Tatneft' imeni V D Shashina : General Meeting of the JSC TATNEFT Shareholders

The annual general meeting of the JSC TATNEFT's shareholders was held on in Almetyevsk (Republic of Tatarstan) on June 26.
Nail U. Maganov, General Director of JSC TATNEFT presented to the audience the report on the results of JSC TATNEFT's activities in 2014. He outlined in his speech the 2014 results and plans for the current year. In 2014, the Joint Stock Company TATNEFT used to solve successfully strategic problems for the further stabilization of crude oil and gas production, strengthening of the resource base, development of the business segments of refining and petrochemicals production, retail sales of petroleum products and the block of heat-power engineering. The planned figures of production were fulfilled and high financial and economic indicators were ensured.
According to the independent international consulting firm "Miller and Lents" the proved developed, undeveloped and undrilled reserves of JSC TATNEFT amounted to 851.5 million tons of oil as of the beginning of 2015.
The total production volume of the TATNEFT Group in 2014 increased to 26.529 million tons.
As Nail Maganov pointed out in his speech, the Company continued active development of Ashalchinskoye extra-viscous oil field. The volume of production reached 237,000 tons in the reporting year, while the cumulative production from the field amounted to 562,000 tons of extra-viscous oil.
Active involvement of EVO reserves into the development is a strategic goal of the Company to ensure a sustainable growth of oil production. As part of the heavy oil reserves development, it is planned to increase production of EVO up to two million or more tons per year.
Besides the development of the EVO reserves, TATNEFT launched a program for development of Domanik deposits and application of technologies and methods to stimulate the reservoirs with low filtration characteristics.
For the purpose of the study and implementation of the exploration innovative methods and development of EVO fields an Agreement was signed between the Ministry of Natural Resources of the Russian Federation and the Republic of Tatarstan on establishment of scientific polygons with the plans providing for development of two polygons at JSC TATNEFT ("Domanik" and "Bitumen"). Any interested investors are welcome take part in these activities.
According to the rating of the world's innovators, published in May this year by Thomson Reuters Company, TATNEFT ranked number one in the list of the best European innovative companies in the field of exploration.
According to General Director of JSC TATNEFT, geological and technical measures and a set of measures applied to improve field development technologies are an important factor in implementing the crude oil production program. A significant effect is produced by application of dual completion technologies for simultaneous operation of two or more layers through one well/which allows increasing the intensity of development and efficiency of exploitation. The areas of development and application of these technologies are being expanded. At the beginning of this year, the dual completion and dual water injection facilities were installed at more than two thousand well sites.
TATNEFT has got one of the highest levels of associated petroleum gas utilization in the industry. Utilization of associated gas is over 95%. It is a valuable feedstock for the petrochemical industry.
The Company's contribution to the development of the energy-efficient production was marked at the governmental level. JSC TATNEFT once again became the winner of the Republican show-contest "Resource Efficiency. Energy Saving ".
In 2014, the achievements of the Company to ensure environmental safety at oil production facilities were highly appreciated by various authorities and industry experts. For the eleventh time TATNEFT was recognized as the overall winner of the Republican contest "ECOleader." The Company was also nominated for the "National Environmental Award 2014" by the V.I. Vernadsky Ecological Fund.
The Company continues implementing the policy measures to maximize economic benefits and improve the profitability of the production assets, provide for production costs control, develop and implement innovative technologies and equipment. 2014 witnessed the launching of the Program for implementation of the lean production system at the enterprises of the TATNEFT Production Group, in terms of which there were defined problem areas of the enterprises' activities and the projects were started to improve the production organization and management.
In 2014, the TANECO Complex of Refining and Petrochemical plants processed 8.5 million tons of crude oil. A combined hydrocracking installation with production of base oils was put into operation. The indicator of oil refining depth reached 74. The Complex started production of new kinds of readily marketable products, including Euro 5 diesel fuel and aviation fuel for turbine and jet aircraft engines.
The construction of the advanced oil processing plant is being continued and the delayed coking unit is extensively set up, which launching will allow increasing to 92% the raw feed conversion at TANECO at this stage. The coke produced at the facility will be used for heat and power generation at the Nizhnekamsk CHP.
In 2016, due to start-up of isomerization and catalytic reforming units TANECO plans to start production of environment-friendly Class 5 motor gasoline bringing its output volume to 1 million tons by 2018.
Currently, works were started to construct the second stage facilities at TANECO in order to increase the refining capacity to 14 million tons per year. Excavation works have been fully completed and pouring of the foundation is being carried out. The deadline for construction and installation work and commissioning of the facility is scheduled for 2017.
Development of the refining capacities allows systematically implementing the motto and the principle "from the wellhead to the gas tank". 667 gas stations were operating under the brand name TATNEFT in Russia and neighboring countries in 2014. More than 2 million tons of oil and gas products were sold through the retail sales network of TATNEFT in the reporting year. A new competitive advantage of the Company's retail business was sale of Class 5 diesel fuel with improved performance produced at the TANECO Complex.
The Company continues improving the quality and developing the production of competitive innovative products at the enterprises of its Petrochemical Complex. The total production volume in 2014 amounted to 11.6 million tires. Half of all the produced tires fall into the category of innovative products. Cooperation with foreign partners is being developed resulting in commissioning of a new facility for recovery of truck solid metal cord tires.
The Company pays special attention is to maintaining the social well-being and a decent standard of living of the workers and creation of the conditions for their professional growth. All the commitments envisaged by the Collective Agreements for 2014 were met.
Among the priorities there are strategic projects for the development of the downstream sector, hard-to-recover oil fields development, as well as increasing of the volume of geological and technical measures in order to stabilize and increase oil production volumes.

