Russian Refineries

Refinery throughputs in 2009 at LUKOIL Group’s Russian refineries were 44.46 million tonnes, which is 0.6% more than in 2008. Capacity utilization was 99.5%, which represents a new record in the history of the Company. LUKOIL also processed 2.05 million tonnes of crude oil at third-party refineries in Ufa, in order to maximize profits in the specific market environment.

International Refineries

Refinery throughputs in 2009 at LUKOIL Group’s international refineries, including the Group share of refining at the ISAB and TRN complexes, were 18.24 million tonnes, which is 50.8% more than in 2008. The large increase is explained by acquisition of stakes in the ISAB and TRN complexes as well as re-commissioning of the Odessa Refinery in April 2008, following modernization. Delivery of large quantities of oil to the ISAB and TRN refineries led to a decline in throughput of Group oil at third-party refineries outside Russia in the reporting year (to 1.73 million tonnes from 2.29 million tonnes in 2008). Total refining volumes outside Russia in 2009 including processing at third-party refineries were 19.97 million tonnes, which is 38.8% more than in 2008. Capacity utilization at the Group’s own refineries outside Russia in 2009 was 75.3%.

Acquisition of the TRN Refinery

As part of Group strategy for development in the oil refining segment in Western Europe LUKOIL signed an agreement in June 2009 with the French company, TOTAL S.A. (hereinafter referred to as Total), for acquisition of a 45% stake in the TOTAL Raffinaderij Nederland N.V. refining complex at Vlissingen in the Netherlands.

TRN is among the biggest and most technologically advanced refineries in Western Europe. Acquisition of the stake increased LUKOIL’s overall refining capacity by 5% and increased its refining capacities abroad by 16%.