Rustam Minnikhanov: Small oil companies provide 20 per cent of oil production in the republic

On October 31, speaking at a meeting with senior executives of small oil companies (SOC) in the Government House of the republic, Tatarstan President Rustam Minnikhanov said that SOCs provide about 20 per cent of the total annual oil production in the republic and are major taxpayers.

The meeting participants discussed the results of work for 9 months of the current year and set tasks until the end of 2022.

Minnikhanov emphasized that today the domestic oil industry is under enormous pressure from Western countries. New challenges are emerging: mechanisms such as the price cap on oil appear.

According to Minnikhanov, such mechanisms will lead to further deterioration of the situation in the world energy markets and will increase inflationary processes in the EU countries. «Despite the imposed restrictions, we need to look for ways to maintain production volumes, including developing new markets», Tatarstan President said.

He said that for 9 months of 2022 oil production in Russia amounted to 398.7 million tonnes, which is 3 percent more than in the same period last year. In Tatarstan, oil production increased by 4.15 percent compared to the same period last year. The republic produced 26 mln. 666 thousand tonnes of oil. Tatneft Oil Company produced 21 mln. 395 thousand tonnes of oil. Small oil companies of the republic extracted 5 million 271 thousand tonnes of oil.

Minnikhanov emphasized that this year marks the 25th anniversary of the establishment of small oil companies in Tatarstan.

Over 25 years of operation of the SOCs, more than 140 million tonnes of oil have been produced, more than 114 billion roubles of taxes have been allocated to the budget of Tatarstan. “I would like to thank you and your colleagues for their great contribution to the development of our republic,” Minnikhanov addressed the meeting participants.

First Deputy Director General - Chief Engineer of Nefteconsortium SOC Oleg Vyshensky made a detailed report on the results of work of small oil companies for 9 months.