TATNEFT Board of Directors Reviewed Progress of Investment Projects Implementation

The Board of Directors meeting summed up the results of financial and economic activity of OAO TATNEFT in the first quarter of 2010. The Company produced 6 million 377 thousand tons of crude oil, which is 0.4 percent higher than the level of 2009. Above-the-plan production amounted to 114 thousand tons of crude oil. 45 percent of the total amount of crude oil was produced through application of up-to-date oil recovery enhancement methods. 76 new wells were put into operation and their production amounted to 16.7 thousand tons of crude oil.
Revenues from products sale excluding VAT and export duties amounted to 59.4 billion rubles. The balance sheet profit received amounted to 15.3 billion rubles.
Over 2.7 billion rubles of capital investments were spent during the reporting period in accordance with the investment program of TATNEFT.
The Board of Directors discussed the progress in implementation of the Company's investment projects of in the "Alabuga" Special Economic Zone. The plans provide for production of reinforcing materials for construction, automotive, shipbuilding, electrical and other industry branches by the "PD Tatneft-Alabuga Glass Fibre" joint venture established by OAO TATNEFT and the German Preiss-Daimler Group Company on a parity basis. 300 job positions will be created as a result of organizing production at the first stage.
The Board of Directors meeting was presented and discussed information on the activities performed by OAO TATNEFT outside the Republic of Tatarstan in the Russian Federation: Samara, Orenburg and Ulyanovsk regions, Republic of Kalmykia and Nenets Autonomous Area. Geological exploration operations at the licensed areas outside the Republic of Tatarstan resulted in discovery of 11 fields with recoverable reserves in the amount of 19 million tons of crude oil and 35 billion cubic meters of gas. Increment in reserves and resources for External Territories amounted to 195.6 million tons of reference fuel.
Outside the Russian Federation geological exploration operations are continued in Syria and in Libya. Commercial development of the South Kishma field in Syria has been started by the Al Bou Kamal Petroleum joint venture. Estimated production is expected in the amount of 26 thousand tons in 2010. The Libyan Branch of TATNEFT has drilled three exploratory wells in Libya and identified three oil discoveries. The works within contract areas of Libya to seek prospective recoverable resources will be continued in accordance with the schedule approved.
The Board of Directors meeting reviewed preparations for the annual general meeting of shareholders of OAO TATNEFT and other issues of the Company's activity.