LUKOIL Oil Company is the first private company from the Russian Federation that opened the way for investments in Romania by purchasing, in 1998, the majority of shares of "Petrotel" Refinery from Ploiesti, one of the Romanian refineries having the longest tradition.

LUKOIL’s management had a proactive attitude towards Romanian oil industry’ tradition and expertise, approving a complex program of investment in the oil processing and petroleum products distribution sectors.

LUKOIL invested over USD 283 million for a wide program of modernization and restructuring of the "Petrotel" Refinery in Ploiesti. Direct investments in “Petrotel” Refinery crude oil processing units and equipment represented over 230 million, and USD 53 million represented the equivalent value of the shares paid by LUKOIL to the Romanian Government when it purchased the "Petrotel" Refinery.

The reconstruction plan included the modernization in parallel of 18 technological and auxiliary units, the construction of 3 new technological units, as well as the automation of the production process management system. The refinery units use the technologies of the most well-known licensing companies like UOP (UK), Exxon-Mobil (USA), Linde (USA), Haldor Topse (Denmark), NPV Himtex and Energo-Service (Russia) etc.

The reconstruction plan included the modernization in parallel of 18 technological and auxiliary units, the construction of 3 new technological units, as well as the automation of the production process management system. The refinery units use the technologies of the most well-known licensing companies like UOP (UK), Exxon-Mobil (USA), Linde (USA), Haldor Topse (Denmark), NPV Himtex and Energo-Service (Russia) etc.

The integrated system of crude oil processing and petroleum products distribution allows the company to obtain motor fuels of exceptional quality. It is easy to recognize “LUKOIL” brand, as Romanian drivers associate it to a high quality of the petroleum products and with reasonable prices.

Fulfillment of the control indicators at the level of SC LUKOIL ROMANIA SRL between January – September 2007:

- Volumul produselor petroliere vandute a fost de peste 1,16 milioane tone, respectiv cu 134 % mai mult decat in primele 9 luni ale anului 2006.

- - The collected amount was of over USD 1.3 billion, and the net profit – of over USD 30 million.

- - The operational income (EBITDA) increased in the first 9 months of 2007 up to USD 72 million (160% in comparison to the same period of 2006), over 40% of the total sales volume being achieved by means of the electronic payment card system, which is operational at the level of the whole marketing network of the company.

In compliance with the Romanian Government’s decisions and the European Union’s recommendations, starting from the 1st of July 2007, the company sells biofuels (biodiesel), their share being of minimum 2% from the total motor fuel sales.

In the process of implementing the “biodiesel” programme, investments of over USD 15 million are planned for the first stage, ensuring a production of 60 000 tons of ecologic fuel per year. This unit will start to operate in the first half of 2008. Regarding the retail, LUKOIL ROMANIA implements an investment programme meant to build corporate retail stations along the pan European transport corridors, guaranteeing European standards for products and services to the customers. In this respect, the amount of about USD 20 million has been invested in 2007, including the modernization and efficiency increasing of the existing stations.

The companies of the LUKOIL Group that operate in Romania obtained the audit certification regarding the standardization of the quality management systems, environment protection, industrial and labour safety, in accordance with the ISO 9001, ISO 14001 and OHSAS 18001 international standards.

The total investment volume achieved by OAO LUKOIL in the Romanian oil sector amounts to over half a billion USD.

The company created in Romania more than 5 000 jobs, of which over 3 000 in LUKOIL ROMANIA units.

Only in 2007 the companies of the LUKOIL Group operating in Romania paid to the Romanian state budget over USD 2 billion, as taxes. The average salary of the personnel employed in these companies is higher than the average of the Romanian oil sector and it directly takes into account the work results.

LUKOIL’s investment and business activity creates an impressive impact on the Romanian economy. More than 5 000 people are employed by LUKOIL in Romania, of which more than 1 200 in the "Petrotel-LUKOIL" Refinery. Other 2 500 persons work within the construction and service providing companies directly involved in the investment programs.

In is activity, LUKOIL gives a special attention to the social aspects and participates in a constructive manner to the life of the Romanian society, duly fulfilling its obligations towards the state, shareholders, company employees and consumers