Tatneft' : Figures Demonstrating Results of Operations during Twelve Months of 2016 Crude Oil Production

The enterprises of TATNEFT Croup of Companies produced 28,686, 030 tonnes of crude oil in twelve months of 2016 (105.3 per cent, +1,437,512 tonnes) with PJSC TATNEFT accounting for 28,332,674 tonnes (105.2 процента, +1,405,703 tonnes).

The Company's subsidiaries produced 353,356 tonnes (109.9 percent, +31,809 tonnes) in the licensed areas outside the Republic of Tatarstan.

The production volume of high-viscosity oil amounted to 842,670 tonnes (+311,242 tonnes to the plan; 158.6 percent.

TATNEFT's subsidiaries overfulfilled the plan in the licensed areas outside the Republic of Tatarstan by 43,238 tonnes (114 percent).

New Drilling

667 new wells were built and delivered to customers during twelve months in 2016, which was 2 percent above the figure for the same period of 2015 (654 wells in 2015) with the production well drilling amounting to 501 wells with 177 wells of this amount accounting for infill drilling; exploratory drilling accounting for 7 wells and drilling to bitumen - 159 wells.

Active Well Stock Drilling

There were 87 sidetracks and horizontal wellbores delivered during twelve months in 2016 accounting for 14 per cent increase versus the similar period of 2015 (76 wells in 2015).

Drilling of wells for OOO 'Tatneft-Samara', in the Nenets Autonomous Okrug and the Republic of Kalmykia

As of today the plan of drilling for OOO 'Tatneft-Samara' was fulfilled 100% with delivery of 6 of the planned 6 wells.

2 wells out of 5 wells planned for drilling in the Nenets Autonomous Okrug were completed and tested, drilling of one well is underway and 2 wells are under testing.

Drilling of well No.1 at Bariernaya area is underway in the Republic of Kalmykia.

Repair of Wells

During twelve months of 2016 the remedial well servicing and workover crews performed servicing in 10,198 wells at the sites of PJSC TATNEFT (937 wells in December), while workover operations were performed in 2,287 wells (192 wells in December); there were 59 wells repaired for OOO 'Tatneft-Samara' and 12 wells for OOO 'Tatneft-Severny' outside the Republic of Tatarstan.

Formation hydrocracking operations were carried out in 790 wells (64 wells in December).

Crude oil recovery enhancement operations were performed in 2,742 wells (162 wells in December), including chemical methods applied in 1,303 wells (58 wells in December).

Production Performance of JSC TANECO

The TANECO Complex of Refining and Petrochemical Plants processed 798.2 thousand tonnes of raw materials in December 2016 and 9,528.52 thousand tonnes since the beginning of the year, including 740.7 thousand tonnes of petroleum feedstock processed in December and 8,710.07 thousand tonnes of petroleum feedstock processed since the beginning of the year.

The Complex yielded 756.2 thousand tonnes of petroleum products in December 2016 and 9,090.58 thousand tonnes since the beginning of the year.