1Q 2009 Financial Results(US GAAP)

Leonid Fedun, Vice-President of LUKOIL

June 2009

1

Forward-Looking Statements

• Certain statements in this presentation are not historical facts and are “forward-looking”. Examples of such forward-looking statements include, but are not limited to:

– projections or expectations of revenues, income (or loss), earnings (or loss) per share, dividends, capital structure or other financial items or ratios;

– statements of our plans, objectives or goals, including those related to products or services;– statements of future economic performance; and – statements of assumptions underlying such statements.

• Words such as “believes,” “anticipates,” “expects,” “estimates”, “intends” and “plans” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.

• By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. You should be aware that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements, including our ability to execute our restructuring and cost reduction program.

• When relying on forward-looking statements, you should carefully consider the foregoing factors and other uncertainties and events, especially in light of the political, economic, social and legal environment in which we operate. Such forward-looking statements speak only as of the date on which they are made, and we do not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise. We do not make any representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved, and such forward-looking statements represent, in each case, only one of many possible scenarios and should not be viewed as the most likely or standard scenario.

2

1Q 2009 Highlights

• Sales– $14,745 million

• EBITDA – $2,414 million

• Net income – $905 million

• Basic EPS – $1.07 per share

• Free cash flow – $229 million

• Oil production – 1,976 th. barrels per day(+3.2% y-o-y)

3

1Q 2009 to 1Q 2008

15.3%

0.7%

-8.3%

-18.6%

-46.0%

-40.6%

-53.1%

-70% -50% -30% -10% 10% 30%

Urals

Diesel fuel (Europe)

Fuel oil (Europe)

Diesel fuel (Russia)

Gasoline (Russia)

Electricity tariffs (Russia)

Pipeline transportation tariffs(Russia)

Producer prices (Russia)

Mineral extraction tax ( in dollars)

Real rouble appreciation

Positive factors

Negative factors

Export tariff

-66.6%

-64.3%

-48.4%

-51.3%

Macroeconomic and Tax Environment

REVENUE

EXPENSE

TAX

4

LUKOIL Continues Effective Cost Reduction

Transportation expenses,$ per boe of production

4.5

5.0

5.5

6.0

6.5

7.0

7.5

1Q2007

2Q2007

3Q2007

4Q2007

1Q2008

2Q2008

3Q2008

4Q2008

1Q2009

-20%

Cost of production drilling in Western Siberia, $ per meter

300

400

500

600

1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009

-39%

Refining expenses, $ per barrel

2.0

2.2

2.4

2.6

2.8

3.0

1Q2007

2Q2007

3Q2007

4Q2007

1Q2008

2Q2008

3Q2008

4Q2008

1Q2009

-26%

Lifting costs, $ per boe

2.5

3.0

3.5

4.0

4.5

1Q2007

2Q2007

3Q2007

4Q2007

1Q2008

2Q2008

3Q2008

4Q2008

1Q2009

-28%

5

Tax Burden is Decreasing

Taxes paid* per barrel of production, $ per barrel

0

16

32

48

64

1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009

-66%

MET: – Change in base oil price from $9 to $15 per barrel

– Introduction of tax holidays for a number of Russian regions

Export tariffs:

– Time lag in calculation is reduced

Income tax:

– Income tax rate is reduced from 24% to 20% from January 1, 2009

MET, $ per ton

0

50

100

150

200

jan feb mar apr may jun jul aug sept oct nov dec

2007 2008 2009

Export tariffs, $ per ton

0

100

200

300

400

500

jan feb mar apr may jun jul aug sept oct nov dec

2007 2008 2009

* Excise and export tariffs, income and other taxes.

Taxes per barrel of production (including excise and export tariffs, income and

other taxes) decreased in 4Q 2008 and the reduction continued in 1Q 2009 as a

result of tax incentives of the Government and falling oil prices.

