Vagit Alekperov
Encyclopedia
Vagit Alekperov; ' onMouseout='HidePop("23730")' href="/topics/Baku">Baku
, Azerbaijan
) is an Azerbaijani businessman and currently a President of the leading Russian oil company LUKOIL
.
He is currently rated by Forbes magazine as the eighth richest person in Russia with $13.9 billion of net worth and the 50th richest person in the world.
, one of the earliest centers of the international petroleum industry. His father, who died when Vagit was a boy, worked in the oil fields all his life and inspired Alekperov to follow in his footsteps. Alekperov's father was a Muslim and his mother, Russian Orthodox. Alekperov is religious, but does not define himself as either Muslim or Orthodox. He was eighteen when he landed his first job in the industry.
Alekperov graduated in 1974 from the Azerbaijan Oil and Chemistry Institute. As a student he also worked as a drilling operator in Kaspmorneft, a Caspian
regional production company.
After graduation, he continued to work there, and by 1979 he had advanced from engineer to deputy head of a production unit. He had to work in extreme conditions on offshore oil rigs. On one occasion, an explosion on his rig threw him into the stormy Caspian sea
, and he had to swim for his life.
Alekperov moved to Western Siberia
in 1979 and worked at Surgutneftegaz between 1979 and 1985, earning his reputation as an industry expert. He was ascending positions and by 1985 became first deputy general director of Bashneft
production company. In 1987, he became general director of the newly created production company Kogalymneftegaz.
In 1990, Alekperov was appointed deputy minister of the Oil and Gas Industry of the Soviet Union
and became the youngest deputy energy minister in Soviet history. At that time, Alekperov promoted establishment of vertically integrated state-owned energy companies, which would bring together the wide range of organizations in the energy sector that were, at the time, reporting to different Soviet bureaucratic institutions.
As deputy minister of the oil and gas industry of the Soviet Union, Alekperov was engaged in the formation of the first vertically integrated state-owned energy company, Langepas-Uray-Kogalymneft, which was established in late 1991 as a subsidiary of the Ministry of Fuel and Energy. In April 1993, Langepas-Uray-Kogalymneft became LUKoil
Oil Company, with Alekperov as its president.
Lukoil thus arose in the dying days of the Soviet Union in 1991, set up by a small group of Soviet oil bureaucrats led by Alekperov. Another member of the group was his close friend Vitaly Schmidt, a petroleum engineer. The group forged strong bonds working in a remote drilling camp in the Siberia
n swamp town of Kogalym
, meaning "the lake where a man died."
Oil tycoon Schmidt was himself a multi-millionaire with luxury residences in four countries. Much of his fortune came from a group of small offshore energy companies he oversaw on behalf of himself and the few fellow executives of Lukoil.
His sudden death under mysterious circumstances in Moscow in August 1997 set off a struggle for control of his assets, hidden in tax havens from the Isle of Man
to Panama
. It led his son Vadim Schmidt, nineteen when his father died, to accuse Lukoil executives, including Alekperov, of raiding his father's estate, allegations they deny, according to front page article in the Wall Street Journal on December 6, 2006.
Vadim made the claim in an Isle of Man court and in the high U.K. appellate court known as the Privy Council
. In response to the allegations that Lukoil executives sometimes took control of company profits Vitally Schmidt had secreted in the Isle of Man, Alekperov said, "Unfortunately, the son didn't take after his father. He's looking for his father's supposed money."
Schmidt had been head of drilling in Kogalym when Alekperov moved to the oil ministry in Moscow. There, Alekperov helped establish Lukoil as a state company with control of Kogalym and extensive natural-gas assets. A minority slice of Lukoil' s shares started trading publicly in Russia in 1993, after which the state's interest gradually shrank to zero.
Alekperov has remained president of LUKoil since that time. Employing more than 100,000 people, today LUKoil is among the world's most powerful oil companies, with reserves second only to Exxon
.
LUKoil was also the first Russian company to acquire an American company. In November 2000, LUKoil acquired Getty Petroleum Marketing
and its 1,300 gas stations in the United States Like many other Russian oligarchs, Alekperov has also moved into banking and media.
The British Daily Mail
newspaper reported on May 4, 2007, that Alekperov has expressed interest in buying Tottenham Hotspur football club. The newspaper said Tottenham is an attractive proposition for Alekperov, being based in London but with a global reputation and an impressive games record at home and abroad.
It is believed, however, that Daniel Levy
, chairman of the Premier League football club, has no desire to cede control. He is credited with restoring the club's former glories since the ENIC Group
(a sports, entertainment, and media group of which he is also managing director) took it over from Sir Alan Sugar
.
Baku
Baku , sometimes spelled as Baki or Bakou, is the capital and largest city of Azerbaijan, as well as the largest city on the Caspian Sea and of the Caucasus region. It is located on the southern shore of the Absheron Peninsula, which projects into the Caspian Sea. The city consists of two principal...
