Tatneft' : Regular Meeting of TATNEFT’s Board of Directors Was Held

A regular meeting of the TATNEFT Company's Board of Directors chaired by R.N. Minnikhanov, President of the Republic of Tatarstan, was held in Kazan on November 24, 2016.

During the event the information was presented on the financial and economic activities for nine months of 2016. The total volume of crude oil produced by TATNEFT Company amounted to 20 million 851 thousand tonnes, which was 4.9 percent higher than the amount produced in the same period last year. 328 new production wells and 422 injection wells were put into operation. The volume of collected associated petroleum gas amounted to 700 million cubic meters, which was 4.8 percent higher than that in the corresponding period of 2015.

Gross revenues resulting from the sale of products shipped over 9 months of 2016 amounted to RUB 427 billion. Financial statements of PJSC TATNEFT named after. V.D. Shashin for 9 months of 2016 according to RAS was published on October 28, 2016.

The Board of Directors approved the TATNEFT Company's cash flow draft budget for 2017 (on the unconsolidated basis), developed on the basis of the baseline forecast of financial and economic activities for the next year. The planned expenditures for all the budget items are fully covered by the projected cash receipts from sales and other activity without the need for long-term external financing.

The Board of Directors reviewed the plans for crude oil production and geological and technical measures for 2017. The expected volume of crude oil production of TATNEFT Group in 2016 is 28.5 million tonnes (an increase of 4.6 percent compared to 2015), of which 28.2 million tonnes will be the production of TATNEFT Company (including 833 thousand tonnes of high viscosity oil (HVO) and 353 thousand tonnes will be the production amount of the subsidiaries. The main production growth is associated with the expansion of geological and technical activities (interventions): optimization of well operation modes, drilling and side-tracking with drilling of lateral and lateral horizontal wells, performance of hydraulic fracturing and others. The basic plan of geological and technical measures for 2017 provides for the production of crude oil by TATNEFT Group of Companies in the amount of 29,349 thousand tonnes in 2017 including 27,434 thousand tonnes of conventional crude oil and 1,573 thousand tonnes of EVO and 342 thousand tones by subsidiaries.

Having reviewed and discussed the information on geological prospecting (exploration) in the Company the Board of Directors approved the exploration strategy, objectives and innovational activities in the performance of geological exploration works until 2025, aimed at maintaining the growth in crude oil production after achieving the planned level exceeding 30 million tonnes of oil production by 2020. The approved exploration strategy is aimed at ensuring the possibility of the Company's production capacity increasing to more than 36.7 million tonnes per year in 2025.

Forward-looking statements: This press-release and the materials it refers to contain certain statements about future events and expectations that are forward-looking in nature. Any statement in these materials that is not a statement of a historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements expressed or implied by such forward-looking statements to differ. PJSC TATNEFT assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.