Press release

Board of Directors of OOO Zapadno-Malobalykskoe (ZMB) held an extraordinary meeting in Budapest on the 6th of August.

RUSSNEFT and MOL Plc. (50-50% owners of ZMB) came to the agreement about the solution to meet ROSNEDRA requirements regarding elimination of associated gas flaring in the ZMB field. The Board has approved a work programme for ZMB aiming 95% utilization of produced associated gas in the field. According to the decision ZMB will install gas turbine driven electric generators. The produced electricity will be utilized in the oil production process of the field.

The Board also decided to start an additional drilling programme in the field aiming to drill 12 new production wells.

The Board approved the necessary budget. According to the decision ZMB will finance the above Work Programme from own financial resources generated during the 2nd half of the year.