ANNUAL REPORT 2005 - Lukoil

August
The first stage of a coke calcination facility is installed at the Volgograd Refinery with annual capacity
of 100,000 tonnes of calcinated coke (a product, used in aluminum smelting). The second stage will
be commissioned in 2009, raising total capacity to 280,000 tonnes, which is sufficient for calcifying all
of the coke produced at the Refinery.
EVENTS IN 2005
September
LUKOIL freezes prices for gasoline and diesel fuel at its retail outlets in Russia from 19 September
until the end of 2005. This step is taken in order to hold back fuel prices in the short term and to maintain
the constructive dialogue between oil companies and the Russian government on stabilization of
domestic prices for petroleum products and further improvement of tax regulation in the oil & gas
industry.
An agreement is signed in Tashkent on creation of a consortium including the National Holding
Company Uzbekneftegaz, LUKOIL Overseas, Petronas Carigali Overseas (Malaysia), Korea National Oil
Corporation (Korea) and CNPC International (China). The consortium will negotiate with the government
of Uzbekistan on preparation of a PSA agreement for geological exploration and development of
oil & gas fields in the Uzbek sector of the Aral Sea.
October
LUKOIL acquires a controlling stake in Nelson Resources Limited.
LUKOIL and CVP (a division of PDVSA, the National Oil & Gas Company of Venezuela) sign an agreement
on exploration work at the promising Junin-3 block. LUKOIL will carry out quantitative assessment
and certification of heavy oil reserves at block fields. The area of the Junin-3 block is 640 km 2 .
The agreement will be for three years. At the end of the exploratory work negotiations will begin
between LUKOIL and CVP on development of the Junin-3 block.
11