Regular Meeting of OAO TATNEFT's Board of Directors

The meeting reviewed the outcome of the budget of OAO Tatneft for ten months of 2010, approved the budget for December and discussed the budget for 2011.
The meeting heard the information about the main results of financial and economic activity of the Company. The Company produced 19 million 347 thousand tons of crude oil for 9 months of this year, which is 17.9 thousand tons more than in the corresponding period of 2009, with the above-the-plan production amounting to 349 thousand tons. The amount of 8.7 million tons or 44.8% of the total production volume was produced through application of tertiary and hydrodynamic enhanced oil recovery methods.
251 new wells were put into operation. 18.2 thousand tons of extra-viscous oil were produced as a result of pilot operations at Ashalchinskoye field with an average rate for the area amounting to 78.1 tons per day, while over 56 thousand tons of extra-viscous oil had been produced since the beginning of the field development. The Company produced 185.5 thousand tons of crude oil outside the Republic of Tatarstan, which corresponds to the planned level.
The Company received 36.6 billion rubles of before tax profit according to the results of financial and economic activities. The total amount of taxes and payments to all levels of the budget for the reporting period amounted to 170 billion rubles, or 1.4 times more compared with the corresponding period the last year. The main growth factors were the increase in the amount of severance tax and export duties.
The Board of Directors was briefed on the impact of new technologies application in the development of extra-viscous oil deposits.
The Board of Directors discussed the issues of the investment program implementation for oil production this year and the formation of the investment program for 2011. The Board of Directors noted that the share of activities with application of new, more up-to-date technologies in the structure of the investment program had increased, which increased the investments efficiency.
The Board of Directors also considered a number of other issues of OAO TATNEFT activity.