LUKOIL AND PERM REGION FORGE COOPERATION

Friday, November 29, 2013

Vagit Alekperov, OAO LUKOIL President, and Viktor Basargin, Governor of Perm Krai, signed a 2014 Cooperation Protocol between the company and the Krai, in Perm today.

Under the document, LUKOIL will fund investment projects in Perm Krai for an additional RUR820 million.

The largest projects of the year will be as follows: construction of an oil- residue treatment complex at the Perm refinery; completion of the reconstruction of the gas processing facilities and of the construction of the second processing line for associated petroleum gas at the Perm gas-processing plant; upgrade of LUKOIL’s filling stations in Krasnokamsk.

The total sum of the company’s charitable activities focused on socially important facilities and events in Perm Krai will reach RUR 820 million in 2014.

To be more exact, these means will be allocated to construction of kindergartens in Polazna and Krasnovishersk, reconstruction of the main building and workshops of the Sarsinsk secondary school, repair of the water-supply facilities in the town of Osa, construction of the Uinsk central regional hospital, capital repair of children’s music school No. 2 in the town of Chaykovsky, construction of a swimming pool in Chernushka, financial support of the “Molot-Prikamie” hockey team and of “Prikamie” volleyball club.

In its turn, under the federal and regional laws on subsoil use, the regional administration will participate in the arrangement of bidding procedures to grant to subsoil users the rights for geological studies, exploration and extraction of mineral resources, which is required for the execution of geologic exploration and development of hydrocarbon accumulations. The administration will also help the company, within the RF Land Code, to get the rights for land plots, including plots for the construction of filling stations in the Krai.

The Framework Economic and Social Cooperation Agreement between Perm Krai and OAO LUKOIL was signed in December of 2010.