Moscow. February 9, 2005. Sibneft achieved consolidated crude oil production of 45.12 million tons in 2005, up 0.2% from 45.05 million tons in 2004, according to annual operating results released today. Average daily production for the year was 123.62 thousand tons (about 919,200 barrels per day) compared to 123.42 thousand tons (917,800 b.p.d.) the previous year.

The consolidated figure includes Sibneft’s 50% share of Slavneft, which the company owns jointly with TNK-BP. Excluding Slavneft, Sibneft’s produced 33.04 million tons (673,100 b.p.d.) in 2005, down 2.9% from 34.04 million tons the previous year.

Sibneft oil refining at the Omsk and Moscow refineries was stable in 2005, totaling 17.64 million tons (359,400 b.p.d.), an increase of 0.4% from 17.56 million tons (357,700 b.p.d.) the year before. Omsk refined 14.50 million tons, or 1.3% more than in 2004, while the company processed 3.14 million tons at its jointly-owned Moscow Refinery, or 3.5% less than the previous year.

Crude oil exports to non-CIS destinations rose by 21.0% to 16.44 million tons in 2005 from 13.58 million tons the previous year, and exports of refined petroleum product soared 45.7% to 7.53 million tons from 5.17 million tons in 2004. In the second half of last year, Sibneft began directly selling and exporting its share of crude oil and oil products from Slavneft.

Production and exploration drilling jumped by 30% last year to 1.05 million meters as Sibneft boosted spending on the development of its younger oilfields with a view towards long-term growth. The company also acquired rights to eight new oilfields through a series of state natural resource auctions, and purchased TNK-BP’s interest TNK-Sakhalin, which holds an exploration license for the offshore Lopukhovsky block near Sakhalin Island.

“In 2005, Sibneft marked its 10^th anniversary by making the transition from a young rapidly-evolving enterprise to a mature, integrated oil major with a solid basis for stable long-term growth,” said Sibneft president Alexander Ryazanov. “Consolidation with Gazprom’s oil assets and completion of the division of Slavneft will help Sibneft retain its position as an industry leader.”