The LUKOIL Group oil production for the fourth quarter and twelve months of 2016 was 22.7 and 92.0 million tonnes, respectively. Production for the fourth quarter excluding compensation crude oil from West Qurna-2 project in Iraq increased by 2.5% compared to the third quarter of 2016.

Oil production dynamics in Russia was positively impacted by launches of

V. Filanovsky and Pyakyakhinskoe fields in the second half of 2016, an increase in production drilling volumes in West Siberia, as well as growth in production volumes in Timan-Pechora and Ural regions.

Oil production dynamics outside of Russia was influenced by the divestment of our share in Caspian Investment Resources Ltd. in Kazakhstan in 2015, as well as a decrease in compensation crude oil volume from the West Qurna-2 project.

Oil production, thousand tonnes

The LUKOIL Group marketable gas production for the fourth quarter of 2016 increased to 5.1 billion cubic meters, or by 8.3% compared to the third quarter 2016. Gas production for the twelve months of 2016 remained practically unchanged year-on-year at 20.3 billion cubic meters. Production volume was positively influenced by development of projects in Kazakhstan, Azerbaijan and Uzbekistan.

Marketable gas production, million cubic meters

Refinery throughput at the LUKOIL Group refineries for the fourth quarter and twelve months of 2016 was 16.7 and 66.1 million tonnes, respectively. The year-on-year positive dynamics was mainly attributable to the increase in utilization rate at our refineries in Italy and Romania, while the volume of refinery throughput at our Russian refineries remained at 2015 level. The quarter-on-quarter dynamics was driven by planned maintenance works at our Volgograd refinery.

Refinery throughput at refineries, thousand tonnes

The information in this press release is an estimate of the LUKOIL Group’s results in the fourth quarter and twelve months of 2016 and therefore constitutes forward-looking statements. This information is preliminary and based on information available at the date of this document, and may be revised after statistical, financial, tax and accounting statements become available. The information on the LUKOIL Group’s operational results in this press release are subject to many external factors which may cause the actual results to differ materially from those expressed or forecasted in this press release for the fourth quarter and twelve months of 2016. The LUKOIL Group assumes no obligation to update or alter its forward-looking statements, whether as a result of new information, subsequent events or otherwise, except to the extent required by applicable law. This document does not constitute or form part of an invitation or inducement to engage in investment activity with, or any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of, the LUKOIL Group, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of, or any investment in, the LUKOIL Group.