TIDMLKOD
RNS Number : 2547R
PJSC LukOil
26 June 2020
PJSC LUKOIL
LEI 549300LCJ1UJXHYBWI24
Report on Payments to Governments for the year 2019
Moscow
June 2020
Underlying Principles
1.1 Regulation and Scope of the Report
This consolidated report on payments to governments
(hereinafter, the "Report") was prepared by PJSC LUKOIL pursuant to
Cl. 4.3 of the Disclosure Guidance and Transparency Rules of the UK
Financial Conduct Authority in relation to the minerals
exploration, development and production activities (hereinafter,
the "extractive activities"). This Report includes the payments
made during the financial year ended at 31 December 2019 in favor
of the governments only on behalf of the LUKOIL Group companies
(hereinafter, "the Group") (see Section 1.5 hereof) that conduct
extractive activities, and does not include the payments made by
the LUKOIL Group companies that do not conduct such activities.
The Report contains the following:
) information on all the respective payments the Group is
responsible for made by the Group companies to the governments;
b) information on all the respective payments to the
governments, if a Group company participates in the project as the
operator.
Should the respective payments be made by the third party
operator, such payments are not included in the Report.
The Report is based on the provision that the extractive
activities will be ceased as the resource (for instance, oil) is
transported from the extraction point to the immediate sales point
(or the place where it can be marketed for the first time). Thus,
export or transportation of oil, gas or other minerals is not
covered by the Report requirements.
1.2 Currency of the Report
The presentation currency of the Report, as well as that of PJSC
LUKOIL's consolidated financial statements prepared in accordance
with the International Financial Reporting Standards (hereinafter,
"IFRS") is the Russian ruble. The financial values presented in the
Russian rubles were rounded to the nearest million.
The payments in foreign currencies were translated into the
Russian rubles at the annual average exchange rate.
1.3 Terms: Government
For the purposes of the Report the term "government" means any
national, federal and local authorities, ministries and agencies
authorized to collect taxes, budgetary and other payments pursuant
to the applicable laws in effect as of the time a contribution or
payment becomes due. In the context of this Report the governments
also include organizations, commercial enterprises and other legal
entities authorized to collect taxes, charges and other payments in
favor of the governments.
1.4 Terms: Payment
The Report includes all direct, indirect and non-monetary (in
kind) forms of payments made to the governments.
For the purposes of this Report "payment" includes:
a) Taxes levied on income, production or profit of the company
(mineral extraction tax; profit tax, including the profit tax paid
by PJSC LUKOIL for its production subsidiaries as part of the
consolidated taxpayers' group; property tax; water tax; land tax;
transport tax; social security taxes and contributions to
governmental non-budgetary funds; regular subsoil use payments),
except for those stated in point ( h) below. Tax payments are
reported net of refunds;
b) Royalties ;
c) License fees, rental fees, entry fees and other
considerations for licenses or concessions;
d) Signature, discovery and production bonuses;
e) Production entitlements of the government or its
representative (mainly, host government's share of production in
the reporting period derived from production sharing
agreements);
f) Dividends (other than those specified in paragraph (j)
below);
g) Payments for infrastructure improvement (e.g. road, bridge
etc.) which are not substantially dedicated for the use of
extractive activities.
For the purposes of this Report the following payments are not
considered payments to the governments:
h) Taxes on turnover (VAT, sales tax) or withholding taxes
deducted from the source by an entity acting as a tax agent
(personal income tax);
i) Fines and penalties on taxes paid to the budgets of different
levels;
j) Dividends paid to the state shareholders (holders of shares)
on the same terms as to the other shareholders;
k) Export duties or other payments related to minerals export
and transportation;
l) Expenses on field infrastructure development as part of
service contracts reimbursable by the government;
m) Payments made in return for services provided by the
government;
n) Payments for infrastructure improvement which are of a social
investment in nature (e.g. school or hospital).
No dividends (f) payments were made to the governments in
2019.
