OREANDA-NEWS. On November 28, 2008 The regular meeting of the Board of Directors of OAO Tatneft chaired by R.N. Minnikhanov, Prime Minister of the Republic of Tatarstan, was held in Almetyevsk, reported the press-centre of Tatneft.

The Board reviewed execution of the budget of OAO Tatneft for ten months and approved a budget for December of the current year.

The Board discussed the results of financial and economic activities of OAO Tatneft for the first nine months of 2008. During this period the Company produced more than 19.45 million tons of crude oil, which is 0.5% more versus the period of nine months in 2007. Crude oil production in the licensed areas outside the Republic of Tatarstan increased by more than 1.6 times.

Net revenues (excluding VAT and export duties) of products shipped by OAO Tatneft amounted to about 196 billion rubles, which accounts for 38% increase versus an appropriate period of the last year. As a result of financial and economic activities the Company received 53.4 billion rubles of pre-tax profit.

The Company spent 12.8 billion rubles as capital investments which accounts for a 28% increase versus the same period of the last year. According to the data of the Interregional Inspectorate of the Federal Tax Service of the Russian Federation regarding the status of the Russia's largest taxpayers OAO Tatneft has no indebtedness to the budgets of all levels as of October 1,.2008.

The Board reviewed the progress in development of high viscosity oil fields in the Republic of Tatarstan. As of today two deposits Ashalchinskoye and Mordovo-Karmalskoye fields are under commercial development.

The volume of oil produced at Ashalchinskoyтехуглеродe field for the period of ten months of the year amounts to13.4 thousand tons with the oil flow rate of the first pair of wells amounted to 16.7 tons per day in October, while the oil flow rate of the second pair amounted to 16.1 tons per day. Steam injection is performed into the third pair of wells.

A program of drilling horizontal wells with application of slant drilling rig has been prepared with the launch the work planned for the Ist quarter of 2009. The construction works are on the way in one area of Mordovo-Karmalskoye for implementation of the pilot/commercial development operations with hot water injection under the process flow chart approved by the Central Commission for the development.

Positively assessing the results achieved the Board of Directors authorized the Executive Management Board of the Company to proceed with the work in accordance with the plan.

The Board listened to and discussed information on the development of the petrochemical complex of OAO Tatneft. According to the complex development strategy a number of targets set earlier were reached.

A production line of modern passenger car tires bases on application of the Pirelli's proprietary 'R' technology was commissioned at Nizhnekamskshina Factory in 2004, the year 2007 witnessed putting into operation a preparatory production line of high quality rubber compounds, while a project to start mass popular tires production factory is now nearing completion. A technical re-equipment of Yarpolimermash-Tatneft, aimed, inter alia, specifically at production of molds for promising models of tires.

A technical upgrade of Nizhnekamsktekhuglerod (Carbon Black) production is also on the way at present to ensure the required volumes and assortment of raw materials for expanding tire production and increasing the share of its exports. The purpose of developing the petrochemical complex is to ensure its high competitiveness and improve the effectiveness of the Company's activity as a whole.

The Board of Directors meeting has also addressed several other issues of OAO Tatneft activity.