PRESS SERVICE STATEMENT

Friday, April 4, 2008

Press Service of OAO LUKOIL reports that fire, which outbroke today at OOO Stavrolen was promptly brought under control. OOO Stavrolen is part of LUKOIL-Neftekhim Group, which is a member of LUKOIL Group.

The fire accident took place near the polymerization reactor.

Unfortunately, three factory workers perished in the fire and three more suffered burns.

There is no hazard to environment in the surrounding area. There are also no spills of toxic agents, crude oil or oil products.

Production of polypropylene is temporarily suspended. Other units are operated in normal mode.

Reasons of the fire accident and damage extent are currently being identified.

Because of the accident Alexei Smirnov, Vice President of OAO LUKOIL and General Director of ZAO LUKOIL-Neftekhim, has interrupted his vacation and started out for Moscow.

ZAO LUKOIL-Neftekhim will render all necessary assistance to the families of victims.