ROSNEFTROSNEFT

Company Company PresentationPresentation

February 2007February 2007

2

Important NoticeImportant Notice

The information contained herein has been prepared by the Company. The opinions presented herein are based on general information gathered at the time of writing and are subject to change without notice. The Company relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness.

These materials contain statements about future events and expectations that are forward-looking statements. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.

This presentation does not constitute an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. No reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its completeness, accuracy or fairness. The information in this presentation is subject to verification, completion and change. The contents of this presentation have not been verified by the Company. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its shareholders, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation. None of the Company nor any of its shareholders, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith.

3

Oil ReservesOil Reserves

4,008

5,382

6,189

6,592

8,000

10,407

11,229

14,877

15,972

ENI

Shell

ConocoPhillips

Total

ChevronTexaco

BP, incl. TNK-BP

ExxonMobil

Rosneft

LUKOIL

2005 proved oil reserves (mm bbl)2005 proved oil reserves (mm bbl)

Source: Company informationNote: Crude oil SPE reserves for Rosneft, TNK-BP and LUKOIL, SEC for others

6

7

11

11

12

13

14

24

28

ENI

Shell

BP, incl. TNK-BP

Total

ExxonMobil

ChevronTexaco

ConocoPhillips

LUKOIL

Rosneft

2005 oil R/P ratio (years)2005 oil R/P ratio (years)

4

Reserves and Resources Reserves and Resources

10,920

9,778

30,416

18,942

29,862

39,639

70,056

Proved Probable Possible Net Resources

R/P, yr

Source: D&M 2005 reserves report, SPE case, D&M 2005 resource report; company informationNote: Reserves and resources have not been adjusted for riskResources are shown on net basis

Rosneft 2005 oil & gas reserves, resources and reserve lifeRosneft 2005 oil & gas reserves, resources and reserve life

mm boe

31 49 65 115

5

Priobskoye

34%

Young, Efficient and Low Risk Reserve BaseYoung, Efficient and Low Risk Reserve Base

Top 4 fields after Priobskoye(1)

31%

Other

36%

Source: D&M 2005 reserves report SPE case, company information

High concentration of proved oil reservesHigh concentration of proved oil reserves

0%

10%

20%

30%

40%

50%

60%

70%

<20% 20%-40% 40%-60% 60%-80% 80%-100%

Rosneft weighted average depletionRosneft weighted average depletion

% of reservesSubsidiary WA Depletion

§ YuganskNG 29% § PurNG 18%

WA for Rosneft 26%

(1) Mamontovskoye, Malobalyskoye, Prirazlomnoye, Vankor

65% of proved reserves in fields which are less

than 20% depleted

6

Oil Production ProfileOil Production Profile

Rosneft daily oil production, kbpd/dayRosneft daily oil production, kbpd/day

Source: Rosneft

0.3%2.7% 3.0%

8.5%

-1.0%-3.9%

TNK-BP Gazpromneft Tatneft SurgutNG LUKOIL Rosneft

Oil production growth in Russia in 2006Oil production growth in Russia in 2006

Source: Central Control Division of FEC.

1.7%

4.5%

9.0% 9.3%

15.1% 15.1%

SakhalinmorNG SelkupNG KrasnodarNG YuganskNG Severnaya Neft StavropolNG

Oil production growth in 2006 (Rosneft subsidiaries)Oil production growth in 2006 (Rosneft subsidiaries)

1,400

1,450

1,500

1,550

1,600

1,650

1,700

1,750

1,800

J F M A M J J A S O N D

20062005

kbpd%

%

7

Optimisation of Each Value Chain ElementOptimisation of Each Value Chain Element

Development Planning

§ Efficiency of seismic surveys Ý

§ Growth of reserves perexploration well Ý

§ Expenses pertonne of reserves growth Þ

§ Oil recovery factorÝ

§ Production profileÝ

§ WellstockÞ

§ Fast commissioning Ý

§ HSE Ý

§ Capital and resource-intensity Þ

§ Well construction time Þ

§ Cementing quality Ý

§ Reservoir damageÞ

§ Workoverless periodsÝ

§ Use of well potential Ý

§ OPEXÞ

Construction DrillingProduction anddevelopment

monitoring

Application of most efficient technologies Engagement of best service companies

Exploration

Minimised opex Improved capex efficiencyMaximised production

8

Total Production Management SystemTotal Production Management System

Data gathering, storage and processing Data gathering, storage and processing

§ Information on the entire wellstock

§ Regular replenishment

§ Convenient data input and analysis tools

§ Data quality monitoring

Standard calculation techniques Standard calculation techniques

Входныеданные

Забойноедавление Продуктивность Потенциал

---100 Рзатр - 9.6 атм

Исходные данные для расчета Расчет забойного давления

СЭ ЭЦН Метод Pпр РзабКонструкция скважины атм атмНвд 2 761 м ГФ 116 177Удл 244 м Замер Pзаб 160

