03.12.2007 Results of BoD Meeting

OAO LUKOIL BOARD OF DIRECTORS DISCUSSES PROJECTS AIMED AT INCREASING COMPANY’S SHAREHOLDER VALUE AND IMPROVING PERFORMANCE OF OIL REFINERIES AND PETROCHEMICAL PLANTS

 

OAO LUKOIL Board of Directors held its meeting in Moscow today to discuss projects aimed at increasing Company’s shareholder value and measures aimed at improving performance of oil refineries and petrochemical organizations of the LUKOIL Group.

Among other things, it was agreed that increasing shareholder value was LUKOIL’s primary strategic objective.

One of the ways to increase the Company’s market value is business expansion, including attainment of planned highly competitive growth rates of hydrocarbon production, extension and upgrading of refineries, development of petrochemical and marketing units, and also of the electric power segment. The largest projects in this sphere will be the aggressive development of the Northern part of Timan-Pechora oil and gas province (Yuzhno-Khylchuyuskoye field) in 2008, development of the North Caspian fields in 2009, partner relations with state companies, which would provide access to strategic fields, upgrading and expansion of oil processing facilities and establishment of an “Electric Power” business sector.