1

RESULTS

2019

UNLOCKINGPOTENTIAL

March 11, 2020

2

Forward-looking

statements

▪ Certain statements in this presentation are not historical facts but are “forward-looking”. Examples of such

forward-looking statements include, but are not limited to:

– projections or forecasts of revenues, income (or loss), earnings (or loss) per share, dividends, capital

structure or other financial items or ratios

– statements of our plans, objectives or goals, including those related to products and services

– statements of future economic performance

– and statements of assumptions underlying such statements.

▪ Words such as “believes,” “expects,” “assumes,” “projects”, “intends” and “plans” and similar expressions are

intended to identify forward-looking statements, but are not the exclusive means of identifying such

statements

▪ By nature, forward-looking statements imply certain inherent risks and unclear points, both general and

specific, and there is a risk that plans, expectations, forecasts and other forward-looking statements will not

be realized. You should be aware that a number of important factors could cause actual results to differ

significantly from the plans, objectives, expectations, estimates and intentions expressed in such forward-

looking statements.

▪ When relying on forward-looking statements, you should carefully consider the foregoing factors and other

uncertainties and events, especially in light of the political, economic, social and legal environment in which

we operate. Such forward-looking statements speak only as of the date on which they are made, and we do

not undertake any obligation to update or revise any of them, whether as a result of new information, future

events or otherwise. We do not make any representation, warranty or prediction that the results anticipated by

such forward-looking statements will be achieved. Such forward-looking statements represent, in each case,

only one of many possible scenarios and should not be viewed as the most likely or standard scenario.

3

Q&A

Downstream

UpstreamAzat Shamsuarov

Senior Vice President,

Upstream

FinanceAlexander Matytsyn

First Vice President,

Chief Financial Officer

Vadim Vorobyev

First Vice President,

Downstream

Interim results of

strategy implementation

Vagit Alekperov

Chief Executive Officer

ConclusionPavel Zhdanov

Vice President, Finance

4

Interim results of strategy

implementation

Outpacing strategic targets

Increasing efficiency

High investment discipline

Shareholder distributions growth

Vagit Alekperov

Chief Executive Officer

5

Operating resultsoutpacing strategic targets

Hydrocarbon production,

Mboepd

2.24 2.32 2.35

2017 2018 2019

2126

32

2017 2018 2019

Share of high-margin barrels,

%

Refinery throughput,

mln t

67.2 67.3 68.7

2017 2018 2019

8.3 7.5 6.8

2017 2018 2019

Fuel oil output,

mln t

Higher volumes

▪ Production growth 2.5x higher

than minimal strategic target

▪ Refinery throughput growth

Structural improvements

▪ Outpacing growth of share of

high-margin barrels

▪ Accelerated reduction of fuel

oil output

%

+11 p.p.+2.5% CAGR

+2.2% -18.2%

+1.4%

y-o-y

+2.1% -10%

+6 p.p.

6

Financial resultsall-time high RUB bln %

CAPEX

26.4Free cash flow

Controllable expenses

Profit to shareholders

10.9EBITDA

Sales

ROACE

2018

452

555

551

619

1,115

8,036

15%

(2.4)

3.4

(0.3)

2019

450

702

537

640

1,236

7,841

15%

2017

511

247

534

419

832

5,937

11%

(2.5)Higher profitability of business

Efficient cost control

High investment discipline

Strong balance sheet

Net debt to EBITDA 0.0 0.00.3

Controllable expenses include operating expenses (excluding extraction expenses at the West Qurna-2 field, refining expenses at third-party refineries and

expenses for crude oil transportation to refineries) and SG&A (excluding share-based compensation and expenses on allowance for expected credit losses).

