LUKOIL STARTS FUELLING LUFTHANSA JETS

Thursday, April 29, 2004

LUKOIL was the first among Russian oil companies and airfield services of the Russian civil aviation to fuel a Lufthansa (Germany) plane with Jet A-1 fuel produced by the Company.

To make this possible the Company spent many years adjusting its production and fuel supply patterns to comply with International Air Transport Association (IATA) requirements.

To meet IATA’s technical requirements, LUKOIL initiated the development and implementation of a new “Jet A-1 Fuel for Gas Turbine Engines” domestic standard, whereas BVQI Company certified the management system and its conformity to ISO 9001:2000 and AS 9100: 2001 standards (“Aerospace Standard”).

The fuel is produced at “LUKOIL - Nizhegorodnefteorgsintez” refinery in Kstovo with a monthly production capacity of 35 thousand tons of Jet A-1.

Russia’s Committee for Standards issued a certificate to OAO “LUKOIL-Nizhegorodnefteorgsintez” granting it the right to produce Jet A-1 fuel, and the IATA commission confirmed that the products meet international standards.

The fueling of Lufthansa airliners will be executed through ZAO “NORSI-Avia” filling complex. The complex which is largely owned by OAO “LUKOIL-Volganefteprodukt” is located in the territory of OAO “Mezhdunarodny Aeroport ‘Nizhniy Novgorod’”.

Lufthansa performs regular passenger flights to Nizhniy Novgorod three times a week and uses the airport to fill up its cargo planes that fly to Sweden from time to time. The average fuel tank capacity of the planes operated by Lufhansa is 30 tons.

LUKOIL is currently negotiating the possibility of supplying Jet A-1 fuel to other international air companies which perform regular flights to “Sheremetyevo-2” and “Vnukovo” airports in Moscow.

It is also planned to use the jet fuel production and distribution technologies, already tested at OAO “LUKOIL-Nizhegorodnefteorgsintez”, at other LUKOIL refineries.