22 April 2011. Moscow, Russia. OJSC ANK Bashneft and its subsidiaries and affiliates including OJSC Bashkirenergo (hereinafter ‘Bashneft Group’ or ‘the Group’), one of the leading vertically integrated Russian oil companies, today publishes audited consolidated financial results prepared to International Financial Reporting Standards (IFRS) for the 12 months ending on 31 December 2010.

Comparative data for the 12 months ending 31 December 2009 are also audited consolidated results prepared to International Financial Reporting Standards.

Main financial results in the fourth quarter of 2010

OIBDA in 2010 was US$ 2,981 million compared with US$ 1,249 million in 2009. OIBDA increased  to US$ 992 million in the fourth quarter of 2010 from US$ 680 million in the third quarter;

Net income attributable to shareholders of the parent company was US$ 1,429 million in 2010 compared with US$ 420 million in 2009. Net income increased to US$ 570 million in the fourth quarter of 2010  from US$ 278 million in the preceding quarter;

The main causes of growth in OIBDA and net income were increase of crude oil production, rises in world prices for oil and petroleum products and non-recurring income from revaluation of the Company’s holding in OJSC Belkamneft (OJSC ANK Bashneft owns 38.46% in share capital of OJSC Belkamneft) due to reclassification of that investment.

Main operating results in the fourth quarter of 2010

Crude oil production in 2010 was 14.145 million tonnes compared with 12.234 million tonnes in 2009. Average daily oil output rose by 15.6% compared with 2009 to a level of 276,000 barrels.

The Company has now shown consistent increases in crude oil production for six consecutive quarters. Production grew by 0.9% q-o-q in the fourth quarter of 2010 to a level of 3.656 million tonnes;

o   Refining volumes in 2010 were 21.193 million tonnes compared with 20.747 million tonnes in 2009. Refining volumes declined by 5.5% q-o-q in the fourth quarter of 2010 to 5.254 million tonnes.