PRESS SERVICE STATEMENT

Monday, September 25, 2006

Mass media is spreading rumors claiming that LUKOIL is negotiating a potential takeover of Mazekiu Nafta with PKN Orlen. Leonid Fedun, OAO LUKOIL Vice-President, denied all speculations, for they were deceptive and misleading to the business community.

‘LUKOIL did negotiate the takeover of Mazekiu Nafta with the Government of Lithuania. At the present moment however the Company is not negotiating the issue with any company whatsoever, and least of all with PKN Orlen, since it has not completed the takeover of Mazekiu Nafta, therefore it cannot act as seller of the assets in the first place’, said Leonid Fedun.

Meanwhile LUKOIL is still interested in purchasing and/or constructing new refineries and is considering a number of such projects in Russia and abroad.