Man Oil Group AG signs agreement with TNK-BP for implementation of innovative oil-sludge treatment technology in Ukraine

Man Oil Group AG signs agreement with TNK-BP for implementation of innovative oil-sludge treatment technology in Ukraine

Zug, Switzerland, 01 August 2011 - The President of Man Oil Group AG, Genadi Man, signed a contract with TNK-BP's subsidiary in the Ukraine. Man Oil Group AG has been recognized as the best company in the tendering procedure held by CHAO LINIK (100% subsidiary of TNK-BP) for provision of services for extraction, treatment of oil sludge and waste management at the Lisichansk Refinery in the Ukraine. The 1st project stage value is more than USD 9 mln.

The Lisichansk refinery is the main asset of TNK-BP's international holding in Ukraine. The plant can process about 8 million tons of crude oil annually. At present there is an accumulated amount of about 150,000 m³ of oil waste onsite. The first task for Man Oil Group is to work on an oil-sludge reservoir of 60,000 tons.

Genadi Man, President of Man Oil Group AG, states: 'I assess our victory in the TNK-BP tender as a flagship project in oil industry for the entire post-Soviet territory. The criteria for evaluating our technology clearly reflect modern responsible approach of business to waste management, and this, in turn, suggests a change in the manufacturer's thinking. The major issue of solving the problem is not the price any more, but rather a whole range of other important factors: the quality of work, the reputation of the contractor, compliance with environmental standards, the advanced technology and the latest generation of equipment.

I am sure that the agreement signed today is only the beginning of a successful and long-term cooperation between Man Oil Group and TNK-BP. We are commencing the largest project in terms of environmental safety in the country. Our victory in the tendering procedure is the evidence of positive trends in national oil industry: today major oil companies are looking for environmentally friendly technologies for waste treatment. I am happy to start working with the customer who is not only open to innovative technologies, but is also actively introducing them into their own production processes.'

Konstantin Gusarov, Director of CHAO LINIK, mentions: 'TNK-BP is among the ten largest private oil companies in the world, and in our business, we cannot afford any compromise on quality. Our selection process of service providers takes a long time, but on the other hand it ensures most accurate selection of the best partner for us. We monitor all new technologies, conduct numerous tests and trials in and outside Ukraine, and develop our own expertise within the group. And I am sure that the choice of Man Oil Group as a partner for the treatment of oil sludge at the Lisichansk refinery guarantees us best results.

Man Oil Group entered the tender with the most attractive solution for our problem in terms of business and environmental responsibility. The new Swiss technology provides a one-stop-shop solution for treatment of waste oil, fully complying with most stringent standards of production and environmental safety. I am pleased that we are beginning to work with this company. I hope that our cooperation will be long lasting and profitable.'

Lisichansk refinery is one of the most advanced in Ukraine. It was the first refinery in the country which started production of diesel fuel of Euro-4 standard. The plant is the only Ukrainian producer of polypropylene. According to the development plan approved by TNK-BP in early 2011 oil production will increase by 1.3% (715 million barrels) per year, as well as the capital investment will grow by 15% to $ 4.6 billion. Key directions for development are: improving energy efficiency, reduction of production costs and process losses, increase of the depth of processing and full compliance with international standards of environmental safety ISO 14 000.

About Man Oil Group AG
Man Oil Group AG ensures a large-scale industrial complex treatment of oil-sludge and oil polluted soils with consequent bioremediation of waste. Its one-stop-shop technology guarantees the isolation of 95% hydrocarbon phase and 100% environment-friendly method of treatment. Man Oil Group affiliates are located in Russia, Ukraine, Kazakhstan and Azerbaijan. Individual solutions for our customers are created on the basis of own network of scientific laboratories and engineer bureau of the company.

Additional information is available at www.manoilgroup.com

Contact:
Man Oil Group AG
Seestrasse 5
6300 Zug, Switzerland
Tel.: +41 41 500 16 90
Fax: +41 41 500 16 91
ir@manoilgroup.com

Disclaimer:
This notice constitutes neither an offer to sell nor a solicitation of offers to purchase or subscribe to securities. There will be no public offering of securities of Man Oil Group AG in conjunction with the existing listing of its shares in the Open Market segment of the regulated unofficial market (Freiverkehr) on the Frankfurt Stock Exchange. This notice does not constitute a securities prospectus. Neither this notice nor the information contained within is intended for direct or indirect distribution within Canada, Australia or Japan.