Moscow, July 28, 2005.  Sibneft today began deliveries of industrial volumes of natural gas to provide energy for rubber manufacturer Omsk Caoutchouc. Under a five-year supply contract, Sibneft will deliver 340 million cubic meters of natural gas to Omsk Caoutchouc annually.

Omsk Caoutchouc is one of Russia’s largest manufacturers of synthetic caoutchouc, a type of latex rubber, and is also a major gas consumer.  In close cooperation with Sibneft, the enterprise specially built an on-site gas-fueled heat and power plant to provide electricity and steam for its operations.

Sibneft will supply gas from fields at its main production subsidiary, Sibneft-Noyabrskneftegas.  Prior to delivery, the gas will be processed at the facilities of petrochemicals firm AK Sibur.  Sibneft’s Omsk Refinery will serve as a backup gas source for Omsk Caoutchouc’s new power station.

“This supply deal represents an important step forward for a promising part of our business – the processing and sale of associated gas,” said Sibneft president Eugene Shvidler. “It is also a logical extension of the company’s deep involvement in the Omsk region’s economy.”

Contact:

John Mann

Sibneft

Tel:  +7 (095) 777-3116, 777-3182

Fax: +7 (095) 777-3114

JohnM@sibneft.ru

www.sibneft.com