Tatneft' imeni V D Shashina : JSC TATNEFT's Board of Directors Summed up the First Quarter Results of 2015

A regular meeting of the JSC TATNEFT's Board of Directors chaired by R.N. Minnikhanov, Acting President of the Republic of Tatarstan, was held in Kazan on May 22, 2015.
The meeting considered the results of the JSC TATNEFT's budget implementation for four months of 2015, approved the budget for June of the current year and discussed the results of the Company's financial and economic activities for the first quarter of this year.
The Company produced from the fields of TATNEFT 6 million 495 thousand tons of crude oil in the first three months of this year, which was 0.7% higher than the amount produced over the same period last year. 74 thousand tons of oil were produced at Ashalchinskoye extra-viscous oil field. The average daily production rate of the total area amounted to 908 tons per day as of April 1, 2015, while the total volume produced since the beginning of the field development amounted to 637 thousand tons of extra-viscous oil. The net profit amounted to RUR 20.8 billion. JSC TATNEFT has developed and implemented compensatory measures amounting to RUR 4.5 billion in order to ensure financial and economic stability of the Company and to compensate for the increased cost of foreign exchange liabilities of JSC TATNEFT. The forecast amount of savings for the TATNEFT Group of Companies from the implementation of the import substitution program developed for 2015 will amount to RUR 1.3 billion, which will be spent on continuation of the investment projects.
The participants of the meeting discussed the prospects of working with non-conventional hydrocarbons in the frame of the scientific polygons "Domanik" and "Bitumen", as well as the crude oil production plans for 2016-2017. Currently, the Company is developing 86 fields. The proved oil reserves by the assessment of the "Miller and Lents" auditing company amount to 851.527 million tons as of 2014. The Board of Directors approved the plan for the next two years with tentative growth of production to 27.326 million tons in 2016 and 28.06 million tons in 2017 at the expense of producing extra-viscous oil and the oil projects realization outside the Republic.
The meeting was informed about the results of auditing of the Company's financial and economic activities in 2014 carried out by the Company's Audit Committee and JSC "Energy Consulting / Audit" Audit Company, the summary report on the results of the last year's operations, annual report, annual financial statements and holding the General Annual Meeting of Shareholders of JSC TATNEFT.