Sibneft Launches Level-I ADR

Moscow, 20th April 1999: Leading Russian oil producer OAO Siberian Oil Company ("Sibneft") announced today, in conjunction with the Bank of New York, that it has received permission from the SEC to launch trading of its Level-I ADR in the U.S. over-the-counter ("OTC") market. Trading will begin today, 20th April 1999, at 9am New York time.

SIBNEFT PRESIDENT EUGENE SHVIDLER said, "The launch of our ADR programme today is a major step forward in Sibneft's relationship with the international equity market. We are very encouraged by the strong investor interest shown so far."

" Sibneft has many attractions for international investors. We have world class assets and progressive management focused on creating shareholder value. Furthermore, our high level of financial disclosure and adherence to international standards of corporate governance has set new benchmarks for Russia that will be welcomed by anyone investing in our market."

The new ADR trading facility will considerably enhance the ability of international investors to buy Sibneft shares and follows the successful consolidation of Sibneft production subsidiary, Noyabrskneftegas. Twenty million ADRs in units of ten shares each have been authorized for trading on an OTC basis. This represents approximately 4.2% of Sibneft's total share capital. Further Level-I ADRs can be issued according to investor demand. In line with ADR Level -I regulations shares for deposit into the Sibneft ADR programme can only be purchased on the secondary market and no new shares are being issued.

Mr. SHVIDLER concluded, "We look forward to regular contact with a growing number of our international investors. This Level-I ADR programme is an important first step towards achieving Sibneft's long term goal of a full, Level-III listing on the NYSE."