7

95

19259 75 90110

154177

195215

250

542

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Interim dividend Final dividend

Dividend calculation according to

the new dividend policyRUB bln

RUB per share

New capital return policyShareholder distributions growth

$4.6 blnshares buyback

in 2018-2019

133 192

242 350

244 352

619

FCF excluding

interest paid

and leasing

Factual

shares

buyback

Dividends

1H 2019(interim dividends,

paid in 1Q 2020)

2H 2019(calculation according

to new policy)

Factual shares

buyback

RUB per

share

Final dividend for 2019 is calculated for indication purposes based on the new dividend policy, it is

subject to approval by the Board of Directors and the General Shareholders Meeting.

8

Sustainable developmentsystem approach, continuous improvements ▪ high standards of industrial

safety, reduction of

occupational injuries

▪ intolerance to corruption

▪ social programs for

employees

▪ life quality improvement in

the regions of presence

▪ reduction of pollutant

emissions and flaring

▪ full waste disposal

▪ conservation of biodiversity

▪ remediation of disturbed

land

▪ increasing share of

independent directors

▪ expansion of functions of the

Board Strategy and

investment committee by

sustainable development

issues

▪ continuous improvement of

informational transparency

ENVIRONMENT CORPORATE

GOVERNANCE

SOCIAL

RESPONSIBILITY

social programs and charity

expenses in 2019

share of independent

directors at the end of

2019

reduction of Scope 1

СО2e emissions in Russia

compared to 2016

3 % 9 bln RUB 55 %

International standards

Integration into strategy, investment

decision making process and

incentive program

Control at the Board of Directors

level

Participation in international

initiatives

9

Free cash flow per barrel

$/boe

Russian

peersInternational

peers

International peers: BP, Chevron, ConocoPhillips, Eni, ExxonMobil, Shell, Total

Russian peers: Gazprom neft, Novatek, Rosneft

-3.0

-1.0

1.0

3.0

5.0

7.0

9.0

11.0

13.0

15.0

2015 2016 2017 2018 2019

Positive free cash

flow in any price

environment

10

Upstream

Hydrocarbon production growth

Growth of share of high-margin barrels

Development of technologies

Costs optimization

Azat Shamsuarov

Senior Vice President,

LUKOIL

11

Strategic objectives

4 Profitable involvement into

production of existing gas reserves

in Russia

3 Efficient delivery of new projects (at

minimum cost, in minimum time)

2 Accelerated involvement of hard-to-

recover reserves into production

(technology scale-up and

development, unit cost reduction)

1 Improving efficiency at mature fields

in order to accelerate involvement of

reserves into production, improve

recovery factor, maximize FCF

Share of high-margin barrels

Upstream

strategy:Sustainable organic

production growth

with focus on

creating value and

unlocking the

potential of the

existing resource

base

2017 2018 2019

21% 26 % 32%

2.24

+3.7%

Hydrocarbon production

Mboepd

2.32 2.35

+1.4%

12

West Siberia

2019 results

▪ Deceleration in production decline

rate

▪ Growing share of horizontal drilling

▪ Adoption of optimized horizontal

wells with three-string design

▪ Testing neural networks to control

reservoir pressure maintenance

system

Advantages

▪ Stable region for reinvestment

▪ Lowest cost per meter drilled

among the Group companies

▪ Proven track record

▪ Drilling volumes growth potential

supported by vast reserve base

902

815751

718 700

2015 2016 2017 2018 2019

Liquid hydrocarbon productionKbpd

-4.3%

GreenfieldsMature fields

-2.5%

-7.9%

Greenfields: Pyakyakhinskoye, Imilorskoye, Vinogradov, Yuzhno-Messoyakhskoye

-9.6%

13

Increasing

efficiency

via technology

development and

scale-up

Reduction of cost per well

compared to a standard

well

Reduction of electricity

cost

Reduction of cost per well

compared to a standard

well

THREE-STRING

DESIGN WELLS

ENERGY-EFFICIENT

PUMPS

SMALL DIAMETER

WELLS

50 %

▪ Increasing drilling

speed

▪ 104 horizontal wells with

three-string design were

completed in 2018-2019,

including 21 multilateral

wells

▪ Using drilling rigs with

lower capacity

▪ Lower metals usage in

well construction

▪ 119 wells were completed

in 2018-2019

▪ Reduction of energy cost

due to transition to

downhole permanent

magnet engines and

introduction of energy-

efficient pumps at oil

pump stations

20% 10-15 %

Lighter well construction, batch

drilling

Implementation of intellectual

systems of well completion

Mature fields development

management with neural networks

Scaling of the “intellectual field”

technology

14

Drilling costs

Growth below inflation

(reduction in real terms)

