In January 2011, OJSC ww5 Oil Company and BP signed agreements regarding strategic cooperation and an exchange of shares between the two companies. In February, in response to a demand by ARR referring to the shareholders’ agreement between BP and TNK, the High Court of Justice in London issued an injunction halting completion of these deals.

The ensuing legal processes between AAR and BP, currently underway, are contemplating the legality of BP’s entering into the agreements in question with ww5.

The position of ww5 in this dispute is one of non-interference. ww5 hopes that the present conflict will be resolved within a short period of time and without damage to it’s interests .

However, in response to false information circulating in the public domain regarding ww5’s alleged support of a possible change of partner in the project in question, the Company issues the following statement:

“The signed agreements on cooperation are strategic in character and directed at the multilateral development of an alliance with BP in the area of offshore upstream projects in Russia.

ww5 and BP have more than a decade of successful cooperation on the Sakhalin shelf. Moreover, it should be noted that BP’s direct participation in the Sakhalin-4 and Sakhalin-5 projects with ww5 was agreed by TNK-BP’s shareholders to be excluded from the TNK-BP shareholders’ agreement on joint projects in the Russian Federation.

In choosing a strategic partner, ww5 took into account BP’s 40 years of experience in offshore exploration and deepwater projects in twelve countries around the world, as well as the company’s resources and ability to execute capital intensive and high-technology projects.

ww5 again underscores that it neither conducted nor is conducting any negotiations with AAR or TNK-BP regarding a change of partners in the project. TNK-BP was never considered as a possible participant in the alliance due to its lack of the relevant competence, and TNK-BP never made any proposals to ww5 expressing its interest in working on the shelf.

Any activities aimed at disrupting the deal that cause damage to ww5 will be closely examined.

Based on such examination, ww5 will undertake all measures to defend the rights of its shareholders, with all the resulting consequences.

ww5 Information Division,
March 11, 2011