, Azerbaijan
Azerbaijan
Azerbaijan , officially the Republic of Azerbaijan is the largest country in the Caucasus region of Eurasia. Located at the crossroads of Western Asia and Eastern Europe, it is bounded by the Caspian Sea to the east, Russia to the north, Georgia to the northwest, Armenia to the west, and Iran to...
) is an Azerbaijani businessman and currently a President of the leading Russian oil company LUKOIL
LUKoil
Lukoil/LUKoil ; ) is Russia's second largest oil company and its second largest producer of oil. In 2009, the company produced 97.615 million tons of oil; ....
.
He is currently rated by Forbes magazine as the eighth richest person in Russia with $13.9 billion of net worth and the 50th richest person in the world.
Biography
He was born in BakuBaku
Baku , sometimes spelled as Baki or Bakou, is the capital and largest city of Azerbaijan, as well as the largest city on the Caspian Sea and of the Caucasus region. It is located on the southern shore of the Absheron Peninsula, which projects into the Caspian Sea. The city consists of two principal...
, one of the earliest centers of the international petroleum industry. His father, who died when Vagit was a boy, worked in the oil fields all his life and inspired Alekperov to follow in his footsteps. Alekperov's father was a Muslim and his mother, Russian Orthodox. Alekperov is religious, but does not define himself as either Muslim or Orthodox. He was eighteen when he landed his first job in the industry.
Alekperov graduated in 1974 from the Azerbaijan Oil and Chemistry Institute. As a student he also worked as a drilling operator in Kaspmorneft, a Caspian
Caspian Sea
The Caspian Sea is the largest enclosed body of water on Earth by area, variously classed as the world's largest lake or a full-fledged sea. The sea has a surface area of and a volume of...
regional production company.
After graduation, he continued to work there, and by 1979 he had advanced from engineer to deputy head of a production unit. He had to work in extreme conditions on offshore oil rigs. On one occasion, an explosion on his rig threw him into the stormy Caspian sea
Caspian Sea
The Caspian Sea is the largest enclosed body of water on Earth by area, variously classed as the world's largest lake or a full-fledged sea. The sea has a surface area of and a volume of...
, and he had to swim for his life.
Alekperov moved to Western Siberia
Siberia
Siberia is an extensive region constituting almost all of Northern Asia. Comprising the central and eastern portion of the Russian Federation, it was part of the Soviet Union from its beginning, as its predecessor states, the Tsardom of Russia and the Russian Empire, conquered it during the 16th...
in 1979 and worked at Surgutneftegaz between 1979 and 1985, earning his reputation as an industry expert. He was ascending positions and by 1985 became first deputy general director of Bashneft
Bashneft
Bashneft is a Russian oil company. It is one of the largest producer of oil products in the country. The company operates 140 oil and natural gas fields in Russia and has an annual oil production of 16 million tonnes. Bashneft owns three oil refineries located in Ufa with a combined capacity of ...
production company. In 1987, he became general director of the newly created production company Kogalymneftegaz.
In 1990, Alekperov was appointed deputy minister of the Oil and Gas Industry of the Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....
and became the youngest deputy energy minister in Soviet history. At that time, Alekperov promoted establishment of vertically integrated state-owned energy companies, which would bring together the wide range of organizations in the energy sector that were, at the time, reporting to different Soviet bureaucratic institutions.
As deputy minister of the oil and gas industry of the Soviet Union, Alekperov was engaged in the formation of the first vertically integrated state-owned energy company, Langepas-Uray-Kogalymneft, which was established in late 1991 as a subsidiary of the Ministry of Fuel and Energy. In April 1993, Langepas-Uray-Kogalymneft became LUKoil
LUKoil
Lukoil/LUKoil ; ) is Russia's second largest oil company and its second largest producer of oil. In 2009, the company produced 97.615 million tons of oil; ....
Oil Company, with Alekperov as its president.
Lukoil thus arose in the dying days of the Soviet Union in 1991, set up by a small group of Soviet oil bureaucrats led by Alekperov. Another member of the group was his close friend Vitaly Schmidt, a petroleum engineer. The group forged strong bonds working in a remote drilling camp in the Siberia
Siberia
Siberia is an extensive region constituting almost all of Northern Asia. Comprising the central and eastern portion of the Russian Federation, it was part of the Soviet Union from its beginning, as its predecessor states, the Tsardom of Russia and the Russian Empire, conquered it during the 16th...
n swamp town of Kogalym
Kogalym
Kogalym is a town in Khanty–Mansi Autonomous Okrug, Russia, located on the Inguyagun River northeast of Khanty-Mansiysk. Population: It was founded in 1975 due to the development of the oil fields in its vicinity. It was granted town status on August 15, 1985. Economy of the town is based on...
, meaning "the lake where a man died."
Oil tycoon Schmidt was himself a multi-millionaire with luxury residences in four countries. Much of his fortune came from a group of small offshore energy companies he oversaw on behalf of himself and the few fellow executives of Lukoil.
