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PRESS-RELEASE
24.06.2015 
LUKOIL COMPLETES IMPLEMENTATION OF THE PROGRAM UNDER CAPACITY SUPPLY AGREEMENT

Today in Budennovsk Vagit Alekperov, President of OAO  "LUKOIL", Kirill Molodtsov, Deputy Energy Minister, Andrei Reznikov, Deputy  Minister for the North Caucasus, and Vladimir Vladimirov, Governor of the  Stavropol Region, took part in the ceremonial launch of a combined-cycle gas  turbine (CCGT-135).

CCGT-135 started supplying power to the Russian  Wholesale Power Market (RWPM) on March 3rd, 2015, which was the final  stage of implementation of LUKOIL’s program under the Capacity Supply Agreement  (CSA) in accordance with the Government Decree ?1334-p dated August  11th, 2010. The installed capacity of CCGT-135 is 153 MW.

During the visit, the results of the implementation of  the CSA program were summed up – in particular, it was noted that from 2011 to  2015, LUKOIL carried out the launch of four power plants with a total installed  capacity of 945 MW, 55 MW more than the company's obligations under the  agreement. The launch of these plants led to the creation of 227 new jobs.

The gas produced at LUKOIL fields in the Caspian Sea  will be used towards the production goals at thermal power plants on Budennovsk,  which will ensure the synergy of mining, processing and power generating  capacities of the company.

The delegation also visited several facilities, which have been  supported within the framework of social projects by LUKOIL – in particular,  municipal House of Culture, which was renovated and equipped with modern  equipment and which has become one of the best in the Stavropol Region. LUKOIL  also has supported sports club "Polymer" that has allowed to reconstruct the big  and small pools, sports and fitness facilities, and purchase new equipment.  Today in the gym the level of sportsmanship is increased not only by residents  of Budennovsk, but also by the entire region.

PRESS-RELEASE
19.06.2015
LUKOIL AND GAZPROM SIGN AGREEMENTS ON THE SUPPLIES OF GAS

Today Vagit Alekperov, OAO LUKOIL President, and Alexey  Miller, OAO GAZPROM Chairman of the Board, held a working meeting at the Saint  Petersburg International Economic Forum.

The parties discussed the implementation of the General  Agreement on strategic partnership and, in particular, on the purchase of gas  produced by LUKOIL.

The Companies have signed Additional agreement on the  supply of gas from LUKOIL fields in Bolshekhetskaya Depression for  2017-2024.

Also the Contract was signed on the supply of gas up to  2024 from Northern Caspian fields developed by LUKOIL. Gas will flow into the  gas transportation system of GAZPROM near the town of Budennovsk. The volume of  gas supplies each year will be determined by the technical features and modes of  operation of the gas transportation system of GAZPROM, as well as depending on  the commissioning of the Northern Caspian fields.

Earlier LUKOIL and GAZPROM have signed a General  agreement on strategic partnership for 2014-2024, aimed at developing  cooperation in the supply of hydrocarbons, the production of oil and gas and  chemical products, placement of available resources of oil and gas condensate at  processing plants located in Russia and abroad. The agreement also provides for  cooperation in the development of productive capacity and infrastructure, their  scientific, technical, environmental and human resources, as well as in other  areas.

PRESS-RELEASE
04.06.2015
LUKOIL PRESIDENT MEETS WITH KAZAKHSTAN LEADERS

LUKOIL President Vagit Alekperov visited Astana to attend the 28th  Plenary Session of the Foreign Investors’ Council under the President of  Kazakhstan. As part of his visit, Mr. Alekperov met with Kazakhstan Prime  Minister Karim Masimov, executives from Kazakshtan's Ministry of Energy and  KazMunayGas, the national oil company of Kazakhstan.

The parties discussed LUKOIL's operations in Kazakhstan.  Following the meeting, LUKOIL and KazMunayGas signed a Memorandum of  Understanding to expand the cooperation between the companies in exploration at  unlicensed areas in Kazakhstan.

The Foreign Investors’ Council under the President of Kazakhstan is a  deliberative and consulting body. Among its objectives is ensuring a direct  conversation between the Government of Kazakhstan and foreign investors coupled  with resolving issues related to their investment activities in the country. The  Council Members convene annually in the course of Plenary Sessions chaired by  the President of Kazakhstan. LUKOIL has been a member to Kazakhstan's  Council of Foreign Investors Association – an executive arm of the Foreign  Investors’ Council – since December 6, 2003. LUKOIL’s President joined the  Foreign Investors’ Council that same year.

LUKOIL has been operating in Kazakhstan since 1995. The Company  has 7 onshore production projects under way and is a partner to the Caspian  Pipeline Consortium (CPC). LUKOIL is the largest Russian investor in  Kazakhstan; since 1995 the company  has invested more than $7 billion into the Republic's  economy.

