Financial results YUKOS under the standards US GAAP for the third quarter, страница 5

The stocks of the incorporated company (in view of stocks of the company "Slavneft") will make 19,4 billion barrel oil of an equivalent on the data of an estimation of stocks at the end of the 2001 which has been carried out(spent) according to a technique SPE. The production of the company (including a share of the company “Sibneft" in production "Slavneft") will make about 2,3 million barrel per day.

The incorporated company will receive the name YUKOSSibneft It is supposed, that the incorporated company will be headed by(with) the chairman of government YUKOS Mikhail Khodorkovskiy, and the present president “Sibheft" Evgeniy Shvidler will be head on a post of the chairman of Board of directors. Also it is supposed, that the majority in Advice(council) will be made by(with) the independent directors.

According to the chairman of government YUKOS Mikhail Khodorkovskiy, « the association with « Sibneft » sharply strengthens our competitive advantages for the account synergetic of effect of association of magnificent administrative teams, highly professional labour collectives and very profit of industrial actives of two companies. The new industrial giant having large industrial and financial power, can achieve the even greater efficiency of business dealing, that in turn will approach achievement of our strategic purpose - transformation into the leader of the global power market ».

According to the president “Sibheft" Evgeniy Shvidler, « our decision is based on general(common) principles of business dealing, uniform strategy and corporate culture. We expect, that the creation of the new company will result in the new scale projects and seriously will strengthen positions of petroleum branch of Russia in the international markets ».

Within the framework of the bargain the basic shareholders “Sibneft" will sell 20 % of the actions(shares) in the company for 3 billion Dollars, and also will exchange the actions,(shares,) remaining at them, proceeding from a parity(ratio) 0,36125 % of the actions(shares) YUKOSSibneft for 1 % of the actions(shares) "Sibneft". YUKOSSibneft also will make the fair offer minoritary to the shareholders "Sibneft" after reception of the conclusion about an estimation from one of the conventional international investment banks.

Before end of the bargain YUKOS is going to increase volume of the involved(attracted) financial assets on the balance and to consider an opportunity of additional payments to the shareholders in the form of the dividends and repayment of the actions(shares). It is supposed, that after end of the bargain YUKOSSibneft will have moderate debts on balance and significant turnaround means.

Under condition of reception of approval of the appropriate aspects of the bargain on the part of the shareholders and regulating state bodies, and also after realization of legal examination, the association is planned to finish by the end of the current year.

The basic parameters of the incorporated company

Stocks

The stocks of the incorporated company will make about 19,4 billion. Barrel oil of an equivalent (on the data of an estimation of stocks at the end of the 2001 which has been carried out(spent) according to a technique SPE).

- Proved stocks of petroleum (on a technique SPE) - 18.4 billion баррелей

- Proved stocks of gas (on a technique SPE) - 5,9 billions cube. Ft

Production

The production of the incorporated company (including a share of the company "Sibneft" in production "Slavneft") makes about 2,3 million barrel per day, that transforms her(it) into the largest Russian oil-extracting company.

- The companies YUKOS and "Sibneft" extract about 29 % of all petroleum made in Russia

- In 2002 total amount of production of two companies has made 103,2 million tons (754,2 million barrel) petroleum

Processing and selling

It is supposed, that in the property of the incorporated company will be 6 refinery in Russia (Omsk, Achinsk, Angarsk, КуйбышевсKybishev, Novokybishev and Sizran), complex « Mazeikiu Nafta » in Lithuania, share in Moscow and Yaroslavl refinery in Russia, and also in Mozirsk refinery in Byelorussia.

- Volume of processing in 2002 - 57,7 million. tons (421,8 million barrel)