Lukoil Acquires ENI's Stake in LukAgip

LUKOIL has signed a binding agreement with Eni, whereby LUKOIL will buy from Eni its fifty percent interest in LUKAgip N.V. Completion is subject to certain closing conditions and is therefore expected to take place in the third quarter of 2004.

LUKAgip N.V. owns a 24% interest in the Meleiha Hydrocarbon License Concession Agreement located on shore in Egypt. It also owns a 10% interest in the Shah Deniz Exploration, Development and Production Sharing Agreement, 8% of the midstream gas marketing entity, the Azerbaijan Gas Supply Company Ltd and 100% of LUKAgip (Midstream) B.V., which holds LUKAgip's 10% interest in the South Caucasus Pipeline Company (SCPC). The signing of the sale and purchase agreement will trigger certain pre-emptive rights relating to LUKAgip's interest in SCPC.