Press releases in August 2005

TNK-BP Announces Subsidiary Share Exchange

TNK-BP today announced the launch of a program to exchange minority shares in its 14 Russian subsidiaries for shares in OAO TNK-BP Holding.

In accordance with its corporate restructuring plans announced at the beginning of this year, TNK-BP will offer minority shareholders in certain operating subsidiaries the opportunity to exchange their shares into shares in OAO TNK-BP Holding. The terms of this voluntary exchange were established by taking into account, among other factors, an independent valuation conducted by Deloitte.

This represents another step towards implementation of TNK-BP’s corporate restructuring which aims to consolidate the majority of TNK-BP’s oil and gas assets in Russia under OAO TNK-BP Holding. Once the restructuring is completed, the structure of TNK-BP in Russia will be simplified providing for more efficient management, while minority shareholders will have the opportunity to participate in the overall success of the OAO TNK-BP Holding Group.

TNK-BP has previously announced the accession of OAO TNK, OAO ONAKO, and OAO SIDANCO to OAO TNK-BP Holding as part of its corporate restructuring. The accessions provide for shareholders of OAO TNK, OAO ONAKO and OAO SIDANCO to convert their shares for shares in OAO TNK-BP Holding at conversion ratios, which were also established by taking into account, among other factors, an independent valuation conducted by Deloitte. These accessions are being progressed and, as previously announced, are expected to complete in the second half of 2005.

The period for shareholders in the 14 subsidiaries to indicate their intention to exchange their shares in these companies into shares in OAO TNK-BP Holding runs from 3rd August until 30th September 2005.

OOO DINC-INVEST (www.dinc.ru), which is a TNK-BP group company and a duly licensed professional participant on the securities market, will implement the voluntary share exchange program.

Kent Potter, TNK-BP’s Chief Financial Officer commented: “Our announcement today keeps us on track to deliver the program we announced at the beginning of this year. In January, we said we would launch the voluntary share exchange program when the accessions of OAO TNK, OAO ONAKO and OAO SIDANCO  were well advanced. We have reached that point now enabling us to launch the program, which will give minority shareholders an opportunity to become shareholders in OAO TNK-BP Holding and participate in the success of this Russian company”.

Shareholders of the following TNK-BP subsidiary companies will have an opportunity to participate in the voluntary share exchange program:

* The ratios in the table apply to both ordinary and preferred shares in respective companies

In the nearest future the documents related to the implementation of the program will be sent to entities registered in the share registers of the subsidiaries as of 2nd August 2005.

For additional information please contact:
International financial media: Svetlana Borodina, phone + 7095 777 7707 (ext. 1381)
Russian media: Vladimir Bobylev, phone + 7095 777 7707 (ext. 1320)
Investor relations: Igor Falaleev, phone + 7095 777 77 07 (ext. 3509)
Inquiries related to preparation of documents: OOO DINC-INVEST, phone +7095 363 60 72

For further information:

This press release is distributed solely to provide additional information regarding participation in the voluntary share exchange program (the “Program”) to the shareholders of the fourteen TNK-BP subsidiary companies involved in the Program as set out in the above table (the “Subsidiaries”).

The following important points should be noted in connection with the Program:

The opportunity to participate in the Program is being offered on a strictly voluntary basis. The share exchange ratios in respect of the Subsidiaries are being made available upon the expressed understanding that they will be used only for the purpose of the Program.

These exchange ratios were established upon consideration, among other factors, of the respective valuations completed by Deloitte as of 1 January 2004 in connection with the corporate restructuring of the TNK-BP Group.

These exchange ratios should not be regarded as an indication of a current fair market valuation of OAO TNK-BP Holding or any of the Subsidiaries.  No representation or warranty, express or implied, is made and no liability will be accepted by OAO TNK-BP Holding or by any of the Subsidiaries, OAO TNK-BP Management, OAO TNK, OAO ONAKO, OAO SIDANCO, Novy Investments Limited, OOO DINC-INVEST and/or by any of its or their affiliated or subsidiary companies and/or by any of its or their respective directors, officers, employees or agents  (collectively referred to as “TNK-BP”) in this regard. Accordingly, interested persons should take all investment decisions in relation to the Program and/or any of the Subsidiaries and/or OAO TNK-BP Holding solely in reliance on their own due diligence investigation and analysis of any information related thereto and should place no reliance on the contents of any press release or other publication or statement by TNK-BP in respect of the Program, the corporate restructuring or otherwise.

TNK-BP also announced in January 2005 its intention, subject to necessary approvals, to have certain of its operating subsidiaries accede to OAO TNK-BP Holding once both the accessions of OAO TNK, OAO ONAKO and OAO SIDANCO, and the Program were completed.

As no final decisions have yet been taken, TNK-BP can make no assurance that all or any of the Subsidiaries will accede to OAO TNK-BP Holding at a later stage. Accordingly, no reliance should be placed on such future possible accessions in making decisions as to whether or not to participate in the Program.

This press-release and information contained herein is not an offer, invitation to make offers, advertisement or other offer of securities to an unlimited group of persons on the territory of the Russian Federation or outside of the territory of the Russian Federation.

Some of the information contained in this press release contains forward—looking statements.  Readers are cautioned that any such forward—looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward—looking statements as a result of various factors.  TNK-BP undertakes no obligation to publicly update or revise any forward—looking statements.

The information contained herein is not for publication or distribution into the United States or the United Kingdom.  The material set forth herein is for informational purposes only and is not intended, and should not be construed, as an offer of securities for sale in the United States or the United Kingdom.  Any securities described herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or the laws of any state, and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state laws.  There is no intention to register any portion of offering described herein in the United States or to conduct a public offering of securities in the United States.

This document is not a prospectus and information contained herein shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of securities referred to herein, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any jurisdiction.

Copies of this press release are not being, and must not be, mailed, or otherwise forwarded, distributed or sent in, into or from the United States or the United Kingdom or to publications with a general circulation in the United States or the United Kingdom, and persons receiving this press release (including custodians, nominees and trustees) must not mail or otherwise forward, distribute or send it in, into or from the United States or the United Kingdom or to publications with a general circulation in the United States or the United Kingdom.

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