Russia: LUKoil Directors Summarise Preliminary Results for 2008

                                                                                  Refining of oil stock by the Company’s refineries in 2008, basing on preliminary data, is expected at the level of 55.8 million tons. The total refining volume rose by 7% as compared with 2007.  Production of high-octane automobile gasolines rose by 13%, jet fuel – by 6% and diesel fuel – by 9% as compared with 2007. The share of the automobile gasoline compliant with the EURO-3 and EURO-4 standards is expected at the level of 82% of the total fuel production volume.

In 2008, the total sales volume of LUKOIL branded oils is expected at the level of 147.6 thousand tons, thus exceeding the figure of 2007 by  30%.  In 2008, the total volume of petroleum product retail sales via the sales network is expected at the level of 15 million tons, thus exceeding the figure of 2007 by 11%.

Preliminary data suggest that in 2008 the amount of the taxes and customs duties paid by LUKOIL Group to the organizations at all levels of the RF budget system, exceeded RUR 800 billion, or USD 33 billion, which makes LUKOIL Group Russia’s biggest tax-payer.

With regards to 2009 and petrol retail, two key objectives included the transition to production of EURO-5 compliant fuels at the Company’s overseas refineries Petrotel LUKOIL and LUKOIL Neftokhim Burgas plus the  integration of Akpet sales assets.

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