6

Main Operating Results

1Q 2009 to 1Q 2008 (1Q 2009 actual level)

-12% -6% 0% 6% 12% 18%

Marketable hydrocarbonproduction

Refinery throughputs(including ISAB)

Oil exports

Petroleum product exports

Retail sales ofpetroleum products

+3.2% (1,976 th. barrels per day)

+1.5% (2,225 th. boe per day)

+8.5% (1,163 th. barrels per day)

+3.9% (6.8 mln tons)

-0.5% (3.2 mln tons)

Marketable gas production

Oil production

-10.4% (249 th. boe per day)

+17.0% (885 th. barrels per day)

7

LUKOIL Refinery Throughputs Are Steadily Growing

0

5

10

15

20

25

30

35

40

jan

feb

mar apr

may jun jul

aug

sep

oct

nov

dec

2007

20082009

Refinery throughputs at Group refineriesand capacity utilization

800

900

1,000

1,100

1,200

2004 2005 2006 2007 2008

th. b

arre

ls p

er d

ay

50

60

70

80

90

100

%+29%

LUKOIL substantially increased refinery throughputs in 1Q 2009 thanks to volumes refined at the ISAB Complex as well as increase

in refinery throughputs at the Odessa Refinery, which was re-

launched in 2008 after modernization

Utilization rate

Refinery throughputs reconciliation (y-o-y),th. barrels per day

86

38

1,073

-4511

1,163

970

1,020

1,070

1,120

1,170

1,220

Refinerythroughputsin 1Q 2008

ISABrefinery

Odessarefinery

Volgogradrefinery

Otherrefineries

Refinerythroughputsin 1Q 2009

+8.5%+90 th. barrels per day

Refining margin of Russian cracking refinery,$ per barrel

8

Financial Results

1Q2009

4Q2008

Δ, % $ million 1Q2009

1Q2008 Δ, %

14,745 14,745

(1,232)

(3,717)

1,532

1,502

905

1.07

2,414

(1,232)

-40.924,955

(1,908)

(7,714)

4,071

4,174

3,163

(3,717)

3.83

-35.4

-51.8

-62.4

-64.0

-71.4

-72.1

1,532

1,502

905

1.07

4,805 -49.82,414

18,415

(2,244)

(7,338)

(791)

(1,842)

(1,621)

(1.91)

(906)

-19.9

-45.1

-49.3

-

-

-

-

-

Sales

Operating expenses

Taxes other than income tax(including excise and export duties)

Income from operating activities

Income before income tax

Net income (loss)

Basic EPS, $

EBITDA

9

Sales Breakdown, $ million

0

10,000

20,000

30,000

1Q 2008 1Q 2009

Other sales

Sales of gas and gas products*

Sales of petrochemicals in Russia

Sales of crude oil in Russia

Sales of petroleum products inRussia

International sales ofpetrochemicals

International sales of crude oil

International sales of petroleumproducts

14,745

24,955

18%

82%

-41%

82%

-40%18%

International market

Domestic market

* Includes international sales.

10

Operating Expenses

1Q2009

4Q2008

Δ, % $ million 1Q2009

1Q2008 Δ, %

787 602

202

159

22

29

209

354

(345)

1,232

5,362

266

-19.5748

268

69

33

80

262

384

64

142

1,908

-24.6

+130.4

-33.3

-63.8

-20.2

-7.8

-

-35.4

26

48

249

347

379

2,244

8,608 -37.75,895

Hydrocarbon lifting costs

Own refining expenses

Refining expenses at third-party refineries and ISAB refining complex

Excise included in processing fee paid to third-party refineries

29 -39.6 Petrochemical expenses

209 -16.1 Crude oil transportation to own refineries

354 +2.0 Other operating expenses

(345) -Change in operating expenses in crude oil and refined products inventory originated within the Group

Total

Cost of purchased crude oil, gas and products

602 -23.5

202 -24.1

159 +12.0

22 -15.4

1,232 -45.1

5,362 -9.0

11

LUKOIL Successfully Controls Operating Expenses

Lifting costs, $/boe

3.9

4.3 4.3

4.0

3.1

3.73.7

3.33.33.2

3.02.8

3.6

2.5

3.0

3.5

4.0

4.5

1Q 2006 1Q 2007 1Q 2008 1Q 2009

LUKOIL managed to decrease hydrocarbon lifting costs by 23% (in 1Q 09 to 4Q 08) to $3.10/boe

thanks to :- Rouble devaluation: the real rouble depriciation to the

US dollar was 18.6% (1Q 2009 to 1Q 2008)

