OREANDA-NEWS. March 28, 2008. The past year was successful for OAO Tatneft. Favorable market conditions, well-coordinated work of all employees of the company, high qualification and professional standing of the company's personnel contributed to such success. Tatneft Company produced 25.74 million tons of oil in 2007 that is 1.3% more compared to 2006. The expected net proceeds from the sales of shipped products amounts to 198 billion roubles. It increased by 24 billion roubles compared with 2006.

 Based on the results of the financial and economic activity of the company for 2007 we expect 64 billion roubles of book profits, that is 27% more compared with the level of 2006. The added value increased from 134 billion rubles in 2006 to 149 billion in 2007, and made up 75.2% in total output.

The market capitalization of the company grew by 45% and reached 13.5 billion dollars. The shares of Tatneft Company are included in the index of Moscow Interbank Currency Exchange, that brings together the shares of major Russian companies and that is one of leading indicators of the Russian stock market.

In the past year Tatneft Company continued the implementation of its strategic objectives to increase its hydrocarbon reserves. Pilot operations were performed at the Ashalchinskoye natural bitumen field in the Republic of Tatarstan. In 2007 the second pair of horizontal wells was put on stream, its flow rate reached 20 tons per day. To date the third pair of horizontal wells has been completed and is under development. 6 thousand tons of superviscous oil were produced from the field in 2007 using SAGD technology, the total production since the commencement of pilot operations made up over 7 thousand tons.

An agreement on the principles of strategic partnership was signed between OAO Tatneft and Shell Exploration Company in 2007 for the purpose of facilitating the development of superviscous oil fields and the application of advanced technologies and equipment.

Tatneft possesses licenses for exploration and development of 28 subsoil areas in five regions of the Russian Federation outside the Republic of Tatarstan, i.e in Samara, Orenburg and Ulyanovsk Regions, Republic of Kalmykia, and the Nenets Autonomous District. New fields were discovered in Samara Region and the Nenets Autonomous District in 2007. In the aggregate the production volume of oil and gas condensate outside Tatarstan in the year 2007 increased fourfold compared with 2006.

Tatneft also performs a number of service contracts in foreign countries: in Iran, Vietnam, Oman and Saudi Arabia. At present the company implements two major exploration and production projects in Libya and Syria.

Tatneft continues to implement its environment-oriented program at its facilities. Such company's activity in this direction was not left unattended in the past year. This is the fourth year in succession that OAO Tatneft was recognized as the absolute winner in the republican contest Ecolider. The company has won the Russian National Prize EcoWorld and has become the winner of National Environmental Prize of Russia.

The results of business activity of the enterprises of Tatneft's petrochemical complex were of positive nature in 2007. The volume of products increased by 14.6% and amounted to 24.4 billion roubles. Based on the results of the year, the expected pre-tax profit amounts to 1.8 billion rubles versus 197 million roubles in 2006.

In 2007, the company proceeded with active implementation of the project for construction of the complex of refineries and petrochemical plants in Nizhnekamsk. For the purpose of financing the design, construction and installation works, as well as the acquisition of supplies and equipment for the new complex, a credit line was opened under the construction loan in the amount of 2 billion dollars; such credit was arranged by BNP Paribas Bank (Paris).

The social development program was successfully implemented in 2007. The company has fulfilled all its obligations stipulated in the Collective Treaty. The employees of the company received the social benefits to the amount of over 290 million roubles.

In the past year, the company proceeded with housing construction for its employees under the scheme of mortgage lending. 923 apartments with total area of over 60 thousand square meters were provided for the employees. Young workers received 50 apartments complete with furniture at their choice.

In 2007, the company actively participated in the improvement of cities, towns and settlements of the republic within the frame of celebrations of the production of the third billion ton of oil in Tatarstan.

The activity of OAO Tatneft in the area of social policy is recognized at the international level. According to the results of 2007, Tatneft Company was awarded the first prize For the best social report in the area of sustainable development.