OREANDA-NEWS. March 27, 2013. A regular meeting of the Board of Directors of JSC TATNEFT, chaired by R.N. Minnikhanov, President of the Republic of Tatarstan, was held in Kazan.

The Board of Directors discussed the budget execution of JSC TATNEFT for two months in 2013 and approved the budget for April and the second quarter of the current year.

Information was presented to the Board on the progress and problems of TATNEFT Production Group of Companies with regard to the growth of labor productivity. The main areas of this program implementation were raising the production technical level and improvement of the organizational structure and management processes. These activities allowed achieving the labor productivity growth in the oil and gas producing sector by 32%, in the petrochemicals production by 50% and in the engineering sector by 40% during the period from 2006 to 2012. The Board of Directors approved a program to further enhance the productivity of the enterprises up to 2018, which includes introduction of new equipment and technology, telecommunications monitoring and "lean production" methodology.

The Board of Directors discussed the results of operations and prospects of development of the "Teploenergetika" (heat power engineering) business sector enterprises. In the course of implementing the first two programs to improve the production energy efficiency during the period from 2000 to 2010 the energy consumption was reduced by 35.9%. This result was obtained thanks to dedicated work in all phases of the crude oil production process. This is a result of introducing chain drives at producing wells, positive displacement pumps in the reservoir pressure maintenance system, application of dumping and disposal of produced water technology at the well clusters, etc. Over the past two decades the minimum specific energy consumption rate of 116.6 kWh per ton of crude oil produced was reached at TATNEFT in 2012. The Company is implementing the third resource saving program at present providing for further energy complex efficiency improvement. The Board of Directors approved works on the modernization of Nizhnekamsk CHP.

The Board also considered a number of other issues of JSC TATNEFT activities.