Tatneft' : Figures Demonstrating Results of Operations in September and during Nine Months of 2016

Crude Oil Production

The total crude oil production of the TATNEFT Croup of enterprises for nine months amounted to 21,109,930 tonnes (104.9%, +990,836 tonnes versus the similar period of the previous year).

The production volume of PJSC TATNEFT amounted to 20,850,923 tonnes of crude oil in September (104.9%, +966,151 tonnes); the Company's subsidiaries produced 259,007 tonnes in September 2016 (110.5 percent versus the similar period of the previous year, +24,685 tonnes). The subsidiaries of TATNEFT overfulfilled the plan of crude oil production in the licensed areas outside the Republic of Tatarstan by 25,448 tons (110.9 percent).

The production volume of high-viscosity oil amounted to 541,762 tonnes (+178,395 tonnes versus the planned figure; 149.1 percent).

New Drilling

470 new wells were built and delivered to customers during nine months in 2016, which was similar to the figure for the same period of 2015 (471 wells in 2015) with the production well drilling amounting to 330 wells with 48 wells of this number being in-fill wells; exploratory wells - 4 wells and drilling to bitumen - 136 wells.

Active Well Stock Drilling

There were 72 sidetracks and horizontal wellbores delivered during nine months in 2016 accounting for 26 per cent increase versus the similar period of 2015 (57 wells in 2015).

The average number of crews engaged in conventional drilling during nine months of 2016 amounted to 58 drilling crews. 5 crews were engaged in drilling sidetracks and horizontal wellbores. 8 drilling crews performed drilling to the bituminous deposits.

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

Drilling and completion of 5 of the planned 6 wells was performed at OOO 'Tatneft-Samara'.

Out of 5 planned wells in the Nenets Autonomous Okrug construction of 2 was completed and they were delivered, 2 wells are still in the process of drilling and one well is under testing.

Drilling of well No.1 at Bariernaya area is underway in the Republic of Kalmykia. As of October 01, 16 the measured depth is 5,529 meters (design depth is 5,800 meters with 571 meters remaining to be drilled).

Repair of Wells

During nine months of 2016 remedial well servicing was performed in 7,312 wells by the crews of remedial servicing, workover and enhanced oil recovery at the sites of PJSC TATNEFT (889 wells in September), while workover operations were performed in 1,739 wells (213 wells in September).

Outside the Republic of Tatarstan remedial servicing operations were performed in 49 wells for OOO 'Tatneft-Samara' and 11 wells for OOO 'Tatneft-Severny'.

Formation hydrocracking operations were carried out in 597 wells (82 wells in September.

Crude oil recovery enhancement operations were performed in 2,143 wells (257 wells in September), including chemical methods applied in 1,033 wells (106 wells in September).

Production Performance of JSC TANECO

The TANECO Complex of Refining and Petrochemical Plants processed 777.97 thousand tonnes of raw materials in September 2016 and 7,160.4 thousand tonnes since the beginning of the year, including 710.8 thousand tonnes of petroleum feedstock and 6523.8 thousand tonnes since the beginning of the year.

The Complex yielded 736,6 thousand tonnes of petroleum products in September 2016 and 6854,96 thousand tonnes since the beginning of the year.