Moscow, July 24, 2003.  Sibneft today confirmed that it expects to complete the previously-announced merger with YUKOS, as scheduled, on or before December 31, 2003. 

Working groups comprised of representatives from both companies are currently meeting to outline the merged company’s corporate structure and other important issues.  Sibneft, YUKOS, and their advisors are also wrapping up a due diligence process that began following the May 14, 2003 announcement on the signing of a definitive merger agreement.

Under the agreement, YUKOS will acquire 92% of Sibneft for $3 billion in cash and 26.01% of fully-diluted share capital in the merged company.  YUKOS will also make a fair offer to Sibneft minority shareholders after receiving a fairness opinion from an internationally recognized investment bank.

The merged company, to be called YukosSibneft, will rank among the world’s largest private-sector oil producers.

Contact:

John Mann

Sibneft

Tel:  +7 (095) 777 3116

Fax: +7 (095) 777 3114

JohnM@sibneft.ru

www.sibneft.com