OREANDA-NEWS. On March 26, 2009 A regular meeting of the Board of Directors of OAO TATNEFT, chaired by Rustam Minnikhanov, Prime Minister of the Republic of Tatarstan, was held in Kazan, reported the press-centre of TATNEFT.

The Board reviewed the execution of OAO TATNEFT budget for January and February and approved the budget for April and the second quarter of 2009.

The Board summarized the financial and economic activity results of OAO TATNEFT for 2008. Crude oil production volume from the fields of the Company amounted to 25 million 766 thousand tons, i.e. 0.1% higher than the level of the past year with above-the-plan production amounting to 366 thousand tons.

Application of the oil recovery enhancement methods accounted for production in the amount of 11.7 million tons, representing 45.2% of the total production volume. The volume of associated gas production amounted to 762 million cubic meters, which is 3.2% higher than in the past year. The amount of 288 thousand tons of the natural gas liquids was produced and delivered. 328 producing wells were commissioned during the period under review and they produced 382 thousand tons of crude oil.

In the course of pilot development operations at the Ashalchinskoye field three pairs of horizontal wells produced 12.7 thousand tons of extra-viscous crude oil in 2008. The total production since the beginning of the deposit development amounted to 19.7 thousand tons.

19 wells were drilled during the period under review in the territories located outside the Republic of Tatarstan. The volume of production from the mentioned wells amounted to 294 thousand tons of crude oil, which is 50% above the previous year level.

Gross revenues from the sale of shipped products amounted to 371 billion rubles, while net revenues (without VAT and export duties) amounted to 219 billion rubles, which accounted for the increase of 11.4% versus 2007. As a result of the financial and economic activities the Company received 50 billion rubles profit before tax.

The total amount of assessed taxes and payments to all the levels of the budget amounted to 243.9 billion rubles, which is 39% higher compared with the corresponding period of the last year. The consolidated budget of the Republic of Tatarstan was credited with the amount of 19.4 billion rubles.

22.2 billion rubles of capital were invested during the period under review in accordance with the investment program, which was 39% higher than the amount of the last year. The investments into production and exploratory drilling amounted to 7 billion rubles.

The Board meeting also heard information about the social policy of OAO TATNEFT. It was noted that the Company's policy in this area was systemic in nature and aimed at creating efficient and secure jobs, social protection of workers and their families, continuous professional development of the staff, maintaining a favorable social environment in the regions of the Compay's activity.

The Board of Directors also reviewed a number of other issues of OAO TATNEFT activity.