Results of the Shareholders' Meeting
The shareholders' meeting approved the annual report for 2014, annual financial statements and the profit distribution for the financial year.
The shareholders also made a decision on the dividends payment. The dividend will be paid at a rate of 1058 per cent of the share nominal value on the preferred and common shares of JSC TATNEFT. July 15, 2015 was fixed as the date for determining the persons entitled to receive the dividends. The deadline for payment of the dividends was determined under the applicable law. 30 percent of the Company's net profit will be allocated for the dividend payment based on the results of 2014.

Board of Directors Was Formed
The following persons were elected to the Board of Directors: Nail Ulfatovich Maganov, General Director of JSC TATNEFT; Guerech Laslo, Independent Director; Yuri Levin, Independent Director; Rene Steiner, Independent Director; Radik Raufovich Gaizatullin, Minister of Finance of the Republic of Tatarstan; Nail Gabdulbarievich Ibragimov, First Deputy General Director for Operations - Chief Engineer of JSC TATNEFT; Renat Khaliullovich Muslimov, Consultant to President of the Republic of Tatarstan on the development of oil and gas fields; Rinat Kasimovich Sabirov, Assistant to President of the Republic of Tatarstan; Valery Yurievich Sorokin, General Director of JSC "Svyazinvestneftekhim"; Mirgaziyan Zakievich Taziev, Head of NGDU "Almetyevneft"; Shafagat Fakhrazovich Takhautdinov, Assistant to President of the Republic of Tatarstan on the oil industry and Advisor to Chairman of the Board of Directors of JSC TATNEFT; Rustam Khamisovich Khalimov, Head of NGDU "Elkhovneft"; Azat Kiyamovich Khamaev, Minister of Land and Property Relations of the Republic of Tatarstan; Rais Salikhovich Khisamov, Deputy General Director - Chief Geologist of JSC TATNEFT.
Rustam Minnikhanov, Acting President of the Republic of Tatarstan, was appointed as the State representative to the JSC TATNEFT's Board of Directors.

Revision Commission composed of:
Kseniya Gennadyevna Borzunova - Head of the Economics, Privatization and Strategic Planning Office of Minzemimuschestvo (Ministry of Land Property) of the Republic of Tatarstan; Ranilya Ramilevna Gizatova, Chief of Investments Office of NGDU "Elkhovneft"; Venera Gibadullovna Kuzmina, Veteran of Labour, former Economist of NIS of JSC TATNEFT; Nikolay Kuzmich Lapin, Shareholder, Veteran of Labor; Oleg Mikhailovich Matveev, Chief Accountant of JSC TATNEFT's Crude Oil and Petroleum Products Sales Department; Liliya Rafaelovna Rahimzyanova, Head of Oil Production and Oil Refining Office of the Ministry of Trade and Industry of the Republic of Tatarstan; Nazilya Rafisovna Farkhutdinova, Deputy Director for Finance and Economics of OOO "Tatneft-RemServis"; Tatyana Viktorovna Tsyganova, Deputy Chief Accountant of JSC TATNEFT's Accounting and Reporting Department. Saria Kashibulhakovna Yusupova, Office Deputy Head of the Ministry of Finance of the Republic of Tatarstan, was appointed to the Revision Commission as Representative of the State.
ZAO Energy Consulting/Audit Company was approved as Auditor of JSC TATNEFT Company for a one year's period to perform a mandatory audit of the JSC TATNEFT's annual financial statements prepared in accordance with the Russian Accounting Rules.
A decision was taken at the annual meeting of the JSC TATNEFT's shareholders of to rename the Company into PJSC TATNEFT (Public Joint Stock Company).
The General Meeting of Shareholders also approved the Articles of the Joint Stock Company, a new version of the Provision on holding the general shareholders'meeting and other internal documents.