LUKOIL HYDROCARBON OUTPUT INCREASES BY 12% y-o-y IN THE FIRST HALF OF 2006

Monday, July 24, 2006

LUKOIL Group (subsidiary companies and LUKOIL’s share in output of affiliated companies) total hydrocarbon production in the first half of 2006 reached 2.14 mln boe per day, up 11.9% y-o-y.

Crude oil output of LUKOIL Group totaled 1.89 mln bpd* (up 5.6% y-o-y) or 46.69 mln tons. LUKOIL subsidiary companies produced 44.89 mln tons of crude, up 6.0% y-o-y.

Oil production from international projects increased by 43.0% y-o-y as Nelson Resources Limited was acquired at the end of 2005.

Average flow rate per oil well reached 11.23 tons per day, up 2.1% y-o-y.

Petroleum and natural gas output of LUKOIL Group was 7.74 bcm, which is more than twice as much as in the first half of 2005. Natural gas output was 5.14 bcm, which is 265% up y-o-y as the Nakhodkinskoye gas field was put into operation in April 2005. Natural gas production at the field reached 4.1 bcm in the first half of 2006.

LUKOIL refined 23.32 mln tons of crude at its own refineries, up 3.6% y-o-y. Throughputs at Russian refineries grew by 7.3% due to the refining margin growth caused by increasing export tariff. The decrease of throughputs at the foreign refineries was a result of the Odessa refinery shutdown for a large-scale upgrade in July 2005.