Cost reductionahead of targets Targets

2020 / 2017

Results

2019 / 2017

Construction costs

Growth below inflation

(reduction in real terms)

Lifting costs

Growth below inflation

(reduction in real terms)

Optimization of work with

contractors

Transition to day-rate oilfield

service contracts

Optimization of well stock with high

watercut

Reducing repairs time

Optimization of wellwork program

Targets 2020 / 2017,

updated in 2018

Keeping flat in

nominal terms

Keeping flat in

nominal terms

Keeping flat in

nominal terms -4%

-8%

0%

15

Tax on

additional

income (TAI)

40%55%

Standard taxregime

Under TAI

Liquid hydrocarbon

production in 2019

▪ Group 1: 40 Kbpd

▪ Group 3: 58 Kbpd

▪ Group 4: 1 Kbpd

Net price in 2020

TAI

Net oil price for TAI’s Group 3 under $50/bbl, RUB

60/USD. TAI taxation under maximum cost limit.

Net

price

MET

Export duty

0

50

100

150

200

250

2018 2019 2022 2027

Estimated effect of TAI on LUKOIL liquid hydrocarbon

production at TAI license areas

Production, Kbpd

+145 mln bbl

of oil in 2019-2027

Standard tax regime

Group 4: 2 license areas with

new fields in West Siberia (the

Khanty-Mansi Autonomous

District)

Group 3: 8 license areas with

mature fields in West Siberia

(the Khanty-Mansi

Autonomous District)

Group 1: 19 license areas with

new fields in West Siberia (the

Yamal-Nenets Autonomous

District, incl. Pyakyakhinskoye)

and Timan-Pechora (the

Nenets Autonomous District)

16

North Caspian

2019 results

▪ Filanovsky: launch of the third stage, 5

production wells commissioned

Korchagin: four production wells

commissioned

▪ Grayfer: development of documentation,

signed contracts for the supply of

equipment and materials, construction of

platforms at shipyards

Plans for 2020

▪ Filanovsky and Korchagin: drilling

program

▪ Grayfer: infrastructure development40%

84% 85%

Standard taxregime

Korchagin Filanovsky

Net price in 2020Under $50/bbl, RUB 60/USD

37

69

133

167177

2015 2016 2017 2018 2019

Hydrocarbon production Kboepd

Net

price

MET

Export

duty

Advantages

▪ High-margin barrels

▪ Short transportation leg, low lifting

costs, high oil quality

17

Hard-to-recover

reservesOil productionKbpd

40%57%

97%

Standardtax regime

ImilorskoyeVinogradov

Yaregskoye

Imilorskoye,

Vinogradov,

Sredne-Nazymskoye

Yaregskoye,

Usinskoye

5156

62

77

88

1318

20

26

38

6574

82

103

127

2015 2016 2017 2018 2019

Low permeability reservoirs

2020 plans:

commissioning of 200 production wells

Heavy and extra heavy crude oil

2020 plans:

commissioning steam generation facilities

commissioning facilities to maintain

reservoir pressure

increasing oil treatment and transportation

capacity

drilling costs optimization

Advantages

▪ High-margin barrels

▪ Substantial production growth potential

Usinskoye: Permian deposit

Imilorskoye: MET benefit for

reservoirs with low permeability

Net

price

MET

Export

duty

Net price in 2020Under $50/bbl, RUB 60/USD

18

Gas projects in

Uzbekistan

GissarKandym

Hydrocarbon production (LUKOIL share)Kboepd

2019 results

▪ Achieved designed production level

2020 plans

▪ Maintaining designed production level

▪ Evaluation of opportunities at

investment blocks in the North of

Uzbekistan

Advantages

▪ Proven track record in the region

▪ International prices (export to China)

