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Press Release

LUKOIL INCREASED ASSOCIATED GAS CONVERSION CAPACITIES IN WESTERN SIBERIA

{ 10/4/2006 12:00:00 AM }

Today Vagit Alekperov, OAO LUKOIL President, attended an official ceremony devoted to commissioning the Lokosovskiy gas processing unit production facilities after an upgrading process.

As a result of the upgrading, producing capacity of the unit increased from 1 to 1.9 bln cu m of associated gas per year.

The Lokosovskiy gas processing unit upgrading was the final stage of creating a full associated oil and gas conversion system of OOO LUKOIL-Zapadnaya Sibir (100% subsidiary of OAO LUKOIL). Gas conversion capacities intensification had been underway since 2004. Over 160 km of gas collection and two vacuum-compressor stations were constructed in its framework on Kogalym, Pokachi and Langepas fields. In 2005 an LPG tank farm, with the total capacity of 8 ths cu m, and a loading rack for 30 rail tank cars working simultaneously, as well as a stable natural gasoline and propane filling unit were put into operation in Langepas. While the gas treatment unit was being upgraded, a booster compression station, a gas pipeline over 8 km long and a gas measuring station were put into operation at the tap-in into OAO GAZPROM gas pipeline system.

Presently, the average level of associated gas utilization in the Company is approximately 80%. OOO LUKOIL oil gas utilization program is aimed at reaching 95%.

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