Year 1994 can be considered as the starting point for international expansion of LUKOIL. It was then a 10% stake in the Azerbaijan’s largest Caspian Azeri-Chirag-Gyuneshli field was purchased. 

Over 1995-97 LUKOIL carried on its international activities and entered into petroleum and gas projects such as Karachaganak, Kumkol and Tengiz (Kazakhstan), Meleiha, Shakh-Deniz (Azerbaijan) and Western Kurna – 2 (Iraq).

On December 4, 1997, LUKOIL’s Board of Directors decided to incorporate “LUKOIL Overseas Holding Ltd.” led by the Vice-President, Head of the Division for marine and international projects of LUKOIL, Djevan Cheloyants.

1998. LUKOIL Overseas operations was enlarged by the following international up-stream projects: Azeri-Chirag-Gyuneshli, Shakh-Deniz, the new D-222-Yalama project in Azerbaijan, as well as Karachaganak, Kumkol and Meleiha.

1999. The Company establishes international offices in London, Nicosia, Baku, Amsterdam and other cities.

2000. LUKOIL Overseas incorporates ZAO LUKOIL-Perm, as Operator of the Russian projects. Andrey Kuzyaev, the LUKOIL-Perm General Director, is nominated as President of LUKOIL Overseas Holding Ltd.

2001. LUKOIL Overseas inaugurates its Moscow Corporate Center.  The operating projects expanded and now include Zykh-Govsany in Azerbaijan and the West Esh-El-Mallakha (WEEM ) in Egypt.  LUKOIL-Perm incorporates upstream companies: ZAO Bitech-Silur, OOO Parma-oil, AmKomi (All from the Komi Republic in Russia). Full control is established over OOO Permtex (Perm Region, Russian Federation).   LUKOIL-Perm also incorporates four minor oil producers from the Perm region and a major OOO Vatoil from the Khanty-Mansiysk Autonomous district.

2002. LUKOIL-Perm asset consolidation is complete: three subsidiaries are set up; OOO Parma-Oil and ZAO Bitech-Silur merge; a producing Ural-Oil company is purchased in 100% ownership (Perm Region, Russian Federation). A Contract is signed with the Colombian National Oil & Gas Ecopetrol Company for joint exploration and production of oil at Condor block (Lianos field, Colombia). A WEEM (Egypt) concession share is purchased from the Canadian Naftex Energy Corporation. The International Financial Corporation grants the Company a loan of 150 million USD to be used in Karachaganak oil and gas field development.  New representative offices are opened in Bogota (Colombia), Cairo (Egypt), Tashkent (Uzbekistan) and Astana (Kazakhstan). An agreement is signed with Japanese company Inpex on selling a 10% participation share of the Holding in the offshore Azeri-Chirag-Gyuneshli project.

2003. The Company signs a credit agreement with the European Bank of Reconstruction and Development (EBRD) for $80 million syndicated loan to be used in developing of Siberian field (Perm region, Russian Federation) and protecting environment. The Company signs an agreement with the Norwegian Nosrk Hydro on the joint exploration of Anaran Block (Western Iran). The National Iranian Company approves the agreement and it becomes effective.  LUKOIL Overseas wins a tender for North-East Geysum and West Geysum offshore blocks (Suez Gulf, Republic of Egypt), and the Company signs concession agreements with the Oil Ministry of Egypt.  The Company signs an agreement with SOCAR on increasing the LUKOIL Overseas share in D-222 (Yalama) up to 80% and more than doubling the contract area of the exploration block.  A drilling contractor tender is organized for drilling the first deepwater exploration well, using the new Lider platform.  LUKOIL Overseas establishes a 100% control over ZAO LUKOIL-Perm.  LUKOIL-Perm is finally merged with a major oil producer LUKOIL-Permneft (Perm region, Russian Federation), and assets located outside the Perm region are removed from the Holding. 

2004. ОАО LUKOIL and the Kazakh KazMunaiGaz sign an agreement on the parity participation in the PSA on the offshore Tyub-Karagan area (Kazakh sector of the Caspian sea)  and on the contract on exploration of the offshore Atashskiy area.   The Projects shall be implemented by subsidiaries – LUKOIL Overseas and KazMunaiTeniz (offshore operations), which had signed a joint operating agreement for both projects. The seismic surveys in the areas were completed by the end of the year. In spring 2005, it is planned to start the drilling of the first exploration well at the Tyub-Karagan area.

After winning an open tender, on March 7, OAO LUKOIL and the Ministry of Oil and Mineral Resources of Saudi Arabia signed for exploration and development of natural gas and gas condensate fields on Block A.  A joint venture with Saudi Aramco, the state oil company, was established to implement the project, with LUKOIL holding an 80% interest in the venture. The JV was named LUKOIL Saudi Arabia Energy Ltd. (LUKSAR). At the end of November, 3D seismic work started in the contract area.

On June 16, in Tashkent, the Government of the Republic of Uzbekistan, the National Holding Company Uzbekneftegas and OAO LUKOIL signed the Production Sharing Agreement on the Kandym-Khauzak-Shady project providing for the production of the natural gas in the Bukharo-Khiva Region in the southwest of the country.  The investors’ consortium includes LUKOIL (90%) and Uzbekneftegas (10%). The duration of the PSA is 35 years. The start of commercial gas production is planned for 2007. The project also envisages the construction of a modern gas-chemical complex, two compressor stations and other infrastructure facilities. On November 24, the PSA came into effect.

On June 30, LUKOIL signed a binding agreement, under which the Company will purchase from the Italian ENI Group its 50% share in the JV LUKAgip N.V. The JV owns a 24% interest in the oil development project at the Meleiha field in Egypt, a 10% interest in the PSA for the Shah-Deniz offshore field in Azerbaijan, an 8% interest in Azerbaijan Gas Supply Company Ltd. and a 10% interest in the South Caspian Pipeline Company. On October 17, LUKOIL Overseas started exploration drilling at the offshore D-222 area (Yalama) with the Geidar Aliev rig (former  Lider).

On October 13, LUKOIL Overseas commissioned a 100 km export oil pipeline connecting Khurgada, El Bikhar and Gebel Az Zeit in the western coast of the Red Sea. On November 10, LUKOIL Overseas started exploration drilling at the North-East Geisum offshore block in Egypt.

On November 26, in Moscow, the Memorandum of Understanding was signed between OAO LUKOIL and the National Oil and Gas Company Petroleos de Venezuela S.A. (PDVSA). The document reflects PDVSA`s willingness to provide new upstream projects in the so-called Orinoco heavy oil belt, new exploration, development and production projects in the Gulf of Venezuela (Lake Maracaibo), as well as field rehabilitation and oil recovery enhancement projects on depleted fields for LUKOIL's review for the purpose of possible joint implementation.    PDVSA will also provide to LUKOIL for consideration proposals on possible cooperation in the area of oil refining.