Moscow, January 27, 2003. Sibneft led the Russian oil industry in organic growth for the second year in a row in 2002, rising to become Russia’s fifth largest oil producer, fourth largest refiner, and third largest fuel retailer.

Sibneft’s crude oil output rose 27.4% to a total of 26.344 million metric tons (520,384 barrels per day) last year from 20.671 million tons (408,323 bpd) in 2001. Sibneft supported its 2002 production growth by drilling 273 new wells, including 33 horizontal wells. The company also carried out 3190 kilometers in 2D seismic and 939 square kilometers in 3D seismic geophysical exploration surveys.

In April 2002, Sibneft purchased a majority interest in the Meretoyaha oil field, adding to its core production in the Noyabrsk region of Russia’s Yamal-Nenets Autonomous District. Sibneft also produces oil at the Krapivinskoye field in Omsk region and at the Sibneft-Yugra enterprise in the Khanty-Mansiisk District.

In the downstream sector, Sibneft boosted refining by 19.3% in 2002 to 15.818 million tons (312,460 bpd) from 13.258 million tons (261,890 bpd) in 2001. In addition to loading the Omsk Refinery, the company began regular deliveries to the Moscow Refinery in February of last year. The company had total 2002 output of 3.93 million tons of gasoline, 5.30 million tons of diesel fuel, 2.48 million tons of fuel oil, and 0.69 million tons of jet fuel.

Sibneft also expanded its retail network, adding over 300 new proprietary, franchise, and dealer filling stations by year-end for a total of more than 1100 nationwide. The company solidified its dominant position in Western Siberia and the Urals region, while aggressively expanding into central Russia and Eastern Siberia. Of new filling stations, over 70 are located in the city of Moscow and Moscow region, including 26 proprietary outlets.

Crude oil exports grew by 48.4% last year to 10.85 million tons (214,325 bpd) from 7.31 million tons (144,358 bpd) in 2001. Sibneft also exported 3.55 million tons in petroleum products, a 53.7% increase from 2.31 million tons the previous year.

Sibneft expects to continue its rapid growth in 2003 with crude oil production rising to 33.0 million tons (651,000 bpd) and crude oil exports to 11.55 million tons (228,152 bpd). Sibneft also expects to boost gas production with the Zapadno-Ozernoye field in Chukotka and a new associated gas joint venture with Sibur in the Noyabrsk region, both set to come on line this year.

Sibneft forecasts refinery throughput will increase to approximately 18.69 million tons (369,191 bpd) this year. It also plans to build and acquire 130-150 new retail filling stations, and to focus on increasing sales of lubricants and other value-added petroleum products.

These forecasts do not take into account Slavneft, which Sibneft jointly acquired with Tyumen Oil Company (TNK) following a privatization auction in December 2002.

Contact:

John Mann
Sibneft
Tel: +7 (095) 777 3116
Fax: +7 (095) 777 3114
JohnM@sibneft.ru
www.sibneft.com