- Cost cutting program, effective cooperation with suppliers and subcontractors

- Sharp – by 2 times q-o-q – growth of production at the Y-K field, the lifting costs at which are lower than the Group average

1Q 09 to 4Q 08: -23%

1,908

1,232

1,000

1,500

2,000

2,500

OPE

X in

1Q

2008

Incr

ease

inre

finin

gex

pens

es a

tth

ird-p

arty

refin

erie

s an

dIS

AB

Chan

ge in

oper

atin

gex

pens

es in

inve

ntor

y

Dec

reas

e in

liftin

g co

sts

Dec

reas

e in

own

refin

ing

and

petr

oche

mic

alex

pens

es

Dec

reas

e in

expe

nses

on

tran

spor

tatio

nto

ow

nre

finer

ies

Dec

reas

e in

othe

r O

PEX

Dec

reas

e in

the

exci

sein

clud

ed in

the

proc

essi

ng f

ee

OPE

X in

1Q

2009

$ m

ln +4.7%

-21.4%

-7.6%

-6.1%-2.8%

-1.6% -0.6%

-35.4%

12

SG&A and Transportation Expenses

SG&A expenses

729

1,0281,042994

796

948

796800

663

300

500

700

900

1,100

1Q 2007 3Q 2007 1Q 2008 3Q 2008 1Q 2009

$ m

ln

Transportation expenses (1Q 2009 to 1Q 2008)

-3% -3%

16%

-15%

1%

-5%

-20%

-10%

0%

10%

20%

Transportation volume Tariff

1Q2009

4Q2008

Δ, % $ million 1Q2009

1,412 1,169

729

1,898

1,028

1Q2008 Δ, %

1,169

2,440

Transportation expenses

729 -29.1 Other selling, general and administrative expenses 796 -8.4

1,898 -22.2 Total 1,991 -4.7

-17.2 1,195 -2.2

13

Net Income Reconciliation

-84-201

-370

-6,964263267581

676

3,997

0

3,000

6,000

9,000

Net

inco

me

in 1

Q 2

008

Dec

reas

e in

tax

es o

ther

tha

nin

com

e ta

x (in

clud

ing

exci

se a

ndex

port

tar

iffs)

Dec

reas

e in

OPE

X

Dec

reas

e in

inco

me

tax

Dec

reas

e in

SG

&A

Chan

ge o

f th

e re

sult

from

disp

osal

and

impa

irmen

t of

asse

ts

Dec

reas

e in

tra

nspo

rtat

ion

expe

nses

Net

dec

reas

e in

rev

enue

*

Incr

ease

in D

D&

A

Incr

ease

in o

ther

exp

ense

s

Chan

ge o

f th

e re

sult

from

curr

ecy

tran

slat

ion

Dec

reas

e in

equ

ity s

hare

inaf

filia

tes

Net

inco

me

in 1

Q 2

009

$ m

ln

905

3,163

-18

* Change in revenue less purchases of oil and petroleum products.

