A meeting of OAO LUKOIL Board of Directors dedicated to summarizing the Company’s performance in the sphere of refining and marketing and approval of key development areas in this business segment for 2011-2012 took place in Istanbul today.

Under the approved plans, the Company’s oil refining complex will focus on lower costs and power consumption, higher efficiency of capital expenses and maximum use of oil-refining capacities in Russia.

Among other things, the meeting emphasized that the segment revenues are growing while expenses are declining. The Company’s capital expenses in refining and marketing came to USD 532 million in the 1st half of 2010, which is by 12.4% lower than the similar figure in 2009.

In 2009, the operating expenses and the total purchase costs in the Refining, Trading & Marketing Business Segment were reduced by 16.6% as compared with 2008.

The sales volume of petroleum products via the LUKOIL Group sales network remains stable; it came to 6,685 thousand tons in the 1st half of 2010. At the same time, the sales volume of EKTO motor fuels is growing steadily, with its sales geography constantly expanding both in Russia and beyond. In 2010, LUKOIL introduced EURO-5 compliant diesel fuel to the Russian retail market.

Information provided in this press release presents expected results of OAO LUKOIL operations in 2010. It was generated based on the latest preliminary operational and financial data which hasn’t been financially audited. The information represents preliminary assessment only, which can be adjusted after statistical, financial, fiscal and business reporting becomes available. The information on the LUKOIL Group operating results in this press release depends on many external factors and therefore, provided all permanent obligations imposed by the London Stock Exchange listing rules are unconditionally observed, cannot qualify for accuracy and completeness and should not be regarded as an invitation for investment. Therefore, the results and indicators achieved in reality may significantly differ from any declared or forecast operating results in 2010. ОАО LUKOIL assumes no obligation (and expressly declares that it has no such obligation) to update or change any declarations concerning any future results, both due to new information obtained, any future events or for any other reasons.

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