OREANDA-NEWS. On August 08, 2008 Mr. Vladimir Artyakov, the Governor of Samara Region signed the Agreement on behalf of the Region Government and Mr. Shafagat Takhautdinov signed it on behalf of OAO Tatneft, reported the press-centre of Tatneft.

The Agreement between Samara Region and OAO Tatneft was signed for the period of five (5) years.

The document stipulates obligations of the Parties with regard to promotion of projects facilitating improvement of ecological situation within Samara Region, fulfillment of agreed policy in the area of social guarantees and employees' engagement as well as participation in implementation of social programs of Samara Region.

Among joint investment projects works on associated gas processing were scheduled. Application of associated gas will be increased by stages and by 2011 it will achieve 95% of all associated gas produced by OAO Tatneft in the territory of the region.

The Company will also provide for growth of share of investment products in its oil production units located in the territory of the Region and it will be not less 20% in 2008, not less than 30% in 2009, not less than 40% in 2010 and not less than 50% from 2011.

In the course of meeting between the Governor and the representatives of the Government of the region Mr. Shafagat Takhautdinov, General Director of OAO Tatneft declared that the Company will produce about 300 thousand tons of oil in the territory of Samara Region by the end of the current year, but in future production rates will be increased and that will provide for steady growth of tax proceeds to Budget from the Company.

Tatneft will remit funds to municipal entities of the Region where Tatneft fulfills any production activity amounting to 30 roubles from each ton of oil produced. Oil production growth is a strategic task for whole petroleum industry of our country and the Agreement aims to provide for the most effective cooperation between Tatneft and the Government of Samara Region with regard to development of its production within the Region.

Mr. Vladimir Artyakov, the Governor of Samara Region declared that Tatneft among other companies working in the region is more responding to the Region's needs and promised to render the Company all support required.

At the end of the meeting both Parties pointed out the great accumulated potential of mutually beneficial cooperation and expressed their confidence that the Agreement will add to strengthening business connections between OAO Tatneft and the Government of Samara Region.