14

1Q 2009 Cash Flow Reconciliation

2,239

1,663

1,388

644 109 45 -1,434

-1,363

-80

2,000

2,800

3,600

4,400

5,200

6,000

6,800

Cas

h a

t th

e b

egi

nni

ng

of

1Q

20

09

Op

era

tin

g a

ctiv

itie

s

Net

mov

em

ents

of l

ong

-te

rm d

ebt

Ne

t m

ove

me

nts

of s

hor

t-te

rm b

orr

owin

gs

Net

mov

em

ents

of

inve

stm

ent

s

Pro

cee

ds

fro

m s

ale

of

pro

pe

rty

and

inte

rest

s in

aff

ilia

tes

and

sub

sidi

ari

es

CAP

EX

Purc

has

es

of

inte

rest

s in

subs

idia

ries

and

aff

ilia

tes

Div

ide

nds

paid

to

min

ori

ty a

nd

on

Com

pan

y co

mm

on s

tock

Oth

er

Ca

sh a

t th

e e

nd o

f 1Q

200

9

$ m

ln

3,197-14

15

CAPEX Breakdown

1Q2009

4Q2008

Δ, % $ million 1Q2009

1Q2008 Δ, %

1,118 1,118

960

158

303

154

149

29

3

26

16

1,466

960

-43.61,981

1,779

202

356

229

127

27

5

22

158

48

-46.0

-21.8

-14.9

-32.8

+17.3

+7.4

-40.0

+18.2

-66.7

303

154

149

29

3

26

16

2,412 -39.21,466

1,738

1,374

364

711

463

248

28

7

21

342

2,819

-35.7

-30.1

-56.6

-57.4

-66.7

-39.9

+3.6

-57.1

+23.8

-95.3

-48.0

Exploration and production

Russia

International

Refining and marketing

Russia

International

Petrochemicals

Russia

International

Other

Total (cash and non-cash)

16

Northern Caspian: Start of Commercial Development in 2009

• LUKOIL has been operating in the region since 1995

• During this time LUKOIL discovered eight major fields: Khvalynskoye (2000), Yu.Korchagin (2000), 170 km (2001), Rakoushechnoye (2001), Sarmatskoye(2002), V.Filanovsky (2005), Tsentralnoyeand Zapadno-Rakoushechnoye (2008)

• Total CAPEX into the Russian sector of the Caspian sea by the Company is about $700 mln

Start of construction of an offshore platform for Yu. Korchagin field.

Proved reserves of 6 fields are over 1.4 bln boe,

3P reserves – 4.7 bln boe

The first project:Yu. Korchagin field

Rakoushechnoye

Yu. Korchagina field

Sarmatskoye

170 km field Khvalynskoye

Astrakhan region

Kalmykiya

Dagestan

V. Filanovsky field

17

Development of the Northern Caspian Fields:Key Event of 2009–2010

0

50

100

150

200

250

300

2009E 2010E 2011E 2012E 2013E 2014E 2015E 2016E

Yu. Korchagin V. Filanovsky Other fields

Estimated oil production in the Northern Caspian, th. barrels per day

Karayskaya,Ukatnaya structures

Filanovskogo,Rakushechnoye fields

Atashskaya, West-Rakushechnayastructures

Khvalynskoye, 170 km, Sarmatskoye fields

Yuzhnaya, Diagonalnaya structures

Sea depth3-4 m Sea depth

4-10 m Sea depth13-30 m

Yuri Korchagin field infrastructure (2009)

Water depth at Caspian fields

18

The Company is Preparing for the Production Launch at the Yu. Korchagin field

Living quarters for the Yu. Korchagin field

Ice-resistant platform-1 at the Astrakhansky korabel shipyard

- The Company plans to launch the Yu. Korchagin field in December 2009

- 3P reserves at the field are estimated at 570 mln boe

- Peak liquids production at the field is 2.3 mlntons per year, gas production – 1.2 bcm per year

- Sea depth in the area of the field varies from 10 to 13 meters

Ice-resistant platform-2 jacket

19

LUKOIL is the Only Russian Company to Develop Offshore Fields on Its Own

LUKOIL uses its proprietary technology of zero-discharge,which allows the Company to work successfully in environmentally

sensitive territories of the Baltic and Caspian seas.

Status: PSAOperator:Exxon Neftegaz Ltd. (Sakhalin-1),Shell, Gazprom (Sakhalin-2)

JV of LUKOILand Gazprom:Tsentralnaya structure

JV of LUKOIL and Rosneft

LUKOIL: productionKravtsovskoye field (development since 2004)

LUKOIL: production(since 2009)Yu. Korchagin field

LUKOIL:V. Filanovsky field

20

Positive Effects from the Global Financial Crisis

• Optimization of the investment program

• Positive effect from the rouble devaluation

• Cost optimization

• Considerable decrease in tax burden

21

Conclusions

The Company plans to develop dynamically thanks to:

- Start of significant domestic tax burden decrease in 2009

- Optimizing and significantly reducing 2009 CAPEX and OPEX

- Hydrocarbon production growth

- Development of R&M segment

- Development of a program aimed at securing positive cash flowsamid financial crisis

- Maintaining conservative financial policy, keeping access to domestic and international financial sources comfortable and open