Tatneft' : The PJSC TATNEFT’s Board of Directors Summarized Results of Operations in the First Half of 2016

A regular meeting of the PJSC TATNEFT's Board of Directors chaired by R.N. Minnikhanov, President of the Republic of Tatarstan, was held in Kazan on August 26, 2016.

The meeting reviewed the budget execution of PJSC TATNEFT for seven months of 2016 and approved the budget for September of the current year, discussed the results of the financial and economic activities of the Company for the first half of the year.

13.739 million tonnes of crude oil were produced at the fields of the Company in the reporting period, which exceeded the last year's level of the same period by 4.8%. The associated petroleum gas production amounted to 461 million cubic meters, which is accounted for 5.6% percent increase versus the same period of 2015.

189 new production wells and 282 injection wells were put into operation. The production volume at the Ashalchinskoye high viscosity oil field amounted to 291 thousand tonnes of oil in the first half of the year (75% higher than the amount in the same period of the previous year). As of July 1 of the current year the production of high-viscosity oil totaled 1,230 thousand tonnes since the beginning of the thermal methods application.

The gross proceeds from the sale of the products shipped during the reporting period amounted to RUB 273 billion. The net proceeds (excluding VAT and export duties) amounted to RUB 226 billion. The net profit received as a result of the financial and economic activities amounted to RUB 51 billion. The total investment sum for the TATNEFT Group of Companies for the first half of the year amounted to RUB 48 billion.

The information on the program implementation of geological exploration of pilot projects on Domanik deposits was presented to the meeting. Given that these deposits are unconventional for TATNEFT and are poorly studied objects a strategy was adopted that provides for geological exploration and the increment of the resource base; research and case works; production methods and stimulation technologies, pilot operations on wells; creation of a conceptual and legal framework.

There were a number of other issues of the Company's activities also considered at the Board of Directors' meeting.