LUKOIL AND KHMAO-YUGRA PLEDGE COOPERATION

Tuesday, February 19, 2013

Vagit Alekperov, LUKOIL President, and Natalya Komarova, Governor of Khanty-Mansi Autonomous Okrug (KhMAO), also known as Yugra, signed a supplemental cooperation agreement for 2013 between the company and the government of KhMAO – Yugra, in Kogalym today.

As part of the Agreement, LUKOIL will allocate more than RUR 1.2 billion to implement various social projects in KhMAO.

Specifically, the company will finance reconstruction of a health center building for 850 outpatient visits in Kogalym, repairs of the city hospital in Pokachi, reconstruction of the “Start” children and youth sports school in Urai, construction of a city stadium in Sovetsky and of a sports complex in Gornopravdinsk settlement of Khanty-Mansi Okrug, and also repairs and restoration of orthodox churches and mosques located in KhMAO.

The framework cooperation agreement between LUKOIL and KhMAO-Yugra was signed in December of 2010.

Later on the same day, Vagit Alekperov and Natalya Komarova participated in the commissioning ceremony of a gas-turbine power plant (GTPP) at Povkhovskoye field of LUKOIL-West Siberia. The 48-megawatt plant utilizes associated petroleum gas (APG) to generate electric and thermal power for the production facilities located at the field and for Povkh rotation camp.

As part of the APG-utilization corporate program for Western Siberia, 5 GTPP’s (Tevlinsko-Russkinskaya, Krasnoleninskaya, Vatyeganskaya, Pokachevskaya and Povkhovskaya) have been constructed with a total capacity exceeding 260 MW.

Currently, the LUKOIL-West Siberia facilities have a 96.8-percent level of APG utilization. Further improvement of the APG-utilization system requires reconstruction of the Kogalymskaya and Povkhovskaya gas-booster stations and also of the Lokosovsky gas-processing plant.