TodayVagit Alekperov, OAO LUKOIL President, attended an official ceremonydevoted to commissioning the Lokosovskiygas processing unit production facilities after an upgrading process.

As a result of theupgrading, producing capacity of the unit increased from 1 to 1.9 bln cu m of associated gas per year.

The Lokosovskiygas processing unitupgrading was the final stage of creating a full associated oil and gas conversion system of OOO LUKOIL-Zapadnaya Sibir (100% subsidiary of OAO LUKOIL). Gas conversioncapacities intensification had been underway since 2004. Over 160 km of gas collection and two vacuum-compressor stations were constructed in its framework on Kogalym, Pokachi and Langepas fields. In 2005 an LPG tank farm, with the total capacity of 8 ths cu m, and a loading rackfor 30 rail tank cars working simultaneously, as well as a stable natural gasoline and propane filling unit were put into operation in Langepas. While thegas treatment unit was being upgraded, a booster compression station, a gas pipeline over 8 km long and a gas measuring station were put into operation at the tap-in into OAO GAZPROM gas pipeline system.

Presently, the average level of associated gas utilization in the Company is approximately 80%. OOO LUKOIL oil gas utilizationprogram is aimed at reaching 95%.