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PRESS-RELEASE
24.11.2016
LUKOIL PUTS NEW FACILITIES IN OPERATION AT YAREGSKOYE FIELD

President of LUKOIL Vagit Alekperov and Head of the Republic of Komi Sergey Gaplikov brought into operation a facility for the treatment and gathering of oil, and a water-treatment unit, at Yaregskoye field in the Republic of Komi, today. The capacity of the first stage of the facility is 1.75 million tons of oil per year.

The water-treatment unit was built to clean the formation water and generate steam to be injected into pay zones to facilitate production of highly viscous oil. The capacity of the unit is 700 cubic meters of water per hour. 

The development of the highly viscous oil of Yaregskoye field is one of the key projects supporting the growth of LUKOIL Group. Development plans for Yaregskoye oil field provide for construction of more than 20 facilities, including steam generating units and a 75-megawatt power plant. The project will allow to raise oil production at Yaregskoye field up to 3.5 million tons compared against 0.7 million tons in 2015. 

For reference: 

Yaregskoye oil field was discovered in 1932 in the southern part of the Timan-Pechora petroleum province, in the Ukhta District of the Republic of Komi, 20 kilometers away from the town of Ukhta. The field includes the following areas: Vezhavozhskaya, Yaregskaya and Lyayelskaya, of which the latter two are producing ones. The field development began in 1939. As of the end of 2015, proved reserves of the field stood at 321 million barrels of oil.

LUKOIL was the first in the world to perform a steam-assisted gravity-drainage operation in a wellbore of up to 1 kilometer in Lyayelskaya area.

PRESS-RELEASE
24.11.2016
PRESS SERVICE STATEMENT

PJSC LUKOIL Press Service would like to bring to the notice of all concerned parties the fact of distribution of fraudulent equipment purchase offers from e-mail addresses ending in @lukoil-zakupki.com. Copies of documents attached to such messages contain the illegally used trademark of the Company as well as falsified seal of LUKOIL’s subsidiaries.

Please be reminded to be careful in communications with unknown senders, to compare the contact details contained in the original documents with those published on the official web-site of PJSC LUKOIL www.lukoil.ru (Russian version) and www.lukoil.com (English version).

PRESS-RELEASE
16.11.2016
UNITED STATES SUPREME COURT AGREES WITH LUKOIL

The United States Supreme Court became the seventh separate court to agree with PJSC LUKOILthat Archangel Diamond Corporation (ADC) Liquidation Trust’s case against LUKOIL could not be pursued in the United States. 

By this decision the Supreme Court has put an end toADC’s pursuit of any further litigation in the United States. The verdict of November 7, 2016 is final and non-appealable.

For reference:

The case was initially filed in November 2001 in Colorado State Court. For the next 15 years, the case progressed through both the Colorado state court system and the federal court system. Initially, the lowest state court dismissed the case; that ruling was ultimately affirmed by the Colorado Court of Appeals and the Colorado Supreme Court.

Shortly before the Colorado state court system dismissed the case, ADC filed an identical case in the federal court system, in the U.S. District Court in Denver. The District Court, after hearing the matter, ultimately agreed with LUKOIL and dismissed the case. However, prior to dismissal, ADC removed the case to the Bankruptcy Court. The Bankruptcy Court found ADC guilty of “forum shopping” and quickly remanded the case back to the U.S. District Court. Following the dismissal by the District Court, the 10th Circuit Court of Appeals agreed with LUKOIL and upheld the dismissal.

PRESS-RELEASE
23.11.2016
LUKOIL COMPLETES DRILLING OF THE THIRD WELL OFFSHORE AT FILANOVSKY FIELD

LUKOIL has successfully completed drilling of the third well at offshore Vladimir Filanovsky field in the Caspian Sea. The horizontal section of the well is 1,217 meters long. The well flow is around 3,000 tons of crude oil per day. The field’s total oil production currently amounts to approximately 9,000 tons per day.

V. Filanovsky field, discovered by LUKOIL in 2005, is the second field commissioned by the company in the Russian offshore sector of the Caspian Sea. The field’s ?1+?2 recoverable reserves, under the Russian classification, are estimated at 129 million tons of crude oil and 30 billion cubic meters of gas. The annual oil production at the plateau is estimated at 6 million tons.

For reference:

The Vladimir Filanovsky field is located in the northern Caspian Sea, 220 km away from the city of Astrakhan. Water depth in the field’s area ranges from 7 to 11 meters.

In its offshore operations, LUKOIL relies on high-tech equipment, ensuring a high level of process safety and environmental protection. In particular, the Company adheres to the “zero discharge” principle, and performs regular environmental monitoring including satellite monitoring of water, subsoil monitoring, pollution monitoring of the environment and wildlife resources.

PRESS-RELEASE
15.11.2016
LUKOIL RAISES USD 500 MILLION FOR GISSAR PROJECT IN UZBEKISTAN

LUKOIL has raised USD 500 million in a 5-year unsecured loan at 3 month LIBOR+3.0% to finance the development of the Gissar group’s gas condensate fields in Uzbekistan. Soyuzneftegaz Vostok Limited, a wholly-owned indirect subsidiary of PJSC “LUKOIL”, is the borrower under the loan.

The loan is provided by the following consortium of commercial banks: Intesa Sanpaolo Bank Luxembourg S.A. (Luxembourg), Natixis (France), Mizuho Bank, Ltd. (Japan), UniCredit S.p.A. (Italy), VTB Bank (Deutschland) AG (Germany), ING Bank N.V. (The Netherlands), AO Raiffeisenbank (Russia) and Raiffeisen Bank International AG (Austria). 

Note:

The Production Sharing Agreement on the Gissar project was signed in January 2007. The first gas fields – Djarkuduk – Yangi Kyzylcha – was commissioned in December 2011 as a part of ‘Early Gas’ stage.  The Gissar block reached its target production level of more than 1.1 bcm of natural gas per year in 2012. In March 2016, the field support base started its operations; allocation of personnel has begun.

In 2017, under the ‘Full Development’ stage, we plan to launch Djarkuduk complex gas treatment unit with capacity of 4.4 billion cubic meters of gas per year. It will allow reaching the relevant target production level.

As of the end of 2015, proved hydrocarbon reserves amounted to 241 million barrels of oil equivalent (22 million barrels of gas condensate and 1,317 billion cubic feet of gas); production was 9 million barrels of oil equivalent (106 thousand tonnes of gas condensate and 1.3 billion cubic meters of gas). All marketable gas is exported.