61 6677

148

171

25 26

59

7971

86 92

136

226242

2015 2016 2017 2018 2019

19

▪ Transaction value $214 mln

▪ LUKOIL share – 5%

▪ Other participants:

▪ ADNOC – 55%

▪ Eni – 25%

▪ Wintershall – 10%

▪ OMV – 5%

▪ Offshore project, possible launch in 2022

▪ Water depth – up to 24 m

▪ Transaction value $768 mln

▪ LUKOIL share – 25%

▪ Other participants:

▪ Eni – 65%

▪ SNPC – 10%

▪ Producing offshore project

▪ Water depth – 20-90 m

▪ Current production – 40 Kboepd

▪ Implementation of the second phase of

development

▪ Preparation of the third phase of

development

Acquisition of

new international

projectsin accordance with the

Strategy

THE REPUBLIC

OF CONGO

Pointe-Noire

Abu Dhabi

UAE

UAE

GHASHA CONCESSION

THE REPUBLIC OF CONGO

MARINE XII

Regions of presence

Discovered reserves

Suitability to technological

competencies

Significant production growth

potential

Experienced partners

Marine XII block borders Fields of the concession

20

Downstream

Higher refinery throughput with quality

improvements in product slate

Better operating efficiency

Higher sales volumes via premium sales

channels

Vadim Vorobyev

First Vice President,

LUKOIL

21

Refining

Strategy

Refineries in

Russia

Refineries in

Europe

Throughput volumes at own refineriesKbpd

Light product yield

incl. Russia

866 867 887

485 485 494

1,350 1,352 1,381

2017 2018 2019

Fuel oil

Mid-distillates

71% 71% 73%

69% 69% 70%

12% 11% 10%

46% 47% 47%

Continuous enhancement of

operating efficiency of refineries and

optimization of maintenance CAPEX

(maximizing FCF)

▪ Feedstock and product slate

optimization

▪ Inter-plant feedstock optimization

▪ Improving operational availability and

energy efficiency

Selective projects at Russian

refineries to improve products slate

Mid-distillates include diesel fuel, jet fuel, bunker fuel.

2.1%

Up 2.2% mainly owing

to higher utilization rate

at Nizhny Novgorod

refinery

Up 1.9% owing to

maintenance works at

the refinery in Bulgaria

in 2018

+2 p.p. to 2018

+1 p.p.

-1 p.p.

–

Implementation of growth projects

in petrochemistry

22

Efficiency

improvement

program at

refineries

Cost reduction, labor productivity improvement

▪ Additives norming

▪ Tender procedures improvement

▪ Logistics optimization

▪ Staff training and rotation, headcount control

Energy efficiency

▪ Heat integration

▪ Furnace efficiency upgrade

▪ Maximization of gas utilization

Reliability and availability

▪ Reduction of unscheduled shutdowns

▪ Reduction of repair time and increase of timespan between

repairs

▪ Operation risk-based planning of repairs

▪ Distributed unit maintenance

Capacity optimization

▪ Optimization of units’ running mode

▪ Higher flexibility of feedstock usage

▪ Lower irrecoverable losses

to segment’s

EBITDA in 2018-

2019

+61RUB blnRoadmaps with

over 500

initiatives

in 2018-2019

23

Selective projects

at Russian

refineries

Completion rate and progressProjects

Isomerization unit

Bitumen production

60%Delayed coker

Nizhny Novgorod

Deasphaltizing unit

Volgograd

Works begun on the installation of on-site

pipelines and technological equipment

strapping; more than 70% of the equipment

delivered

Installation of equipment and metal structures

Received positive conclusion from the state

environmental review of the polymer-bitumen

binder production unit, the main state examination

launched, equipment delivery started

Reinforcing of existing and installation of new

loading racks, the assembly of cooling towers

and flare collector completed, more than 40 units

of equipment installed, technological equipment

strapping started

60%

40%

6%Delayed coker construction

Deasphaltizing unit construction

24

Product slate improvement amid MARPOL Middle distillates yield, %High-sulfur fuel oil yield, %

