Product quality and customer relations
LUKOIL Group entities produce a wide range of products for various industries and vehicle owners in Russia, Europe, Asia, and the Americas. Our priorities are focused on meeting customer expectations, developing and launching new products with enhanced operational and environmental properties, and continually improving quality management
Manufacturing and selling products with enhanced properties
LUKOIL branded products have enhanced properties that enable lower fuel consumption and reduce the content of hazardous substances in exhaust gases. The use of new and innovative products fosters improvements in safety and reduces negative environmental impacts.
|Type of product||2018||2019||2020|
|ECTO brand fuel, thousand tonnes||9,603||9,022||8,299|
|Bunker fuel, thousand tonnes||4,742||4,269||2,732|
|Aviation bunker fuel, thousand tonnes||3,198||3,357||2,539|
|Branded oils (premium group), thousand tonnes||594||574||611|
| Biofuel ||6,515||7,093||6,733|
| Note. |
A temporary decrease in sales of branded oils in 2019 versus 2018 is the result of the MARPOL convention which came into effect on January 1, 2020.
The composition of our motor fuels was 100 percent compliant with environmental standard Euro-5 (environmental class 5) as early as 2012. The combustion products of these new types of fuel contain less sulfur, soot, carcinogens, and other hazardous substances. The Company also produces innovative products for marine shipping, aviation, and industrial companies.
|Share of ECTO branded fuels (motor gasoline and diesel) in total retail sales of petroleum products in Russia and abroad||63||64||61|
|Share of environmentally safe marine fuel in total sales of bunker fuel||23||23||16|
| Share of energy efficient lubricants in total production of lubricants (PVL + ||8||10||16|
Production of energy efficient and environmentally friendly oils and lubricants
Our priority in developing production of oils and lubricants is to create innovative products for promising new types of equipment and machinery, as well as highly effective specialized products for various industry sectors.
- LLK-International develops and supplies low-viscosity Genesis FE (Fuel Economy) oils to consumers in various countries. These oils help reduce fuel consumption by internal combustion engines and boost energy efficiency. In 2020, we successfully developed a low-viscosity engine oil for hybrid engines, approved under the new Daimler
specificationLUKOIL GENESIS MCB 225.33 0W-20 engine oil., and a low-viscosity engine oil for MAN trucksLUKOIL AVANTGRADE PROFESSIONAL XLE 5W-30 engine oil, compliant with M3777 specification..
We also produce environmentally friendly oils. Biodegradable products under the BIO brand (BIOLUBE, BIOCHAIN, and BIOFLUIDE) are supplied to the European
- We continue to develop fully biodegradable hydraulic fluids and coolants.
- Special hydraulic oils that can be degraded in Arctic conditions are being developed.
A monitoring system for lubricants, vehicles, and permanent facilities was implemented in 2020. The monitoring system represents a software and hardware complex powered by industrial internet technologies, which makes it possible to remotely monitor the condition of lubricants, as well as mobile and fixed facilities to preserve their quality.
In the reporting year, LLK-International continued to develop collaboration with several leading world manufacturers of equipment and machinery. For example, we expanded our relations with Volkswagen, a major car manufacturer in Russia and Europe. LUKOIL became the principal supplier of lubricants for MAN engine plant in Nuremberg, Germany.
LLK-International had been a member of the Waste Recycling Association since 2018 until 2020.
Improving the quality of services at filling stations
Three liquefied petroleum gas (LPG) sales facilities with a total volume of about 3 tonnes per year were commissioned in 2020 to expand the fuel product line and promote more environmentally friendly fuels. In 2021, we plan to open additional LPG facilities with a total sales volume of over 28 thousand tonnes per year and to launch a pilot project for the installation of a compressed natural gas module (with a capacity of over 9 thousand tonnes per year) at a filling station in Nizhny Novgorod.
Transition to the Guaranteed Oil Product Delivery system from tank farms to end user remains on track. For instance, the LUKOIL-Tsentrnefteprodukt filling stations have completely switched to this system; so have the LUKOIL-Severo-Zapadnefteprodukt filling stations in six regions, and LUKOIL-Uralnefteprodukt in four regions of operation — a total of about 67 percent of filling stations have been enrolled in the system to date. The guaranteed delivery system ensures the quality and quantity of transported fuel and reduces the number of technological operations that expose filling station personnel to hazards.
A Corporate Competence Center and Organizational Development Unit were established on the basis
Thanks to the extensive efforts of the Corporate Competence Center, we diversified our training courses for area managers and filling station employees. Constant training guarantees improved quality of customer relations. In addition, in 2020 all filling station employees in Russia were equipped with new uniforms which were designed in response to their comments and requests.
Plans for further improvement of the quality of services involve training and motivational events as part of the Year of Service (2021), the introduction of innovative customer-oriented service scenarios, development of interactive customer channels, and digital services for corporate clients on the mobile application and in personal account. The new concept of catering at filling stations is based on strict quality control of food from the preparer to the customer.
Relations with filling station customers
We maintain constant contact with the retail customers of our filling stations and analyze feedback from them in order to improve the quality of services as well as the level of satisfaction with our products and services. The main methods of customer interaction are surveys and analyses of client requests and proposals received via the Unified Hotline directly at filling stations and through social networks. LICARD LLC’s Big Data analytics tools facilitate customer segmentation, which in turn facilitates more accurate feedback.
Feedback is used to improve the work of regional managers at filling stations: every month their performance is benchmarked against criteria that take into account requests and complaints received via the Unified Hotline as well as the rating received in the mobile application.
By the end of 2020, the number of LUKOIL GAS STATIONS mobile application users surpassed 4.2 million customers (YoY increase – over 1.4 million people).
The customer relations system we have developed helps us boost overall operational efficiency and create a welcoming environment at filling stations.