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Energoterra

General Meeting of the JSC TATNEFT Shareholders

Июня 26, 2015

The annual general meeting of the JSC TATNEFT's shareholders was held on in Almetyevsk (Republic of Tatarstan) on June 26.

Nail U. Maganov, General Director of JSC TATNEFT presented to the audience the report on the results of JSC TATNEFT's activities in 2014. He outlined in his speech the 2014 results and plans for the current year. In 2014, the Joint Stock Company TATNEFT used to solve successfully strategic problems for the further stabilization of crude oil and gas production, strengthening of the resource base, development of the business segments of  refining and petrochemicals production, retail sales of petroleum products and the block of heat-power engineering. The planned figures of production were fulfilled and high financial and economic indicators were ensured.

According to the independent international consulting firm "Miller and Lents" the proved developed, undeveloped and undrilled reserves of JSC TATNEFT amounted to 851.5 million tons of oil as of the beginning of 2015.

The total production volume of the TATNEFT Group in 2014 increased to 26.529 million tons.

As Nail Maganov pointed out in his speech, the Company continued active development of Ashalchinskoye extra-viscous oil field. The volume of production reached 237,000 tons in the reporting year, while the cumulative production from the field amounted to 562,000 tons of extra-viscous oil.

Active involvement of EVO reserves into the development is a strategic goal of the Company to ensure a sustainable growth of oil production. As part of the heavy oil reserves development, it is planned to increase production of EVO up to two million or more tons per year.

Besides the development of the EVO reserves, TATNEFT launched a program for development of Domanik deposits and application of technologies and methods to stimulate the reservoirs with low filtration characteristics.

For the purpose of the study and implementation of the exploration innovative methods and development of EVO fields an Agreement was signed between the Ministry of Natural Resources of the Russian Federation and the Republic of Tatarstan on establishment of  scientific polygons with the plans providing for development of two polygons at JSC TATNEFT ("Domanik" and "Bitumen"). Any interested investors are welcome take part in these activities.

According to the rating of the world's innovators, published in May this year by Thomson Reuters Company, TATNEFT ranked number one in the list of the best European innovative companies in the field of exploration.

According to General Director of JSC TATNEFT, geological and technical measures and a set of measures applied to improve field development technologies are an important factor in implementing the crude oil production program. A significant effect is produced by application of dual completion technologies for simultaneous operation of two or more layers through one well/which allows increasing the intensity of development and efficiency of exploitation. The areas of development and application of these technologies are being expanded. At the beginning of this year, the dual completion and dual water injection facilities were installed at more than two thousand well sites.

TATNEFT has got one of the highest levels of associated petroleum gas utilization in the industry. Utilization of associated gas is over 95%. It is a valuable feedstock for the petrochemical industry.

The Company's contribution to the development of the energy-efficient production was marked at the governmental level. JSC TATNEFT once again became the winner of the Republican show-contest "Resource Efficiency. Energy Saving ".

In 2014, the achievements of the Company to ensure environmental safety at oil production facilities were highly appreciated by various authorities and industry experts. For the eleventh time TATNEFT was recognized as the overall winner of the Republican contest "ECOleader." The Company was also nominated for the "National Environmental Award 2014" by the V.I. Vernadsky Ecological Fund.

The Company continues implementing the policy measures to maximize economic benefits and improve the profitability of the production assets, provide for production costs control, develop and implement innovative technologies and equipment. 2014 witnessed the launching of the Program for implementation of the lean production system at the enterprises of the TATNEFT Production Group, in terms of which there were defined problem areas of the enterprises' activities and the projects were started to improve the production organization and management.

In 2014, the TANECO Complex of Refining and Petrochemical plants processed 8.5 million tons of crude oil. A combined hydrocracking installation with production of base oils was put into operation. The indicator of oil refining depth reached 74. The Complex started production of new kinds of readily marketable products, including Euro 5 diesel fuel and aviation fuel for turbine and jet aircraft engines.

The construction of the advanced oil processing plant is being continued and the delayed coking unit is extensively set up, which launching will allow increasing to 92% the raw feed conversion at TANECO at this stage. The coke produced at the facility will be used for heat and power generation at the Nizhnekamsk CHP.

In 2016, due to start-up of isomerization and catalytic reforming units TANECO plans to start production of environment-friendly Class 5 motor gasoline bringing its output volume to 1 million tons by 2018.

Currently,  works were started to construct the second stage facilities at TANECO in order to increase the refining capacity to 14 million tons per year. Excavation works have been fully completed and pouring of the foundation is being carried out. The deadline for construction and installation work and commissioning of the facility is scheduled for 2017.

Development of the refining capacities allows systematically implementing the motto and the principle  "from the wellhead to the gas tank". 667 gas stations were operating under the brand name TATNEFT in Russia and neighboring countries in 2014. More than 2 million tons of oil and gas products were sold through the retail sales network of TATNEFT in the reporting year. A new competitive advantage of the Company's retail business was sale of Class 5 diesel fuel with improved performance produced at the TANECO Complex.

The Company continues improving the quality and developing the production of competitive innovative products at the enterprises of its Petrochemical Complex. The total production volume in 2014 amounted to 11.6 million tires. Half of all the produced tires fall into the category of innovative products. Cooperation with foreign partners is being developed resulting in commissioning of a new facility for recovery of truck solid metal cord tires.

The Company pays special attention is to maintaining the social well-being and a decent standard of living of the workers and creation of the conditions for their professional growth. All the commitments envisaged by the Collective Agreements for 2014 were met.

Among the priorities there are strategic projects for the development of the downstream sector, hard-to-recover oil fields development, as well as increasing of the volume of geological and technical measures in order to stabilize and increase oil production volumes.

Контакты
Адрес: 115114 Россия,
620137 г. Екатеринбург, ул. Студенческая, д. 1 корп. 3
Тел. / факс  (343) 345-09-72
г. Москва, 1-й Дербеневский переулок, д. 5 тел. (495) 287-98-51
E-mail: info@energyland.info
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