OREANDA-NEWS. September 03, 2009. A meeting of the Board of Directors of OAO TATNEFT chaired by RN Minnikhanov, Prime Minister of the Republic of Tatarstan, was held in Almetyevsk (Republic of Tatarstan), reported the press-centre of TATNEFT.

The Board of Directors reviewed the budget performance of OAO TATNEFT for seven months and approved the budget for September of the current year.

The Board discussed the results of the financial and economic activities of OAO TATNEFT in the first half of 2009. The amount about 12.8 million tons of crude oil from the oil fields of OAO TATNEFT was produced during the reporting period. More than 45% of the total volume of crude oil was produced through application of up-to-date methods of enhanced oil recovery. Associated gas production amounted to 375 million cubic meters. The production and delivery of NGL amounted go 151 thousand tons, which is 1.4% more than during the same period last year.
172 production wells were put into operation.

Production of the three pairs of horizontal wells at Ashalchinskoye field amounted to about 8.3 thousand tons of viscous crude during the first half of the year with the aggregate production from three wells amounting to more than 47 tons. The total production since the beginning of the pilot area development has exceeded 30 thousand tons of oil.

6 wells were drilled in the licensed areas outside the Republic of Tatarstan and more than 130 thousand tons of crude oil was produced.

Financial and economic activities resulted in receiving more than 43 billion rubles of profit (before tax). In accordance with the investment program of OAO TATNEFT 7.3 billion rubles capital investments were spent, including 4.2 billion rubles for production and exploratory drilling.

The financial stability indicators of the Company are consistent with normative values. OAO TATNEFT has no indebtedness to the budgets of all levels as of July 1, 2009.

The Board of Directors was briefed on the results of the organization and activities to further improve the centralized delivery (tsentrovyvoz) of inventory for enterprises of TATNEFT.

As a result of the reorganization of the centralized delivery system during recent years the logistics of taking out commodities and materials from warehouses of Tatneftesnab have been optimized, as well as greater control over the use of transport has been implemented, which ultimately has resulted in reduction of costs for delivery of commodities and materials. The share of the centralized delivery in total exports of commodities and materials (in rubles) increased from 69.4% in 2004 to 87.6% in the first half of 2009. Transport costs per ton of goods carried over the same period declined by more than 2.6 times.

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