OAO Lukoil Looks Ahead

OAO Lukoil Board of Directors approved Lukoil Group’s Performance Indicators of 2008-2009 Mid-Term Plan and 2008 Budget and Investment Program.

The Draft Plan is based on a Brent scenario of U.S. $65/bbl and the 25.5 RUR/USD exchange rate. The Management Committee of OAO Lukoil approved it.

Hydrocarbon production growth in 2008-2009 is for the most part attributed to commissioning of Yuzhno-Khylchuyuskoye field in Timan-Pechora and Khauzak-Shady natural gas field in Uzbekistan.

Oil refining output at the company’s own refineries in 2008-2009 is expected to grow by 2 million tons as Odessa refinery is going to reach its full capacity after a major reconstruction. Oil supplies to be refined at the Company’s Russian refineries, which is the most cost-efficient, will amount to no less than 42 million tons per year.

Distribution network expansion over the next two years will help increase petroleum product retail marketing output on Russian and European markets by more than 14%.