OREANDA-NEWS. OAO LUKOIL Board of Directors approved on October 29 LUKOIL Group’s Performance Indicators of 2008-2009 Mid-Term Plan and 2008 Budget and Investment Program, the press service of the company reported.  The 2008-2009 Mid-Term Plan performance indicators were developed as part of 2008-2017 LUKOIL Group Strategic Development Program which was approved by the Company’s Board of Directors in May 2007. The Draft Plan is based on a Brent scenario of 65 USD/bbl and the 25.5 RUR/USD exchange rate. It was approved by the Management Committee of OAO LUKOIL. Hydrocarbon production growth in 2008-2009 is for the most part attributed to commissioning of Yuzhno-Khylchuyuskoye field in Timan-Pechora and Khauzak-Shady natural gas field in Uzbekistan.

As for the Downstream Segment, additional benefits are expected due to product quality improvement, commissioning of new units, reconstruction and upgrading of existing facilities:

- isomerization units shall be commissioned at Volgograd and Perm refineries, a visbreaking unit shall be

installed at Ukhta refinery at the end of 2007;

- visbreaking units at Nizhny Novgorod and Odessa refineries are to be commissioned in 2008;

- diesel fuel hydrotreating units at Perm, Nizhny Novgorod, Bulgaria and Romania plants are to be upgraded;

- a membrane electrolysis unit is to be commissioned at OOO Karpatneftekhim in 2008, which would allow the

Company to produce up to 200 thousand tons of sodium hydrate per year.

In 2009, the construction of a suspension PVC production unit with the capacity of 300 thousand tons per year will be completed.

Oil refining output at the Company’s own refineries in 2008-2009 is expected to grow by 2 million tons as Odessa refinery is going to reach its full capacity after a major reconstruction. Oil supplies to be refined at the Company’s Russian refineries, which is the most cost-efficient, will amount to no less than 42 million tons per year. The lubricating oils product line is to be expanded; their production volume is expecting a 20% growth. Distribution network expansion over the next two years will help increase petroleum product retail marketing output on Russian and European markets by more than 14%.

The Board of Directors also approved terms and conditions of the agreement concluded with OAO NIKoil Registrar, as well as amendments and addenda introduced into the Provision on Payment and Remuneration System of OAO LUKOIL Top Management.