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     Lukoil’s intellectual potential enables it to be not only one of the largest users of state-of-the-art hardware but to generate its own ideas and develop-ments in areas of high technology, including nanotechnologies. 
In Russia, the oil and gas industry traditionally holds a leading position in the application of new technologies, both in the area of geological explo-ration and hydrocarbon production and in the area of hydrocarbon refining and petrochemical production. It is the natural resources sector of the econ-omy that could become Russia’s leader in introducing high technologies to production. 
Being one of the leaders of the domestic fuel and energy complex, Lukoil has always focused on introducing innovative technologies that hold promise for use in the oil and gas industry. 
Since 2008, the Company has been monitoring the latest achievements in the field of nanotechnologies and selecting innovative new technologies for its own use. Studies of the latest developments of foreign and Russian companies are convincing proof of the considerable potential on nanoindustry: the applica-tion of nanotechnologies is possible in virtually every sector of the oil and gas industry, from geological exploration and production to refining and sales. 
The Company is making good use in particular of the real possibilities for implementing projects in those areas that are now most developed in Russia. These are new materials (super-hard and wear-resistant), effective catalysts, multifunctional coatings, nanomodifiers and additives. 
At present, the Company is implementing pilot projects in using such inno-vative materials and finished product as: 
• nanoadditives for oil used in pumping gear, in particular; 
• wear-resistant nanocoatings for the rapidly wearing parts of pumps and compressors; 
• well pump valves with nanocoatings; 
• protective coatings for equipment operating in corrosive media. 
At present, a number of projects developed within the Company are being implemented jointly with Rusnano. 
The Company has been collaborating with the state-owned Russian State Corporation of Nanotechnologies since October 2009 under a general agree-ment on the strategic partnership between Lukoil and Rusnano for the commer-cialization of nanotechnologies. 
The general coordination of efforts to implement the general agreement is the responsibility of Deputy General Director of Rusnano and Head of Lukoil’s Main Engineering Division. 
Under the terms of partnership, projects associated with promising nan-otechnologies are being developed for the oil and gas industry. Priority pro-jects and areas for conducting pilot industrial tests of promising technologies on the ground of Lukoil Group companies are being identified. Being the largest collector of the latest developments in the area of nanotechnologies, Rusnano provides Lukoil with information on projects that appear promising for introduction at the Company. Projects based on the application of nanostructured catalysts in oil and gas refining are being developed in par-ticular. 
Lukoil is currently developing in collaboration with Rusnano the following projects associated with technologies developed at Lukoil: 
• The creation of a large-scale innovative technological complex for de-veloping fields of non-traditional kerogenic petroleum resources and hard-to-recover oil reserves, based on the integration of thermal and gas EOR methods. The project has been recognized by the RF Presi-dential Commission on the Modernization and Technological Devel-opment of the Russian Economy as being of great strategic importance to the national economy. 
• Expanding of the production of RITIN-10 oil-displacing nanostruc-tures. RITIN, which isolates flows of water and increases oil output, has a fixed stable nanostructure that enables effective pay beds simu-lation, with the possibility of adapting the structure to every type of oil collector and effectively displacing oil without upsetting the permea-bility of the formation. 
• Applying nanomodified materials in the large-scale production of pump drives based on electrical motors with yoke-twist magnets in the rotor. Such equipment provides for higher production efficiency and lower energy consumption while optimizing oil production by regulating the pump unit’s rotation  frequency. The new electric motor ena-bles cyclic mode of well operation while maintaining a high level of momentum at a low frequency of revolutions. 
Efforts are being made within the partnership to implement projects for the production and introduction of materials and technologies developed by Russian specific organizations with the participation of Rusnano. In this case, Lukoil specialists play the role of experts who formulate the requirements for applying these innovations in the oil and gas industry. 
This scheme for collaborating involves everything from theoretical  valida-tion and the creation of laboratory samples to the building of pilot industrial facilities. All divisions of Lukoil are engaged in such work, along with research and design institutes, oil producing concerns, petrochemical plants and oil re-fineries. 
The following Rusnano projects are now being examined for possible in-troduction at companies of the Lukoil Group: 
• Deploying technologies for multipurpose corrosion-resistant nano-coatings for protecting equipment operating in corrosive media. 
• Developing and building pilot industrial installations for removing sulfur from associated petroleum gas, based on the direct catalytic ox-idation of hydrogen disulfide with the help of nanostructured catalyz-ers. 
• Processing associated petroleum gas into liquid hydrocarbons using mini-GTL technology. 
Company experts expect that the most of the projects undertaken will suc-cessfully reach the stage of industrial introduction and will be able to be repli-cated, thereby proving a considerable economic boon to all those participating in the development and introduction process. 
It is obvious that thanks to nanotechnologies the world economy is on the threshold of a technological revolution that will affect virtually every area of human endeavor. In collaborating with Rusnano and other organizations of the national network, the Company is intent on searching for and using high tech-nologies and views these efforts as one of the most important conditions for its further successful development.