Tatneft Board adopts development strategy until 2025

On August 3, at Tatarstan Government House, Tatarstan President Rustam Minnikhanov chaired a regular board meeting of Tatneft Oil Company, which reviewed the Tatneft budget performance for six months of 2016 and approved the budget for August of the current year.

The Board adopted the development strategy of the Tatneft Group of Companies until 2025. In its main area of activities, crude oil production, the company turns from the concept of "stabilization" to the sustainable organic growth of crude oil production in Tatarstan. The forecast is that already by 2020 the production volume will reach 30 million tonnes. At the same time it is planned that the application of modern technologies, automation of production processes and other measures will allow for reducing the level of specific operating costs by more than ten per cent.

The largest contribution to the company's value growth is expected due to the development of oil refining activities. In the coming years, the main tasks set for the TANECO Complex are as follows: termination of fuel oil production and start of motor gasoline production in 2016-2017, the crude oil refining capacity is expected to grow up to 14 million tonnes in 2018, while by 2025 the production of motor gasoline will increase to 3 million tonnes per year with diesel fuel yield amounting to 7 million tonnes per year. At the same time the refining depth will reach 97 per cent, the yield of light oil products – 90 per cent, which will be significantly higher than the target values ​​prescribed by the Russian Federation Ministry of Energy in the Federal sector strategies.

In terms of sales the task to increase sales of motor fuels through high-margin channels, the own filling stations and tank farms network, has been set. To do this it is planned to update the brand concept, increas the quality and service standards, optimize the filling station chain throughout the region. 

The development strategy until 2025 also envisages holding leading positions at the Russian tire market, assimilation of new market niches through effective implementation of marketing programmes, quality improvement and expansion of the yielded product range, increasing the profitability of the company’s own generating capacities and machine-building business.

The meeting was also reported about further improving the system of the in-house education and the progress on creation of the Higher Petroleum School at the Almetyevsk State Oil Institute. It was pointed out that under new conditions taking into account the impact of the external and internal factors the Tatneft company developed a systematic approach to the corporate training. This year the Corporate University, which main task is to develop and implement educational programmes aimed at developing the general company-wide, administrative and general professional competences of the employees at all levels, was established.

The Board also considered a number of other issues related to the Tatneft company  activities.