21 %

2019 2020 2022

10%

2019 2020 2022

47%

<8%

<4%

47%50 %

Processes

optimization

Launch of delayed

coker at Nizhny

Novgorod refinery

Potential to improve refined products slate at Russian and

international Group refineries

Record low fuel oil production

Further reduction potential

Mid-distillates include diesel fuel, jet fuel, bunker fuel.

25

Growth projects in

petrochemistry

▪ Polypropylene production

– 500 th. t / propylene / FEED

▪ Pyrolysis

– 2.5 mln t / LPG and naphta / pre-FEED

Site Project (feedstock capacity / feedstock in use / status)

Burgas refinery

Nizhny Novgorod

refinery

Perm refinery

▪ Polypropylene production

– 300 th. t / propylene / FEED

Projects at existing refining sites

Available low-cost petrochemical

feedstock

Technological competencies

26

Results 2019 / 2017

Filling stations

Standardizing and upgrading the

Russian network

Strategy

▪ Average daily sales of refined products per station

+2%

▪ Non-fuel gross profit +18%

▪ 138 filling stations upgraded

▪ 11 filling stations constructed, 9 filling stations

acquired

▪ Non-fuel gross profit +30%

▪ OPEX coverage by non-fuel gross profit 42% (+9

p.p.)

▪ ECTO fuels sales volumes +7%

Russia: improving efficiency, focus on

lowering unit OPEX and increasing non-

fuel sales and services

Outside Russia: improving efficiency of

filling stations network with optimal

investments

27

Refined products

logistics

optimization

Growth of pipeline

transportation of refined

products owing to completion of

new projects by Transneft

Reducing transportation costs

for diesel fuel and motor gasoline

Diesel fuel:

Project South

Gasoline: Nizhny

Novgorod – Moscow

▪ Diesel fuel transportation from

Volgograd refinery to the port

of Novorossiysk

▪ Gasoline transportation from

Nizhny Novgorod refinery to

Novoselki oil tank farm

Diesel fuel volumes

transported in 2019

4.8 mln t

Gasoline volumes

transported in 2019

1.1mln t

28

Maintaining market share in Russia

and improving efficiency

▪ Launch of refueling complex in

Sheremetyevo (2018) – the largest

airport in Russia

▪ Maximizing synergy with existing oil

tank facilities

Maintaining market share in Russia

through existing advantages

▪ High-quality fuel (low sulfur)