PRESS-RELEASE
10.06.2015
LUKOIL NET INCOME WAS $0.7 BILLION IN THE FIRST QUARTER OF 2015, EBITDA WAS $2.8 BILLION, FREE CASH FLOW WAS $0.7 BILLION. LUKOIL AND SINOPEC AGREED ON $1,067 MILLION DEAL.

LUKOIL has published consolidated US GAAP financial statements for  the first quarter of 2015.

The Company’s net income in the first quarter of 2015 amounted to  $690 million, which is a 60.2% y-o-y decrease. EBITDA (earnings before interest,  taxation, depreciation and amortization) in the first quarter of 2015 decreased  by 29.5% to $2,816 million. Sales revenue was $23,190 million (-35.0% y-o-y).  The decrease in revenue, EBITDA and net income was mainly due to the decrease in  the average Urals blend oil price by more than 50% y-o-y in the first quarter of  2015.

Capital expenditures, including non-cash transactions, in the first  quarter of 2015 decreased 24.8% y-o-y to $2,430 million. Free cash flow in the  first quarter of 2015 quadrupled to $728 million. Hydrocarbon lifting cost in  the first quarter of 2015 decreased by 18.9% to $4.24 per boe in total and was  $3.30 per boe excluding West Qurna-2 project.

In the first quarter of 2015, LUKOIL Group total marketable  hydrocarbon production increased by 7.0% y-o-y to 2,369 thousand boe per day.  Crude oil and natural gas liquids production in the first quarter of 2015  increased by 7.8% to 2,033 thousand barrels per day. The increase was mainly due  to the start of commercial production from West Qurna-2 project in  Iraq. Throughput at the Company’s  refineries in Russia decreased by 12.3% mainly due to a decrease in refining  margins as a result of changes in tax legislation.

LUKOIL and Sinopec signed an agreement for the sale of LUKOIL’s 50%  interest in Caspian Investment Resources Ltd. It will replace the previous sales  and purchase contract signed on April 15, 2014. According to the agreement the  sale price of the stake will be $1,067 million. The transaction’s closing is  subject to requisite governmental consents and approvals and is to occur by  December 1, 2015. Arbitration procedures initiated by LUKOIL against Sinopec in  London in  February this year will be suspended for the period until  completion.

Consolidated Statements of Income

 

3 months of

 

2015

2014

   

(millions of US dollars)

 

Revenues

   
 

Sales (including excise and export tariffs)

               23,190      

35,681

       
 

Costs and other deductions

   
 

Operating expenses

               (1,808)

(2,309)

 

Cost of purchased crude oil, gas and products

             (11,238)

(17,243)

 

Transportation expenses

               (1,303)

(1,553)

 

Selling, general and administrative expenses

                   (665)

(856)

 

Depreciation, depletion and amortization

               (1,819)

(1,512)

 

Taxes other than income taxes

               (2,139)

(3,446)

 

Excise and export tariffs

               (3,033)

(5,487)

 

Exploration expense

                     (79)

(205)

 

Loss on disposals and impairments of assets

                       (83)

(415)

 

Income from operating activities

                 1,023

2,655

       
 

Interest expense

                   (169)

(140)

 

Interest and dividend income

                       81

57

 

Equity share in income of affiliates

                       54       

182

 

Currency translation loss

                     (37)

(270)

 

Other non-operating expense

                     (36)

(80)

 

Income before income taxes

                     916

2,404

       
 

Current income taxes

                  (338)

(805)

 

Deferred income taxes

                     119      

138

 

Total income tax expense

                   (219)

(667)

       
 

Net income

                     697

1,737

       
 

Net income attributable to non-controlling       interests

                       (7)

(4)

       
 

Net income attributable to OAO LUKOIL

                     690      

1,733

       
 

Earning per share of common stock attributable to OAO       LUKOIL

(in US dollars):

   
 

Basic

0.91

2.30

 

Diluted

0.91

2.25

       

                                                                                                                                                                        

Full version of US GAAP interim consolidated financial statements of  OAO LUKOIL for the first quarter of 2015 is available on the Company’s web  sites: www.lukoil.com and www.lukoil.ru

These interim consolidated financial statements have been prepared by  the Company in accordance with U.S. GAAP and have not been audited  by our independent auditor. If these financial statements are audited in the  future, the audit could reveal discrepancies, and we cannot give any assurance  that any such discrepancies would not be material.

PRESS-RELEASE
03.06.2015
LUKOIL OPTIMIZES ASSET STRUCTURE IN BALTIC STATES

OAO LUKOIL signed a sale-and-purchase contract with Aqua Marina AS to  sell it 100% shares of Lukoil Eesti AS, who owns a network of 37 gas-filling  stations on Estonian territory. The deal will be closed upon approval from  Estonia's Antimonopoly  Service.

The decision to sell the network in Estonia was  taken as part of the effort to optimize LUKOIL's business in petroleum-product  marketing and raise the efficiency of the management system of the distribution  network in the Baltic countries.