OREANDA-NEWS. The annual general meeting of shareholders was held on June 6 in Nizhnekamsk (Tatarstan) at JSC "TANECO", which is part of JSC TATNEFT, where the Company's annual report and financial statements for the previous year were approved.

2012 was a qualitatively new stage in the development of the "TANECO" project and figured in the Company's history as the first year of full production of the refinery. The customer of the products output volume and product mix as well as raw materials supplier was JSC TATNEFT.

A significant result of the past year was reaching the project capacity of processing by the "TANECO" refinery: 7,000,000 tons of oil. Comprehensive testing of the visbreaking installation and the combined sulfur production installation was started, which allowed increasing the depth of crude oil conversion and recovering valuable distillate products, as well as expanding the range of products at the expense of natural gas liquids, low viscosity marine fuel and granulated sulfur. For the year as a whole the oil processing conversion ratio was higher than the average one at the Russian refineries.

During the reporting period as of the investment phase completion the capital investments of JSC TATNEFT in the starting complex 1A1 amounted to 10 billion rubles, including 384.3 million rubles for design and survey work, 1.5 billion rubles for equipment and materials and 6.3 billion rubles for construction and installation works. From the project realization start the parent company has provided financing for more than 220 billion rubles without VAT and guaranteed JSC "TANECO" a high level of financial stability.

The most important priority in the activities of JSC "TANECO" is providing for safe working conditions, as well as compliance with the requirements of industrial safety and environmental standards. As a result of the activities and the compliance with necessary industrial safety and health measures at the workplace no accidents and fatalities have been recorded.

The Oil Refining and Petrochemical Complex achieved an increase in the volume of recycled water usage in the process during the past year. The "closed-loop" principle was implemented ensuring a return of up to 100 percent of the treated water into the production. Modern engineering design solutions allowed for achieving a minimum emission level of pollutants released into the atmosphere.

The annual general meeting of shareholders approved the results of "TANECO" operation for 2012 and approved the annual report and financial statements of the Company. It was decided to use all the net profit for the production development without paying any dividends.

The work aimed at improving the quality of oil products will be continued this year, which must meet the latest environmental standards, as well as the growing consumer demand. Along with fulfillment of the monthly financial/economic and performance figures as well as the annual plan, optimization of operating costs and ensuring safe commercial operation of all the facilities of 1A1 Starting complex the plans envisage maximum intensification of work aimed at realization of the subsequent Project stages. The main task of the "TANECO" team in 2013 is to start commissioning and comprehensive testing of complex 1B1 (hydrocracking) facilities.

The shareholders decided to expand the Board of Directors of JSC "TANECO" from11 to 12 persons resulting in a new structure, whish includes:

Leonid S. Alekhin, General Director of JSC "TANECO"; Alexander A. Babynin, General Director of OOO "INCO-TEK"; Nikolay M. Glazkov, Deputy General Director of JSC TATNEFT for Capital Construction; Farid Kh. Davletshin, Investment Department Head of JSC TATNEFT; Nail U. Maganov, First Deputy General Director - Head of URNiN, JSC TATNEFT; Vasily A. Mozgovoy, Assistant to General Director of JSC TATNEFT, Corporate Finance; Rudolf D. Rempel, Head of Hydrocarbon Processing Office of the Oil and Oil Products Sales Department of JSC TATNEFT; Rinat K. Sabirov - Assistant to the President of the Republic of Tatarstan; Chingiz Aliyar oglu Khalilov, Deputy Director General (Operation) - Director of the "TANECO" Refinery; Eugene A. Tikhturov, Head of Finance Department of JSC TATNEFT; Fedor L. Schelkov, Deputy General Director of JSC TATNEFT, General Issues; Azat F. Yagafarov, Deputy General Director - Director of JSC TATNEFT Representative Office in Moscow.

The Audit Commission was elected according to the results of the shareholders meeting:

Ferdinand R. Galiullin - Chief Accountant of "Tatintek"; Iraida Yu. Panfilova - Finance Director of "TANECO"; Vasima S. Rakhmatullina - Deputy Chief Accountant, Head of the Cost Accounting and Sales Office of JSC "TANECO".

JSC "Energy Consulting/Audit" was elected as an auditor of the Company to carry out the statutory audit of the annual financial statements of JSC "TANECO" for a period of one year.

At the annual general meeting of shareholders a new version of JSC "TANECO" Articles was approved.