No. 1, 2005


Events, Agreements, Meetings

October 20, 2004: In Burgas, the Republic of Bulgaria, President of JSC LUKOIL Vagit Alekperov and Executive Director of the Bulgarian Agency for Investments Pavel Yezekiyev signed the Memorandum of Understanding. The sides came to terms on continued cooperation in attracting investments to the Bulgarian economy.
October 22, 2004: In Odessa, the Republic of Ukraine, the Board of Directors of JSC LUKOIL held a guest session, which approved LUKOIL Group's main plan, budget and investment indicators for 2005 and Program for Strategic Development of LUKOIL Group for 2005-2014.
October 28, 2004: In Ploesti, the Republic of Romania, LUKOIL President Vagit Alekperov took part in a launching ceremony of modernized refinery Petrotel-LUKOIL.
October 28, 2004: In Kishinev, the Republic of Moldova, the Council of the International Association of Trade Union Organizations of JSC LUKOIL held a guest session, which discussed in detail social partnership performance by trade union committees and LUKOIL administrations abroad in the light of national legislations, collective agreements and Agreement between the Employer and LUKOIL Trade Union Association for 2003-2005.
October 28, 2004: In Tashkent, the Republic of Uzbekistan, LUKOIL Uzbekistan Operating Company was established to implement a project for industrial development of gas fields Kandym, Hauzak and Shady, based on a product sharing agreement with Uzbek state-owned company Uzbekneftegaz. The operating company will also prospect in promising areas in Kungrad, Ustyurt Plateau.October 29, 2004: In Moscow, a ceremony was held to sum up National Ecological Prize'2004 contest. Diplomas for a contribution to ecological security and sustainable development of Russia were received by JSC LUKOIL, JSC LUKOIL-Nizhnevolzhskneft, JSC LUKOIL-Komi, LUKOIL-Neftochim Bourgas AD, JSC LUKOIL-Perm, and JSC LUKOIL-VolgogradNIPImorneft. LUKOIL-Kaliningradmorneft was recognized the winner in Clean City nomination.November 10, 2004: In Egypt, LUKOIL Overseas Holding Ltd. started offshore exploration drilling on North-Eastern Geisum block. Launched in accordance with the schedule of prospecting works program, the operation is based on a site 35 meters deep and is due to last for two months. The intended depth of the well is 1,820 meters.November 18, 2004: In St. Petersburg, Governor Valentina Matviyenko and LUKOIL President Vagit Alekperov signed an additional protocol to the Agreement on Cooperation, which was signed between the City of St. Petersburg and LUKOIL on April 22, 2004.
November 19, 2004: In Ufa, the Republic of Bashkortostan, President Murtaza Rakhimov held a working meeting with LUKOIL President Vagit Alekperov to discuss situation in local fuel and energy complex and corporate plans to expand operations in the region.
November 19, 2004: In Moscow, LUKOIL President Vagit Alekperov and President of the Olympic Committee Russia Leonid Tyagachyov signed the Agreement on Cooperation in Promoting the Olympic Movement in Russia, Expanding Charity Programs in the Area of Physical Culture and Sports, and Implementing Projects to Prepare Russian Olympic Team for 2006 20th Winter Olympics in Turin, Italy.
November 23, 2004: In Tashkent, President of the Republic of Uzbekistan Islam Karimov held a meeting with LUKOIL President Vagit Alekperov to discuss prospects for further relations in oil and gas sphere. On the same day, Deputy Prime Minister Р Minister for Economics of the Republic of Uzbekistan Rustam Azimov, Chairman of National Holding Company Uzbekneftegaz Abdusalom Azizov, and LUKOIL President Vagit Alekperov signed a protocol on the coming into force of the Product Sharing Agreement for the Kandym group of fields, and areas at Khausak, Shady and Kungar.
November 26, 2004: In Moscow, a meeting was held between President of the Bolivarian Republic of Venezuela Hugo Chavez Frias and LUKOIL President Vagit Alekperov, who signed the Memorandum of Understanding between LUKOIL and Petroleos. Contest for Best Russian Enterprise, which involved over 1,000 companies from 44 regions of Russia. JSC LUKOIL-Perm won the main nomination For High Financial Efficiency, its seventh victory at a stretch.
December 17, 2004: In Moscow, LUKOIL Managing Board considered the Concept for the Development of Air Bunkerage Business providing for more extensive sales of aircraft fuel and establishment of a ramified network of Company-owned bunkering station. This line in business was envisaged by Program for Strategic Development of LUKOIL Group for 2004-2014.
December 21, 2004: LUKOIL-Perm won an auction organized by the RF Ministry of Natural Resources, purchasing the Aleksandrovskoye oil field in the Kungur District, the Southern Perm Region, with proven reserves nearing 1.8 million barrels.
