Rustam Minnikhanov: “The so-called oil dependency is the resource for development of petrochemical industry in Tatarstan”

On June 17, speaking at the 21st World Petroleum Congress in Moscow, Tatarstan President Rustam Minnikhanov said that sustainable oil production is the basis for the development of petrochemical and oil refining enterprises in Tatarstan.

The Congress has been held once every three years since 1933. The latest one was held in Qatar in 2011. The Congress is organized by the World Petroleum Council with its head office in London. Sixty-nine countries are the council's members.

Over 4,000 delegates, including 30 ministers and 400 top managers and heads of sector organizations from more than 80 countries, have confirmed their participation in the Moscow congress. This year, the main topic of the Congress is “Responsibly energizing a growing world”. Such matters as traditional and non-traditional resources of oil and gas, the financing of the sector, relationship between the producers and users of petroleum products, the ensurance of environmental safety, and guarantees of energy supply stability will be considered at plenary meetings.

Today, Rustam Minnikhanov took part in a meeting themed “Investment attractiveness of Russian oil and gas regions.”

Before the meeting, accompanied by Director General of OAO "Tatneft" Nail Maganov Tatarstan President attended the company's stand at the exhibition.

Governors of Orenburg region, Yamal-Nenets, Khanty-Mansi , and Nenets Autonomous Areas, who took part in the meeting, told about the benefits of their regions for investors.

Speaking at the meeting, Tatarstan President Rustam Minnikhanov noted that Tatarstan is the oil republic. In 2013, the 70th anniversary of starting commercial production of oil fields in Tatarstan was celebrated. During this time, over 3 billion tonnes of oil have been produced. Also, oil workers of the republic contributed greatly to the development of oil fields in Western Siberia, Rustam Minnikhanov said.

“Today, we produce about 33 million tonnes of oil in Tatarstan every year and we plan to maintain this level at least over the next 30 years. This is ensured by the reserves-to-production ratio,” Rustam Minnikhanov said.

According to him, the proved oil reserves on Tatneft’s oil fields makes 847 million tonnes and 275 million tonnes are the booked commercial reserves of small oil companies.

“The extra-heavy crude oil is the future of our reserves. Tatarstan oil workers have gained unique skills and experience in working with super viscous oils, developing low-permeable clay and carbonate reservoirs. A set of own technologies has been formed, including more than 60 international patents. The commercial field development of super viscous oils is underway,” Rustam Minnikhanov continued.

Tatarstan President noted, in particular, that oil production and refining complex has been integrated with the oil industry in the republic. “The so-called oil dependency is the resource for the development of petrochemical industry in Tatarstan,” Rustam Minnikhanov said.

Today, Tatarstan produces over 51 per cent of the total Russia's volume of polyethylene, 25 per cent of polypropylene, 45 per cent of rubber, 56 per cent of polymers and styrene copolymers. By 2020, the republic will double the production of ethylene and increase the production of rubbers and plastics up to 3.8 million tonnes.

“We see our new competitive advantage in deepening the processing of raw hydrocarbons produced in the republic, developing small-sized business production facilities for processing polymers produced in the republic. Tatarstan assists investors by developing the infrastructure, regional demand, rendering direct and indirect financial support through the state co-financing and tax benefits, reducing administrative procedures. "

Summing up, Tatarstan President emphasized the investment attractiveness of Tatarstan as oil-producing region, and invited investors to the republic.