OREANDA-NEWS. On July 06, 2007 a traditional meeting of the President of Tatarstan M. S. Shaimiev with the management of the oil companies operating in the territory of the Republic was held in the Yelabuga Region  (Republic of Tatarstan), reported the press-centre of OAO TATNEFT.

The Prime Minister of Tatarstan R.N. Minnikhanov, a number of ministers and heads of municipality regions also participated in the meeting.

SH.F. Takhautdinov, General Director of OAO TATNEFT made a presentation on the results of the Company's activities in the first half of the current year and made a brief overview of activities aiming at further improvement of the production efficiency.

For the period of six months in 2007, OAO TATNEFT produced 12 million 990 thousand tons of crude oil. Increase in production versus the same period of the last year accounted for to 2,2%.

Drilling companies penetrated 421,5 thousand meters of rocks, including 140,6 thousand m for independent oil companies. The average production rate of the new wells amounted to 9,9 tons per day accounting for 38% increase versus the first half of 2006. 22 small diameter wells were drilled to the upper layers.

Construction of such wells is more than 30% cheaper than construction of the standard ones. Total investments amounted 13 billion rubles in Tatneft, including 7 billion rubles into the oil production sector and 2 billion rubles to expand the resource base outside Tatarstan. Outside the Republic of Tatarstan the Company operates in Samara, Orenburg Districts, Nenets Autonomous Area and the Republic of Kalmykia. Implementation of the projects in Syria and Libya is on the way. Geophysical experts of the Company have successfully entered into the foreign markets: Tunisia, Morocco, Angola, Gabon, Kazakhstan, Uzbekistan.

Pilot works on development of the bitumen deposits started last year. The average production of the first pair of wells drilled with a horizontal section exceeding 200 meters long amounts to 14-15 tons a day.

The second pair of horizontal wells with a horizontal section length of 400 meters has been drilled and is in the process of putting it into operation at present. Drilling of the third well pair with a total length of 750 meters has been planned. The General Director emphasized that the interest of the State and introduction of a special taxation regime is required for the effective development of the bitumen deposits. He mentioned Canada as an example, where such projects are tax exempted until the profitability break even point is reached.

The enterprises of the OAO TATNEFT petrochemical complex yielded products for the amount of 21,3 billion rubles in 2006 and this is 30% above the level of 2005. OAO Nizhnekamskshina achieved the maximum output of 12,2 million tyres in the history of the company.

This year, to further improve the quality of tyres a new rubber mixing production line has been commissioned, and this means commissioning of a complete cycle of manufacturing modern passenger car radial tyres under Pirelli technology, which have no analogues in Russia. The first foundation stone has been laid into the construction of the production shop of the all-metal cord tyres with output capacity of 1,2 million pieces a year.

The General Director of OAO TATNEFT also spoke of the social activities of the Company: participation in the housing construction program in the framework of the social mortgage lending scheme, construction of a number of major social facilities with Tatneft financing, support for young families, veterans, etc.

F.H. Valiev, General Director of ZAO Neftekonsortsium, spoke next and he noted that this year is witnessing the 10th anniversary from the day when the Decree of the President of the Republic of Tatarstan was issued "On the Measures of the Oil Production Increase", which is the basis for the activity development of the small oil companies within the territory of the Republic.

There are 33 small oil companies in the Republic today. The small oil companies produced 38 million tons of crude oil over the past decade with more than 3 thousand 100 wells put into operation. The amount in excess of 88 billion rubles of taxes was charged into the budgets of all levels, including the amount over 20 billion rubles charged into the consolidated budget of the Republic of Tatarstan. More than seven thousand jobs were established.

In the first half of 2007 the small oil companies produced over 3 million tons of crude oil, including 374 thousand tons produced through application of different oil recovery enhancement methods. The Head of Neftekonsortsium Company noted the considerable support from OAO TATNEFT in developing the innovational activities of the small oil companies.

R.H. Fassakhov, General Director of ZAO Tatoilgaz, enlightened the participants of the meeting on the preparation progress of constructing a refinery for the small oil companies.

In the closing remarks, M.Sh. Shaimiev, the President of Tatarstan, highly appraised the contribution of the oilmen into the economy of the Republic and into the welfare of its people. Only joint efforts of OAO TATNEFT and the small mobile oil companies can provide for a rational and efficient operation of the oil fields in the Republic, where the third billionth ton of crude oil since the beginning of the commercial development of Tatarstan subsoil will be produced this year. Joint discussion of the problems and constructive dialogue with public authorities as well as working out the common strategy is very important for development of the oil industry in Tatarstan.

All this was once again demonstrated by the Republican oil summit held in Yelabuga.