Production License Extended

22 Aug 2006 11:53

O.A.O. Tatneft22 August 2006 On August 22, 2006 OAO Tatneft issued the following press-release: License for Romashkinskoye Oil Field Extended 22 August 2006 In July 2006 the Russian Federal Agency for Use of Subsoil and OAO Tatneftsigned an addendum to License TAT 10572 NE for the use of subsoil for thepurposes of oil and gas production at Romashkinskoye oil field that extends theterm of the OAO Tatneft's license for this oil filed until July 2038. Romashkinskoye oil field is the largest and the oldest among those developed byOAO Tatneft. The Chief Geologist of OAO Tatneft, commenting on the extension ofthe license, said: "Romashkinskoye is a historical oil field. It played a veryimportant role in the development of oil production industry of our country anddespite its high depletion remains one of the most important oil fields inRussia whose potential has not being fully realized." Romashkinskoye is located in the Republic of Tatarstan and was discovered in1948. Production from this oil field began in early 1950s and reached its peakin the second half of 1970s. Currently Romashkinskoye oil field is one of thelargest oil fields in the world. According to the report of Miller and Lents,independent oil and gas consultants, Romashkinskoye proved oil reserves (SPE) asof 1 January 2006 were 3.255 billion barrels which constitutes 55.6% of allproved oil reserves of OAO Tatneft. Taking into account high depletion of Romashkinskoye oil field (more than 80%),according to OAO Tatneft's experts, starting from 1 January 2007, when recentlyapproved amendments to the Russian Tax Code will come into effect, oilproduction from this oil field will be subject to the reduced rate (withapplication of the discount tied to depletion levels). Forward-looking statements: This press-release may contain certainforward-looking statements of OAO Tatneft. OAO Tatneft does not guaranteeoccurrence of any events mentioned in such statements as well as term of theiroccurrence. This information is provided by RNS The company news service from the London Stock Exchange