18/03/2019

Press release: The Annual Conference of Employees Was Held at TATNEFT

The annual event work was attended by Nail Maganov, General Director of PJSC TATNEFT, Rinat Sabirov, Assistant to President of the Republic of Tatarstan, Tatyana Vasilyeva, Deputy Chair Person of the Trade Unions Federation of the Republic of Tatarstan, Svetlana Yesaulova, Head of the Socio-Economic Department of the Neftegazstroyprofsoyuz (Oil and Gas Construction Trade Union of Russia), Gumar Yarullin, Chairman of the TATNEFT’s Trade Union Committee, Airat Khairullin, Head of the Almetyevsk Municipal District, heads of the Company's structural divisions and oil service companies of the Republic. 

A report on the results of the TATNEFT team activities in 2018 was delivered to the delegates of the conference by Nail Maganov, General Director of the Company. He pointed out in his report that that taken all round the past year was a success. The total oil production volume in the TATNEFT Group of Companies for 2018 amounted to 29 million 534 thousand tonnes, while the volume of refining accounted for almost 9 million tonnes of the refinery petroleum feedstock processing. The Company sold 3.4 million tonnes of oil and gas products through the Company’s own distribution network. The sales of tyre products amounted to 13 million 646 thousand tyres. The income from operating activities exceeded the accomplishments of previous years and all social obligations were fulfilled. A significant part of the income received was directed to the development of the Company. The results achieved against the background of an unstable external environment confirm the effectiveness of the Company's business model.

According to the General Director of TATNEFT, maintenance of the Company's competitiveness in modern conditions requires maintaining high operational efficiency and creating potential for further development.

According to Nail Maganov, TATNEFT's strategy provides for an increase in oil production to 38 million tonnes by 2030 with existing reserves and primarily with existing technologies. The Company has significant oil reserves (according to Miller & Lents, Ltd., more than 8.7 billion barrels of proven and probable oil reserves as of January 1, 2018) and the additional resource potential, which involvement will be possible through application of innovative solutions and efficient engineering work.

The cost optimizing efforts allowed for an almost 2-fold reduction in the crude oil production costs including the production cost of high-viscosity oil in the last 3 years and attain the reduction of HVO wells drilling costs by 35%. Development of this type of resources became cost-effective. The Company produced more than 5 million tonnes of high-viscosity oil.

TATNEFT was successfully developing its own oil refining. As of now, TANECO was the industry leader in terms of performance. The depth of refining was 99%, while the yield of light oil products accounted for more than 83%. A number of installations were commissioned in 2018, which allowed starting the production of motor gasoline grades and increasing the yield of diesel fuel volumes

TATNEFT joined in the Technical Association of European oil manufacturers - ATIEL (Association Technique del’Industrie Européenne des Lubrifiants). This will allow working directly with automakers, participating in the development of new industry standards and will give significant competitive advantages in penetrating the market.

The Company sees further development of the Complex not only in increasing the production volumes, but also in the introduction of innovative technologies for the processing of heavy oil and oil residues.

According to Nail Maganov, TATNEFT Company, which had implemented a full production cycle, was selling the output products through its own network of filling stations numbering 711 filling stations as of now that the Company operated. The main task today is to provide the retail chain with the fuel of the Company’s own production. To solve this problem, TANECO started the production of AI-92 and AI-95 motor gasolines, which belong to the category of the best in Russia in terms of environmental and performance characteristics. The Company intends to begin production of gasoline AI-100 in the current year already. In the conditions of the extremely competitive market the Company’s filling stations became service centers for motorists. Attracting customers should be ensured not by the high-quality fuel only, but also by the increased comfort of servicing through the introduction of the "Digital Filling Station", the development of sales of related products and services.

The Company associated serious prospects with the development of the tyre manufacturing business. In accordance with the Strategy, the plans provide for increasing the volume of production and sales of tyres. At present, the tyre complex exports trade brands of the Company to 48 countries of the world, which indicates compliance with quality standards in terms of parameters: fuel efficiency, minimal aquaplaning effect, outdoor noise level, road grip. Already in 2019, the production volume will be increased by 9%. Strategically important for achieving the goals set is the expansion of the production capacity for manufacturing of the recognized by the tyre users SSC Kama and Viatti tyre brands. According to Strategy 2030, the share of these tyres in total sales will increase from 39% to 57% by 2030. 

As Nail Maganov mentioned other business units, such as energy, engineering, composite cluster also demonstrated positive dynamics. To improve the activities in these areas in 2019, the Company will carry out the work to improve operational efficiency, implement programs to diversify sources of raw materials, increase sales.

The company associates maintaining competitiveness with ensuring the technological leadership position. And the main role in this regard is played by information technologies and the active digital transformation.

The report of the TATNEFT’s General Director also addressed changes in the innovation sphere, issues of reorganizing of the organizational structure, creation of single responsibility and competences centers for supporting the core production, industrial safety and labor protection issues, systemic and large-scale work in the field of environmental safety.  

Gumar Yarullin, Chairman of the Company’s Trade Union Committee, presented the information to the assembly participants on the results of implementing the Collective Agreement of TATNEFT in 2018 and the draft of the Collective Agreement for 2019. He pointed out that the meetings held at the workshops and the conferences of labor collectives emphasized satisfaction with the achieved production results and with the implementation of the Collective Agreement, and further ways were outlined for the implementation of plans to achieve the Company's key objectives.

According to Gumar Yarullin, the active social policy, compliance with current labor laws and avoidance of conflict situations at work, pursued by managers at all levels in cooperation with the Company's trade union activists, was aimed at providing social guarantees, safe labor conditions and creating favorable environment throughout the business performance territory.

During the conference of labor collectives, the reports on the activities of the Company and its structural divisions were presented by Nurislam Syubaev, Deputy General Director for Strategic Development, Rustam Khalimov, First Deputy General Director for Oil and Gas Exploration and Production, Marsel Muradimov, Director of the Common Business Service Center of PJSC TATNEFT, and Dmitry Nesmin, Chairman of the Youth Committee of PJSC TATNEFT.

Tatyana Vasilyeva and Svetlana Yesaulova saluted the participants of the conference on behalf of the Federation of Trade Unions of the Republic of Tatarstan and the Neftegazstroyprofsoyuz of Russia. They emphasized the high level of the TATNEFT‘s Collective Agreement and the wide range of social programs being implemented.

Airat Khairullin, Head of the Almetyevsk Municipal District, expressed his gratitude for the great contribution of the Company to the socio-economic development of the region.

He singled out the most significant social projects implemented by the Company in the south-eastern part of the Republic of Tatarstan. Inter alia, they include the construction of an ice palace and a "Miras" multifunctional sports center, as well as a modern bicycle infrastructure.

Rinat Sabirov, Assistant to the President of the Republic of Tatarstan, relayed the thanks of Rustam Minnikhanov, President the Republic of Tatarstan, to the delegates of the conference for the successful operation results of the past year.

In addition, the framework of the conference also included by-elections to the Company's Trade Union Committee and the awarding of the TATNEFT Group’s employees based on the results of the Company’s operations in 2018.  
  
 The conference delegates adopted the Collective Agreement for 2019.

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