Surgutneftegas Increases 1st Quarter Production

Surgutneftegas reports that oil production for the first quarter of 2003 reached 12.871 million tons, an 11% increase compared to the first quarter of 2002. Gas production amounted to 3,545.7 million cubic meters against 3,210.7 million cubic meters produced during the first quarter of 2002, a 10% increase.

Drilling increased by 8% compared to the same period of the previous year and totaled 727,000 meters, including 61,000 meters of exploratory drilling, the same as during the first quarter of last year. In the first quarter of this year, the Company commissioned 220 new wells (208 wells in during the same period last year).

During the first three months of the current year the construction units of the Company put into operation 117.9 km of pipelines and 103.5 km of power lines. The Company's significant efforts to construct pipelines and power lines are aligned with the Company’s plans to put onstream 6 new oil fields in 2003: Zapadno-Chigorinskoe, Ulyanovskoe, Tretyakovskoe, Severo-Tonchinskoe, Severo-Seliyarovskoe, and Severo-Aipimskoe.