionRecommended specific strategies

o Market penetration : Exploration – Exploitation in East Mediterranean (Egypt , Cyprus, Greece)

o Product development : eco-efficient lubricants/gasoline

o Production development : innovative technologies in order to exploit unconventional deposits (oil sands, shale gas)

Thank you for

your attention!

Ballis AthanasiosPassias AristotelisIliopoulos PanagiotisParaskevas ChristosToulkeridou NikoletaTsiknopoulos Konstantinos

Team members :