ANNUAL REPORT 2005 - Lukoil

As of December 31, 2003
International
Russia
Total
consolidated
companies
Group's share
in equity
companies
Future cash inflows 6,376 261,575 267,951 6,445 274,396
Future production and development costs (3,476) (149,526) (153,002) (3,117) (156,119)
Future income tax expenses (586) (26,071) (26,657) (824) (27,481)
Future net cash flows 2,314 85,978 88,292 2,504 90,796
Discount for estimated timing of cash
flows (10% p.a.) (1,392) (55,642) (57,034) (1,389) (58,423)
Total
CONSOLIDATED FINANCIAL STATEMENTS
Discounted future net cash flows 922 30,336 31,258 1,115 32,373
Minority share in discounted future net
cash flows - 537 537 - 537
Included as a part of the $156 billion of future production and development costs are $3.6 billion of future dismantlement,
abandonment and rehabilitation costs.
VI. Principal sources of changes in the standardized measure of discounted future net cash flows
Consolidated companies 2005 2004 2003
Discounted present value as at January 1 35,106 31,258 22,082
Net changes due to purchases and sales of minerals in place 1,761 31 16
Sales and transfers of oil and gas produced, net of production costs (7,771) (6,260) (3,525)
Net changes in prices and production costs estimates 18,786 5,881 8,978
Extensions, discoveries, and improved recovery, less related costs 2,619 1,548 1,049
Development costs incurred during the period 2,495 1,983 1,528
Revisions of previous quantity estimates (320) (416) 1,163
Net change in income taxes (5,346) (1,084) (2,867)
Other changes 149 8 (115)
Accretion of discount 4,609 2,157 2,949
Discounted present value at December 31 52,088 35,106 31,258
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