ANNUAL REPORT 2005 - Lukoil

The catalytic reforming unit was overhauled in 2005 to allow isomerization. The work was completed
in the first quarter of 2006, allowing production of motor gasolines to Euro-3 standards.
These gasolines have improved density and better fractional and hydrocarbon content in order to
meet the needs of modern vehicle engines. They satisfy the latest international environmental
standards for fuels.
LUKOIL began complex reconstruction and modernization of the Nizhny Novgorod Refinery in 2005
and the process is due for completion in 2009. Total capital expenditures on this project are estimated
at $600 million, most of which will be spent on construction of catalytic cracking, alkylation and visbreaking
units.
Planning and research work was carried out in 2005 for construction of a deep refining complex at
Nizhny Novgorod, based on the unit for catalytic cracking of vacuum gasoil. The complex is due to be
commissioned in 2009.
REFINING, PETROCHEMICALS AND MARKETING
The Ukhta Refinery commissioned a Recovery Plus module to increase hydrogen concentration in
the hydrodeparaffinization unit. The unit can now produce up to 250,000 tonnes of Arctic diesel fuel
per year. The Recovery Plus module can also extract up to 13,000 tonnes per year of high-octane light
reformate (С 4 -С 5 fractions) from hydrogen-rich gas. This reformate is a valuable component for blending
of gasolines.
Work continued in 2005 on the second stage of a rail loading-rack complex for unloading of crude oil
and loading of dark petroleum products. The work is due for completion in the third quarter of 2006
and the rack will have 4 million tonnes annual capacity.
The Ukhta Refinery also began technical refitting of its catalytic reforming unit in 2005. The work will
be completed in the third quarter of 2006 and will reduce gasoline production costs.
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