The Board of Directors of TATNEFT discussed the results of the Company’s Activity in 2010
A regular meeting of the Board of Directors of OAO TATNEFT was held in Kazan (Republic of Tatarstan) on April 29, 2011. The Board of Directors summed up the budget of the Company for three months of 2011 and approved the budget for May.
The Board discussed the results of financial and economic activities of OAO Tatneft in 2010.
The amount of 25 million 863.5 thousand tons of crude oil was produced in the fields of the Company in the past year with a surplus of 13 thousand tons versus 2009. Over the plan production amounted to 483 thousand tons of crude oil. The first million tons of crude oil was produced from the licensed fields of subsidiaries outside Tatarstan in the Russian Federation since the beginning of the development. The works are continued on fulfillment of contractual obligations under the projects outside the Russian Federation.
283.7 thousand tons of natural gas liquids were produced and delivered during the reporting period, while the volume of associated petroleum gas amounted to 770 million cubic meters. Pilot operations at Ashalchinskoye field were continued. The output of extra-viscous oil amounted to 27,200 tons, while the total production from the beginning of development amounted to over 65 thousand tons.
761 wells were equipped with systems of dual completion and production of two or more layers. Additional oil production since the beginning of operation of the system amounted to 1 million 896 thousand tons. 226 injection wells are operated with application of the dual injection technology. A number of chain drives at the Company’s producing wells increased by 12% up to 1,247 units. 55 sidetracking jobs of lateral and lateral horizontal wellbores were completed and 7 bottom hole splitters with an average production rate of 9.7 tons per day, as well as 33 horizontal wells with an average production rate of 10.3 tons per day were put into operation. 56 small diameter wells were drilled.
Mean time before failure of the wells increased by 30 days and reached 1,041 days. This is still the highest index among major oil companies in the country.
The second phase of the comprehensive energy saving program, which has been in operation since early 2000, was completed in 2010. More than 2 million tons of reference fuel or 21% of the Company’s energy requirements have been saved since the beginning of the program implementation.
Nizhnekamsk thermal power plant and Almetyevsk heating systems created “Tatneft-Energosbyt” Company, which joined TATNEFT group of companies.
A significant event was commissioning of the first stage of the TANECO complex, where the first petroleum refined products were received. Nizhnekamsk SSC tire factory started production of 10 tire models in the reporting year and manufactured 110,000 pieces of solid steel cord products. The Russian-German joint venture to produce glass fiber was
commissioned in the territory of Alabuga special economic zone.
The amount of 28.8 billion rubles was spent for implementation of the investment program in crude oil production, petrochemicals production and filling stations during the past year.
The Board of Directors heard the information about the results of the joint work of OAO TATNEFT and scientific organizations of the Academy of Sciences of the Republic of Tatarstan.
The Board of Directors considered implementation of social projects and the strategy for implementing the socially responsible business of TATNEFT. The Board of Directors highly commended the work of the Executive Directorate of the Company in this field.
A decision was taken at the meeting to recommend to the annual general meeting of OAO TATNEFT shareholders to approve payment of dividends for 2010 in the amount of 502% of the share par value both for preferred and ordinary shares. The Board of Directors approved the agenda for the annual general shareholders’ meeting.
The Board also reviewed a number of other issues of OAO TATNEFT activity.