Updated April 1, 2008

   Lukoil plans to invest $6 billion in oil processing in 2008-2017 and to incre

ase its volume from 53 million up to 65 million tons

a year.

As stated the deputy head of the Main Directorate for Refinery of the company Mikhail Antonov at the VI all-Russian energy forum "Russia's fuel an energy industry in the XXI century", in terms of the strategy approved by the directors' board, Lukoil plans to allocate $2 billion at modernization and increase of processing volume from 16 million to 20

million tons on Nizhny Novgorod Oil Refinery.

The company invests the analogical sum into Volgograd Oil Refinery development to increase

the capacity by 12 million tons a year.

   Moreover, $600 million will be invested in Perm Oil Refinery, where will be constructed the catalytic cracker.

And $222 million will be allocated to develop Ukhta Oil Refinery in order to increase its capacity from 3,5 million to 6 million tons a year.

Antonov also explained that Ukhta works development depends on Yarega deposit development.

"This deposit performance will mobilize the operation of the works and will allow to increase the processing", he said. "Now we are engaged in the production of gasoline "Euro-3" and diesel "Euro-5". The construction of catalytic cracker, cracker, as well as aromatics unit, is planned", added the company representative.

   We will remind that in October, 2006 Lukoil has presented the program of the company strategic development.

Its optimistic scenario envisaged that by 2016 the company would increase the processing volume up to 200 million tons a year.

Previous year the company has several times corrected the plans of oil extraction according to 2007 results towards lowering.

So, at the beginning of the year Lukoil planned to increase the annual extraction by 4,5-5%. However, it was later forced to revise the forecast towards 2,5% lowering. As it was explained in the company,

the main extraction increase in 2007 had been connected with the putting into exploitation of South Khylchuyusskoe deposit in the Timan-Pechora oil and gas province, which had been postponed till summer, 2008.

Actuality January 30, 2008

Public Corporation LUKOIL came to an agreement with the Financial Group “IFD Kapital” about purchasing about 80 % of stocks

of Public Corpor ation SGC TGC-8

at the price equivalent to 640-660 dollars for 1 kilowatt of installed capacity.

It is said in LUKOIL official message.

The transaction will be effected after reception of all necessary corporate approvals, and also after reception

of the consent of federal antimonopoly service of the Russian Federation.

According to the reached arrangements within the limits of calculations on the transaction LUKOIL will transfer to the Financial Group “IFD Kapital” about 23,5 million of treasury stocks of Public Corporation LUKOIL at the price established by the decision of the company board of directors.

These stocks were earlier bought out by Public Corporation LUKOIL on the open market.

Public Corporation SGC TGC-8 is one of the largest consumers of gas in Southern federal district of Russia with annual consumption of about 6 billion cubic meters of gas a year.

Company power stations are located in the Astrakhan, Volgograd, Rostov regions, Krasnodar and Stavropol territories, Republic Dagestan.

The installed capacity of generation objects of electric and heat energy of Public Corporation SGC TGC-8 makes 3601 megawatt and 13 366 Gcal per hour respectively.

In the whole in the regions of the company location the share in the electric power market makes about 17 %, heat power – about 60 %. In 2006 the consolidated earnings of the company made up RUR14,3 bln, and net profit made up RUR 3,4 bln ($136 mln).

LUKOIL expects considerable synergistic effect from acquisition of Public Corporation SGC TGC-8 actives at the expense of deliveries of natural gas to Public Corporation SGC TGC-8 stations from the gas deposits of the company located on the Northern Caspian Sea and in the Astrakhan region.

In future LUKOIL plans to develop electrical power business.

In the next five years the investment program of Public Corporation SGC TGC-8 includes building of stations with total capacity more than 1000 megawatt both within the bounds of construction of new power objects, and within the bounds of replacement of mortal capacities.

Presently, on Public Corporation SGC TGC-8 accounts there is RUR 24 bln ($960 mln) attracted by the company within

the bounds of additional issue of stocks.