LUKOIL presented a draft of “Environmental Safety Program for 2009-2013 and Forecast until 2017” inVolgograd today.

The Program is aimed at improving the environmental management system and minimizing the negative environmental impact caused by the Company’s operations.

The Program includes activities aimed at utilization of oil and associated gas, realization of the Kyoto Protocol mechanisms, production enhancement of environmentally friendly Euro 4 and Euro 5 compliant fuel, ensuring the environmental impact is within the requirements of the national and international legislation.

LUKOIL Group Environmental Safety Program for 2009-2013 includes 494 activities totaling RUR 57.5 billion.

Estimates of LUKOIL experts suggest that the economic effect of the program implementation may come to over RUR 12 billion.

The following enterprises of the Company operate in the Southern Federal District : ÎÎÎ LUKOIL-Nizhnevolzhskneft, ÎÎÎ LUKOIL-Volgogradneftegaz, ÎÎÎ LUKOIL - Volgogradneftepererabotka, ÎÎÎ Stavrolen, OOO LUKOIL-Yugnefteprodukt, OAO LUKOIL-Nighnevolzhsknefteprodukt, OOO LUKOIL-Korobkovskiy GPZ.

The amount of financing for the “Environmental Safety Program for 2009- 2013” in the Southern Federal District is expected to come to over RUR 16.4 billion.

The following objectives are expected to be achieved upon the Program implementation in the Southern Federal District:

·  A 20.2 thousand ton cut of pollutant emissions into the atmosphere;

·  A 1,676.17 ton cut of pollutant sewage discharge;

·  Water consumption decrease by 630 thousand cubic meters;

·  Recycling of 517.1 thousand tons of waste;

·  Rehabilitation of 703 hectares of disturbed and contaminated lands.

LUKOIL intends to present the “Environmental Safety Program of the LUKOIL Group organizations for 2009-2013 and the Forecast until 2017” draft by the end of 2008 to the representatives of government organizations, the general public and mass media in all federal districts of the Russian Federation where the Company operates. Thus, for the Volga Federal District the Program was presented in Perm on November 12, 2008, for the Northwestern – in Syktyvkar on November 20, 2008, for the Urals - in Khanty-Mansiysk on November 27, 2008.

Presentation of the Program for the Central Federal District will take place in Moscow on December 17, 2008.

Forward-looking Statements

Some statements of this press release and assessments of target figures are not historical facts, but rather represent expectations or forecasts of future events. Such terms as “consider”, “anticipate”, “expect”, “suppose”, “intend”, “plan” and other words with similar meaning are intended to identify forward-looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. One should be aware that a number of important factors could cause actual results to differ significantly from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements regarding the future. Such factors include inflation, interest and exchange rate fluctuations, oil price, political impact of the Russian Government and changes ensuing from it, influence of competition in regions of the Company’s presence and areas of the Company’s business activities etc. The above-indicated list of factors is far from exhaustive. When relying on forward-looking statements, you should carefully consider the foregoing factors and other uncertainties and events, especially in light of the political, economic, social and legal environment in which the Group operates. Such forward-looking statements speak only as of the date on which they are published. Given the unconditional observance of all standing obligations imposed on OAO LUKOIL by the UK Listing Authority, the Company shall not undertake to update or revise any of them, whether as a result of new information, future events or otherwise. OAO LUKOIL does not make any representation, warranty or prediction that the results anticipated by such forward looking statements will be achieved, and such forward-looking statements represent, in each case, only one of the many possible scenarios and should not be viewed as the most likely or standard scenario.