OREANDA-NEWS. July 12, 2012. At the scheduled meeting, the Board of Directors of JSOC Bashneft considered the implementation of the R. Trebs and A. Titov oilfield development programme in the Nenets Autonomous District and the prospects for the programme implementation for 2012.

As was pointed out at the meeting, the 2012 work programme for the R. Trebs and A. Titov oilfields is implemented according to the schedule, which will enable to start oil production under the project in 2013 as planned. It is expected that this year the partners in the project, JSOC Bashneft and OJSC Lukoil, will invest 8 billion roubles in oilfield development.

The Board of Directors approved the acquisition of 50% of the authorized capital of LLC Financial Alliance (a professional rolling stock operator) by JSOC Bashneft. The Board also approved a number of agreements on selling the fleet of railcars owned by Bashneft and its subsidiaries to Financial Alliance.

These transactions form part of Bashneft’s divestment of non-core assets that is aimed at enhancing performance and promoting competition in the market of services provided to the Group in the sphere of railroad transportation of oil and petroleum products.

The Board of Directors approved the decision to issue series 06, 07, 08 and 09 non-convertible bonds of JSOC Bashneft with the total value of 30 billion roubles in order to expand its funding base for immediate financing of major transactions, and to further optimize the Group’s debt portfolio.

The Board of Directors also made the decision to transform the Tuimazinskoye and Shkapovskoye gas processing plants, which are owned by LLC Bashneft-Dobycha, into separate legal entities, LLC Tuimzainskoye GPP and LLC Shkapovskoye GPP, within the Refining and Marketing unit. They will be given the status of an independent project. The project is aimed at ensuring the optimal load of gas processing business, assessing its investment attractiveness and the directions of further development.

At the meeting, the Board of Directors also considered other issues related to the Group’s current operations, including the means for enhancing the transparency and efficiency of Bashneft’s procurement. The Board of Directors also approved a number of transactions, including related-party transactions.