​​The LUKOIL Group’s oil production for the first quarter of 2017 was 21.8 million tons or 1,789 thousand barrels per day. Production change compared to the first quarter of 2016 was mainly driven by the reduction in compensation crude oil from the West Qurna-2 project in Iraq.

Average daily production excluding this project was 0.8% lower compared to the first quarter of 2016, mainly due to the temporary external limitations of production volumes by the Russian companies. However, production growth continued as planned at V. Filanovsky and Pyakyakhinskoe fields that were brought into production in the second half of 2016. Production drilling volumes in West Siberia increased as well, which should positively impact production profile in the region.

Oil production, thousand tons

1Q 2017  4Q 2016   1Q 2017 1Q 2016
21,397 22,104 Total (excluding West-Qurna 2 project) 21,397 21,894
20,442 21,146

Russia

20,442 20,876
20 178 20,889

Subsid​iaries

20,178 20,650
264 257

Share in ​affiliates

264 226
955 958

Outside of Russia

955 1,018
517 504

Su​bsidiaries

517 561
438 454

Share in af​filiates

438 457
405 587 Compensation oil from West Qurna-2 project 405 2,601
21,802 22,691 Total 21,802 24,495

The LUKOIL Group’s marketable gas production for the first quarter of 2017 was 5.4 billion cubic meters, almost unchanged compared to the first quarter of 2016. Marketable gas production was positively impacted by the launch of gas production at Pyakyakhinskoe field in the beginning of 2017.

Marketable gas production, million cubic meters

1Q 2017  4Q 2016   1Q 2017 1Q 2016
5,358 5,131 Total 5,358 5,374
3,450 3,144

Russia

3,450 3,369
3,438 3,125

Subsidiarie​s

3,438 3,362
12 19

Share in affiliate​s

12 7
1,908 1,987

Outside of Russia

1,908 2,005
1,771 1,847

Subsidiarie​s

1,771 1,875
137 140

Share in affiliate​s

137 130

Refinery throughput at the LUKOIL Group’s refineries for the first quarter of 2017 was 16.2 million tons. The 2.4% year-on-year volumes growth was mainly attributable to the increase in the utilization rate at our refineries in Perm, Volgograd and Burgas. The quarter-on-quarter dynamics was driven by planned maintenance works at our refineries in Nizhny Novgorod and Romania.

Refinery throughput at refineries, thousand tons

1Q 2017  4Q 201​6   1Q 2017 1Q 2016
16,196 16,722 Total for LUKOIL Group refineries 16,196 15,812
10,506 10,723

Russia

10,506 10,048
5,690 5,999

Outside of Russia

5,690 5,764
5,119 5,456

Oil processin​g

5,119 4,428
571 543

Refined products pr​ocessing

571 1,336
1,396 499 Third party refineries abroad 1,396 92

Note:

LUKOIL will release its Interim Consolidated Financial Statements prepared in accordance with IFRS and MD&A for 1Q 2017 on May 30, 2017.

***

The information in this press release is an estimate of the LUKOIL Group’s results in the first quarter of 2017 and therefore constitutes forward-looking statements. This information is preliminary and based on information available at the date of this document, and may be revised after statistical, financial, tax and accounting statements become available. The information on the LUKOIL Group’s operational results in this press release are subject to many external factors which may cause the actual results to differ materially from those expressed or forecasted in this press release for the first quarter of 2017. The LUKOIL Group assumes no obligation to update or alter its forward-looking statements, whether as a result of new information, subsequent events or otherwise, except to the extent required by applicable law.

This document does not constitute or form part of an invitation or inducement to engage in investment activity with, or any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of, the LUKOIL Group, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of, or any investment in, the LUKOIL Group.

Information about company

PJSC “LUKOIL” is one of the largest publicly traded, vertically integrated oil and gas companies in the world in terms of proved hydrocarbon reserves and production; and the second largest producer of crude oil in Russia. Established in 1991, the Company currently operates in more than 30 countries with core upstream assets located in Russia. The full production cycle includes oil and gas exploration, production and refining; production of petrochemicals and lubricants; power generation; marketing and distribution providing LUKOIL with maximum synergies from its activities. The Company’s shares are listed in Russia on Moscow Exchange under the ticker “LKOH” and depositary receipts are listed on the London Stock Exchange under the ticker “LKOD”.