- OAO LUKOIL BOARD OF DIRECTORS APPROVES 100 BILLION RUBLE BOND PROGRAM

Yesterday, the OAO LUKOIL Board of Directors approved, by absentee ballot, issue documents for registration of a Program for Non-Convertible Interest-Bearing Documentary Ruble Bonds (‘the Program’) of the following series: 05, 06, 07, 08, 09, 10, 11, 12, 13, 14, and 15, with a total nominal value of RUR 100 billion, placed through public subscription.

The placement timing for each of the registered issues under the Program will be determined by the Company based on the market situation and the need for debt financing.

The Program covers placement of 10 bond issues, each with a 10-year maturity period. Among them:

 issues of series 05, 06, 07, 08 with a nominal value of RUR 5 billion each, the number of bonds in the issue is 5 million;

 issues of series 09, 10, 11, 12, 13, 14 with a nominal value of RUR 10 billion each, the number of bonds in the issue is 10 million;

 issue of series 15 with a nominal value of RUR 20 billion, the number of bonds in the issue is 20 million.

The nominal value of one bond is RUR 1,000. Each bond has twenty semi-annual coupons.

The bonds can be placed either through a tender to determine the coupon rate for the first coupon period or through collecting bids from investors to acquire bonds at a fixed price and at the coupon rate for the first coupon period set by OAO LUKOIL in accordance with the procedure and terms provided for by the Decision on Bonds Issue and the Bonds Prospectus. The bonds will be placed at the Moscow Interbank Currency Exchange at the nominal value. ZAO Troika Dialog and ZAO Raiffeisenbank act as the underwriters.

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- LUKOIL HOLDS ANNUAL GENERAL SHAREHOLDERS MEETING

OAO LUKOIL held its Annual General Shareholders Meeting http://www.lukoil.com/static_6_5id_2108_.html in Moscow today to approve the 2009 Annual Report and financial statements based on the fiscal year results.

The Annual Report of OAO LUKOIL for 2009 prepared in accordance with the requirements of the Federal Financial Markets Service of the Russian Federation is available at http://www.lukoil.com/static_6_5id_2108_.html and the 2009 Annual Report is available at http://www.lukoil.com/static_6_5id_218_.html.

The shareholders approved dividend distribution based on the Company’s performance in 2009 in the amount of 52 rubles per ordinary share (50 rubles in 2008).

The size of remuneration and compensation of expenses to the members of the Board of Directors and the Audit Commission was also approved. ZAO KPMG was approved as LUKOIL’s independent auditor. The Annual General Shareholders Meeting also elected the Board of Directors and the Audit Commission, approved amendments to the Procedure for Preparing and Holding the General Shareholders Meeting of OAO LUKOIL and approved interested-party transactions.

The following Board of Directors of OAO LUKOIL was elected by the shareholders:

1. Vagit Yu. Alekperov President of OAO LUKOIL

2. Igor V. Belikov Director of the Russian Institute of Directors

3. Victor V. Blazheev Rector of the Moscow State Academy of Law

4. Donald Evert Wallette (Jr.) President of Russia/Caspian Region, ConocoPhillips

5. Valery I. Grayfer Chairman of the Board of Directors of OAO RITEK

6. German O. Gref Chairman of the Board and CEO of Sberbank (Saving Bank of the Russian Federation)

7. Igor S. Ivanov Professor of the Moscow State Institute of International Relations

8. Ravil U. Maganov First Executive Vice President of OAO LUKOIL

9. Sergei A. Mikhailov General Director of OOO Management-Consulting

10. Mark Mobius Executive President of Templeton Asset Management Ltd.

11. Alexander N. Shokhin President of the Russian Union of Industrialists and Entrepreneurs (employers), President of the State University – Higher School of Economics

Valery Grayfer was elected Chairman of the newly elected Board of Directors at the Board of Directors meeting held after the Annual General Shareholders Meeting.

In his address to the Annual General Shareholders Meeting President of OAO LUKOIL Vagit Alekperov pointed out, in particular, that the Company’s basic tasks in the near-term include implementation of highly efficient upstream projects, strengthening of its financial position, ensuring positive cash flows in the environment of unstable world economy, and maximization of shareholder return.

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