Tatneft' : Annual Conference of Employees Was Held at TATNEFT

A conference of the PJSC TATNEFT's employees, which summed up the results of the Company's activities and fulfillment of the Collective Agreement for 2017 and outlined the tasks for 2018, 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 the Republic of Tatarstan, Alexander Korchagin, Chairman of the Neftegazstroyprofsoyuz of Russia, Tatarstan, Tatiana Vodopyanova, Chairperson of the Trade Unions Federation of the Republic of Tatarstan, Gumar Yarullin, Chairman of the TATNEFT's Trade Union Committee, Airat Khayrullin, Head of the Almetyevsk Municipal District, heads of the Company's structural divisions and subsidiaries and oil service companies of the Republic.

A report on the results of the TATNEFT team activities in 2017 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 in the difficult conditions of 2017, associated with the limitation of crude oil production, the Company successfully fulfilled all the tasks set. The TATNEFT Group produced 28 million 939 thousand tonnes of crude oil. This volume included the production outside the Republic of Tatarstan and 353,000 tonnes of crude oil were produced in other regions of the Russian Federation.

According to Nail Ibragimov, TATNEFT firmly positioned itself as a technology leader in terms of high-viscosity oil (HVO) production. The Company produced 1,620 thousand tonnes of HVO for the reporting year. The aggregate amount of HVO production since the beginning of the project implementation amounted to 3 million 405 thousand tonnes. The production rate of HVO exceeded 5,000 tonnes of oil per day by the end of the year.

There were 702 new wells constructed and commissioned in 2017.This number included 500 wells were drilled within the frame of the in-fill well drilling program. 887 producing wells were put in operation. Small diameter wells drilling gains further development, which allows reducing the wells construction costs significantly.

During the reporting period, TANECO processed more than 7.8 million tonnes of crude oil, produced more than 1.4 million tonnes of EURO-5 diesel fuel. Further development of the Oil Refining and Petrochemical Plant Complex in Nizhnekamsk was connected with increasing the volumes of crude oil processing and commissioning of kerosene and diesel fuel hydrotreatment installations, as well as the start-up of a catalytic reformer, which would allow starting the production of premium gasoline grades. A significant milestone event of the coming year would be the launch of ELOU-AVT-6 and the start of producing motor gasoline grades of the ecological Euro-5 class.

The 'TATNEFT' brand is presented by a wide retail-marketing network, which included 685 filling stations. During the reporting period, the volume of daily sales of oil and gas products increased by 6%. Revenues from non-fuel business at the filling stations increased by 22% for the past year and exceeded the amount of RUB 1 billion.

Application of digital technologies in petrochemical production allowed increasing the production of tires by 35 thousand pieces per year trough reducing the tire vulcanization time. The growth in sales of tire products has been planned at the level of 12% for the current year.

As the Company's Chief Engineer pointed out, TATNEFT continued developing the Company's own power engineering sector. In order to increase the economic efficiency and improve the equipment reliability factors the Company introduced an automated information and analytical system for planning and modeling the operating modes of the Nizhnekamsk CHPP. The plans for the coming year include the first stage reconstruction completion of boilers for burning petroleum coke.

Concluding, Nail Ibragimov stated that the Company would continue implementing strategic projects in all business areas in the current year. Innovative technologies, digitalization and automation of production processes, improvement of the organizational structure, as well as a decrease in the unit operating costs and an increase in the investments efficiency would become tools for achieving the set goals.

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 2017.

He pointed out that during the reporting year the efforts of the trade union activists and the heads of the executive services were aimed at ensuring the fulfillment of the strategic tasks set by the Company's Management and compliance with the current labor legislation.

According to Gumar Yarullin, all provisions of the Collective Agreement were fully implemented. The Administration and the Trade Union Committee continued joint activities in such areas as job security quality, organization of working time and rest, timely payment of wages, vacation granting and the quality of the hot meals served at the workplace.

In 2017, 678 families received the housing under the social mortgage program with 30% of the built housing area allocate for young families

2,854 employees of the Company improved their health at 11 TATNEFT's disease prevention center. 11,105 children of the TATNEFT employees had a rest at the children's health improvement summer camps of the Company.

The Company has established a clear system for providing medical assistance to the employees through voluntary health insurance with the Company's Medical Center (MSC) branches and the Central Regional Hospital (CRB) of the towns at the places of the employees' residence.

Chairman of the Company's Trade Union Committee of proposed to introduce amendments into the Collective Agreement. In particular, they relate to the indexing of certain items related to material assistance to the Company's employees

During the conference of labor collectives, the reports on the activities of the Company and the Company's structural divisions were presented by Rustam Khalimov, Deputy General Director of the Company for the Development and Production of Oil and Gas, Rustem Pavlov, Director of the Business Service Center, Mikhail Shvetsov, Director of the Bugulma Mechanical Plant, Renat Nugaybekov, Head of NGDU Almetyevneft, and Renat Mamin, Chairman of the Company's Youth Committee.

Rinat Sabirov, Assistant to President of the Republic of Tatarstan, conveyed gratitude to the delegates of the conference on behalf of Rustam Minnikhanov, President of the Republic of Tatarstan for the successful results of the past year.

Airat Khairullin, Head of the Almetyevsk Municipal District, expressed gratitude for the Company's great contribution to the social and economic development of the region.

There were also speeches made by Tatiana Vodopyanova, Chairperson of the Trade Unions Federation of the Republic of Tatarstan and Alexander Korchagin, Chairman of the Oil and Gas Construction Union of Russia, who indicated the positive experience of the Company in the implementation of production and social programs.

Nail Maganov, General Director of the Company, addressed the conference participants with closing remarks. Speaking about the Company's further development prospects, the TATNEFT's General Director pointed out that with the adopted Development Strategy for doubling the value of the Joint-Stock Company shall remain intact. The potential of further transformations for TATNEFT lies in the further implementation of information technologies in all areas of the Company's operations. As Nail Maganov emphasized the activities of TATNEFT should be based on the idea of ​​'continuous improvements'. The achievement of this objective is pursued by the introduction of the lean production tools for, project process management, organizational structure development, etc.

Social responsibility to the employees and to the public populating the areas of the TATNEFT's activities, as well as maintaining a decent level of the staff income and meeting all the obligations set forth in the Collective Agreement shall remain the most important principle of TATNEFT's work.

Within the framework of the conference there was also an awarding procedure held for the employees of the TATNEFT Group of Companies based on the Company's performance results in 2017.

The conference delegates adopted the Collective Agreement for 2018.