Hereby OAO LUKOIL presents its 2002 consolidated results for the year ended December 31, 2002 and comparative data for preceding years as well as results for the forth quarter of 2001. All items are presented in millions of US dollars, except for earnings per share data and production figures.

	Year ended December 31,		Three months ended December 31,
	2002	2001	2002	2001
Sales (including excise and export tariffs)	15,334	13,426	4,301	3,031
Operating expenses	2,403	2,584	632	640
Income tax expense	739	674	199	55
Net Income	1,843	2,109	497	203
Net Income excluding special items in 2002	1,985	2,109	536	203
EBITDA	3,569	3,987	893	721
Dividends declared on common stock	395	208	-	-
Basic earnings per share of common stock	2,26	2,68	0,61	0,21
Diluted earnings per share of common stock	2,26	2,66	0,61	0,21
Daily production, including Company's share in Equity affiliates (thousand barrels per day)	1,545	1,485	1,555	1,536
Refined products produced (thousand barrels per day)	786	688	824	703

Strong revenues Reached $15 billion and increased 14% compared to 2001 primarily as a result of change in sales mix and increased volumes of refined products sales. The Company continued to expand into new markets, both in Russia and internationally and increase our market share in our old traditional regions.

Stable production growth In line with our long term strategy and 2002 plan we increased our total daily oil production by 4% (including our share in affiliates) and produced 564 million barrels. Gas production increased by 8% and will be increasing significantly in coming years.

Second largest reserves in the world We have replaced 216% of our 2002 oil production and almost doubled our proved natural gas reserves. Approximately 60% of our oil reserves replacement was attributable to our successful drilling program and certain strategic acquisitions, with the remainder relating to an improvement of operating efficiencies and higher realized prices in line with our corporate strategy. The increase in our gas reserves related primarily to discoveries and acquisitions. Our total proved hydrocarbon reserves increased 15% and reached 19.3 billion barrels of oil equivalent which makes us the second largest private oil company in the world in terms of reserves.

Restructuring Since the beginning of 2002, we have been implementing a restructuring plan designed to improve our operations and maximize shareholder value. The plan included undertaking the following measures in the near term: (i) increase exports of crude oil and refined products; (ii) accelerate the development of our most productive fields; (iii) shut-in low-producing wells; (iv) apply enhanced oil recovery technologies; (v) seek competitive bids for oilfield services; (vi) divest non-core businesses, including certain producing assets where we are not the operator, and reduce headcount; (vii) strengthen performance-related pay; and (viii) streamline our administration.

The following has been achieved to date:

• Our oil and refined products international sales in 2002 increased by 15% in terms of volumes while domestic sales decreased 11%, which added $1.5 billion to our revenues;
• 10 new oil fields were put on stream which allowed us to increase our production (including our share in affiliates) by 4% regardless of the program of shutting low production wells;
• 1,138 low production wells were shut in and as a result of this measure we reduced our cost of oil production down to $2.60 per barrel, compared to $2.74 in 2001 saving $72 million in income before tax;
• We have completed the preparation of our drilling division for sale and are in the process of seeking suitable bids;
• We divested our interest in certain areas in which we were not the operator, most significantly our interest in the production sharing agreement ("PSA") operated by the Azerbaijan International Operating Company. The purpose of this PSA is to explore and develop the Azeri and Chirag fields and the deep water portion of the Guneshli field in the Azeri sector of the Caspian Sea. The sale was completed on April 28, 2003 for approximately $1.4 billion cash, subject to certain post-closing adjustments. As result of the transaction we expect to record a gain of approximately $1.1 billion in the second quarter of 2003.

• Higher volumes of refined product sales internationally, which increased by 47.5% (2002: 6.7 million tonnes; 2001: 4.6 million tonnes);
• Higher volumes sold on the domestic market, which increased by 6.2% (2002: 5.7 million tonnes; 2001: 5.3 million tonnes);
• An increase in average realized sales prices both on domestic market and internationally.