LUKOIL ACQUIRES FILLING STATION NETWORK IN ROSTOV REGION

Monday, December 24, 2007

ООО LUKOIL-Nizhnevolzhsknefteprodukt (OAO LUKOIL wholly owned subsidiary) has acquired ZAO Rostovneft distribution network.

The transaction amount came to RUR 1.4 billion.

The newly acquired assets include 55 filling stations and bulk plant facilities.

Volgograd refinery will supply petroleum products to be marketed through these filling stations.

The Company’s own distribution network in Rostov region comprises 41 filling stations marketing 100 thousand tons of petroleum products per annum, which accounts for 6% of the local market capacities.

Acquisition of ZAO Rostovneft distribution network will enable the Company to double retail petroleum products marketing output and increase the Company’s share in Rostov region retail market to as high as 12%.

Rostov region is one of the Company’s top-priority regions in terms of distribution network expansion in the South of Russia.