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

Within the program framework, the project will cover the following areas: clear air, clean water, waste, recultivation of land plots and liquidation of slurry ponds, research in environmental protection, environmental management and ensuring compliance with the international standards ISO 14001, industrial environmental monitoring.

LUKOIL Group Environmental Safety Program for 2009-2013 includes about 500 activities totaling about RUR 57 billion. The basic share of financing will be allocated for environmental measures in the business sector “Oil and Gas Production”, which is primarily conditioned by implementation of large-scale costly projects on associated oil gas utilization.

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

The program also includes prognosis estimates of the environmental impact until 2017 caused by LUKOIL Group operations in Russia and other countries. The forecast is based on the optimistic and pessimistic scenarios. Moreover, strengthening of the legislative requirements, increased expenses for environmental measures and increased production output are the key factors which produce an integral impact upon the prognosis estimate.

The Company’s experience suggests that elaboration of an environmental safety program based on target-oriented approach is the most efficient tool for environmental protection management.

At present, the Company is completing implementation of the “Environmental Safety Program for 2004-2008” elaborated within the framework of the Industrial, Labor and Environmental Safety Management System certified to comply with the requirements of the ISO 14001 International Standard and the OHSAS 18001 Standard. The program includes over 300 activities totaling about RUR 30 billion.

In November - December 2008 LUKOIL held a series of presentations of the “Environmental Safety Program for 2009-2013 and Forecast until 2017” to the representatives of government organizations, the general public and mass media in all federal districts of the Russian Federation where the Company operates.