LUKOIL Board decided to transfer 100% of LUKOIL-Perm Charter Capital from LUKOIL Overseas Holding Ltd. to the parent company.

At the same time it was decided to sell 54 % of Lukarco B.V. directly owned by LUKOIL to LUKOIL Overseas Holding Ltd.

This exchange of assets is aimed at optimization of LUKOIL subsidiaries and foreign projects management. The transfer will take place before July 1 of 2006.

LUKOIL-Perm explores and produces oil and gas in 23 administrative areas of Perm Region. The partnership, its subsidiaries and joint ventures hold 127 oil and gas fields. By early 2005 their proven and audited reserves were 2,13 billion barrels of oil and 667 billion cubic feet of gas. In 2005 LUKOIL-Perm ventures produced over 10,3 million tons of oil and 909 million cubic meters of gas.

A joint venture with BP, Lukarco B.V. holds 12,5% share in the Caspian Pipeline Consortium and 5% in development of the large Tengiz field in Western Kazakhstan. In 2005 production of this field reached 13,6 million tons of oil and 3,4 billion cubic meters of gas.