Нсп 2062 мК-т сепарации 0.7 Qгаз_затр 233 м3/сутD э/к 129 мм %газ_насос 1%

D нкт 73 ммD шт 0 мм N PI Рзаб_цел Qж Qн dQнHперф 60 м атм м3/сут т/сут т/сут Нд - 520 м

-1.11 4.60 100 535 41 27Замеры 3.23 100 376 29 15Q жидк. 187.194 м3/сутобводен 91 % забой-насос Ннасос_цел Pнасос_цел Qгаз_затр 1552 м3/сутQ нефти 14 т/сут 500 2212 53 %газ_насос 3%Q воды 170 м3/сутHдин 520 м

Pзатр 9.6 атмPпл 218 атмРбуф 8.5 атмPзаб замер 0 атм

Физ-хим свойстваРнас 163 атмГФ 79 м3/тпл. неф. 0.85 г /cм3

Об .к-т нефти 1.2 м3/м3пл. воды 1.015 г /cм3Об .к-т воды 1.008 м3/м3пл.газа 0.800 кг/м3

Параметры пластаТемп . 70 °C

Hсп - 2062 m

Н.верх - 2761 м

Н.низ - 2821 m

Для загрузки данных по текущей скважины в технологическом режиме, нажмите кнопку "Из текущей строки в техрежиме". Изменения данных в листе "Анализ" не отражаются на данных технологического режима.

Поля доступные для изменения

МесторождениеСкважина

Кривая притока

Продуктивность пласта

0

50

100

150

200

250

300

350

0 200 400 600 800 1000 1200

Дебит жидкости, м3/сут

Заб. давление, атм.

Рпласт = 218 Рпласт = 207 Рпласт = 229

Динамический уровень от давления на забое

глубина спуска насоса

0

500

1000

1500

2000

2500

0 50 100 150 200 250 300давление на забое, атм

Динамический уровень

, м

§ Calculate production potential

§ Select wells for activities

§ Current and potential well operation analysis

§ Welltest interpretation to clarify the potential

§ Wide range of analytical tools

§ Simulation modeling

§ Web technologies, access from any workstation

Unified software solutions Unified software solutions

Knowledge, technologies, staff Knowledge, technologies, staff

§ Co-operation with leading R&D centres and universities

§ Investments in training

§ Development of technological base

§ Knowledge accumulation and distribution

§ Geological potential of each well

§ Technical potential of equipment

§ Professional potential of staff

Production management system fulfilsProduction management system fulfils

9

Vankor

Remote Drilling Monitoring Center

§ Establishment of Remote Drilling Monitoring Center for the wells of key fields

jointly with the leading international companies

§ Well trajectory management in real time to achieve high drilling efficiency

§ Interaction and experience exchange with the real drilling support centers of

Statoil, ConocoPhillips, Halliburton, Schlumberger etc.

Real Time Drilling MonitoringReal Time Drilling Monitoring

10

§ Creation of detailed geological

and hydrodynamic models

reflecting the spatial distribution of

formation properties

§ Permanent monitoring,

clarification and updates of models

during the fields development

§ Planning of field development system and well interventions using the

model

§ Integration of various-level models into Formation – Well – Development –

Economics system for the comprehensive solutions of oil production

process optimization problems

Geological ModelingGeological Modeling

11

§ Comprehensive system of equipment optimization:

– 13% growth in well potential achievement in 2006

– Increase in operating artificial lift well stock (ESP) of 20 % (with Udmurtneft)

– Growth of ESP run life by 8% (from 290 days to312 days)

– Successful oil production stimulation at the Southern subsidiaries with average incrementof 73 bpd

§ Optimization of oil production intensification system:

– A new method of well potential identification was developed jointly with Tulsa University (potential oil production increment of 142 kbpd)

– New technologies pilot projects launched : • Rosneft–Wellview monitoring system, • salt protection technologies• ESP operation technology for high gas-

to-oil ratios• testing of wear-proof equipment: run life

of 700 days

Reengineering of Processes: Artificial Lift Case StudyReengineering of Processes: Artificial Lift Case Study

400

800

1200

1600

2001 2002 2003 2004 2005 200640%

60%

80%

100%

Qliq factual Qliq actual % of potentail achievement

bpd

Achievement of theoretical potential of wells in operationAchievement of theoretical potential of wells in operation

Interaction with the leading research centersInteraction with the leading research centers

IFPFractured reservoirsmodelingHistory matching

SPE

University of TulsaMultiphase flowFlow assuranceArtificial lift

Stanford UniversityReservoir simulationModern welltest analysis

gOcad consortiumAdvanced geological modelling

12

317453Well 222

920515Well 219

325382Well 218

82102Average before geosteering was applied

Oil flow rate, m3/day*

Effective length of horizontal section, m

Well

* average oil rate in Jan 2007

• 3-6 km to the East from Sakhalin Island• Sea depth of ~18 m• Average net pay 5 m• Measured well depth up to 7 km• Pilot field development from 1998

