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#128 Vagit Alekperov $10.9B

Random fact: Regularly buys Lukoil shares on the open market.

Overview

Alekperov is chairman of Lukoil, Russia's second-largest oil company. The Moscow-based business produces 2 percent of the world's oil and had revenue of $71.2 billion in 2016. He's also collected more than $3.5 billion in dividends and owns 25 percent of IFD Kapital, which invests in energy, banking, construction and media.

As of July 23, 2017:
Last change -$106M (-1.0%)
YTD change -$1.02B (-8.5%)
Industry Energy
Biggest asset LKOD LI Equity
Citizenship Russian Federation
Age 66
Wealth Self-made
View net worth over:   Max 1 year 1 quarter 1 month 1 week

Relative Value

Vagit Alekperov's net worth of $10.9B can buy ...

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troy ounces of gold
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barrels of crude oil

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of the GDP of the United States
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of the total wealth of the 500 richest people in the world
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of the top 100 U.S. college endowments
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of the top 200 U.S. executives’ total awarded compensation
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of U.S. existing home sales
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times the median U.S. household income

Latest News

Net Worth Summary

Cash
Private asset
Public asset
Misc. liabilities
Confidence rating:

The majority of Alekperov's fortune is derived from a 23 percent stake in publicly traded Lukoil, Russia's second-largest oil producer by market capitalization, according to data compiled by Bloomberg. A regular buyer of Lukoil stock since the 1990s, Alekperov has spent about $4 billion buying shares since the IPO using proceeds from dividends and asset sales, as well as debt. He holds them directly and through holding companies. The Moscow-based business doesn't disclose details of how he holds the shares and reported his stake to be 23 percent in its 2016 annual report.

Alekperov sold a minority stake in Moscow-based Uralsib financial corporation, an investment holding company, to Nikolai Tsvetkov, a former partner, in 2006. His proceeds from the sale weren't disclosed and aren't included in the net worth calculation. He also holds a 25 percent stake in Moscow-based IFD Kapital, an investment company with interests in energy, banking, media and construction. The asset is valued using its reported equity minus a 30 percent discount to account for company debt. He also owns a 7.2 percent stake in Bank Otkritie Financial Corporation, according its website in March 2017.

The value of his cash holdings is based on an analysis of dividends, insider transactions, taxes and market performance.

Dmitry Dolgov, a Lukoil spokesman, said Alekperov declined to comment on his net worth.

Biography

Birthdate: 9/1/1950
Family: Married, 1 child
Education: 1974, Graduated, Azerbaijan Oil & Chemical Institute

Alekperov, the youngest of five children, was born in Baku, Azerbaijan, in 1950. His father, an oil worker, died when he was 3 years old, and he himself became an oil driller when he was 22. Not long after taking the job, Alekperov survived an explosion on an oil platform in the Caspian Sea and swam to safety. He studied engineering in the evenings at the Azerbaijan Institute of Oil and Chemistry and graduated in 1974.

Five years later, he moved to West Siberia, where he worked in a series of senior positions for the Surgutneftegaz and Bashneft oil companies. In 1987, he was put in charge of Kogalymneftegaz, a company operating in Russia's oil-rich Tyumen region.

Alekperov was named deputy at age 40, and then first deputy minister of Russia's oil and gas industry. In 1990, at the invitation of British Petroleum, he led a Russian delegation of oilmen to the U.K., where he became enamored with BP's vertical business model, which integrated development, production and distribution. As the Soviet Union began to crumble, Alekperov became head of a newly created state oil entity that oversaw oil and gas properties in West Siberia. The company was renamed Lukoil and, with Alekperov at the helm, was partly privatized in 1993. His stake was first reported as 10 percent when Lukoil was listed on the London Stock Exchange in 2002, and as 16.9 percent in 2007, in accordance with U.K. Financial Services Authority rules. The state sold all of its shares in the company by 2004.

Alekperov has been accumulating shares in Lukoil since the 1990s, and today owns more than 20 percent. Under his control, the company has expanded beyond Russia and into regions including Iraq and the U.S. In 1997, Lukoil secured the rights to develop an oilfield from Saddam Hussein and in 2000 it bought Getty Petroleum Marketing along with its network of 1,300 U.S. service stations. Today Lukoil is Russia's largest non-state oil company. With expanding operations in Latin America and Asia, the company's production output may approach that of Royal Dutch Shell, Europe's largest oil outfit, in the next decade.

A Communist Party member in the former Soviet Union, Alekperov was one of the businessmen who supported Boris Yeltsin's 1996 presidential campaign. He has maintained his ties with Russia's new leadership. While other privatized Russian oil companies -- including Roman Abramovich's Sibneft and Mikhail Khodorkovsky's Yukos -- fell back into government hands, Alekperov's Lukoil has remained independent.

Milestones
  • 1950 Vagit Alekperov is born in Baku, Azerbaijan.
  • 1968 Starts working as an oil driller.
  • 1974 Graduates from Azerbaijan Oil and Chemistry Institute.
  • 1987 Becomes general director at Kogalymneftegaz.
  • 1990 Appointed Russia's Deputy Minister of the oil and gas industry.
  • 1991 Establishes Russian drilling operation that would become Lukoil.
  • 2000 Lukoil buys Getty Petroleum's 1,300 gas stations in U.S.
  • 2004 ConocoPhillips buys 8 percent of Lukoil, increases stake to 20 percent in 2006.
  • 2011 ConocoPhillips sells 20 percent of Lukoil.