December 22, 2004: LUKOIL President Vagit Alekperov and Vice-President of JSC Balt-trade Sergey Kuznetsov signed an agreement on purchase by LUKOIL of 37 Balt-trade gasoline filling stations in St. Petersburg and the Leningrad Region. Thus, LUKOIL brought the number of its own gasoline filling stations in the region to 79.
December 22, 2004: LUKOIL completed a transaction dating from June of this year, buying a 50-percent shareholding in JV LUKAgip N.V. from Italy's ENI Group.
December 23, 2004: LUKOIL President Vagit Alekperov and First Vice-President of JSC Russian Railways Vladimir Yakunin took part in a launching ceremony of a 1.5 km-long detour stretch to the port of Vysotsk, Leningrad Region, capable of increasing oil terminal capacity to 5-7 million tons at the present stage and to 12 million tons in future.
December 24, 2004: In Moscow, LUKOIL Board of Directors held a meeting, which set corporate priorities for 2005, specifically to increase hydrocarbon reserves to 130 percent of production amount planned at not less than 90.2 million tons.
December 29, 2004: In Moscow, LUKOIL President Vagit Alekperov and President of JSC Russian Railways Gennady Fadeyev signed the agreement on railway deliveries of oil and oil products to LUKOIL-II distribution and transshipment complex at Vysotsk, the Leningrad region. Under the agreement Russian Railways shall provide transportation of oil and petroleum products to LUKOIL-II complex in the amount of 7 million tons annually starting from January 1, 2005. The Presidents also signed an agreement, which envisages LUKOIL's deliveries (through check points in Zabaykalsk and Naushki) to China of up to 3 million tons of oil through Russian Railways.
January 13, 2005: In Moscow, the Board of Directors of LUKOIL convened to summarize the Company's preliminary results for 2004. The LUKOIL Group net profit after taxes is expected to reach $4 billion, 60% higher than in 2003. Geological prospecting helped to generate a hydrocarbon reserve increment of about 120 million tons of oil equivalent. The LUKOIL Group oil production totaled 86.3 million tons. Gas production went up 8.9% and exceeded 6.2 billion cubic meters. Throughput at LUKOIL's refineries was 43.8 million tons of oil stock. Throughput at gas processing plants reached around 2.2 billion cubic meters of associated gas. Retail sales through LUKOIL's filling stations went up 17% and totaled 2.8 million tons.
January 13, 2005: In Sophia, the Bulgarian Stock Exchange summarized the results of a tender offer announced by LUKOIL Europe Holdings B.V. (a 100% subsidiary of JSC LUKOIL) to purchase the shares owned by minority shareholders of LUKOIL Neftochim Bourgas AD. Owners of 2 987 394 shares (22.05%) of the Refinery accepted the tender offer and thus an interest of LUKOIL Europe Holdings B.V. in the share capital of LUKOIL Neftochim Bourgas AD reached 93.16%.
January 19, 2005: In Naryan-Mar, the Nenets Autonomous Area, a meeting was held to discuss cooperation plans for 2005 of a JV to be set up by LUKOIL (70%) and ConocoPhillips (30%). LUKOIL President Vagit Alekperov, LUKOIL First Vice-President Ravil Maganov, Acting General Dire held at the request of the shareholders who own not less than 10% of the LUKOIL voting shares. The shareholders at the Extraordinary General Shareholders Meeting elected the new Board of Directors of the Company and approved the amendments and addenda to the Charter of JSC LUKOIL, which enhance the role of minority shareholders in decision-making process in connection with major transactions with the Company's assets. President of ConocoPhillips for Russia/Caspian Region Kevin Omar Meyers entered the Board of Directors. Valery Grayfer was elected Chairman of the newly elected Board of Directors at the Board of Directors Meeting held after the Extraordinary General Shareholders Meeting.January 25, 2004: In Moscow, General Director of JSC LUKOIL-Neftekhim and Managing Director of Glatt Ingenieurtechnik GmbH (the Federative Republic of Germany) Reinhard Boeber signed an agreement on construction of a sodium cyanide production plant at JSC Saratovorgsintez.
February 2, 2004: In Izhevskoye, the Kaliningrad Region, the marine oil terminal of JSC LUKOIL-Kaliningradmorneft started loading tankers with a deadweight up to 20,000 tons.February 3, 2004: In Krasnodar, Governor of the Krasnodar Territory Alexander Tkachev held a meeting with LUKOIL President Vagit Alekperov to conclude an agreement on support and development of the Krasnodar sport and discuss the plans of LUKOIL of geological prospecting in the Azov Sea.

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Oil of Russia, No. 1, 2005
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