MOL & Yukos Begin Joint Production Project

MOL and Yukos have begun joint production of the Zapadno-Malobalik field in the Zapadno-Malobalyk field in Russia's Khanty-Mansiysk Autonomous Region. Following the satisfaction of all necessary conditions precedent and the receipt of all licenses, such as the transport agreement with Transneft, MOL has become the 50% owner of the joint venture company with Yukos. The current level of joint production is approximately 19,000 bbl/day and the peak production level of 55,000 bbl/day, is expected in 2005. The Zapadno-Malobalyk field has estimated proven recoverable reserves of 20 million tons of crude oil and further probable reserves, and it also has operable pipeline and transportation infrastructure.