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Sibneft Optimizes Management of Crude Oil Production Unit

Moscow, March 3, 2004. Sibneft today announced that it had instituted several structural and personnel changes at its main production subsidiary, Sibneft-Noyabrskneftegas (NNG), with a view towards streamlining corporate management.

Sibneft has decided to merge Muravlenkovskneft and Sutorminskneft, two key structural operating divisions of Sibneft-NNG. The combined operating unit will have production of 20 million tons of crude oil in 2004 and will be led by Vladimir Zherebtsov, the former head of Muravlenkovskneft.

Several important management appointments have also been made as part of Sibneft’s personnel rotation program. Sibneft-NNG general director Mikhail Stavskiy has been named the company’s new vice president for production. Sibneft vice president Andrey Matevosov will return to his previous post as general director of Sibneft-NNG, which he held from 1998-2000.

Among other management changes at Sibneft-NNG was the appointment of Sergey Rusakov as chief engineer. Rusakov formerly headed up Sibneft-NNG’s Kholmogorneft operating division.