LUKOIL HYDROCARBON PRODUCTION AVAILABLE FOR SALE INCREASES BY 7.3% y-o-y. OIL PRODUCTION EXCEEDS 2 MLN BARRELS PER DAY

Monday, May 14, 2007

LUKOIL Group (subsidiary companies and LUKOIL’s share in output by affiliated companies) total hydrocarbon production available for sale reached 2.24 mln boe per day in the first quarter of 2007, up 7.3% y-o-y.

Crude oil output of LUKOIL Group totaled 2,005 th. bpd* (up 6.5% y-o-y), or 24.431 mln tons. LUKOIL subsidiary companies produced 23.755 mln tons of crude, up 7.4% y-o-y.

Average flow rate per oil well at LUKOIL fields in Russia increased from 11.15 to 11.25 tons per day.

Natural and associated gas output of LUKOIL Group available for sale was 3.58 bcm, which is 14.1% more than in the first quarter of 2006. Natural gas output available for sale was 2.54 bcm, up 16.6% y-o-y.

LUKOIL refined 13.18 mln tons of crude at the Company’s owned and third-party refineries, which is the same as in the first quarter of 2006. Throughputs at the Company’s own refineries grew by 0.6% y-o-y, to 12.13 mln tons. Throughputs at LUKOIL’s own refineries in Russia increased by 5.5% y-o-y whereas throughputs at own foreign refineries decreased. The decrease of throughputs at the foreign refineries was due to a planned upgrade of the Burgas refinery and optimization of seasonal capacity utilization of the Ploiesti refinery.