Message from the LITASCO GROUP CEO
In year 2010
, LITASCO celebrated it's 10 years presence on the international oil trading scene and LUKOIL Management has shown strong recognition to the LITASCO Group and to the achievements of all LITASCO people for the highly valuable contribution to the overall results of LUKOIL Group throughout that period.
LITASCO SA, a wholly owned subsidiary of OAO LUKOIL, is one of the world's major traders of crude oil and refined petroleum products. LITASCO SA deals with a vast range of suppliers and customers, including all of the world's major oil corporations.
The activities of the LITASCO Group address several fields of operation:
- Marketing and distribution of LUKOIL crude and petroleum products internationally.
- Supply and logistical optimization of crude oil and other feedstocks to LUKOIL refineries located outside of Russia and of petroleum products to the LUKOIL retail network in Eastern Europe, the Caucasus, Turkey and Baltic States.
- LITASCO SA is managing all commercial operations related to the LUKOIL acquired interest in the ISAB refinery in Sicily, Italy as well as the Total Raffinaderij Netherlands (TRN) refinery located in the Vlissingen Oost harbor area in the southwest part of the Netherlands. This includes, but is not limited to: purchasing crude oil, selling of petroleum products originating from this refinery, shipping and risk management.
- Entrepreneurial third party trading of crude oil and refined products through our global network of trading offices.
- LITASCO SA's subsidiary EIGER SHIPPING SA through vessel and cargo chartering optimization, ensures secure and cost efficient freight for all of LITASCO Group's cargoes worldwide.
Today the LITASCO Group employs more than 415 employees globally. Investment in the general growth and development of our staff is a key priority for our senior management. We are currently supporting external training opportunities such as MBA programmes and specialized oil industry courses in Geneva as well as other international renowned business institutes.
The Company provides a strong and stable environment for our trading staff to generate added value for the LUKOIL Group as well as for all our non-commercial staff to support the trading activities and achieve personal growth and development.
In 2010 the Company traded 49 million tonnes of crude oil and 76 million tonnes of petroleum products during the year. LUKOIL System volumes accounted for 47% of global trades.
All trading activities have been organized within a global book structure. This organization results in taking advantage of opportunities coming up in the global market place as well as all new markets.
In line with the LITASCO Group strategy to develop its commercial activities globally and increase its presence in key oil markets, a joint venture has been established in June 2010 with Barcelona based Oil Company Meroil S.A. in Spain for the extension of the existing Meroil terminal in the Port of Barcelona. This new capacity will further reinforce the LUKOIL Group’s Trading and Supply infrastructure in the Mediterranean region.
Like most other trading companies, we use hedging strategies to manage exposure to price fluctuations of all the hydrocarbons we trade. All of our dealings are subject to strict internal controls and trading limits.
LITASCO is LUKOIL's "window" on the world, and we will continue growing our international business in terms of volume and profitability, to support the LUKOIL System with the highest possible netback, to strengthen our third party trading business performances and also to sturdily extend our presence in key growth markets. We will continuously make our mark as a major contributor to the overall success and development of the LUKOIL Group!
Sergey CHAPLYGIN
LITASCO SA Chief Executive Officer