RN - YUGANSKNEFTEGAZ

Yuganskneftegaz is Rosneft’s largest oil-producing enterprise. It develops 26 oil fields in the Khanty-Mansiysk Autonomous District of Western Siberia. Yuganskneftegaz was established in 1977, and in early 2005, it was acquired by Rosneft and fully integrated into the Company’s production infrastructure.

Yuganskneftegaz produced 480.3 mln barrels of oil and 1.92 bln cubic meters of gas at its fields in the region during 2008, representing 61.9% and 15.5% of total Company output and exceeding indicators for 2007 by 8.7% and 26.3%, respectively. About 65% of oil produced by the Company in KhMAD during 2008 was exported and the remainder was sent for refining at Rosneft refineries or delivered under swap agreements.

The fields at Yuganskneftegaz are integrated with the regional transport infrastructure. Crude oil is exported and delivered to the domestic market via the nearby Ust-Balyk — Omsk trunk pipeline owned by Transneft.

Rosneft continued to develop reserves of Yuganskneftegaz according to plan during 2008. Production drilling by the Company in the region was 1,683 th. meters, which is comparable with the 2007 level. A total of 533 new oil wells (including injection wells) were put into operation after production drilling in KhMAD, and average daily output per new well was 643 barrels, which is 2.5 times higher than the average for Russia. Average daily output from production wells of Yuganskneftegaz rose by 2.9% from 2007 to 162 barrels. High well productivity and a high level of reserve concentration means that production costs can be kept under tight control.