Press Release

OAO LUKOIL’S CONSOLIDATED RESERVES AMOUNT TO 19.7 BILLION BARRELS OF OIL EQUIVALENT

Monday, April 28, 2003

OAO LUKOIL has completed an evaluation and independent audit of its oil and gas reserves as of January 1, 2003. According to the data audited by Miller and Lents (USA), LUKOIL’s proved reserves as of the above date are estimated at 19.3 billion boe (compared with 16.8 billion boe as of January 1, 2002), including 15.3 billion barrels of crude oil and 24,2 trillion cubic feet of natural gas.

LUKOIL’s consolidated reserves amount to 19.7 billion barrels of oil equivalent as a result of an acquisition of controlling stakes in a number of companies in the Republic of Komi (namely OAO TEBUKneft, OAO Ukhtaneft, ZAO RKM-oil, OAO YaNTK) early in 2003 and following a reclassification of interests in some affiliates after post-report acquisitions. LUKOIL continues to be the world’s second largest private company (with ExxonMobil being #1) in terms of proved oil and gas reserves.

6,000 cubic feet of natural gas = 1barrel of oil equivalent

The evaluation of the reserves was performed in accordance with the US SPE requirements. The proved reserves included those volumes which are recoverable up to and past license expiry dates.. The Company’s total reserves in all categories constitute 100% net reserves owned by the consolidated subsidiaries and net share in appropriate reserves of affiliates. The Company resource base increased by 5% for crude oil and 82% for gas over the year.

The main factors behind the growth of the reserves are:

•Discovery and record of four new hydrocarbon fields in the northern Caspian (oil and gas reserves)

•Purchase of the controlling stake of OAO Nakhodkaneftegas (gas reserves)

•Additions to reserves as a result of exploration activity carried out in the regions where the Company traditionally operates (mostly crude oil reserves)

•Revision of the previous estimates using renewed or updated geological and development information

•Improvement of both international and domestic economic environment (growth of international prices, cost-cutting measures, increase in export deliveries)

Exploration remains a top priority in the Company’s development. Exploration drilling amounted to 181,000 meters (which accounts for 22% of the overall figure in Russia); construction of 68 exploratory wells was completed; 16 hydrocarbon fields and 15 reservoirs of oil, gas and gas condensate were discovered at the existing properties. The Company’s hydrocarbon production has been fully replaced for the last 3 years. In 2000-2002 the replacement ratio reached 170%.

*Before income taxes

The Company’s development guidelines in the area of exploration and management of reserves till 2013 are as follows:

• Annual replacement ratio of no less than 80% (on average).

• Increase in proved oil reserves up to 2.5 billion tons by 2012, gas – up to 1 trillion cubic meters (by means of prospecting and exploration works and acquisitions)

• Increase of the share of developed reserves up to 75% for oil (compared with 63% in 2002) and up to 60% for gas (compared with 10% in 2002).

• Maintenance of high financial performance of exploration activities.

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