8 September 2011. Moscow, Russia. JSOC Bashneft and its subsidiaries and affiliates (hereinafter ‘Bashneft Group’ or ‘the Group’), one of Russia’s leading vertically integrated oil companies, today publishes unaudited consolidated financial results prepared to International Financial Reporting Standards (IFRS) for the half year ended on 30 June 2011. Comparative data for the half year, which ended on 30 June 2010, are also unaudited consolidated results prepared to IFRS.

Main financial results in the second quarter and first half of 2011

Revenue increased by 29.7% q-o-q in the second quarter of 2011 to US$ 4,522 million from    US$ 3,486 million in the first quarter. Revenue in the first half of 2011 increased by 47.6% y-o-y to US$ 8,008 million from US$ 5,425 million in the same period of 2010;

EBITDA in the second quarter of 2011 rose by 33.4% q-o-q to US$ 942 million from US$ 706 million in the first quarter. In the first half of 2011 EBITDA increased by 43.3% y-o-y to US$ 1,648 million from US$ 1,150 million in the same period of 2010;

Net income attributable to shareholders of the parent company rose by 43.8% q-o-q to US$ 532 million in the second quarter of 2011 from US$ 370 million in the first quarter of 2011. Net income in the first half of 2011 rose by 55.8% y-o-y to US$ 902 million compared with US$ 579 million in the first half of 2010.

Main operating results in the second quarter and first half of 2011

JSOC Bashneft showed sustained increase of crude oil production in April-June 2011 for the ninth successive quarter. Production in the second quarter rose by 1.6% q-o-q to 3.738 million tonnes. Crude oil production in the first half of 2011 rose by 8.1% y-o-y to 7.418 million tonnes compared with 6.864 million tonnes in the first half of 2010;

Crude oil refining volumes were 8.9% higher q-o-q in the second quarter of 2011, reaching a level of 5.437 million tonnes. Oil refining in the first half of 2011 was 10.430 million tonnes, compared with 10.381 million tonnes in the first half of 2010.