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Sibneft Retains Shell Global Solutions to Boost Omsk Refinery Performance

Moscow. January 24, 2005. Sibneft and Shell Global Solutions have entered into a four-year agreement whereby Shell Global Solutions will provide operational and technical services support for the Omsk Refinery as part of an overall performance improvement program. This comprehensive program encompasses most aspects of managing and maintaining the refinery and follows the completion of a technical audit of the facility conducted by Shell Global Solutions in 2003.

The Omsk Refinery performance improvement program is designed to bolster the refinery’s operational and economic results while overhauling its management systems. Sibneft plans to implement a large number of technical and business solutions including Shell Global Solutions’ MERIT refinery maintenance program, all of which will increase efficiency and reduce operating costs and energy consumption. Sibneft will also use Shell Global Solutions’ proprietary software tools to help management more effectively control and monitor refinery performance and develop forward-looking investment plans.

“The Omsk Refinery is already regarded as one of the most efficient and technologically-advanced in Russia,” said Sibneft president Eugene Shvidler. “We expect this comprehensive program, with the involvement of Shell Global Solutions, will help to extend the Omsk Refinery’s industry leadership and competitiveness by finding new ways to reduce costs and streamline business practices.”

Greg Lewin, president, Shell Global Solutions International BV, commented: “This is the first time that such a program has been undertaken in the Russian downstream business, and we’re delighted to be integral to it. We are confident that our team will help Sibneft’s Omsk Refinery realize an improvement in overall operating performance and energy usage efficiency that, in turn, will lead to a significant reduction in operating costs and improvements on margins.”

Located in Western Siberia, the Omsk Refinery is among Russia’s largest fuel and petrochemical suppliers, refining over 14 million tons of oil per year (285,000 barrels per day).