Alliance Oil Company today provides an update on downstream operations and
capital projects against the background of the unprecedented water flooding in
the Russian Far East. Oil product demand in the region has remained firm,
however sales volumes and margins in certain areas were affected by
distribution limitations. Overall downstream sales and processing volumes
remained at historically high levels. The schedule for connecting the
Khabarovsk refinery to the East Siberian Pacific Ocean (ESPO) system has been
adjusted with first crude deliveries now planned for the second half of 2014.
The plan for mechanical completion and initial testing operations of the new
hydroprocessing complex at the Khabarovsk refinery has been reviewed to reflect
the current progress.

Since the end of August 2013, the water flooding has presented significant
challenges to Russia's Far East regions. Water in the Amur and Zeya rivers
peaked at almost 10 meters above normal levels. Alliance Oil's downstream
operations in the Amur and Khabarovsk regions and, to a lesser extent, in the
Primor region remain affected.

Despite the challenges, the professional planning and coordination between the
Company's qualified personnel and specialized official services have limited
the potential damages of the flooding. The exposure to the main assets,
including the Khabarovsk refinery, was significantly reduced. There were no
reports of accidents related to pollution or oil spillage.

In the Khabarovsk and Komsomolsk areas, shipping delays resulted in lower oil
product sales while overall volumes remained at historically high levels.
Alliance Oil continues to support the recovery of the affected regions by joint
charity actions with local authorities and by supplying oil products at
discounted prices. Thus, the Company's current pricing policy does not reflect
the recent increase in domestic crude prices, which has affected the Company's
performance in the current quarter as previously indicated.

The schedule for connecting the Khabarovsk refinery to the ESPO system has been
adjusted, and the first crude delivery to the refinery via pipeline is now
scheduled for the second half of 2014. The connecting pipeline is being
constructed mainly in tunnels through the Khabarovsk city infrastructure, and
the project is expected to remain exposed to flooding consequences.

The modernization plan of the Khabarovsk refinery and the launch of the new
hydroprocessing complex have been reviewed. The mechanical completion and
testing of the Hydrotreater and Sulfur production units are expected in the end
of 2013. The testing and commissioning of the Hydrocracker and Hydrogen
production units are planned for the first half of 2014. The final testing
schedule will depend on actual winter conditions.

The hydroprocessing complex is expected to be launched upon successful
completion of testing operations and receiving all necessary permissions from
the regulatory authorities.

An operational update for September and the third quarter 2013 will be
disclosed on October 10, 2013. Third quarter 2013 financial results will be
disclosed on November 21, 2013.

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

Alliance Oil Company Ltd is a leading independent oil and gas company with
vertically integrated operations in Russia and Kazakhstan. Alliance Oil has
substantial oil and gas reserves and downstream operations that include 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.

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