OREANDA-NEWS. July 09, 2010. The annual traditional Oil Summit of the management of oil companies of the Republic of Tatarstan with participation of R.N. Minnikhanov, President of the Republic of Tatarstan, was held in Yelabuga Region (Republic of Tatarstan), reported the press-centre of TATNEFT.

The Oil Summit was attended by I.Sh. Khalikov, Prime Minister, M. Sh. Shaimiev, State Counselor of the Republic of Tatarstan, F.Kh. Mukhametshin, Chairman of the State Council of the Republic of Tatarstan, officials of the Ministry of Energy and the Ministry of Natural Resources of the Russian Federation, heads of a number of republican ministries, governmental agencies and municipal formations of the Republic of Tatarstan. At the meeting participants discussed the ongoing issues of Tatarstan oil industry and perspectives of its further development.

Before the summit began the participants had visited the exposition displays of new technologies applied in OAO TATNEFT and OAO RITEK, which presented up-to-date technologies and prospects of developing new fields.

Sh. F. Takhautdinov, General Director of OAO TATNEFT, presented a report at the meeting on the results of the Company's operation in the first half of 2010 and outlined strategic lines of development aimed at further enhancement of the production technological and economic efficiency.

In the first half of 2010, OAO TATNEFT produced 12 million 816 thousand tons of crude oil, which is 23 thousand tons more than in the previous year. Above-the-plan production volume amounted to 220.3 thousand tons of crude oil. Through application of various modern hydrodynamic and tertiary EOR methods the Company produced 5.8 million tons of oil accounting for 45% of the total volume of crude oil produced by the Company. 171 new producing wells were put into operation.

OAO TATNEFT develops 82 fields within its licensed territories. The Company continues development of extra-viscous oil at Ashalchinskoye and Mordovo-Karmalskoye fields.

123 thousand tons of oil were produced in areas outside the Republic of Tatarstan, six new wells were drilled.

The Company completed drilling of appraisal well South Kishma-2 in Syria. Joint Company Al Bou Kamal Petroleum was registered, which performs oil production jointly with the Syrian National Petroleum Company. Oil production was started from two wells.

OAO TATNEFT continues to fulfill is commitments under the Agreements for Exploration and Production Sharing in Lybia. Seismic studies are on the way and exploration wells are being drilled.

The Company's activity is currently focused on the effective solution of all tasks, maintenance of competitiveness, ensuring implementation of key strategic projects and implementation of social obligations.

OAO TATNEFT is facing a strategic challenge of stabilizing crude oil production through introduction of new technologies. In view of this task the leader of TATNEFT proposed to establish an innovational range in Tatarstan for testing and subsequent replication of new oil recovery enhancement methods for the whole Russia.

The meeting heard presentations by members of the Government of the Republic of Tatarstan, heads of small oil companies operating in the territory of Tatarstan. Prospects of the raw materials base and oil production in the Republic of Tatarstan were disclosed to the participants of the Summit and they were also informed on the concept of the development strategy of independent oil companies in the Republic of Tatarstan until 2020.

Among the priorities of the oil producing sector companies of Tatarstan were identified energy and resources saving, state tax incentives for the development of smaller fields and hard-to-recover oil reserves, introduction of oil recovery enhancement technologies.

R.N. Minnikhanov, President of the Republic of Tatarstan highly praised the contribution of oilmen to the Republic's economy, noting that the overall coordinated efforts of the republican and municipal authorities, OAO TATNEFT and mobile independent oil companies provide a rational and effective exploitation of the Republic's fields. He stressed the relevance of analyzing the structure of the Tatarstan oil reserves, in which the share of hard-to-recover reserves inevitably increases and the need of state support for development of small deposits and deposits of extra-viscous oil, as well as enhanced oil recovery technologies.