In Tashkent, LUKOIL and a consortium headed by Hyundai Engineering (South Korea) signed a contract for procurement and construction of the Kandym Gas Processing Plant in Uzbekistan.

The facility will have an annual capacity of 8.1 billion cubic meters of gas and will process sour natural gas from the Kandym group of fields located in the Bukhara Region of Uzbekistan to produce treated natural gas and stable gas condensate, as well as solid and granulated sulfur.

The construction of the Kandym Gas Processing Plant is LUKOIL's largest investment project in Uzbekistan. The project will create over 2,000 jobs. During the peak construction period, it will employ more than 10,000 workers at various facilities. The project will include all the necessary health, safety and environmental protection measures. Hyundai Engineering will prepare the project feasibility study and detailed design.

LUKOIL has been implementing the Kandym project in partnership with the National Holding Company Uzbekneftegaz since 2004 as part of the Kandym-Khauzak-Shady-Kungrad PSA. The Kandym group consists of 6 gas condensate fields – Kandym, Kuvachi-Alat, Akkum, Parsankul, Khoji and West Khoji.

About Lukoil

OAO LUKOIL is ranking in the top ten of the global oil manufacturers. The annual oil and lube throughput totals 1.2 million tons, which accounts for more than 40% of the total Russian oil and lube throughput, while the company’s products, including base oils, are supplied to more than 100 countries. The LUKOIL- branded oils are compliant with the latest requirements of the global technology and equipment manufacturers, which is confirmed by more than 400 approvals on the part of the OEM (original equipment manufacturers) company.

About Hyundai Heavy Industries

Hyundai Heavy Industries (HHI), founded by the late Chung Ju-yung on March 23, 1972 wrote the first chapter of its shipbuilding history in June, 1974 by completing construction of the world's largest shipyard and two 260,000-DWT VLCCs all at the same time. A decade after its first delivery, the Hyundai Shipyard topped 10 million deadweight tons in aggregate ship production, and has maintained the leading position in the world shipbuilding market ever since. Hyundai Shipyard's drive has mirrored the growth of modern Korean heavy industry, and our success has allowed us to expand into other heavy industry areas, ultimately leading to the formation of Hyundai Heavy Industries, an integrated heavy industry company.