1.5 Companies covered by the Report
For the purposes hereof the Group companies are its directly or
indirectly controlled subsidiaries, as well as the shares under the
production sharing agreements and the joint operations consolidated
proportionally to the Group's share in the assets, liabilities,
income and expenditures, where the party representing PJSC LUKOIL
is an operator of such joint operations. Should such Group company
not be the operator, but make payments to the governments on its
behalf, it is included in the Report, and the respective payments
are specified. The affiliates, joint ventures and joint operations
consolidated using an equity method are not covered by the
Report.
This Report is provided with a breakdown into:
a) Jurisdictions in which the Group conducts extractive
activities;
b) Projects implemented as part of extractive activities.
For the purposes of this Report, the "project" means:
a) A legal entity engaged in extractive activities in the
Russian Federation. This definition of the project as related to
the activities in the Russian Federation is based on the existing
taxation regime focused on a legal entity rather than on a separate
field. Pursuant to the effective tax laws of the Russian
Federation, only the mineral extraction tax may be determined for a
separate field. All other taxes relate to a legal entity as a whole
and cannot be broken down by separate fields.
b) Extractive activities as part of a particular project,
contract, license, agreement or another legally binding agreement
relating to the production outside the Russian Federation pursuant
to which a Group company is obliged to make payments to foreign
state authorities.
Thus, the payments information related to the Russian Group
companies is given with a breakdown into legal entities, while that
related to foreign companies - with a breakdown into projects and
jurisdictions.
If a Russian Group company conducts different operations
(including extractive activities), while a portion of the tax
liabilities immediately related to the above operations cannot be
singled out, then the whole aggregate tax payment is included in
the Report.
1.6 Materiality of the Amounts Included in the Report
For the purposes of this Report the list of payments includes
the payments which exceed, individually or in aggregate, 7.1
million of Russian rubles (around 86,000.00 GBP) within one
financial year. If the total amount paid to a certain country does
not exceed the above threshold, the payments made to such country
are not included in the Report.
Table 1. Distribution of payments per jurisdiction and oil and
gas project
Mln RUB
Taxes Royalties License Government Infrastructure Bonuses Total
payments entitlement improvement
to a payments
portion of
minerals
extracted
========================== ====================== ========== ========= ============ =============== ======== =====================
Russia
OOO LUKOIL-Western
Siberia 429,945 - 1,224 - - - 431,169
========================== ====================== ========== ========= ============ =============== ======== =====================
OOO LUKOIL-PERM 190,149 - 840 - - - 190,989
========================== ====================== ========== ========= ============ =============== ======== =====================
OOO LUKOIL-Komi 180,308 - 628 - - - 180,936
========================== ====================== ========== ========= ============ =============== ======== =====================
OOO RITEK 64,174 - 8,555 - - - 72,729
========================== ====================== ========== ========= ============ =============== ======== =====================
LUKOIL-Nizhnevolzhskneft 59,881 - - - - - 59,881
========================== ====================== ========== ========= ============ =============== ======== =====================
OOO LUKOIL-AIK 19,777 - 9 - - - 19,786
========================== ====================== ========== ========= ============ =============== ======== =====================
OOO UralOil 7,191 - 24 - - - 7,215
========================== ====================== ========== ========= ============ =============== ======== =====================
