Rustam Minnikhanov holds regular board meeting of Tatneft Oil Company

On March 26, Acting Tatarstan President Rustam Minnikhanov chaired a regular board meeting of the Tatneft Oil Company.

The Board considered the budget execution of the Tatneft Oil Company for two months of 2015 and approved the budget for April and the second quarter of this year.

The information about the performance, efficiency and strategy of further development of the "Tatneft-Neftekhim" Management Company’s enterprises was presented to the Board. An action plan to optimize costs has been developed to reach the preset technical and economic targets, lean production techniques are being implemented at the Petrochemical Complex enterprises. Compensatory measures have been developed for 2015 to reduce the impact of the exchange rate fluctuations in the following areas: import substitution of raw materials, product sales cost reduction, increasing the sales volumes, cost optimization, reducing power consumption and loss of raw materials in production. The plans also provide for releasing production capacities in the next two years to start yielding more advanced Viatti brand products. In accordance with the strategy of the product portfolio and sales and taking into account the market situation the projected volume of tire production will increase up to 14 million tires per year by 2017.

The Board discussed the implementation of measures for import substitution. It was pointed out at the meeting that the main areas of the company's operations in this regard include geological exploration, construction and repair of wells, crude oil production, information technologies, crude oil and gas refining and production of petrochemicals, as well as tire manufacturing. Execution of the activities included in the special program will minimize the risks associated with dependence on imports and will reduce the costs.

The Board also considered a number of other issues of the company’s activities.