[5/14/ :19 AM] Energy and the Economy: Joint Opportunities Italy and Russia Round Table Rome, 13th March 2007 Gati Al-Jebouri, CEO LUKoil International Trading & Supply Co

1 Russia – Key facts & Outlook  Russia is rated BBB+/Stable/A-2 (Foreign) and A-/Stable/A-2 (Local) by S&P  Russia credit-worthiness is positive (S&P research, Credit Week Jan-2007) with an optimistic outlook  Russia’s fiscal flexibility and reserves (as % of total debt) are superior to those of most of its peers  Russia experienced an internal growth of 7% per year in the current decade  The Oil & Gas sector is the base of the Russian economy –9.5 mmbbls/day of crude production –Russian Oil Exports  4.3 mmbls/day of crude (approx. 5% of world consumption)  2.0 mmbbls/day of petroleum products

2 LUKoil – Key facts  Operations in 30 countries and more than 150’000 employees –Market cap $70Bn –1.5% of global oil reserves and 2% of global oil production –19% of Russian oil production and 19% of Russian oil refining –The second largest company worldwide by proven reserves of hydrocarbons –The 6 th largest oil company worldwide by production of hydrocarbons –The largest Russian oil group with annual turnover of over USD 50 billion –The first Russian company to have its shares traded on the LSE –LUKOIL credit rating Standard & Poor's – long term credit rating «ВВ+». Outlook - «Positive». –A leader among Russian companies for openness and transparency –The only private Russian oil company whose share capital is dominated by minority stakeholders

3  One of the world’s largest vertically integrated oil and gas companies: –20.7 billion boe reserves (Russia 19.3 boe, Outside Russia 1.4 boe) –1.9 million bbls/day crude production –Refining capacity:  830 kbbls/day located in Russia (4 refineries)  340 kbbls/day located in Ukraine, Romania and Bulgaria –6,100 retail filling stations worldwide LUKoil – Key facts

4 LUKoil – Russian peers Source: Annual reports. Figures represent proven & probable reserves (2P) under SPE method and include reserves equity interests. LUKoil

5 LUKoil Group – Key facts Source: Annual reports. Figures represent proven & probable reserves (2P) and include reserves equity interests. LUKoil

6 LUKoil & Italy – Current trade  Currently trading activities between Italy and Russia are substantial. Russia supplied 23% of imported crude in Italy in 2005  Through its wholly owned trading arm, LITASCO, it has already established a sound base of trading in crude and petroleum products with Italian partners  Volumes (crude and refined products) sold/purchased by LITASCO to/from Italy reached more than 4 mmtons in 2006  List of Hydrocarbons traded: –Crude oil: Ural and Siberian Light –Petroleum products:  Gasoil 0.2 / 50 ppm / 10 ppm  Gasoline 95 RON  Jet Fuel  Base oils  List of Italian partners: API, ENI, ERG, KPI, Saras, Shell and local wholesalers

7 LUKoil & Italy – Vision for Future Growth Joint Investment Opportunities Upstream  JV E&P opportunities in Russia/FSU and in other parts of the world Downstream  Target strategic alliances with relevant Italian partners and offer reliable supply of crude oil from LUKoil in exchange for: –Petroleum products, and/or –Assets  Negotiate crude oil processing agreements with Italian refiners  Evaluate opportunities in downstream operations: –Joining Italian partners in their domestic/international operations –Evaluate opportunities in wholesale and retail operations  Example: LUKoil recently bought 159 petrol stations in Belgium from ConocoPhillips Trading  Expand current customer base and volumes with Italian counterparties  JV opportunities for hydrocarbon storage: –Caverns for North Sea / Arctic crude oil productions –Access to Fuel Oil tank farm in Med

8 Summary & Conclusions  LUKoil has already established a solid foothold in the Italian market via mutually beneficial trading activities  …However LUKoil is very keen on expanding: –Volume of business –Through win-win negotiations of crude oil processing deals –Through the acquisition of physical assets in Italy

9 Thank you!

10 Appendices

Total revenue (USD billion) EBITDA (USD billion) Total sales volume (million tons) Crude oil production (thousand barrels per day) 1,8041,7381,6221,545 Refined products (thousand barrels per day) Retail network * (filling stations worldwide) 5,8305,4054,5994,076 Source: LUKoil Annual reports LUKoil Group – Key figures * Additional 159 during 2006: purchase from ConocoPhillips in Belgium

12 GDP growth by major countries – EU Source: IMF, World Development Indicators Database, Jan 2007 Constant 2005 USD  Most OECD Europe countries are forecast to continue to show stable but relatively low annual growth rates: between 1% and 3%  Russia is expected to maintain its robust annual growth helped by high energy prices E=estimated; F=forecast

13 GDP growth by major countries – North America  OECD North America is forecast to converge to longer growth rates in the region of 3% per year with no hard landing of the U.S. economy E=estimated; F=forecast Source: IMF, World Development Indicators Database, Jan 2007 Constant 2005 USD

14 GDP growth by major countries – Asia  Non-OECD Asian economies are forecast to continue thriving at above world average growth rates  Japan is forecast to continue its cycle of moderate GDP expansion E=estimated; F=forecast Source: IMF, World Development Indicators Database, Jan 2007 Constant 2005 USD