ANNUAL REPORT 2005 - Lukoil

FINANCIAL ACCOUNTS
III. Results of operations for oil and gas producing activities
The Group's results of operations for oil and gas producing activities are presented below. In accordance with SFAS
No. 69, sales and transfers to Group companies are based on market prices. Income taxes are based on statutory rates.
The results of operations exclude corporate overhead and interest costs.
Year ended December 31, 2005 International Russia
Total
consolidated
companies
Group's share
in equity
companies
Total
Revenue
Sales 620 12,327 12,947 720 13,667
Transfers - 8,072 8,072 268 8,340
Total revenues 620 20,399 21,019 988 22,007
Production costs (excluding production
taxes) (93) (1,672) (1,765) (137) (1,902)
Exploration expense (192) (125) (317) (1) (318)
Depreciation, depletion, and amortization (106) (718) (824) (60) (884)
Accretion expense - (30) (30) - (30)
Taxes other than income taxes (6) (11,160) (11,166) (285) (11,451)
Related income taxes (160) (1,548) (1,708) (181) (1,889)
Total results of operations
for producing activities 63 5,146 5,209 324 5,533
Year ended December 31, 2004 International Russia
Total
consolidated
companies
Group's share
in equity
companies
Total
Revenue
Sales 243 8,841 9,084 754 9,838
Transfers - 4,456 4,456 47 4,503
Total revenues 243 13,297 13,540 801 14,341
Production costs (excluding production
taxes) (54) (1,509) (1,563) (62) (1,625)
Exploration expense (40) (131) (171) (5) (176)
Depreciation, depletion, and amortization (28) (648) (676) (39) (715)
Accretion expense - (8) (8) - (8)
Taxes other than income taxes (2) (5,544) (5,546) (172) (5,718)
Related income taxes (3) (1,310) (1,313) (315) (1,628)
Total results of operations
for producing activities 116 4,147 4,263 208 4,471
168