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Press Release

LUKOIL IS PRESENTING ITS NEW EKTO GASOLINE

{ 4/20/2006 12:00:00 AM }

Presentation of new gasolines with improved performance characteristics under the EKTO brand name (Russian abbreviation for Ecological Fuel) – EKTO-92 and EKTO-95 – took place in OAO LUKOIL’s head office in Moscow today.

The properties of EKTO – new LUKOIL’s gasolines – comply with Euro-3 and exceed the requirements of state standards.

Main AttributesGOST R 51105-97Moscow StandardsGOST R 51866-2002 (Euro-3)EKTO
(Euro-2)Gasoline
Sulfur 500150150150
ppm, maximum50
10
Benzene5.03.01.01.0
% total1.0 (from 01.01.2007)
Aromaticsnot standardized42.042.042.0
% total35.0
Olefinsnot standardized18.021.0/18.018.0
% total

For better performance characteristics LUKOIL's new gasolines are doped with a multifunctional set of additives improving detergency, corrosion prevention and other properties.

It is a generally recognized practice in the West European countries to create brand/proprietary fuels by introducing additives to the base fuel at the tank farms. The technology is used by Shell, BP, Neste, Teboil and many other companies.

LUKOIL has obtained a permit to use additives in the territory of the Russian Federation, the Certificate of Compliance for additives, the Health Certificate, and also the Substance/Material Safety Data Sheet. EKTO gasolines tests were performed by ZAO Nami-Khim.

Starting from April 2006 EKTO gasolines will be sold at the filling stations owned by OOO LUKOIL-Tsentrnefteprodukt. Further on, the sales market for EKTO gasolines will be expanded to the filling stations of OOO LUKOIL-Volganefteprodukt (starting from middle/end of Quarter 2, 2006) and OOO LUKOIL-Severo-Zapadnefteprodukt (approximately July-August, 2006).

Because of the additives and improved environmental characteristics one liter of EKTO gasoline will cost roughly 50 kopeks to 1 ruble more compared to the prices for Euro-3 motor fuels depending on the octane number and type of additive.

Use of some EKTO motor fuels will enable safer car operation through improved fuel combustion, enhanced reliability and engine life, increased motor oil change intervals, reduced engine noise and vibration, decreased component wear in the fuel injection system, and eliminated carbon sludge buildup on the injector. Additionally, the on-board diagnostic system is fully protected from premature breakdowns. Improved environmental properties of the new EKTO motor fuels ensure essentially reduced emissions of carcinogenic substances, sulfur compounds, nitrogen and other harmful substances.

As was announced, LUKOIL started production of gasoline in compliance with Euro-3 – the European standard – in February 2006. This became possible after an izomerization unit of the gasoline catalytic reforming facility was put online at the OAO LUKOIL-Nizhegorodnefteorgsintez refinery (Kstovo, Nizhny Novgorod Region). Production of Euro-3 gasoline will reach 50% of the total motor gasoline production at the refinery. In 2005, this refinery produced 1.6 mln tons of gasoline. Start of gasoline production in compliance with Euro-3 requirements was an important stage in LUKOIL's Refineries Upgrade Program which is aimed to increase production of environmentally safe gasoline conforming to the European standards.

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