His sudden death under mysterious circumstances in Moscow in August 1997 set off a struggle for control of his assets, hidden in tax havens from the Isle of Man
Isle of Man
The Isle of Man , otherwise known simply as Mann , is a self-governing British Crown Dependency, located in the Irish Sea between the islands of Great Britain and Ireland, within the British Isles. The head of state is Queen Elizabeth II, who holds the title of Lord of Mann. The Lord of Mann is...
to Panama
Panama
Panama , officially the Republic of Panama , is the southernmost country of Central America. Situated on the isthmus connecting North and South America, it is bordered by Costa Rica to the northwest, Colombia to the southeast, the Caribbean Sea to the north and the Pacific Ocean to the south. The...
. It led his son Vadim Schmidt, nineteen when his father died, to accuse Lukoil executives, including Alekperov, of raiding his father's estate, allegations they deny, according to front page article in the Wall Street Journal on December 6, 2006.
Vadim made the claim in an Isle of Man court and in the high U.K. appellate court known as the Privy Council
Privy council
A privy council is a body that advises the head of state of a nation, typically, but not always, in the context of a monarchic government. The word "privy" means "private" or "secret"; thus, a privy council was originally a committee of the monarch's closest advisors to give confidential advice on...
. In response to the allegations that Lukoil executives sometimes took control of company profits Vitally Schmidt had secreted in the Isle of Man, Alekperov said, "Unfortunately, the son didn't take after his father. He's looking for his father's supposed money."
Schmidt had been head of drilling in Kogalym when Alekperov moved to the oil ministry in Moscow. There, Alekperov helped establish Lukoil as a state company with control of Kogalym and extensive natural-gas assets. A minority slice of Lukoil
Alekperov has remained president of LUKoil since that time. Employing more than 100,000 people, today LUKoil is among the world's most powerful oil companies, with reserves second only to Exxon
Exxon
Exxon is a chain of gas stations as well as a brand of motor fuel and related products by ExxonMobil. From 1972 to 1999, Exxon was the corporate name of the company previously known as Standard Oil Company of New Jersey or Jersey Standard....
.
LUKoil was also the first Russian company to acquire an American company. In November 2000, LUKoil acquired Getty Petroleum Marketing
Getty Oil
Getty Oil is an oil company founded by J. Paul Getty. It was at its height during the 1960s. In 1971, the Getty Realty division was formed to manage the real estate needs of Getty stations. The division was later spun off, but now owns the rights to the Getty brand...
and its 1,300 gas stations in the United States Like many other Russian oligarchs, Alekperov has also moved into banking and media.
The British Daily Mail
Daily Mail
The Daily Mail is a British daily middle-market tabloid newspaper owned by the Daily Mail and General Trust. First published in 1896 by Lord Northcliffe, it is the United Kingdom's second biggest-selling daily newspaper after The Sun. Its sister paper The Mail on Sunday was launched in 1982...
newspaper reported on May 4, 2007, that Alekperov has expressed interest in buying Tottenham Hotspur football club. The newspaper said Tottenham is an attractive proposition for Alekperov, being based in London but with a global reputation and an impressive games record at home and abroad.
It is believed, however, that Daniel Levy
Daniel Levy
Daniel Levy may refer to:*Daniel Levy , Chairman of the British football club Tottenham Hotspur*Daniel Levy , Israeli political analyst, active in the joint non-governmental Israeli-Palestinian Geneva Initiative...
, chairman of the Premier League football club, has no desire to cede control. He is credited with restoring the club's former glories since the ENIC Group
ENIC Group
ENIC International Ltd is a British investment company ultimately controlled and owned by Joseph Lewis .Focused on sports, media and investment, the group is chaired by Daniel Levy....
(a sports, entertainment, and media group of which he is also managing director) took it over from Sir Alan Sugar
Alan Sugar
Alan Michael Sugar, Baron Sugar is a British entrepreneur, media personality and political advisor. From humble origins in the East End of London, Sugar now has an estimated fortune of £770m , and was ranked 89th in the Sunday Times Rich List 2011...
.
Personal life
Alekperov is married and has a son Yusuf born in 1990. In his free time he prefers traveling the world or stays with his family and friends.External links
- Biography of Vagit Alekperov
- http://pqasb.pqarchiver.com/wsj/access/1174692441.html?dids=1174692441:1174692441&FMT=ABS&FMTS=ABS:FT&date=Dec+6%2C+2006&author=Glenn+R.+Simpson&pub=Wall+Street+Journal&edition=Eastern+edition&startpage=A.1&type=91_1996&desc=Russian+Federation%3A+At+Lukoil%2C+an+Executive%27s+Death+Exposes+Network+of+Inside+Deals(WSJ) Lukoil Executive’s Death Exposes Network of Inside Deals, by Glenn R. Simpson, December 6th, 2006]
- Business Russia