LUKOIL Completes Deal with New Age

PRESS RELEASE

September 10, 2019

LUKOIL COMPLETES TRANSACTION ON ENTERING HYDROCARBON PRODUCTION PROJECT IN THE REPUBLIC OF CONGO

PJSC "LUKOIL" announces the completion of the transaction on acquisition of a 25% stake in the Marine XII project in the Republic of Congo from New Age M12 Holdings Limited. The transaction was completed following the fulfillment of all customary conditions, including the approval by the government of the Republic of Congo.

Information:

The Marine XII license covering 571 sq. km is located on the continental shelf of the Republic of Congo 20 km from the shore with the sea depth of 20-90 meters. The license covers five discovered fields containing 1.3 billion barrels of oil equivalent of proved and probable (2P) reserves according to international independent auditor. Two fields, Nene and Litchendjili, launched in 2015, produce 28 thousand barrels of oil (mainly light and low-sulfur) and gas condensate per day, and 1.7 million cubic meters per day of marketable gas.

The Marine XII license is based on a production sharing contract. Eni is the project's operator with a 65% stake. The project also involves the state company Société Nationale des Pétroles du Congo with a 10% stake.