LUKOIL expands its oilfield service assets

LLC "Spetspromservice", 49.5% owned by LUKOIL, acquired the contractor "Masterneft-Service" (MNS). Previously, the MNS was controlled by Vladimir Kuklin, who is associated with former LUKOIL vice president Iskender Khalilov, who was a co-founder of the MNS in 2020.

The deal will allow LUKOIL to strengthen its control over contract work and reduce costs in key regions, but analysts do not consider this a return to full vertical integration.

MNS specializes in the repair and development of wells for LUKOIL-Perm, which holds licenses for oil production in several regions with reserves of over 1 billion tons. In 2024, MNS revenue decreased by 6.7% to 8.39 billion rubles, while net profit decreased by more than 35 times to 25.34 million rubles. The main divisions of the company are located in Usinsk, Kogalym and Langepas. The MNS may be related to the bankrupt NK Master-Neft, where Kuklin was a co-owner. Legal proceedings in this regard are continuing, but the courts have not found evidence of the benefits of the MNS from the disputed transactions.

According to forecasts, by 2030, the share of own oilfield service assets of large companies may reach 55%. LUKOIL is actively developing this segment: "Spetspromservice" has received almost 30 billion rubles of investments and increased revenue to 20.4 billion rubles. At the end of 2024, LUKOIL acquired 25% of Argos-Stroy from Argos oilfield services Group.

Experts note that the oilfield service requires constant investments and its effectiveness largely depends on the load, and for some companies, their own service assets do not always provide a competitive advantage.

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