Lukoil visit at Fortum

Fortum helps Lukoil to increase power plant reliability

Fortum is providing Lukoil with a comprehensive maintenance and material management system to increase reliability and availability in their power plants.
​The goal is to help Lukoil increase power plant reliability and lower costs through the use of Fortum’s extensive Asset and Maintenance Management Solution. 

Fortum’s solution is based upon IBM’s Maximo® asset management system. It is a combination of the best parts of enterprise asset management and computerised maintenance management systems. Fortum’s solution implements a maintenance management model developed by in-house experts.

“This system delivers applications we have created ourselves,” says Harri Vesterinen, Project Manager, Fortum Power Solutions. “We have a background of running power plants in different countries for many years. We are sharing that experience and what we have learned.”

Lower costs, faster maintenance


The cooperation will help Lukoil manage their physical assets, work activities and service delivery. The deal covers Lukoil’s newer power plants and includes consulting on implementing IT systems, training for Lukoil’s staff, and ongoing updates and troubleshooting. 

“The main benefits we hope to gain are lower costs and quicker maintenance,” explains Jukka Saarinen, Head of IT Systems at Fortum Power Solutions. “With higher efficiency we reduce costs. Additionally we can provide higher occupational safety.” 

With the solution Lukoil will reduce interruptions by determining the optimal times for annual overhauls, preventive maintenance and fault repairs. The solution provides ongoing equipment status monitoring, management of stocked items and cost analysis. Worker safety can also be improved by document management like work permits and isolation plans. 

“The aim of this is to optimise costs and have a higher availability,” Vesterinen continues. “We want to have fewer shutdowns or breakdowns in equipment. This will help to produce energy when it is needed without errors.” 

Distant horizons


Fortum has worked with Lukoil for many years, and the long history of successful projects built a firm foundation for new collaborations. 

“After developing a relationship between our companies we at Lukoil were convinced of the excellence of Fortum’s business organisation and the professionalism of all the specialists who worked with us,” says Elena Romanova, chief specialist of PP and Networks Operation Department at Public Joint Stock Company LUKOIL. 

Romanova explains Lukoil became familiar with Fortum’s processes and qualifications as Fortum provided them with power specialist training. This led to the realisation that Fortum had much more to offer. 

“We would like to increase our competitive advantages by implementing Fortum’s best practices,” she says. “We are excited about the expected result in the entire sphere of our business. We need to change a lot and can’t leave everything as it is. We have distant horizons. This project is limited in time but I hope we have Fortum consultants with us in the future, too.” 

Expert team


“We are very pleased to work with the project team from Fortum,” Romanova continues. “The people in our project are excellent. They are hard-working and interested in our common result. This is professionalism!” 

Fortum has put together a dedicated team to implement the project. Many have long experience in the Russian market, including Project Manager Vesterinen. 

“We have a great team devoted to this,” Vesterinen explains. “We have IT specialists who are fantastic programmers. It is a good mix of younger programmers as well as those with a lot of experience with these types of systems.” 

Fortum does not simply provide these solutions – they also use them in their own power plants. Specialists from Fortum power plants are on hand to lend their experience and expertise to the project as it moves forward. 

“I am most excited about all these new models we are constantly developing,” Vesterinen concludes. “We really want to see this system working in Lukoil’s power plants. In the end, a satisfied customer is what we want.”    


A long history of cooperation 

Fortum Power Solutions and Lukoil have worked together in many projects over recent years. In 2009 Fortum audited more than ten of Lukoil’s power plants to find improvements and development ideas. Within a year Fortum was using their expertise in combined heat and power generation to help Lukoil hot commission a new plant and increase energy efficiency in another.
These projects led to a major framework cooperation agreement on technology collaboration, which included help with Lukoil’s operations, maintenance and R&D. Fortum has also assisted Lukoil with integrated management systems as well as staff training in several major projects.

 Text: David J. Cord