OREANDA-NEWS. July 02, 2012. The annual general meeting of TATNEFT shareholders which approved the Board of Directors' report, the Company's annual report for 2011, as well as the financial statements for the fiscal year results, etc., took place in Almetyevsk (Republic of Tatarstan), reported the press-centre of TATNEFT. 

The year of 2011 became a milestone for the Company's further effective development, which was contributed to by successful accomplishment of tasks to stabilize the volumes of profitable crude oil and gas production, the resource base expansion and diversification of the business through development of crude oil refining and petrochemicals production works. Positive results were achieved for all the indicators of the financial and economic activity.

The Joint Stock Company earned 55 billion rubles of net profit in 2011 according to the results of its financial and business operations.

According to the independent international consulting firm "Miller and Lents" estimates the proved reserves of TATNEFT exceeded 869 million tons of crude oil as of the beginning of 2012.

Oil and Gas Production Boards produced 25 million 928 thousand tons of crude oil and reached a maximum level of this index over the past 20 years. In aggregate, the volume of production of TATNEFT Group enterprises amounted to 26 million194 thousand tons of crude oil in 2011.

TATNEFT started implementation of a new resource saving program in 2011 with the limits wider than the previous one covering not only energy, but also natural and material resources. More than 40 thousand tons of standard fuel were saved during the period under review.

Through the application of innovative technologies, introduction of modern equipment and enhancement of the works quality the mean time between failures of the Company's wells amounted to 1142 days, which provided for significant cost and resources savings. This indicator is one of the highest among large enterprises of the oil industry in Russia.

TATNEFT is actively introducing new information technology based technical and technological solutions. Today, virtually all the stages of production are equipped with modern information systems united in a single information space from the level of a crew and a production unit to the corporate systems of the top management level. An "Intelligent field" project has been implemented at the third block of Berezovskaya area. An integrated energy-efficient crude oil production, collection and treatment system has been organized at Archangelskoye oil field. Some twenty energy-efficient technologies allowing to reduce energy costs for oil production by 20 percent have been introduced here.

The financial potential accumulated by the Company contributes to the implementation of major investment projects. The priority areas are still development of the oil and gas production sector, as well as the construction of the refinery in Nizhnekamsk. The TANEKO refinery was assigned the status of "commissioned" in 2011. All the necessary permits were received for the facilities of the starting complex Phase I. The refinery commercial operation and shipment of products yielded started. As of now the refinery has processed over 5 million tons of crude oil.

Implementation of the retail sales of TATNEFT petroleum products development program was continued. In 2011, TATNEFT's filling stations were put into operation in Yaroslavl and Penza regions of the country, which were new regions for the Company.

The petrochemical complex, consisting of a block of enterprises united by a common development strategy and consistency of plans is developing. There were more than 11 million tires and 114,000 tons of carbon black produced in 2011. The total volume of petrochemical commodities amounted to 36 billion rubles. The range of the products output at the promising solid steel cord tire factory was expanded during the reporting year. The plans envisage that the factory production volume will reach the design capacity level of 1.2 million tires per year by 2013.

The long-term environmental program of the Company is being successfully implemented. TATNEFT was once again recognized as an absolute "ECOleader" in the Republic of Tatarstan and became a winner of the "Energy conservation and energy efficiency improvement in the RT" contest.

The Joint Stock Company does a lot to provide for social well-being and a decent standard of living, as well as create opportunities for professional growth of its employees. This allows ensuring responsibility and commitment of the staff to achieving high-performance results. One the Company's priorities is education of the employees. In 2011 the e-Corporate University project was launched on the Internet, which allows the young professionals to improve their knowledge on the job without discontinuing their work in an accessible and convenient way. As of today over 5000 persons have received training at the Electronic Corporate University.

