Omsk, Russia. September 19, 2005.Sibneft-Omsk Refinery this month completed reconstruction of its L-35-11/1000 catalytic reforming unit as part of the company’s program of technical upgrades to the refinery through the year 2010. Sibneft invested $110 million in construction of the facility.

The unit consists of two blocks – reforming and hydrofining – and produces reformate, a high-octane component for gasoline of up to 102 octane.  The facility has a designed throughput of up to one million tons per year.

Construction on the reforming unit began in February 1996, with a break in work in 1998-2000. Initial plans called for reconstruction of just the reforming block, but following a review of existing equipment the project was expanded to cover the hydrofining block as well. As a result, the project entailed practically a complete reconstruction of the original unit.

The reopening of the reforming unit allows Sibneft to:

 - Introduce the latest technology in refining and control systems in line with the best international standards;

 - Increase the production of high-octane gasoline by more than 100,000 tons per year, and components for high-octane gasoline by 300,000 tons/year (thus boosting the Omsk Refinery’s production of A-98 Super grade gasoline and broadening its slate of Premium and Super grade products);

 - Lengthen the time between capital repairs to two to three years;

 - Continue the company’s technical upgrade program (The completion of the L-35-11/1000 upgrade will allow the refinery to begin reconstruction work on its L-35-11/600 reforming unit in 2007.); and

 - Improve workplace safety.

The reforming unit’s platforming process, used to ensure continuous catalyst regeneration, is based on a patent held by US firm UOP LLC and is the most modern technology of its kind employed in Russia and the CIS. Italian firm Eurotechnica SA carried out the platforming design work, while Russian firm Omskneftekhimproyekt designed the hydrofining block.

Several of the top international equipment providers, including Nuovo Pignone, Mannesman and ABB, as well as major Russian manufacturers, provided equipment for the reforming unit. Omsk-based OAO OMUS-1 was the main construction enterprise involved in the project.

Contact:

John Mann

Sibneft

Tel:  +7 (095) 777-3116, 777-3182

Fax: +7 (095) 777-3114

JohnM@sibneft.ru

www.sibneft.com