Rosneft has concluded a contract for the construction of three double-hulled shuttle tankers with the Spanish shipbuilding company Factorias Vulkano S.A.. The contract will enter into legal force on February 10, 2006. The launch into operation of the ships is planned for 2008.

The tankers are intended for the year-round transportation of oil from Rosneft-Arkhangelsknefteprodukt’s terminal (Port of Arkhangelsk) to Rosneft’s Belokamenka transshipment complex, anchored in the Kola Bay. The tankers’ technical characteristics will permit the transportation of oil, oil products and chemicals, for which the ships will be fitted with 12 special containers.

The tankers’ deadweight will comprise around 27,000 tons, with a length of 175 m., a width of 14 m. and a keel depth of 9.2 m. The tankers will fully comply with all environmental safety requirements, including the requirements introduced as of January 2006 for the strengthening of the underwater part of tankers. In particular, installed on the ships will be bow thrusters and an emergency propulsion electric motor in the event of the breakdown of the main engine.

The construction and operation of the tankers will be monitored by specialists from Rosneft’s subsidiary, Rosnefteflot.

The special financing mechanism will allow Rosneft to build the ships exclusively using borrowed funds without involving equity capital on very favorable terms, including using a 14-year bank loan against a guarantee of a Spanish export credit agency.