Press Releases

At the meeting held on April 12, 2004 LUKOIL Management Committee approved the sale of oil and gas assets located in the Komi Republic, Nenetsk Autonomous Region and Perm Region. This decision was taken as part of the Company Strategic Development Program till 2013 aimed at production costs reduction, assets portfolio optimization and increased returns on invested capital.

On March 25, 2004, OAO LUKOIL (“LUKOIL”) and OAO Arkhangelskgeoldobycha (“AGD”) won yet another expected victory in the courts of Colorado. The Colorado Court of Appeals affirmed a previous ruling of the District Court of the City and County of Denver to dismiss a case filed by Archangel Diamond Corporation (“Archangel”). The appellate court’s decision affirms the fact that LUKOIL and AGD are not subject to the exercise of Colorado’s jurisdiction.

The Board of Directors of OAO LUKOIL resolved to issue 6 million non-convertible interest-bearing documentary bonds to bearer with a par value of 1,000 rubles each and a five-year maturity.

The company LITASCO, a 100% subsidiary of LUKOIL, has signed a contract with Refinery Associates of Texas, Inc (USA) on supply of gasoline and diesel fuel to the northern provinces of Iraq.

OAO LUKOIL-Arctic Tanker, a subsidiary of OAO LUKOIL, sold 5 river-sea class tankers to IP Shipping Company (Malta) for $52 million.

On March 10, 2004, negotiations between Vagit Alekperov, President of OAO LUKOIL, and Ibrahim Bahr al-Ulyum, Minister of Oil of Iraq, were held in Baghdad. During the negotiations the parties discussed a wide range of questions related to the bilateral coopration. As a result of the meeting a Memorandum of understanding and cooperation was signed.

Today in Riyadh, the capital of the Kingdom of Saudi Arabia, Vagit Alekperov, President of OAO LUKOIL, and Ali I. Al-Naimi, Minister of Petroleum and Mineral Resources of the Kingdom of Saudi Arabia, acting on behalf of the Government of Saudi Arabia, signed an upstream agreement for exploration, development and production of non-associated gas and condensate in Contract Area A for 40 years.

LUKOIL started development drilling at the Kravtsovskoye (D-6) field located in the Baltic offshore today. The inauguration ceremony was attended by Iliya Klebanov, RF President’s official representative in the North-Western District, Vladimir Egorov, Governor of Kaliningrad region, and Vagit Alekperov, President of LUKOIL.