Lukoil is the second largest company in Russia after Gazprom, and the largest non-state enterprise in the nation in terms of revenue (₽4,744 billion). Internationally, it is one of the largest global producers of crude oil. In 2012, the company produced 89.856 million tons of oil (1.813 million barrels) per day. The company has operations and subsidiaries in more than 40 countries around the world.
"Langepas, Uray, and Kogalym" oil (Lukoil) was established by the USSR Council of Ministers Decree № 18 on November 25, 1991 as a state-owned enterprise. In the new company, three oil production companies, Langepasneftegaz, Uraineftegaz, and Kogalymneftegaz, processing company Permnefteorgsintez, and the Volgograd and Novosibirsk refineries, were merged (the latter soon came under the control of the authorities of Bashkortostan).
The central figure in the company's founding was the Soviet deputy minister of oil production Vagit Alekperov. He came to believe the only way Russians could compete against western companies was to copy their business model. That meant vertically integrating the three branches of the industry—exploration, refining, and distribution—that were strictly separate under the old Soviet system.
On April 5, 1993, Lukoil transformed itself from a state-owned enterprise to a private open joint-stock company based on Presidential Decree № 1403 of November 17, 1992. The Decree also applied to other state-owned oil companies as well.
In 1994, Lukoil became the first company to begin offering shares of stock on the new Russian Trading System.