OOO LUKOIL-KMN 6,289 - - - - - 6,289
========================== ====================== ========== ========= ============ =============== ======== =====================
OOO TURSUNT 805 - - - - - 805
========================== ====================== ========== ========= ============ =============== ======== =====================
OOO
LUKOIL-Primoryeneftegaz 49 - - - - - 49
========================== ====================== ========== ========= ============ =============== ======== =====================
OOO Yuzhno-Sardakovskoye 45 - - - - - 45
Uzbekistan
Khauzak-Kandym project 1,537 5,783 - 9,714 (1) - - 17,034
========================== ====================== ========== ========= ============ =============== ======== =====================
Gissar project 525 12,475 - 4,753 (2) - - 17,753
Kazakhstan
Zhenis project - - - - - 162 162
========================== ====================== ========== ========= ============ =============== ======== =====================
Karachaganak project 6,841 - - - - - 6,841
Egypt
WEEM project 623 (3) - - 2,352 (6) - - 2,975
========================== ====================== ========== ========= ============ =============== ======== =====================
WEEM Extension project 17 (4) - - 147 (7) - - 164
========================== ====================== ========== ========= ============ =============== ======== =====================
Meleiha project 830 (5) - - - - - 830
====================== ========== ========= ============ ========
Iraq
Block 10 project - - - - 937 - 937
========================== ====================== ========== ========= ============ =============== ======== =====================
West Qurna-2 project 2,775 - - - - - 2,775
Mexico
Block 12 project 37 - 29 - - - 66
========================== ====================== ========== ========= ============ =============== ======== =====================
Norway
LUKOIL Overseas North
Shelf AS (projects PL719
and PL858) (366) - - - - - (366)
========================== ====================== ========== ========= ============ =============== ======== =====================
PL 719 project - - 26 - - - 26
========== ========= ============ ========
The Republic of the Congo
Marine XII project 338 (8) 503 (9) - - - - 841
UAE
Gasha project - - 6,564 - - - 6,564
971,770 18,761
TOTAL (10) (11) 17,899 16,966 (12) 937 162 1,026,495
========================== ====================== ========== ========= ============ =============== ======== =====================
(1) Including the government's entitlement to a portion of minerals extracted in the amount equal to
the market price of 5,626 thousand barrels of oil equivalent.
(2) Including the government's entitlement to a portion of minerals extracted in the amount equal to
the market price of 3,366 thousand barrels of oil equivalent.
(3) Including payment in kind in the amount equal to the market price of 178 thousand barrels of oil
equivalent.
(4) Including payment in kind in the amount equal to the market price of 5 thousand barrels of oil
equivalent.
(5) Including payment in kind in the amount equal to the market price of 205 thousand barrels of oil
equivalent.
(6) Including the government's entitlement to a portion of minerals extracted in the amount equal to
the market price of 673 thousand barrels of oil equivalent.
(7) Including the government's entitlement to a portion of minerals extracted in the amount equal to
the market price of 41 thousand barrels of oil equivalent.
(8) Including payment in kind in the amount equal to the market price of 53 thousand barrels of oil
equivalent.
(9) Including payment in kind in the amount equal to the market price of 121 thousand barrels of oil
equivalent.
(10) The total amount includes payment in kind in the amount equal to the market price of 441 thousand
barrels of oil equivalent.
(11) The total amount includes payment in kind in the amount equal to the market price of 121 thousand
barrels of oil equivalent.
(12) The total amount includes the government's entitlement to a portion of minerals extracted in the
amount equal to the market price of 9,706 thousand barrels of oil equivalent.
