OREANDA-NEWS. March 29, 2010. A regular meeting of the Board of Directors of OAO TATNEFT was held in Kazan on March 29.

The meeting summed up the budget execution of OAO TATNEFT for January and February and approved the budget for April and the second quarter of 2010.

The meeting discussed the results of financial and economic activities of OAO TATNEFT for 2009 and realization of anti-crisis measures.

25 million 850.4 thousand tons of crude oil were produced from the fields of the Company in the past year, exceeding the level of 2008 by 84.3 thousand tons. The annual production volume of associated gas amounted to 756.5 million cubic meters. 292 tons of NG were produced and delivered.

280 production wells were put into operation with the volume of crude oil production from these wells amounting to 422.6 thousand tons. The daily average production rate of wells commissioned from drilling increased by 8% to 9.5 tons versus 2008.

The mean-time-between-failures for the whole well stock increased by 11.4% to 1011 days.

Three pairs of horizontal wells at the Ashalchinskoye field produced 18.4 thousand tons of extra-viscous oil in the course of the pilot project in 2009 with the total volume extra-viscous oil produced since the beginning of the field development amounting to over 38 thousand tons with the average daily production of about 30 tons per 1 well.

23 new wells located outside the Republic of Tatarstan were drilled during the reporting period in the territories in Russia.

The oil field was discovered in Syria, where 4 exploration wells were drilled and the oil flow was received in the amount of 150 cubic meters. Drilling of an appraisal well was completed.

2 exploration wells were drilled in Libya. The first well tested the influx of oil in the amount of 103 cubic meters per day, while the initial production of the second one amounted to 130 cubic meters per day.

Gross revenues from the sale of shipped products amounted to 338.4 billion rubles. The net revenues amount (without VAT and export tax) increased by 3.6% compared with 2008 and amounted to 226.5 billion rubles. The economic activities resulted in obtaining 67.9 billion rubles profit before tax, which is 18 billion rubles more than last year. The total amount of assessed taxes and payments to all levels of the budget amounted to 175.7 billion rubles. The amount of 21.7 billion rubles was credited to the consolidated budget of the Republic of Tatarstan accounting for 12% increase versus 2008

The total investments amount for the TATNEFT Group of companies, taking into consideration construction the TANECO the complex of refinery and petrochemical plants, totaled 104.3 billion rubles accounting for 32.3 billion rubles increase versus the last year level.

In the conditions of the country's economy recovering after the crisis OAO TATNEFT continues the work aimed at increasing performance efficiency and optimization of operating costs

TATNEFT continues to work on improving production efficiency and optimizing operating costs in the conditions of the continuing unstable economic situation in the country in 2010.

The meeting also heard information on the implementation of new technologies for development and exploitation of the crude oil fields in OAO TATNEFT.

The challenges of stabilizing and increasing crude oil production volumes determine the major strategy of OAO TATNEFT, i.e. introduction of advanced technologies for the entire cycle of oil production, including the field development system, drilling, production of the field, workover operations, as well as oil recovery enhancement methods.

As an example, methods of non-standard, cyclic waterflooding were employed for 87% of injection wells accounting for annual production of more than 2 million tons of oil.

Service entities of the Company performed 1010 hydraulic fracturing jobs during the period of 1998-2009 with 113 hydrofrac operations performed in 2009. The increase of flow rate of producing wells amounted to 3.5 tons of oil per day.

As 01.01.20010, TATNEFT operated 428 horizontal wells and 76 downhole splitters and of this number 43 horizontal wells and 9 downhole splitters were put into operation in 2009 with initial daily production rates of 12.6 and 16.2 tons of oil, respectively.

Work continues on the restoration of the wellbores through side tracking and horizontal side tracking braches with the mentioned jobs performed at 58 wells in 2009.

Technologies of slim-hole drilling and dual completion for concurrent water injection and production of two or more development targets were implemented quite successfully.

About 95% of new wells in TATNEFT are drilled with application of new efficient drilling technologies providing for preservation of reservoir properties.

11.6 million tons or 45% of the total production in 2009 were accounted for by the application of the enhanced oil recovery methods.

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