OREANDA-NEWS. A conference of the employees of PJSC TATNEFT, which summed up the results of the Company's activities and fulfillment of the Collective Agreement for 2016 and outlined the tasks for the current year, was held in the city of Almetyevsk (Republic of Tatarstan).

The annual event was attended by Nail Maganov, General Director of PJSC TATNEFT, Rinat Sabirov, Assistant to President of Tatarstan, Gumar Yarullin, Chairman of the TATNEFT’s Trade Union Committee, heads of the Company's structural divisions and subsidiaries and oil service companies of the Republic.

A report on the results of the TATNEFT activities in 2016 was delivered to the delegates of the conference by Nail Ibragimov, First Deputy General Director for Production - Chief Engineer of PJSC TATNEFT. He pointed out in his report that 2016 became a qualitatively new stage in the development of the Company. In the reporting year the TATNEFT Group adopted a strategy of development to 2025 in the context of the business areas. The Company shifted from maintaining stable crude oil production to its increasing and improving the effectiveness of other business segments. A strategic objective is to double the Company’s market capitalization growth by 2025 in the U.S. Dollar terms.

Nail Ibragimov voiced in his speech the Company’s key performance indicators. There was the volume of 28 million 686 thousand 30 tonnes of crude oil produced by TATNEFT Group of Companies, which is 5.3 percent higher than in 2015. Of this amount the production of crude oil outside the Republic of Tatarstan in the Russian Federation regions accounted for more than 353 thousand tonnes, which was 9.9 percent higher than the previous year level. The crude oil production volume in the whole Republic reached 35.9 million tonnes in the reporting year.

The project for the development of the high viscosity oil deposits yielded over 842 thousand tonnes of HVO in 2016. This was 2.2 times higher than the previous year amount. The ultimate production volume of high viscosity oil since the beginning of the project implementation amounted to 1 million 782 thousand tonnes.

The penetration amounted to 904 thousand meters of rock. The conventional drilling methods allowed the Company drilling and delivering 501 new wells, which was 189 wells more than in 2015. There were 467 producing wells put into operation. There were 87 side tracking operations and lateral horizontal wellbores made in the active well stock. Along with the traditional approaches the methods on application of coiled tubing units for drilling directional wells, lateral and lateral horizontal wellbores are being worked out.

The TANECO Complex processed more than 8.6 million tonnes of oil in the reporting period producing over 1.5 million tonnes of Euro-5 diesel fuel. The refinery activity was characterized by a high degree of capacity utilization (115 percent of the design capacity).

A significant event in 2016 was the launch of a delayed coking unit, which allowed increasing the depth of processing by the end of the year to 99.3 per cent and completely ceasing production of fuel oil. When running at the full capacity the delayed coking unit will produce 700 thousand tonnes of petroleum coke per year.

All international and Russian environmental standards and regulations are complied with in the process of the crude oil refinery construction. In particular, hydrogen sulphide extracted in the course of crude oil processing is directed to the sulfur regeneration unit with the sulfur recovery reaching 99.6 percent.

The work continues in the territory of the Complex on the installations of hydrotreatment, naphtha splitter, light naphtha isomerization and on the related offsite facilities. The main equipment (atmospheric, preflash and vacuum columns) erection was carried out at the CDU-AVT-6 installation. Putting the facility into operation will allow increasing the volume of oil processing at TANECO up to 14 million tonnes per year.

Putting into operation the installations of naphtha hydrotreating, heavy coker gas oil, diesel oil and kerosene in 2017 will allow processing straight-run distillates and distillates recycling into marketable Euro-5 diesel fuel and aviation kerosene. Commissioning of the catalytic reforming and isomerization installations will provide for production of motor gasolines Regular-92 and Premium 95 of the Euro-5 environmental class.

As Nail Ibragimov pointed out in his speech, the Company was implementing the fourth comprehensive environmental program designed for 2016-2020. The Company also adopted the Environment Strategy for the period up to 2020. The amount of more than RUB 6.5 billion was invested into the environmental activities.

“The production program of the Company was fulfilled with the crude oil production growth amounting to 5.3 percent, the financial results are expected to be above the planned level, all the social obligations were fulfilled,” said Chief Engineer summing up the year results. In 2017, TATNEFT will perform the tasks assigned by the adopted strategy. The Company will continue implementation of the large-scale project for development of high viscosity oil reserves. The priorities at the TANECO Complex will include increasing the output of diesel fuel and aviation kerosene and starting the production of its own motor gasoline. The Company will continue implementing the initiatives aimed at studying the prospects for effective development of reserves, improvement of production processes in all the business areas, etc.

Gumar Yarullin, Chairman of the PJSC TATNEFT’s Trade Union Committee, presented to the audience the results of the PJSC TATNEFT’s Collective Agreement fulfillment in 2016 and the draft of the Collective Agreement for 2017. He pointed out that during the reporting year the efforts of the trade union activists were focused on the compliance with the current legislation and avoidance of conflict situations in the exercise of the Collective Agreement. The Trade Union Committee worked closely with the administration of TATNEFT and its structural divisions. The Trade Union Committee of PJSC TATNEFT and trade union committees of the structural divisions systematically monitored the quality of the workplace safety, organization of working time and rest, timely payment of wages, vacation granting and the quality of the hot meals served at the workplace. In 2016, 1030 employee families of the Company’s enterprises received apartments under the program of social mortgage in 8 apartment buildings constructed in the territory of TATNEFT operations. 30 per cent of the housing built is allocated to young families. 3563 employees of the Company improved their health at 11 sanatoriums of TATNEFT. 11,709 children of TATNEFT workers, OOO "TagraS-Holding" and budgetary organizations spent their vacations at the children's health improvement summer camps of the Company.