OREANDA-NEWS. On November 27, 2007 a scheduled meeting of the Board of Directors of OAO Tatneft chaired by Rustam Minnihanov, the Prime Minister of the Republic of Tatarstan, was held, reported the press-centre of Tatneft.

The Board of Directors reviewed the results of implementation of the company's budget for ten months of the year, and it approved budget for December of the current year.
The Board of Directors discussed the results of the company's financial and business operations for nine years of the current year. Over 19,4 mln tons have been produced, that is 1,7% more as compared to the similar period of the previous year. 270 new producing wells were put on stream. Their average yield increased by 23% in comparison with the same period of the previous year.

The company continues its pilot project for the development of heavy oil and bitumen reserves at the  Ashalchinsky field.  4,2 thousand tons of oil have been produced from two pairs of horizontal wells since the commencement of SAGD operations. The net proceeds from shipped oil made up approximately 143 bln rubles and increased by 1,6% as compared  to the relevant period of the previous year. Based on the results of the company's financial and business operations, 46 bln rubles of book profit were received. About 10 bln rubles of investments were used for the core production operations, that exceeds the level of the previous year by 26%.

The Board of Directors reviewed the strategic program for development of the petrochemical complex of OAO Tatneft, within the frame of which a number of steps is planned for the development and   boost of capitalization of tire production. In mid-term view  the company plans to strive for the increase of its return on sales retaining at the same time its share at the Russian tire market, using its favorable geographic position  to major car producers, ongoing technical upgrading, and high qualification of the staff. The Board of Directors approved the proposed program, and instructed to implement it.

The Board of Directors heard the information about the status of Tatneft's resource base and perspectives of its further development. The company holds 79 licenses for field development and exploration. The company conducted geological works beyond Russia at five license areas in Libya and Syria. Based on the appraisal of Miller & Lents Auditing Company, the oil reserves of Tatneft's fields make up 830 mln tons.  In 2007 two field were discovered, including the Chernoozerskoye field (Republic of Tatarstan) with C1+C2 category reserves of over 1,1 mln tons and the production rate of 9 tons of oil per day, and the Tibeveiskoye field (Nenets Autonomous Area) with C1+C2 category recoverable reserves of about 8 mln tons and the production rate of 106 cubic meters of pure oil per day on 7 mm choke.  The executive management was instructed to proceed with the expansion of the company's resource base beyond the Republic of Tatarstan.

On the initiative of independent directors the Board of Directors discussed the current situation  concerning the infringement of rights of the shareholders of ZAO Ukrtatnafta. A representative of Cleary Gottlieb, Steen & Hamilton presented a report to the Board, and the Board accepted the recommendations to protect the rights of the shareholders of ZAO Ukrtatnafta. 
The Board of Directors also discussed a number of other issues regarding the activity of Tatneft Company.