OREANDA-NEWS. December 13, 2012. The JSC LUKOIL Board of Directors approved today the key indicators of the LUKOIL Group 2013-2015 Mid-Term Plan.

The basic scenario of the Mid-Term Plan was developed given the scenario provisions of the Russian Federation Budget.

The draft plan provides for alignment of the petroleum-product duties and the expected rise of the petroleum-product excise tax.

The plan was drafted with due consideration of the draft budgets of the LUKOIL Group subsidiaries, given the measures aimed at higher revenues, lower costs and better operational performance.

In Exploration & Production, a seven-percent compound annual growth rate (CAGR) is expected in hydrocarbon production over 2013-2015, including 6% accounting for oil and 11% for gas. Among other things, hydrocarbon production growth will be ensured through increasing gas production due to proactive implementation of the Program for Utilization of Associated Petroleum Gas and higher production of natural gas in Uzbekistan projects. In 2014, the total oil production by the organizations of the Group is expected to exceed the milestone of 100 million tons.

In Refining & Marketing, the oil distribution pattern for 2013-2015 is based on alignment of duties for petroleum products and on optimization of crude supplies to the Company’s refineries in Russia as its most efficient business, provided Transneft ensures maximum availability of its pipeline system for running the Company’s oil, and also considering the limitations of the petroleum-product shipping infrastructure and the scheduled maintenance operations at the refineries.

The volume of oil refining in Russia in the next three years is expected to stabilize at the current level. Refining at the Company’s foreign refineries is expected to grow at an average annual rate of 7% over 2013-2015. Retail sales in Russia and abroad are expected to grow by 7% from 2013 to 2015. Production of electricity by generating enterprises of LUKOIL Group is expected to grow by 19% from 2013 to 2015.

The Board of Directors also approved the Regulations on Long-Term Incentives for Employees of JSC LUKOIL and its Subsidiaries for 2013-2017. Participants of the long-term incentive program will acquire the actual stock of JSC LUKOIL in the amount of at least 50% of their bonus.

The Board of Directors also approved the Rules of Internal Audit, changes to the Regulation on Performance Appraisal of the Board of Directors and listened to the report on the activities of the JSC LUKOIL Arbitration Court.