Sibneft Secures Controlling Stake in Meretoyakhaneftegas

Moscow, 25 April 2002; Sibneft has reached agreement to acquire a 67% stake in Meretoyakhaneftegas (MNG), a company based in the Yamal-Nenets autonomous district. The shares were acquired from a group of Russian and foreign companies.

MNG holds a license to develop the Meretoyakhinsky field, which has estimated reserves of some 870 million barrels (121 million tonnes), as well as an exploration license to the Karasevsko-Tanlovsky block. The company in 2000 re-entered four exploration wells which are currently undergoing testing, and also constructed a road and electricity transmission lines to the field.

Sibneft subsidiary Noyabrskneftegas will take over as operator of the field. The developed infrastructure, coupled with the field’s location near to Sibneft’s home base of Noyabrsk, will allow for a rapid start to the field’s development.

Development costs are estimated at around $80 million over the next few years, and financing will be shared between all the company’s shareholders. Sibneft is planning total upstream capital expenditure in 2002 of $637 million.