Special Economic Zone «LOTUS»

ADVANTAGEOUS ECONOMIC AND GEOGRAPHIC LOCATION

OFFSHORE DEVELOPMENT IN THE CASPIAN The Filanovskiy field The Korchagin field. Oil production has reached 1.5 million tons per year "LUKOIL“ has invested over 50 billion RUB. Drilling to start in 2015

Order processing of any complexity at Astrakhan shipyards ASTRAKHAN REGION AS PIVOTAL HUB FOR THE CONSTRUCTION OF OIL & GAS FIELDS IN THE CASPIAN Positioning of Astrakhan-based shipyards as focal enterprises for Caspian projects Order processing of any complexity at Astrakhan shipyards

EXPERIENCE IN BUILDING PLATFORMS FOR EXPLORATION DRILLING Jack-up drilling platform ”Kaspiyskiy Burilshcik” Jack-up drilling platform “Neptun” “Merkuriy” Jack-up drilling platform “Astra”

EXPERIENCE IN BUILDING PLATFORMS FOR PRODUCTION DRILLING Stationary technology platform Zhdanov-А Ice-resistant platform for the Korchagin field BUILDING PLATFORMS FOR RUSSIAN, TURKMEN AND KAZAKH SECTORS OF THE CASPIAN Stationary platform LAM-B Ice-resistant platform for the Filanovskiy field

PROMISING MARKET AND SETTING UP THE SEZ Assess the need for platforms to meet shelf needs until 2030: Caspian sea - more than 80 units (16 - 19 billion €) Black sea - up to 4 units (0,73 billion €) Auxiliary fleet - up to 50 units. Setting up “LOTUS” SEZ (industrial type) Infrastructure investment - more than 419 million $

SUCCESS STORIES

LOCATION OF SEZ PLOTS Plot №2 Customs terminal Plot №2 (territory of municipal entity “Narimanovskiy District” S=8.3 sq.km) Plot №1 (based on “Lotus Shipyard”, OJSC S=1.5 sq.km.) Residential neighborhood Administrative and business area

SKILLED PERSONNEL RESOURCES Labor force in Astrakhan region amounts to 675 thousand (total population - 1010 thousand) 16 state secondary educational institutions. More than 20 thousand students, incl. 5 state higher educational institutions. More than 39 thousand students, incl. LUKOIL’s corporate offshore personnel training center

LOGISTIC CAPABILITIES OF SEZ HIGHWAY SERVICE RAIL LINE AIR SERVICE MARINE AND RIVER PORTS

Project startup - 6 months LAND REGISTRATION All land plots are duly registered in strict correspondence with the Russian legislation for allocation of Industrial objects and are ready for lease or sale Project startup - 6 months

ADVANCED INFRASTRUCTURE Land plots have access to:

FREE ACCESS TO POWER SUPPLY Power supply access: SEZ “LOTUS” - free of charge

TAX BENEFITS 2 % 0 % 20 % 2,2 % 1,5 % For SEZ residents: Outside SEZ up to 150 rubles per 1 hp 2,2 % 1,5 % For SEZ residents: Outside SEZ Revenue tax Property Tax (For 10 years from the date of property registration) Land Tax (For 5 years from the date of registering land plot property rights) Transport Tax from the date of vehicle registration)

Customs clearance takes 3 hours CUSTOMS BENEFITS FREE ZONE REGIME Foreign goods (equipment, raw materials, components) are allocated and used within SEZ territory Customs clearance takes 3 hours SEZ

7 REASONS TO INVEST IN THE “LOTUS” SEZ Situated in one of the most dynamically developing regions of Russia Provides unique opportunities to take up major Caspian offshore projects World class infrastructure Low cost of land plots Tax and customs concessions Business-friendly administration Comfortable business environment

Ministry of Economic Development of the Astrakhan Region WELCOME TO SEZ “LOTUS”! Ministry of Industry, Transport and Natural Resources of the Astrakhan Region Sovetskaya str. 12, Astrakhan, the Astrakhan Region, the Russian Federation Tel. 007 (8512) 51 46 97 Fax 007 (8512) 51 46 98 www.mptpr.astrobl.ru Ministry of Economic Development of the Astrakhan Region Sovetskaya str. 15, Astrakhan, the Astrakhan Region, the Russian Federation Tel. 007 (8512) 51 49 93 Fax 007 (8512) 52 50 66 www.minec.astrobl.ru