OREANDA-NEWS. May 24, 2012. A representative of the Federal Subsoil Resources Management Agency has announced that the order to transfer the development license for a subsoil area including the Trebs and Titov oilfields to LLC Bashneft-Polyus had been cancelled and that this license shall be returned to JSOC Bashneft. The Company therefore considers it necessary to give the following explanation.

The transfer of license from JSOC Bashneft to LLC Bashneft-Polyus and the subsequent sale of a 25.1% share in LLC Bashneft-Polyus to OJSC Lukoil were aimed at promoting the efficient implementation of a large-scale project involving an experienced partner who owns well-developed infrastructure in the region.

These activities served the interests of both JSOC Bashneft’s and JSC  Lukoil’s shareholders and the state, as they would enable to start the development of new reserves ahead of schedule, increase tax revenue, create new jobs, develop the economy of the Nenets Autonomous District.

JSOC Bashneft will firmly stick to the decisions of state regulatory bodies and will fully comply with the license requirements for the development of the Trebs and Titov oilfields.

JSOC Bashneft intends to discuss with JSC  Lukoil the possible ways of further cooperation in the development of the Trebs and Titov oilfields that would enable to achieve the maximum efficiency and serve the interests of all stakeholders.