▪ All-in service for the customer and

option to tank with several types of fuel

Strategy

Aircraft

fueling

Marine

bunkering

Results 2019 / 2017

Aircraft fueling and

marine bunkering

▪ Start of production of low-sulfur

fuel oil meeting requirements of

MARPOL convention

▪ High margin retail sales channel

+11%

▪ Maintained market share in Russia

▪ Launch of refueling complex in

Sheremetyevo

▪ Start of operations at the airports of

Kaliningrad, Rostov-on-Don and

Krasnodar

▪ High margin “into-plane” sales

+16%

▪ Maintained market share in Russia

29

Growth in branded lubricants segment

▪ Expansion of cooperation with the cars and

equipment manufacturers

▪ Development of digital sales channels

▪ Investments into development of new

products

▪ Market expansion in South America and

Asia

Growth in high-margin polymer bitumen

segment

▪ Upgrade of the existing production lines and

expansion of the product range

▪ Launch of the full cycle service for the end-

users

▪ R&D center setup

▪ Securing the value through export during off-

season periods in Russia

Strategy

Lubricants

Bitumen

Lubricants and

bitumenResults 2019 / 2017

▪ +21% sales volumes growth in advanced

lubricants product line

▪ Lubricants plant launch in Kazakhstan

▪ Joint product development with the key

cars and equipment manufacturers

▪ Start of online sales in Russia,

Kazakhstan, Turkey and China

▪ Production of bitumen meeting new

standard

▪ Start of polymer bitumen production

▪ R&D center in Nizhny Novgorod region

set up

▪ End-user sales growth

30

Alexander Matytsyn

Chief Financial Officer,

LUKOIL

Finance

Record results

31

53.1

69.8 63.9

2017 2018 2019

Macro

environmentUrals$ per bbl

1.29 1.56 1.52

3.10

4.37 4.14

2017 2018 2019

Price and net price of Urals thousand RUB per bbl

Benchmark refining margin in

Europe, $/bbl

7.87.0

5.5

2017 2018 2019

Lower oil price, high volatility

Positive effects from weaker

ruble and export duty time lag

One of the weakest refining

margins over the past 10 years

Benchmark refining margin in

Russia, $/bbl

4.53.2

2.2

2017 2018 2019

-31.3%

-22.1%

-8.4%

-2.8%

32

Leadership in

efficiency

Russian O&G: Gazprom neft, Novatek,Rosneft

International O&G: BP, Chevron, ConocoPhillips, Eni, ExxonMobil, Shell, Total

▪ High-quality production portfolio in

upstream

▪ High refining coverage

▪ High quality of refining fleet

▪ Access to premium markets and

sales channels

▪ High investment discipline

International O&GRussian O&G

23

EBITDA per boe (2019)

$ per boe

12

Free cash flow per boe (2019)

$ per boe

33

5,937

8,036

7,841

1

175

30

40

(26)

(157)

(44)(53)

(161)

Volume factor Price and structure factor

RUB bln

2017 2019Refined products

(Russia)OtherRefined products

(International)

Oil

(Russia)

Oil

(International)

Revenue2019 / 2018

Lower oil prices and

weaker ruble

Lower sales volumes of

refined products outside

Russia due to lower

trading volumes

Higher oil production and

trading volumes

Higher gas production2018

-2.4%

to 2018

34

Cost

control

Lifting costs in Russia

RUB per boe

248 244 237

2017 2018 2019

-2.7%

Planning in accordance with

cost reduction targets

Budget execution control

Incentive program and KPIs

focused on cost reduction

and cost programs

implementation

Controllable expenses

RUB per boe

677 668 643

2017 2018 2019

-3.8%

to 2018

193 196 194

87105

97

9787

90

158162

156

534551 537

2017 2018 2019

Controllable expensesRUB bln

Production

OPEX

SG&A

Controllable expenses include operating expenses (excluding extraction expenses at the West Qurna-2 field, refining expenses at third-party refineries and

expenses for crude oil transportation to refineries) and SG&A (excluding share-based compensation and expenses on allowance for expected credit losses).

-4.4%

Refining

Other

-5.0%

35

EBITDA2019 / 2018

832

1,115

1,236

1212

69

2012(4)

2017 2019

+ Inventory release

2018

+ Higher production

+ Bigger share of high-

margin barrels

+ Lower expenses

+ Tax on additional income

+ Tax lag

+ Weaker ruble

– Lower oil prices

– Additions to MET

+ Higher refining

throughput and better

product slate

+ Stronger results in

retail

+ Higher trading

margin

– Lower benchmark

refining margin

Downstream

Russia / International

Corporate and other

/ Eliminations

Upstream

Russia / International

RUB bln

36

Profit2019 / 2018

419

619 640121.4

3.7 0.8

(72.0)

(32.8)

2017 2018 EBITDA DD&A FX Financeincome / costs

and other

Income tax 2019

RUB bln

37

CAPEX2019 / 2018

12.2

3.1

3.6

6.0 0.2

(11.6)

(3.0) (9.3) (2.6)(0.2)

