LUKOIL AND GAZPROM SIGNED GAS SUPPLY AGREEMENT

Wednesday, October 22, 2003

Today Vagit Alekperov, President of OAO LUKOIL (‘LUKOIL’ or ‘the Company’), and Alexei Miller, Chairman of the Board of OAO Gazprom (‘Gazprom’), signed a gas supply agreement (‘Agreement’).

In accordance with this Agreement, LUKOIL will sell to Gazprom up to 0.75 bcm of natural gas in 2005 and in 2006 – up to 8 bcm of natural gas produced at Nakhodkinskoye field of Bolshekhetskaya Depression (Yamalo-Nenets Autonomous District).

Gazprom committed to pay for gas and its transport via the Unified gas supply system of Russia.

The Agreement also determines the pricing formula according to which Gazprom will purchase gas extracted at Nakhodkinskoye field at the custody metering unit of the Yamburg compressor station.

Gas price is set at the level of not lower than USD22.5 per thou. cubic m (VAT excluded).

“Signing of the Agreement on gas supplies is another evidence of our companies’ mutual interest in cooperating in the sphere of gas projects. LUKOIL will further develop its cooperation with Gazprom as the Company plans to become one of the largest gas producers,” said Vagit Alekperov, President of LUKOIL.

In 2002 LUKOIL produced 1.19 bcm of natural gas. In accordance with the Company’s plans, natural gas production is likely to reach 38.5 bcm by 2013.