Lukoil Shakes Up Top Management

Katya Golubkova and Vladimir Soldatkin
Wednesday, March 4, 2020

Lukoil shook up its oil production business on Wednesday, promoting a low-profile executive and splitting the role of a veteran of Russia's top private oil producer, who is seen as a possible future leader. đ

Russia's second-biggest oil producer after state-controlled Rosneft is run by its co-founders and biggest shareholders, 69-year-old Chief Executive Vagit Alekperov and his 63-year-old deputy, Leonid Fedun.

 Alekperov and Fedun have not said what they plan to do in the long-term with their combined stake of more than 30% in Lukoil, which has a total market value of around $61 billion, prompting questions about its strategy and eventual leadership. Fedun told Reuters this week he had no plans to quit and will focus on preparing Lukoil for complying with global carbon emission reduction goals set through 2050. 

Meanwhile, Alekperov has said that Lukoil's board, not his heirs, would manage his stake if he were unable to do so. 

Lukoil, which pumps as much oil as OPEC member Nigeria, said on Wednesday that it decided to split the role of Azat Shamsuarov, senior vice-president for oil and gas production, leaving the 56-year-old to focus solely on Russia, where Lukoil still gets the bulk of its oil, notably from western Siberia. 

Foreign upstream business was handed to Denis Rogachev, 42, who was promoted from vice-president for procurement. Lukoil said that changes reflected "regular rotation" of its senior staff with a view "to improve business processes". 

It declined additional comment. 

Shamsuarov, who has been with Lukoil for more than 20 years, has held key positions within the firm's foreign operations and in western Siberia. Along with first executive vice-president Ravil Maganov, Alekperov's right-hand man, he has been seen as a possible candidate to head Lukoil. 

(Reporting by Katya Golubkova and Vladimir Soldatkin; Editing by Alexander Smith)

Categories: People & Company News Energy People Russia Industry News Activity

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