OJSC “SURGUTNEFTEGAS” AND ADMINISTRATION OF IRKUTSKAYA OBLAST SIGNED COOPERATION AGREEMENT

May 12, 2005 OJSC “Surgutneftegas” and Irkutskaya Oblast signed a cooperation agreement in Irkutsk.

The parties have expressed their mutual interest in promoting and strengthening economic relations based on equality and mutual benefit, as they are both aware of the strategic need to develop the oil and gas production sector in the Far East and Eastern Siberia which would use the resources (including natural and human resources) and infrastructure facilities of Irkutskaya Oblast.

The agreement covers coordination of the parties’ actions in addressing issues related to Surgutneftegas’ operations within the projects to produce, process and transport oil and gas on the territory of Irkutskaya Oblast, and interaction between the parties in mutually beneficial efforts to create and develop social and industrial infrastructure of Irkutskaya Oblast.

The parties have determined the following areas of cooperation under the agreement: geological exploration, oil and gas production and transportation, production, storage and sales of oil, gas and petroleum products, construction of power lines, pipelines, and other facilities.

It is agreed that investment conditions for Surgutneftegas will be stipulated by further separate agreements and contracts.

According to the agreement, Surgutneftegas has committed to use, when needed, production facilities and labor force of the region to explore and develop oil and gas fields and construct field facilities on the territory of Irkutskaya Oblast. The Company is also going to take part in social, environmental and commercial investment projects, if they are of interest.

The Administration of Irkutskaya Oblast on its part has committed to assist the Company in obtaining necessary geologic information on unallocated reserves subject to the regulations of the Russian Federation and Irkutskaya Oblast, seeking necessary approvals to use land and forests, and granting permissions and licenses in compliance with the legislation in force.

Moreover, the Administration of Irkutskaya Oblast agrees to ensure good operational conditions for Surgutneftegas on the territory of Irkutskaya oblast.

The agreement came into effect on the date of signing to remain valid until terminated.

Press Service of OJSC “Surgutneftegas”