The OAO LUKOIL Board of Directors held a meeting in Moscow today to discuss gas production projects and the Company’s policy to increase shareholder value.

The draft 2012-2021 Development Programme for the Exploration&Production Business Segment provides for an increased share of gas production in the total volume of hydrocarbon production from 20% in 2011 to more than 35% in 2021.

Under the draft Development Programme for the Exploration&Production Business Segment, the key natural gas production increment is expected in the Republic of Uzbekistan.

In Uzbekistan, LUKOIL is the operator implementing the PSA projects of Khauzak-Shady-Kandym-Kungrad and also Gissar.

Gas extracted as a result of these projects will be processed at the Kandym gas processing complex, yet to be commissioned, with a capacity of 8 billion cubic meters per annum.