During the seven months of 2004, oil production in OJSC “Surgutneftegas” reached 33,892 thousand tons, against 30,650 thousand tons produced during the same period of 2003. Thus, oil production grew ca. 10.6%.

         Gas production amounted to 8,286 mn cubic meters (8,048 mn cubic meters produced over the same period of 2003). The increase totaled some 3%. The Company processed 2,449.2 mn cubic meters of gas against 1,985.6 mn cubic meters processed over the same period of the previous year.

         Over January-July 2004, the Company drilled 1,765 thousand meters of rock. This figure includes 140.7 thousand meters of exploratory drilling.

The Company commissioned 519 new wells.

         The data provided are not inclusive of the operating results at the Talakan field. Under the corresponding operator’s agreement, oil is produced at Talakan by OJSC “Lenaneftegas”, whereas OJSC “Surgutneftegas” owns a production licence for the field.

Press Service of OJSC “Surgutneftegas”

Tel.: (3462) 40 10 07, 40 10 08

Fax: (3462) 40 10 18