LUKOIL and Nizhny Novgorod downstream oil company Norsi Oil today in Moscow signed a deal on partnership with the aim of making their production and business activities more effective.

The two companies will work together in oil supplies and refining, transporting and selling petroleum products on the domestic and foreign markets and new scientific and technical petroleum developments and technologies. They will also agree on a range of lubricants to sell in Russia and on supplies of lube oil additives.

LUKOIL undertook to ensure continuous supplies of oil in amounts agreed earlier to the Norsi oil refinery, Norsi Oil's core unit.

The two firms in December agreed to boost supplies of oil to the Norsi plant in 1997. LUKOIL and LUKOIL-Nizhny Novgorod plan to send 600,000-650,000 tonnes of oil a month to the plant.

LUKOIL will also help Norsi Oil draft and implement a financial-recovery plan, using new methods of production planning and sales management and restructuring Norsi Oil's management. They also plan to rebuild Norsi Oil's main capacity, including improving the technical and economic indicators of its pyrolysis unit.

Meanwhile, LUKOIL November 7, 1996, signed a cooperation agreement with Nizhny Novgorod region administration on oil and products sales, producing oil-field equipment and engineering products and other types of activity. LUKOIL has opened a filling station in Nizhny Novgorod built to international standards of service and environmental safety.

This makes the partnership agreement with Norsi Oil yet another step on LUKOIL's path to cooperation with Nizhny Novgorod region.

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