Top 5 Well-Known Russian Oil Companies: An Overview
1. Gazprom
Gazprom (OAO Gazprom) is Russia's largest natural gas producer and the world's biggest gas company. Its predecessor was the Russian state gas concern. The company is mainly engaged in oil and gas geological exploration, development, production, processing, storage, transportation and sales.
In September 2005, Gazprom acquired a 75.6% stake in Sibneft, gaining absolute control of the company and commanding 20% of the world's natural gas reserves, while the Russian government's stake in Gazprom rose from 38.37% to 51%.
The acquisition of Sibneft was a key strategic move in Gazprom's advance toward becoming a global energy company, further consolidating Russia's position as an energy power and making its energy products more competitive in world markets. After the acquisition, Gazprom renamed the company Gazprom Neft.
Gazprom Neft is a subsidiary of the Russian energy giant Gazprom. Although Gazprom Neft has an independent listing on the Moscow Exchange, its parent holds more than 95% of its outstanding shares. The Russian government, in turn, holds 50% of Gazprom shares.
Gazprom Neft produced about 482 million barrels of oil in 2014. Natural gas production amounted to about 104 million BOE during the year. The company has production operations in Russia, Iraq, Venezuela and several other countries. It operates four refineries in Russia and another in Belarus. Nearly 1,750 Gazprom Neft service stations operate in Russia and Europe. Gazprom Neft has a market capitalization of nearly $10.5 billion.
Official website: Gazprom.com
2. Lukoil
Lukoil, founded in 1991, is one of the world's largest vertically integrated oil and gas companies. Its main businesses are the exploration and development of oil and natural gas and the production and sale of petroleum and petrochemical products.
Lukoil holds 1.3% of the world's proven oil reserves and accounts for 2.1% of global oil production; its crude output represents 16.6% of Russia's total and its throughput 16.5% of Russia's total refining volume.
Lukoil produced nearly 707 million barrels of oil in 2014 and ranked as the second-biggest producer in the country. The company's natural gas production came in at more than 92 million BOE on the year. It has a market capitalization of more than $27.7 billion.
In addition to gas and oil exploration and production activities across Russia, Lukoil operates in 12 other countries in Europe, Africa and the Middle East. Its refining and petrochemical operations include six refineries in Russia and an interest in five more refineries in New Zealand and Europe. Lukoil also operates power generation facilities in Russia and gasoline service stations in Russia, Europe and the U.S.
Official website: Lukoil.com
3. Rosneft
Rosneft is Russia's largest oil company, founded on September 29, 1995.
In March 2013, Russia completed the acquisition of TNK-BP, making Rosneft the world's largest listed crude oil producer, with BP becoming one of its major shareholders (its stake rising to 19.75%).
Rosneft is Russia's biggest oil company, with reported production of about 1.5 billion barrels in 2014. The company also ranks as Russia's third biggest natural gas company, with production amounting to more than 345 million barrels of oil equivalents (BOE). Rosneft has a market capitalization of nearly $38.7 billion, making it the highest publicly valued company in this list.
Rosneft maintains exploration and production activities across Russia and in 10 other countries, including the United States, Canada, Brazil, Norway and Vietnam. It operates 13 refineries in Russia and has an interest in seven additional refineries in Western and Eastern Europe. Rosneft also operates a network of over 2,400 retail gasoline service stations and is Russia's largest supplier of jet fuel.
Official website: Rosneft.com
4. Surgutneftegas
Surgutneftegas is a large Russian oil and gas company formed through the merger of several state-owned companies holding major oil and gas reserves in Western Siberia.
Surgutneftegas falls just behind Gazprom Neft with crude oil production of nearly 447 million barrels in 2014. Gas production rose to about 55.3 million BOE on the year. The company's operations are mostly confined to the domestic market. In addition to its exploration and production activities, the company operates a refinery and a gas processing plant, produces petrochemicals, and runs a power generation business. Surgutneftegas also operates nearly 300 service stations. It has a market capitalization of over $18.5 billion.
Official website: Surgutneftegas.ru
5. Tatneft
Tatneft is one of Russia's largest oil companies and an internationally recognized vertically integrated holding company. Its industrial complex covers steadily developing oil and gas production, oil refining, petrochemical production, a tire manufacturing complex, and a network of service stations and related services.
Tatneft produced almost 193 million barrels of oil in 2014, in addition to gas production of almost 5.5 million BOE. The company produces oil and gas primarily within Russia, although international projects are in development. Tatneft operates a refining and petrochemical complex, a second refining facility and a gas processing plant. A tire manufacturing facility is housed in the refining and petrochemical complex, where a total of 12.5 million tires were produced in 2013. Tatneft distributes refined petroleum products through its network of more than 650 service stations in Russia, Ukraine and Belarus. The company has a market capitalization of more than $9.7 billion.
Official website: Tatneft.ru
