LUKOIL PRESIDENT APPOINTED TO FOREIGN INVESTMENT COUNCIL IN KAZAKHSTAN

Thursday, December 4, 2003

Vagit Alekperov, President of OAO LUKOIL (“LUKOIL” or “the Company”), has been appointed to Kazakhstan’s Foreign Investment Council in accordance with a decree of Nursultan Nazarbayev, President of the Republic of Kazakhstan.

The Foreign Investment Council (“the Council”) is a non-government advisory body to President Nazarbayev and is chaired by him.

The main purpose of the Council is to facilitate foreign investment in Kazakhstan and to create a favorable investment climate. The Council meets twice a year under the chairmanship of Kazakhstan’s President.

The Council includes executive officers from the largest foreign investors in Kazakhstan, including ChevronTexaco, BG Group, Total, the EBRD and many other high-profile international companies and banks. LUKOIL is the only Russian company represented in the Council.

The appointment of Vagit Alekperov to the Council is further evidence of appreciation of LUKOIL’s activities in Kazakhstan. The Company is the largest Russian investor in Kazakhstan, and has invested around $1.5 billion in the country’s economy over the past eight years.

LUKOIL’s involvement in the Council will support intensification of the Company’s activities in Kazakhstan.

Vagit Alekperov commented: “LUKOIL is currently implementing seven projects in the Republic, and their number is sure to grow. Our planned investment in the Dostyk offshore project alone is nearly US$3 billion. It is pleasing to know that this investment activity has the support of the leadership of Kazakhstan”.