Without geosteering (before 2006)

With geosteering (2006)

OdoptuOdoptu--More Case StudyMore Case Study

13

760 813 830

Plan 2006 Actual 2006 Plan 2007

§ Professors and experts from:– Stanford University,– University of Tulsa,– Rogoland Research,– Institut Français du Pétrole– Institut National Polytechnique de

Lorraine – Ecole Nationale Supérieure de Géologie

§ 5-day training with compulsory testing

§ More than 50 courses:– Geology– Petrophysics– Reservoir Engineering– Simulation– Well productivity

man-weeks

Large Scale Technology TrainingLarge Scale Technology Training

«Heavy Oil Simulation and Improved Oil Recovery» courseRosneft, 20-24 March 2006«Heavy Oil Simulation and Improved Oil Recovery» courseRosneft, 20-24 March 2006

Training Activity at Rosneft HQTraining Activity at Rosneft HQ

14

Calgary

Austin

Dallas

Stanford

Stavanger

Paris

Edinburgh

Moscow

§ Invitation of best experts for training and consultations

§ Visits to R&D centers of other companies

§ Participation in international conferences and workshops

§ Organization of technical conferences dedicated to key subjects of the Company with participation of international experts

§ Joint R&D groups with International Institutes

Tulsa

Houston

London

Relations with Universities and R&D CentersRelations with Universities and R&D Centers

15

Cooperation with leading service companies

West Kamchatka

Sakhalin Projects

Verknechon

South Seas Off-shore

Timano-Pechora

Implementation of best technology, sharing of experience, risks, investments

Sharing and Developing TechnologySharing and Developing Technology

Drilling

Cooperation with leading oil and gas companies

Well-construction

Optimization and Monitoring

16

Industry Leading Drilling Results

New wells average flow rates (bpd) 12m 2006New wells average flow rates (bpd) 12m 2006

704

481445

356

275

160

Rosneft Gazpneft Slavneft TNK-BP Lukoil Surgut

Average daily flow of new wells (bpd) 12m 2005Average daily flow of new wells (bpd) 12m 2005

690

608 589544

320

175

Rosneft Slavneft TNK-BP Gazpneft Lukoil Surgut

17

BestBest--inin--Class Efficiency Underpins RosneftClass Efficiency Underpins Rosneft’’s Business s Business

3.4 3.8

6.0

7.5

9.4

11.011.5

Rosneft Sibneft LUKOIL Exxon Shell BP Total

Capex ($/boe of production) 2005Capex ($/boe of production) 2005

2.1 2.3 2.5

3.3

4.3

5.1

6.2

Rosneft Sibneft LUKOIL TNK-BP BP Exxon Shell

Lifting cost, excl. tax ($/boe) 2005Lifting cost, excl. tax ($/boe) 2005

Source: Company data, J.S. Herold, broker reportsNote: Lifting costs for Sibneft, LUKOIL and TNK-BP data for 2004, for other companies — 2005; Lifting costs include costs of labour to operate the wells and related equipment and facilities, repairs and maintenance, materials, supplies, and fuel consumed and services utilized in operating the wells and related equipment and facilities, property taxes and insurance applicable to proved properties, wells, field flow lines and related equipment and facilities, severance taxes

18

Portfolio ExpansionPortfolio Expansion

Russia

Mongolia

China

Kazakhstan

Finland

Belorussia

Ukraine

Latvia

Estonia

AzerbaijanGeorgia

Udmurtneft

Verkhnechonskoye

March, April 2006: Four blocks next to

Verkhnechonsk, incl. East Sugdinsky

Note: Bar charts showing resources indicated in the auctions selling termsSource: Rosneft

Oilresour.

Gasresour.

February 2006: Three blocks next

to Vankor

Oilresour.

Gasresour.

350 mn bbl 105

bcm

2.44 bn bbl 213

bcm

May 2006: Udmurtneft

Oil reserves

797 mn bbl

Production and development assets

Exploration assets

Vankor

Total 1H06 reserves addition:-Crude ABC1 reserves – 797 mn bbl-Crude D resources – 2.8 bn bbl-Gas D resources – 318 bcm

19

Low Risk Growth in Short and Long TermLow Risk Growth in Short and Long Term

Proved developed oil reserves

Proved Undeveloped ReservesProbable Reserves

Proved undeveloped gas reserves

Exploration Portfolio

7.5bnOil

& ga

s re

serv

es a

nd re

sour

ces

2015

20bn

30bn

70bn

Kharampur, Novochaselskoye

Sakhalin, Kamchatka, Vankor

expansion

boe 2010

Yuganskneftegaz, Purneftegaz, Vankor

2012*Subject to signing of gas sales agreement

> 2 mln bpd Oil

40 bcm Gas*

Up to 2.8 mln bpd

Oil