Operational update for third quarter of 2012

Alliance Oil Company Ltd
Company Announcement

Operational update for third quarter of 2012

Alliance Oil Company’s average daily oil production for the third quarter of
2012 amounted to 53,309 bopd compared to 45,662 bopd in the third quarter of
2011. In total, 4.9 mbbl were produced in the reporting period compared to 4.2
mbbl in the third quarter of 2011. Preliminary average daily refining volumes
at the Khabarovsk refinery amounted to 84,580 bopd in the third quarter of 2012
compared to 77,442 bopd in the third quarter of 2011. In total, 7.8 mbbl were
refined compared to 7.1 mbbl in the third quarter of 2011. Preliminary crude
oil and oil product sales amounted to 4.9 mbbl and 8.1 mbbl respectively in the
third quarter of 2012 compared to 4.0 mbbl and 7.1 mbbl in the third quarter of
2011. 

The forecasted average upstream production for 2012 amounts to approximately
54,000 barrels per day and reflects adjustments of the fourth quarter drilling
schedule. Supported by growing demand for oil products in the Russian Far East
and completion of 7 new units at the Khabarovsk refinery, the forecasted
average downstream production for 2012 has been increased to approximately
77,000 barrels per day[1]. 

Preliminary operating results in barrels per day:

                      Upstream                     Downstream        
   2012      Production  Crude oil sales  Refining  Oil product sales
---------------------------------------------------------------------
  January      59,421         56,734       77,531        65,865      
 February      55,187         54,444       78,390        77,634      
   March       54,481         49,752       69,129        69,377      
1st quarter    56,363         53,643       75,017        70,959      
   April       52,918         52,297       70,888        72,625      
    May        54,422         53,544       81,946        93,600      
   June        53,279         53,416       82,260        82,828      
2nd quarter    53,540         53,086       78,404        82,912      
   July        53,732         57,533       83,643        84,496      
   August      53,473         50,306       84,809        88,790      
 September     52,725         51,099       85,417        89,565      
3rd quarter    53,309         52,979       84,580        88,356      
 9 months      54,414         53,238       79,325        80,760      



Upstream

Average daily oil production in the Timano-Pechora region amounted to 21,000
bopd in the third quarter of 2012 compared to 16,000 bopd in the third quarter
of 2011. Oil production in the Volga-Urals region and Kazakhstan amounted to
23,000 bopd in the third quarter of 2012 compared to 21,700 bopd in the third
quarter of 2011. Oil production in the Tomsk region amounted to 9,400 bopd in
the third quarter of 2012 compared to 8,000 bopd in the third quarter of 2011.
In the third quarter of 2012, 21 new wells were drilled. The average daily
production at the Kolvinskoye field amounted to 11,400 barrels with a total of
1.1 mbbl produced for the quarter. 

Downstream

In the downstream segment refining capacity has been increased to 90,000 bopd
as 7 new units with upgraded utilities, infrastructure and offsites were
launched in 2009-2012. Utilization of the refinery remained high due to strong
demand for oil products both domestically and internationally. Wholesale and
export volumes increased compared to the previous quarter. 

Upstream and downstream production data for October 2012 will be disclosed on
November 9, 2012. Third quarter financial results will be disclosed on November
21, 2012. 



For further information please contact:

Arsen Idrisov, Managing Director, Alliance Oil Company, Tel.: +7 495 777 18 08

Eric Forss, Chairman, Alliance Oil Company, Tel.: +46 8 611 49 90



Also visit www.allianceoilco.com



[1] Previous guidance of 55-60,000 bopd and 72-77,000 bopd for upstream and
downstream respectively. 



Alliance Oil Company Ltd is a leading independent oil company with vertically
integrated operations in Russia and Kazakhstan. Alliance Oil has proved and
probable oil reserves of 648 million barrels and downstream operations that
includes the Khabarovsk refinery and the leading network of gas stations and
wholesale oil products terminals in the Russian Far East. Alliance Oil's
depository receipts are traded on the NASDAQ OMX Nordic under the symbol AOIL.

Alliance Oil Company Ltd.

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