511

452 450

2017 2018 Caspian West Siberia TimanPechora

Other WQ-2 Uzbekistan Other Russia OutsideRussia

Corporateand other

2019

Russia International

DownstreamUpstream

RUB bln

38

758

511

1,007

452

OCF1,152

CAPEX450

139158

Dividends

181

60

Share repurchases

244108

337

Net debtand other

277

Sources Uses Sources Uses Sources Uses

2018

Free cash

flow

702

555

2017

RUB blnSources and

uses of cash

2019

247Higher operating cash flow

High investment

discipline

Higher shareholder

distributions

39

High resilience

to volatile macro

environment

Natural hedge factors:

▪ Vertically integrated business

model

▪ Costs mainly in RUB

▪ Progressive taxation

Uralsth. RUB per barrel

0

1

2

3

4

5

6

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Lowest level since

Jan2016

Progress since 2016 Quantitative Qualitative

Production 2.35 mb/d, +8%Share of high margin barrels

32%, +17 p.p.

Refining 69 mln t, +4%Light product yield

73%, +6 p.p.

Costs Lower in real termsPer unit costs in RUB terms

at 2016 level

Financial strength Lower net debtNet debt / EBITDA

0.0 (0.6 in 2016)

40

FCF and EBITDA

sensitivity to oil

price and RUB/$

exchange rate

Similar FCF sensitivity to oil

price and FX

High share of RUB-

denominated OPEX and CAPEX

Oil price

+$1/bbl Brent

RUB/$

+1 RUB/USD

EBITDA

FCF

+$220 mln

+$175 mln

+$90 mln

+$170 mln

41

Financial

position(as at 31.12.2019)

516381

10222 48 106

1390

154

172

2020 2021 2022 2023 2024 2025 andfurther

Credit

lines*

Cash and cash

equivalents

Leases

Total debt

RUB 553 bln

* Stand-by revolving committed credit lines

Debt structure (excluding leases)

65%

65%

85%

96%

35%

35%

15%

4%1%

Eurobonds (all in $) /Other debt

Fixed /Variable rate

Unsecured /secured debt

USD / EUR /Other debt

Moody’s Baa2

S&P BBB

Fitch BBB+

Credit ratings

USD / EUR / Other

Unsecured / secured

Fixed / variable

Eurobonds ($) / other

RUB bln

Debt maturity schedule

Net debt / EBITDA:

0.0

42

Conclusion

Pavel Zhdanov

Vice President

LUKOIL

43

2020

Outlook

▪ Production growth by up to 1% (ex. WQ-2) depending on market environment

▪ Implementation of cost optimization programs

▪ Caspian: drilling program on production projects, works on Grayfer field

development

▪ Baltics: final investment decision on D33 project

▪ Iraq: works on the 2nd development stage at West Qurna-2,

drilling of evaluation wells on Block 10

▪ Exploration drilling in Egypt, Mexico, Norway

Upstream

▪ Refinery throughput growth by up to 3% depending on market environment

▪ Reduction of fuel oil output to 8% of refinery throughput

▪ Works on construction of delayed coker unit and isomerization unit at Nizhny Novgorod

refinery

▪ Further work on petrochemical projects

Downstream

▪ CAPEX of up to RUB 550 bln (ex. WQ-2) with possible optimization

– Upstream / Downstream – 80% / 20%

– Russia / International – 85% / 15%

Finance

44

LUKOIL –

a unique

investment

proposition in

Oil&Gas

Focus on delivering long-term shareholder value through growing FCF and

distributions

▪ Distribution of

at least 100% of

adjusted free

cash flow

▪ Embedded oil price

downside protection

▪ Well-positioned for

higher oil price

scenario

▪ Combination of

business and free

cash flow growth

even in conservative

macro scenario

▪ Highly competitive

industry position

▪ Solid financial

standing

▪ Disciplined

investment

approach

▪ Clear focus on

efficiencies and

increasing returns

Excellence in corporate

governance

Adhering to

sustainability principles