Vagit Alekperov, OAO LUKOIL President, and Oleg Chirkunov, Governor of the Perm Region, signed a Cooperation Protocol between the Company and the Perm Region for 2010 in Moscow today.

According to the document, this year LUKOIL intends to invest RUR 650 million of the Company’s funds, obtained due to reduced profit tax rate, in the construction of social facilities within the territory of the Perm Region.

In addition, extra financing of the Company’s investment projects will come to RUR 650 million, which will also be obtained due to reduced profit tax rate.

Based on the results of the first nine months of 2010, the amount of LUKOIL investments may be increased, provided that the future financial and economic situation allows for it.

The Protocol envisages further implementation of the project aimed at supplying the consumers of Chernushinsky and Kuedinsky areas with natural gas from the Kokuyskoye field. Also on the plans is further work aimed at the implementation of the 2009-2012 Trilateral Cooperation Agreement between the Perm subdivision of the Sverdlovsk Railway, the Government of the Region and LUKOIL Group in the Kama Region to develop the infrastructure of the Osentsovsky industrial hub.

The Group’s companies operating in the region will allocate over RUR 403 million to finance measures designed to achieve the maximum associated gas utilization rate.

LUKOIL enterprises will also supply fuels and lubricants for sowing, forage procuring and harvesting operations in the Perm Region under the terms agreed upon with the Ministry of Agriculture of the Region and in accordance with the antitrust legislation requirements. 

Among the major social projects will be a festival of historical townships of the Kama Region and a contest of social and cultural projects to be jointly initiated by OOO LUKOIL-PERM and the Regional Ministry of Culture, Youth Policy and Mass Communications. LUKOIL-Permnefteorgsintez will continue its financing of the second and third construction stages of the Neftyanik (Oiler) sports complex.

In 2009, LUKOIL allocated RUR 500 million of the Company’s funds, obtained due to profit tax rate reduction, for social projects in the Perm Region. An equal amount was invested in other projects of the Region.

Moreover, the Company allocated an additional RUR 250 million towards the financing of social projects and the construction of social facilities to be developed in 2010.

The framework agreement on economic and social cooperation between LUKOIL and the Perm Region was finalized on December 20, 2005.