Interim report for the quarter and nine months ended 30 September 2010


Quarter ended 30 September 2010                                                 
* Total revenue amounted to MUSD 581.0 (Q3 2009: MUSD 489.9).                   

* EBITDA amounted to MUSD 129.7 (Q3 2009: MUSD 112.3).                          

* Profit before tax amounted to MUSD 105.7 (Q3 2009: MUSD 78.5).                

* Net profit for the quarter amounted to MUSD 85.4 (Q3 2009: MUSD 59.6).        

* Basic and diluted earnings per share amounted to USD 0.49 and USD 0.45,       
respectively (Q3 2009: USD 0.34 and USD 0.34, respectively).                    

* 6.5 mbbl (Q3 2009: 5.9 mbbl) of oil were refined and 4.3 mbbl                 
(Q3 2009: 3.9 mbbl) produced.                                                   

* Acquisition of gas stations expanded retail network to the Republic of        
Buryatia.                                                                       

* Rouble bonds offering raised MUSD 165.                                        

* Long-term project financing agreement of MUSD 760 with Vnesheconombank.       

Nine months ended 30 September 2010                                             
* Total revenue amounted to MUSD 1,613.6 (nine months 2009:                     
MUSD 1,181.7).                                                                  

* EBITDA amounted to MUSD 319.9 (nine months 2009: MUSD 297.7).                 

* Profit before tax amounted to MUSD 211.0 (nine months 2009: MUSD 192.5).      

* Net profit for the nine months amounted to MUSD 165.0 (nine months 2009: MUSD 
156.7).                                                                         

* Basic and diluted earnings per share amounted to USD 0.94 and USD 0.89,       
respectively (nine months 2009: USD 0.94 and USD 0.94, respectively).           

* 18.1 mbbl (nine months 2009: 16.2 mbbl) of oil were refined and 11.9 mbbl     
(nine months 2009: 12.2 mbbl) produced.                                         

* Eurobonds offering raised MUSD 350.                                           


Dear shareholders,                                                              

For the third quarter 2010, Alliance Oil Company reports operational growth and 
improved financial performance. Revenues, margins, operating and net results    
increased compared to the second quarter for both the upstream and the          
downstream segments.                                                            

As the Brent price recovered to the level above USD 80 per barrel late in the   
quarter, improved net export and domestic crude prices resulted in higher       
netbacks in the upstream segment. In the downstream segment, oil products prices
overall remained stable with better margins late in the quarter.                

In the quarter, we saw significant effects of our drilling activity as upstream 
production increased by thirteen percent from the second quarter. We continued  
to implement the 2010 drilling program. So far this year, sixty six wells have  
been drilled.                                                                   

Our main development program, the Kolvinskoye oil field in Timano-Pechora, is on
track for launch in 2011. Three wells have been successfully drilled and        
completed and we currently have four drilling rigs operating in the field.      

For the downstream segment, traditionally strong seasonal demand in the third   
quarter resulted in higher sales volumes which raised the refinery's run-rate to
its full capacity. An electrical desalting and dehydrating section of the crude 
oil distillation unit, which will reduce overall energy consumption, has been   
put into operation as part of the Khabarovsk Oil Refinery modernisation program.

Our retail network was expanded into the Republic of Buryatia, where we acquired
a network of seven retail stations.                                             

The company's financial position further strengthened, as operating cash flows  
improved and the company signed a MUSD 760 long-term project financing agreement
with Vnesheconombank for the Khabarovsk refinery modernisation and issued a MUSD
165 ten-year Rouble bonds.                                                      

Outlook                                                                         

In the first months of the fourth quarter, market conditions have continued to  
be favorable. We have passed the peak in seasonal oil products demand, but      
markets have remained firm for this time of the year.                           

In the upstream segment, recent production has averaged approximately 46,000    
barrels of oil per day. While we continue to add new wells to increase          
production capacity, the drilling results and operational performance to date   
are being reviewed as we plan for the next year's campaign. With a strong focus 
on financial and operational efficiency, we are going to postpone drilling of   
some wells from this year to 2011. Accordingly, total 2010 upstream CAPEX and   
production for 2010 will be somewhat adjusted and we do not currently expect to 
fully reach this year's upstream targets.                                       

Looking further ahead, we plan for accelerated production growth in coming years
with the objective to reach a daily production of 90,000 barrels in 2012. The   
launch of the Kolvinskoye oil field next year will be an important step towards 
this objective.                                                                 

In the downstream segment, increased oil products demand throughout the year has
allowed us to raise refining volumes compared to last year and reach targets    
ahead of schedule. Recently, the refinery has been processing approximately     
62,000 barrels per day on average. At this point, we have great confidence in   
realising this year's targets for the downstream segment with good margins.     

The Khabarovsk refinery modernisation is moving on schedule, and the new units  
will be prepared for operating in 2012.                                         

The continued development of our integrated and efficient business model and the
execution of our capital projects in order to reach the company's long-term     
objectives remains our focus.                                                   

Arsen Idrisov,                                                                  
Managing Director                                                               



Conference call                                                                 
Date: Tuesday, 23 November 2010                                                 
Time: 10.00 CET                                                                 
To participate by telephone, please dial:                                       
from Sweden +46 (0)8 5853 6965                                                  
from Russia +7 495 705 9451                                                     
from other countries +44 (0)20 7784 1036                                        
The presentation will be webcasted live at www.allianceoilco.com and            
www.financialhearings.com.                                                      
A replay of the presentation will be available at www.allianceoilco.com.        


For further information:                                                        

Arsen Idrisov, Managing Director, Alliance Oil Company Ltd, telephone +7 (495)  
777 18 08.                                                                      
Eric Forss, Chairman of the Board, telephone +46 8 611 49 90.                   



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 526 million barrels, refining capacity of more than    
70,000 barrels per day and a network of gas stations and wholesale oil products 
terminals. Alliance Oil's depository receipts are traded on the NASDAQ OMX      
Nordic under the symbol AOIL.

Attachments

aoil_2010_11_23_eng_q3.pdf