2007-12-17 09:30:00 CET

2007-12-17 09:30:25 CET


REGULATED INFORMATION

English
Neste Oil - Corporate Action

NESTE OIL, TAKREER, AND OMV SIGN HEADS OF TERMS FOR BASE OIL PLANT IN ABU DHABI


Neste Oil of Finland, Takreer of Abu Dhabi, and the Austrian oil  and
gas group OMV are proceeding with their plans to form a joint venture
company and build a plant to produce sulfur-free, Very High Viscosity
Index (VHVI) Group  III base oil  at Ruwais, Abu  Dhabi. The  parties
have signed the Heads of Terms  agreement in Abu Dhabi, covering  the
basic principles for the design,  construction, and operation of  the
facility and the commercial terms  of the project. The  joint-venture
company will be 60%  owned by Takreer  and 20% by  Neste Oil and  OMV
each.

The planned facility will be capable of producing 500,000 tons a year
of base oils used for blending top-tier lubricants. Feedstock for the
base oil facility will be provided from Takreer's hydrocracker  unit.
Neste Oil  will bring  technology and  production know-how  and  will
initially be responsible for marketing  the products. OMV will  bring
know-how in base oil blending and marketing experience.

The Front End Engineering Design (FEED) of the project is expected to
commence by the second quarter of 2008. The final investment decision
will be made later, based  on the investment cost estimates  obtained
during the FEED phase.

Demand for  high-performance,  sulfur-free base  oils  is  increasing
globally due to their ability to meet current and future  performance
requirements and more stringent environmental standards.

Takreer is a refining  company with an  overall crude and  condensate
processing capacity  of  about  500,000 barrels  per  day.  With  its
fundamental strength  in  oil refining,  Takreer  is now  working  on
expanding its activities  in the  downstream sector  to identify  and
deploy  products  and  process  technologies  that  would  provide  a
competitive edge. With a vision  to become a leading diversified  oil
refining company, Takreer is now interested in expanding its  product
portfolio into the production of high-quality base oils.

Neste Oil, headquartered in Espoo, Finland, is refining and marketing
company focused on advanced, clean traffic fuels with a strategy that
prioritizes growing  its  refining  and  premium-  quality  biodiesel
businesses. Neste Oil has a total refining capacity of  approximately
250,000 barrels a day; and is an industry leader in manufacturing and
marketing Very  High  Viscosity  Index (VHVI)  base  oils  under  its
Nexbase brand.

OMV is the  largest listed  industrial company in  Austria with  more
than 26 million  metric tons of  annual oil refining  capacity and  a
retail network of more than  2,500 filling stations in 13  countries.
OMV sells more than 14 BCM of  gas a year. With the acquisition of  a
majority stake in Petrom of Romania,  OMV has become the largest  oil
and gas  group in  Central  Europe. OMV  is  active in  refining  and
marketing in 13 countries,  and in exploration  and production in  20
countries and on five continents.

The project combines the strengths of all three parties in the
design, production, and marketing of high-performance base oils.

Neste Oil's other project to increase base oil production in Bahrain
is also progressing.


Neste Oil Corporation
Osmo Kammonen
Senior Vice President

Further information at Neste Oil
Mr Kimmo Rahkamo, Executive Vice President, Specialty Products,  tel.
+358 50 458 4247
Mr Matti Lehmus, Vice President, Base Oils, tel. +358 50 458 4072



Neste Oil in brief

Neste Oil Corporation is a refining and marketing company focused on
advanced, clean traffic fuels, with a strategy that prioritizes
growing its refining and premium-quality biodiesel businesses. Neste
Oil's refineries are located at Porvoo and Naantali in Finland, and
have a total refining capacity of approx. 250,000 bbl/d. The company
employs around 4,800 people and its shares are listed on the Helsinki
Stock Exchange. For further information, see www.nesteoil.com.