Table 2. Distribution of payments in jurisdictions per
government
Mln RUB
Taxes Royalties License Government Infrastructure Bonuses Total
payments entitlement improvement
to a portion payments
of minerals
extracted
============================= ======================== ========== =========== ============== ================= ======== ======================
Russia
Federal Tax Service of the
Russian Federation 958,116 - - - - - 958,116
Rosnedra (Federal Agency for
Subsoil Management) - - 9,349 - - - 9,349
============================= ======================== ========== =========== ============== ================= ======== ======================
Municipalities - - 742 - - - 742
============================= ======================== ========== =========== ============== ================= ======== ======================
Local land and property
administration
authorities - - 554 - - - 554
============================= ======================== ========== =========== ============== ================= ======== ======================
Ministry of Natural Resource
and Environmental
Protection
of Komi Republic - - 569 - - - 569
============================= ======================== ========== =========== ============== ================= ======== ======================
Pension Fund of the Russian
Federation 326 - - - - - 326
============================= ======================== ========== =========== ============== ================= ======== ======================
Social Insurance Fund of the
Russian Federation 171 - - - - - 171
============================= ======================== ========== =========== ============== ================= ======== ======================
Ministry of Natural Resource
and Environmental
Protection
of Perm Territory - - 66 - - - 66
============================= ======================== ========== =========== ============== ================= ======== ======================
Uzbekistan
Government of the Republic
of Uzbekistan - - - 13,046 (1) - - 13,046
============================= ======================== ========== =========== ============== ================= ======== ======================
State Tax Committee of the
Republic of Uzbekistan 2,062 18,258 - - - - 20,320
============================= ======================== ========== =========== ============== ================= ======== ======================
NHC Uzbekneftegaz - - - 1,421 (2) - - 1,421
Kazakhstan
State budget of the Republic
of Kazakhstan 6,841 - - - - 162 7,003
Egypt
To the government through
The Egyptian General
Petroleum 1,453
Corporation (EGPC) (3) - - 2,352 (5) - - 3,805
============================= ======================== ========== =========== ============== ================= ======== ======================
To the government through
Ganoub El Wadi Holding
Petroleum
Co (GANOPE) 17 (4) - - 147 (6) - - 164
------------------------ ---------- ----------- -------------- ----------------- --------
Iraq
Thiqar Oil Company - - - - 937 - 937
============================= ======================== ========== =========== ============== ================= ======== ======================
General Commission of Tax 2,775 - - - - - 2,775
Mexico
Fondo Mexicano del
Petróleo
para la Estabilización
y el Desarrollo - - 29 - - - 29
============================= ======================== ========== =========== ============== ================= ======== ======================
Servicio de
Administración
Tributaria 37 - - - - - 37
============================= ======================== ========== =========== ============== ================= ======== ======================
Norway
Norwegian Tax Administration (366) - - - - - (366)
============================= ======================== ========== =========== ============== ================= ======== ======================
Norwegian Petroleum
Directorate - - 26 - - - 26
The Republic of the Congo
Tresor Public 338 (7) 503 (8) - - - - 841
UAE
Supreme Petroleum Council - - 6,564 - - - 6,564
971,770 18,761 16,966
TOTAL (9) (10) 17,899 (11) 937 162 1,026,495
============================= ======================== ========== =========== ============== ================= ======== ======================
(1) Including the government's entitlement to a portion of minerals extracted in the amount equal to
the market price of 8,116 thousand barrels of oil equivalent.
(2) Including the government's entitlement to a portion of minerals extracted in the amount equal to
the market price of 876 thousand barrels of oil equivalent.
(3) Including payment in kind in the amount equal to the market price of 383 thousand barrels of oil
equivalent.
(4) Including payment in kind in the amount equal to the market price of 5 thousand barrels of oil
equivalent.
(5) Including the government's entitlement to a portion of minerals extracted in the amount equal to
the market price of 673 thousand barrels of oil equivalent.
(6) Including the government's entitlement to a portion of minerals extracted in the amount equal to
the market price of 41 thousand barrels of oil equivalent.
(7) Including payment in kind in the amount equal to the market price of 53 thousand barrels of oil
equivalent.
(8) Including payment in kind in the amount equal to the market price of 121 thousand barrels of oil
equivalent.
(9) The total amount includes payment in kind in the amount equal to the market price of 441 thousand
barrels of oil equivalent.
(10) The total amount includes payment in kind in the amount equal to the market price of 121 thousand
barrels of oil equivalent.
(11) The total amount includes the government's entitlement to a portion of minerals extracted in the
amount equal to the market price of 9,706 thousand barrels of oil equivalent.
PJSC LUKOIL Report on Payments to Governments for the year 2019
has been submitted to the National Storage Mechanism and is
available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism .
This Report can be also viewed at the Company's website at
www.lukoil.com .
This information is provided by RNS, the news service of the
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END
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