Rustam Minnikhanov has held a regular meeting of the TATNEFT’s Board of Directors

On 25 April in Kazan, Tatarstan President Rustam Minnikhanov held a regular meeting of the Board of Directors of the Tatneft Oil Company, which reviewed the results of the budget execution of the company for the first quarter of 2022, and approved the budget for May 2022. The Board of Directors was also informed on the status of receivables and payables for 2021.

The meeting participants got acquainted with the results of the financial and economic activities of the Tatneft Group for 2021. Successful performance of the financial and economic indicators of the Group ensured prompt response to external challenges, development of the Company’s own technological and production potential, rational use of resources. As a result, total sales revenues grew by 59 percent and amounted to 1.265 billion roubles, while the net profit increased to 198 billion. The total amount of taxes paid by the Tatneft more than doubled and amounted to 710bn roubles, while the amount of investments increased by 18 percent, reaching up to 121bn roubles.

Operating performance figures demonstrate improvement in almost all business areas, increasing crude oil production by 7 percent, the production of petroleum products and their sale through the retail network by 11.5 percent at the end of the year, tyre production by 14 percent, and the supply of thermal energy - by 29 percent, while the electricity generation volume increase amounted to 19 percent. The output of petrochemical and composite products also increased.

The meeting also got acquainted with the progress of geological exploration aimed at increasing the resource base of hydrocarbon reserves. At the beginning of 2022 the Tatneft Group had 109 subsoil use licenses, the resource base of which included 170 oil and gas and gas condensate fields. In general, the current recoverable reserves amount to 866.9 million tonnes, while the increase in recoverable oil reserves in 2021 amounted to 76 million tonnes. 

A significant contribution to the expansion of the Company's resource base and increase in the production volumes is accounted for by the assets outside of Tatarstan such as in the Nenets Autonomous Okrug and the Republic of Kalmykia.

Oil inflows were obtained in exploration wells from domanic and low-permeability horizons at the Savitsky and Zhuravlevsky subsoil plots in the Orenburg region as a result of using innovative technologies, together with the professionals from Gazprom Neft and LUKOIL Oil Companies. Experimental pilot operations are progressing.

In 2022 the Tatneft plans to invest 6.6 billion roubles in the exploration activities with the share of Tatarstan accounting for 3.2 billion, while the amount to be spent outside the republic will be 3.4 billion roubles.

The Board of Directors got acquainted with the Company's projects in the area of decarbonization as part of the implementing SDG 13 to combat the climate change. The Tatneft has set a goal of achieving carbon neutrality by 2050. The Company introduces innovative technological solutions and implements a set of compensatory measures to reduce greenhouse gas emissions.

The company is also implementing projects to increase renewable energy generation (SDG 7), improve the efficiency of natural resource use and reduce technological losses (SDG 12). Biological methods of carbon dioxide absorption are also actively used, including planting forests (SDG 15). The Company invests in innovative technologies for capturing, using and storing CO2 (SDG 9). Particular attention is paid to the formation of the worldview of rational consumption. Educational work is carried out among children, youth, employees of the TATNEFT Group and the population of the regions where the Company operates to develop a culture of responsible consumption.

Having considered the issue of holding the annual general meeting of the shareholders of the company, The Board of Directors proposed to hold the annual general meeting on June 23, 2022 in the form of absentee voting in pursuance of measures to ensure the non-proliferation of coronavirus infection and in accordance with federal law.