LUKOIL BORROWS $2 BILLION FOR ACQUISITION OF A CONTROLLING STAKE IN NELSON RESOURCES

Thursday, October 13, 2005

Oil Company LUKOIL ("LUKOIL"), acting through its wholly owned subsidiary, LUKOIL Finance Limited (Gibraltar), has concluded a 6 month acquisition loan in the amount of $2 billion for its purchase of a controlling stake in Nelson Resources Limited. Citigroup acted as Sole Arranger /Bookrunner and Lender in this loan facility. The loan was extended on an unsecured basis and was priced at LIBOR plus 0.5% p.a. LUKOIL provided a corporate guarantee on behalf of LUKOIL Finance Limited (Gibraltar). Within the next six months, LUKOIL will refinance this loan using the proceeds from syndicated take-out facilities.

This represents the largest single corporate loan ever raised by LUKOIL

Nelson Resources Limited is an oil exploration and production company with operations in the Republic of Kazakhstan. The Company established its presence in the Kazakhstan oil sector in 2000.