Moscow. July 1, 2005.  Sibneft has won an open subsurface resource auction for the Tympuchikanskiy block in Russia’s Republic of Sakha (Yakutia).  The acquisition is Sibneft’s second in the Eastern Siberia region following the company’s purchase of the Srednetaimurinskiy block in Krasnoyarsk in May of this year.

The Tympuchikanskiy block has recoverable reserves (categories C1+C2) of 16.9 million tons of oil and 13.4 billion cubic meters of natural gas (123.5 million barrels and 473 billion cubic feet, respectively). Sibneft will pay 440 million rubles ($15.36 million) for the license, or about $0.078 per barrel of oil equivalent.

“The Tympuchikanskiy acquisition demonstrates that, in addition to broadening our resource base in our main operating regions, Sibneft is looking to the future by acquiring licenses in the promising Eastern Siberian basin,” said Sibneft president Eugene Shvidler.

Contact:

John Mann

Sibneft

Tel:  +7 (095) 777-3116, 777-3182

Fax: +7 (095) 777-3114

JohnM@sibneft.ru

www.sibneft.com