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Press Release

LUKOIL PRESIDENT VAGIT ALEKPEROV PAYS WORKING VISIT TO VENEZUELA

{ 5/24/2005 12:00:00 AM }

Yesterday Vagit Alekperov, President of LUKOIL, met with Rafael Ramirez, Minister of Energy of Venezuela and Petroleum Industry and Chief Executive Officer of Petroleos de Venezuela S.A. (PdVSA), the national petroleum company.

During the meeting the parties discussed the progress in the implementation of the Memorandum of Understanding signed by LUKOIL and PdVSA in November 2004. The document reflects PdVSA`s willingness to provide new upstream projects in the so-called Orinoco heavy oil belt, new exploration, development and production projects in the Gulf of Venezuela (lake Maracaibo), as well as field rehabilitation and enhanced oil recovery projects on depleted fields for LUKOIL's review for the purpose of possible joint implementation.

In April 2005 LUKOIL applied to take part in the tender for the Rafael Urdaneta Project (development of gas blocks offshore Venezuela). The Company is also looking at a number of other prospective joint projects in Venezuela.

In view of the visit of Vagit Alekperov was held a ceremony of transference to Department of Health of Venezuela a mobile system for provision of first aid in the Orinoco delta (State of Delta Amacuro).

A total of nine high-speed vessels designed for provision of outpatient medical care (a catamaran operating theater vessel, medium-size vessels and small motorboats capable of traveling in the rush banks of the Delta) was commissioned under the major social project. ¬

The vessels are equipped with radios, new medical equipment and medical supplies.

The vessels were built at shipyards located in the towns of Tucupita and Puerto Ordaz.

Each motorboat will be assigned to a specific settlement in the Orinoco delta.

The vessels will be used for mobile provision of medical aid to the Indian tribe of Guarao living in the Orinoco delta, as well as other residents of the region.

In addition to provision of medical aid on board the motorboats will be used to transport patients from regional medical stations to large hospitals.

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