Moscow, April22, 2004. Sibneft today announced that it had increased its equity interests in two enterprises, ZAO Archinskoe and OOO Shiginskoe, from 20% to 100%.  The two companies hold licenses for hydrocarbons deposits in the Tomsk region of western Siberia.

The licenses held by ZAO Archinskoe cover exploration and production on the Archinskoe and Urmanskoe fields, which together have recoverable reserves of more than 15 million tons.  OOO Shiginskoe similarly holds an exploration and production license for the Shiginskoe field, with recoverable oil reserves of over 5 million tons.

The Archinskoe, Urmanskoe and Shiginskoe fields are located in the Parabelsk district of Tomsk region, about 470 km west of the city of Tomsk.  The three sites are in relatively close proximity to the West Krapivinskoe field in neighboring Omsk region, which Sibneft has been developing since 2001. 

The three fields have, to date, produced cumulative output of 173,000 tons of oil.  By the third year of commercial production, output is forecast to reach 2.9 million tons per year (59,000 barrels per day).  The fields have an existing oil collection and transport system that connects them to the main trunk pipeline through the region.

“The development new projects in Tomsk oblast fits with our strategy of expanding the geography of our operations,” said Sibneft president Eugene Shvidler.  “The location of these sites, near the West Krapivinskoe field, allows us to create a unified oil production base in southwestern Siberia.”

Contact:

John Mann

Sibneft

Tel:  +7 (095) 777 3116

Fax: +7 (095) 777 3114

JohnM@sibneft.ru

www.sibneft.com