In order to improve the transparency of the Company and in accordance with the Corporate Management Code there are the Board of Directors' Committees for Information Disclosure, Auditing, Corporate Management and HR and Remuneration functioning in the Company. During the year under review the Board of Directors discussed at its meetings the issues of formation and execution of the budget, as well as the investment efficiency. The Board of Directors also considered plans for crude oil production and implementation of geological and technical measures in the Republic of Tatarstan and outside, as well as a number of issues related with HR and social aspects. Particular attention was paid to the issues of the corporate management and the Company's capitalization improvement.

With a view of continuing stable, ongoing development of TATNEFT in 2012 and subsequent years the work will be carried out to further improve the efficiency of capital investments in all the areas of its activity and, above all, in TANECO. The plans provide for maximum efficient utilization of the allocated capital investments to begin commissioning works in the third quarter of 2013 for putting the hydrocracking unit into operation.

Summarizing the gained experience of drilling, oil production and treatment in the area of bituminous oil production it is necessary to develop and approve a program of works on establishing the facilities of water, gas and heat supply, as well as oil production, treatment and transportation until 2022.

The Company has a real opportunity to increase wells' production rates and the oil recovery factor and thereby improve the Company's investments economic efficiency through introduction of advanced technologies, including drilling of horizontal wells and downhole splitters, hydraulic fracturing, etc.

In the course of the meeting the shareholders approved a resolution to pay dividends for 2011year-end. 30 percent of the net profit under RAS for a total amount of 16.5 billion rubles will be allocated for payment of dividends. The amount of dividends paid will be 708% of the shares' nominal value.

The meeting elected the following members of the Board of Directors of OAO TATNEFT:
Rustam Nurgalievich Minnikhanov, President of the Republic of Tatarstan; Shafagat Fahrazovich Takhautdinov, General Director of TATNEFT; David William Waygood, Mariya Leonidovna Voskresenskaya, Sushovan Ghosh - Independent Directors; Radik Raufovich Gaizatullin, Minister of Finance of the Republic of Tatarstan; Nail Gabdulbarievich Ibragimov, First Deputy General Director for Operations - Chief Engineer of TATNEFT; Vladimir Pavlovich Lavushchenko, Deputy General Director of TATNEFT on Economics; Nail Ulfatovich Maganov, First Deputy General Director of TATNEFT - Head of Crude Oil and Oil Products Sales Department; Renat Khaliullovich Muslimov, Advisor to President of the RT on the development of oil and gas fields; Rinat Kasimovich Sabirov, Assistant to President of the RT on issues of the oil/gas and petrochemical complex; Valery Yurievich Sorokin, General Director of "Sviazinvestneftekhim"; Mirgaziyan Zakievich Taziev, Head of NGDU "Almetyevneft"; Azat Kiyamovich Khamaev, Minister of Land and Property Relations of the Republic of Tatarstan; Rais Salikhovich Khisamov, Deputy General Director - Chief Geologist of TATNEFT.

The meeting elected the Revision Commission consisting of:
Nazilya Fayzrahmanovna Galiyeva, Economist of the Auditing Office of TATNEFT; Ferdinand Rinatovich Galiullin, Chief Accountant of "Tatintek", Ranilya Ramilevna Gizatova, Deputy Chief of Planning and Economic Office of NGDU "Elkhovneft"; Venera Gibadullovna Kuzmina, Economist of NIS TATNEFT; Nikolay Kuzmich Lapin, Chief of Auditing Office of TATNEFT, Liliya Rafaelovna Rakhimzyanova, Head of Oil and Gas Production Office of Hydrocarbon Raw Materials Department of the Ministry of Energy of the Republic of Tatarstan; Alfiya Azgarovna Sinegaeva, Head of Labour and Personnel Management Office of "Tatneft - RemServis"; Tatiana Viktorovna Tsyganova - Deputy Chief Accountant of TATNEFT's Accounting and Reporting Department.

Energy Consulting/Audit Company was approved as the Auditor of TATNEFT Company for one year period to perform a mandatory annual audit of TATNEFT's financial statements for 2011 prepared in accordance with the Russian Accounting Rules.

The Annual General Meeting of the Shareholders also approved an amendment introduced into the Articles of TATNEFT.