Today OAO LUKOIL Board of Directors approved the basic indicators of LUKOIL Group’s Mid-Term Plan for 2009-2011, as well as the Budget and Investment Program for 2009.

In view of the crisis witnessed on the global financial markets and the trend for global economic downturn, the Company has taken measures to optimize the plans aimed at ensuring the Company’s own surplus funding in 2009-2011, sufficient financing of key development projects, dividend payments in accordance with the Company’s dividend policy.

To ensure strict implementation of the targets set by the Board of Directors of OAO LUKOIL it is envisaged in particular to constrain operating and investment costs and reduce the working capital. The capital expenditures are planned in the range from USD 7.5 billion to USD 9 billion with a possible reduction to USD 5.1 billion should the oil price continue to go down.

Lower operating, general and administrative costs and better production efficiency may bring an additional positive effect of almost USD 900 million in 2009 by means of optimization measures in all business segments of the Company.

It is also planned to ensure additional cash flow reserves by means of reviewing the system of account settlement with suppliers and contractors in all business segments and also by lowering the terms and amounts of advance payments. All the above measures are aimed at better management of the working capital and, eventually, at its reduction, and also at ensuring an additional cash flow of USD 1 billion in 2009.

‘Such actions, in addition to the scheduled rescue measures, will help provide financial stability of LUKOIL Group given any development scenario of the global and Russian economy’, President of OAO LUKOIL Vagit Alekperov said.