JSC  "Ventspils  nafta" Supervisory Board has approved Company business

plan  and  budget  for  2002,  and  is  recommending it for approval by

general meeting of shareholders.

Supervisory Board has approved the following budget for 2002:

Operational revenues LVL 48 million;

Operational costs LVL 43.6 million;

Taxes LVL 2.3 million;

Net profit LVL 3.4 million.

The  business  projections are based on certain macroeconomic, external

and internal assumptions.

Macroeconomic:  GDP  4-5%;  CPI  3%;  the  present  monetary policy and

stability of national currency is retained.

External:

-  In  December  2001,  Baltic  Pipeline  System  will be launched into

operation,  in  order  to  export  crude  oil  from Timan-Pechori, West

Siberia,  North  Oba  and  Kazakhstan oil fields via Primorsk Port. The

throughput  capacity  after  completion  of  the first phase will be 12

million tons per year; 18 million tons per year after completion of the

second phase, and 30 million tons per year as a prospect. With the view

of  the Russian oil export policy, defining export via Russian ports as

a priority, it is expected that BPS will be used at full capacity. This

will definitely cause a fall of loading volumes in Ventspils;

- A possible increase of volumes loaded at the Būtiņģe oil terminal due

to  Russian  oil company "Jukos" involvement in the Lithuanian "Mažeiķu

nafta", agreeing to export 4 million tons of crude oil via Būtiņģe;

-  Reduction  of  diesel  oil  transit  volume via Ventspils due to the

in-land  railway  tariffs to own ports specified by Russian Federation.

As  a  result,  at  the  territory  of  Russia, the railway tariffs for

freights  going  to  the Baltic ports are several times higher than for

those going to Russian ports.

-  OPEC  member countries are negotiating a cut in crude oil extraction

quotas  with the purpose to stabilise prices. For non-member countries,

like   Russia,   OPEC  is  recommending  a  proportional  reduction  of

extraction volumes as well;

- Petrol reloading volumes will depend on petrol prices in the USA, the

key petrol recipient country via Ventspils;

-  SIA  "LatRosTrans"  is  implementing  an  investment  programme  for

renovation of the pipeline system;

-  Latvia is joining INOGATE programme, which is creating a legal basis

for  Latvia  to  integrate  into the EU projects associated with energy

transportation corridors from Russia and the Caspian Sea regions;

-  Increase  of  crude  oil  extraction volumes by Kazakhstan and other

Eurasian countries and export to European markets;

-  Law  "On  taxes  at free ports and special economic zones" will come

into effect.

This will make "Ventspils nafta" eligible to income tax reduction.

Internal:

-  in  2002  projects at total value of LVL 16.3 will be continued as a

part of Investment Programme,

- reconstruction of railway platform No. 1 will be started;

- construction of pumping station No.7 will be started and completed by

the end of the year;

-  construction  of  technological  pipeline  corridor,  connecting JSC

"Ventspils nafta" and piers, will be started;

-  construction of gas recuperation system for the railway platform and

for tank-truck filling station will be started and finalised by the end

of the year;

- construction of business centre Ventspils at the old part of the town

will be completed;

- work on Company cost optimisation will continue;

-  work  on  Company  business  risk reduction and diversification will

continue.