OREANDA-NEWS. July 01, 2013. The annual general meeting of JSC TATNEFT shareholders which approved the Board of Directors' report, the Company's annual report for 2012, as well as financial statements for the fiscal year results, etc., was held in Almetyevsk (Republic of Tatarstan).

The year of 2012 became a milestone for the Company's further qualitative development and strengthening the Company's position in all business areas. The production program was fully implemented and high financial and economic results were achieved.

Oil and Gas Production Boards of JSC TATNEFT produced more than 26 million tons of crude oil. Subsidiaries and affiliated companies produced 302,000 tons of crude oil during the year under review. The production of TATNEFT Group as a whole amounted to 26,307,000 tons in 2012.

.According to the independent international consulting firm "Miller and Lents" the proved developed, undeveloped and undrilled reserves of JSC TATNEFT amounted to 869 million tons as of the beginning of 2013.

The Company was actively developing the reserves of extra-viscous crude oil at Ashalchinskoye field. The Company produced 73.3 thousand tons in 2012 and the cumulative production since the beginning of the pilot area development has amounted to more than 180,000 tons of extra-viscous oil.

In 2012, TATNEFT continued implementation of the comprehensive resource conservation program. During the reporting year TATNEFT Group's enterprises saved more than 50 thousand tons of reference fuel. The Company reduced specific energy consumption for production of 1 ton of crude oil.

The Company's progress in the development of energy-efficient production was distinguished at the Republican review contest "Resource Efficiency. Energy saving", where JSC TATNEFT was acknowledged the best among the fuel sector enterprises.

There was a Center for geological support established at TATNEFT to manage the process of drilling wells with horizontal completion, which controls the online wellbore penetration with application of modern high-tech equipment.

Based on the results of the financial and economic activities in 2012 the net profit of the Company amounted to 66.7 billion rubles substantially improving the indicators of financial stability and the debt-to-equity ratio.

2012 was the first full year of operation of TATNEFT in the status of an oil refining company. The production facilities of JSC "TANECO" processed 7 million tons of crude oil with the conversion factor reaching 73.7 percent, which is higher than the national average. The output of light oil products at "TANECO" reached 50 percent and after commissioning all the facilities of the 1st refinery's construction phase the output of the mentioned products will exceed 80 percent.

2012 witnessed continued implementation of the development program of the TATNEFT's filling stations network. The current priority of the program is to increase profitability with performance of high quality control and development of the additional service format.

Developing its energy sector in the reporting year the Company began modernization of Nizhnekamsk CHP envisaging to increase its generating capacity from 380 to 730 megawatts. It will solve to a great extent the problem of electric power deficiency at the largest petrochemical plants in Nizhnekamsk, including "TANECO".

Being a leader in the tire manufacturing industry in Russia, the Company continues development of its petrochemical complex, consisting of a block of enterprises united by a common development strategy. The total tire production volume exceeded 13 million pieces in 2012. The Company continued development of the new advanced segment of SSC truck tires production with 480,000 SSC tires produced in 2012, which was 2.5 times more than in the previous year.

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.

The Company continues to develop the innovative Electronic Corporate University, which provided trainings to more than 7,000 people in the past year. The Company launched another project "Students' employment exchange". The web-based resource has been established to strengthen the relationship between educational institutions and employers and it includes a large base of job vacancies of TATNEFT Group of Companies.

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.

In 2013, the Company plans to produce over 26 million tons of crude oil, including 117,000 tons of extra-viscous oil at Ashalchinskoye field and 330 thousand tons of oil outside the Republic of Tatarstan, and also begin commissioning operations of the "TANECO" combined hydrocracking installation and get the first low-grade steam turbine and proceed with the erection works at the Nizhnekamsk CHP.

With a view of continuing a stable, ongoing development of JSC TATNEFT in 2013 and subsequent years the accumulated high-tech production experience and human potential of JSC TATNEFT will be used to further strengthen and enhance the Company's status as an internationally recognized, financially sustainable and socially responsible Company.

The shareholders approved the resolution to pay dividends. 30 percent of the Joint Stock Company's net profit for a total amount of 20 billion rubles will be allocated for payment of dividends by the results of operation in 2012. The dividends paid amount to 8 rubles 60 kopecks for one preferred and one ordinary share.

Based on the results the meeting elected the following members of the Board of Directors of JSC TATNEFT:

Rustam Nurgalievich Minnikhanov, President of the Republic of Tatarstan; Shafagat Fahrazovich Takhautdinov, General Director of JSC TATNEFT; Rene Steiner, Mariya Leonidovna Voskresenskaya, Sushovan Ghosh - Independent Directors; Radik Raufovich Gaizatullin, Minister of Finance of the Republic of Tatarstan; Azat Kiyamovich Khamaev, Minister of Land and Property Relations of the Republic of Tatarstan; Nail Gabdulbarievich Ibragimov, First Deputy General Director for Operations - Chief Engineer of JSC TATNEFT; Nail Ulfatovich Maganov, First Deputy General Director of JSC TATNEFT - Head of Crude Oil and Petroleum Products Sales Department; Vladimir Pavlovich Lavushchenko, Deputy General Director of JSC TATNEFT for Economics; Rais Salikhovich Khisamov, Deputy General Director - Chief Geologist of JSC TATNEFT; Renat Khaliullovich Muslimov, Consultant to President of the Republic of Tatarstan on the development of oil and gas fields; Valery Yurievich Sorokin, General Director of JSC "Svyazinvestneftekhim"; Rinat Kasimovich Sabirov, Assistant to President of the Republic of Tatarstan; Mirgaziyan Zakievich Taziev, Head of NGDU "Almetyevneft";.

The meeting established the Revision Commission consisting of:

Kseniya Gennadyevna Borzunova - Head of Minzemimuschestvo (Ministry of Land Property) Office of the Republic of Tatarstan; Nazilya Fayzrahmanovna Galiyeva, Head of Corporate Control Office, "TagraS-Holding"; 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 of JSC TATNEFT; Nikolay Kuzmich Lapin, who was heading the Auditing Office of JSC TATNEFT till 2012 - Veteran of Labor at present; 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"; Tatyana Viktorovna Tsyganova - Deputy Chief Accountant of JSC TATNEFT's Accounting and Reporting Department; Saria Kashibulhakovna Yusupova, Deputy Head of Economic Analysis Office of the Ministry of Finance of the Republic of Tatarstan.

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