Tatneft: 2017 8M Results – Drilling Up 13%

Crude Oil Production

Enterprises of the TATNEFT Croup of Companies produced 2,445.6 thousand tonnes of crude oil in August while the production for the eight months period amounted to 19,258.7 thousand, which was 511 thousand tonnes more than the figure for the similar period of 2016.

The PJSC TATNEFT’s production amounted to 2, 417.0 thousand tonnes of crude oil, 19,022 thousand tonnes during eight months (+502 thousand tonnes; 102.7%) to the similar period of 2016.

The Company’s subsidiaries produced 28 thousand 550 tonnes of crude oil in the licensed areas outside the Republic of Tatarstan with the total production for eight months amounting to 236, 858 tonnes (+9.0 thousand tonnes;104%).

New Drilling

484 new wells were built and delivered to customers during eight months of 2017, which was 13 percent more than the number for a similar period in 2016 (including production drilling – 477 wells, exploratory wells – 6 wells, drilling to the bitumen – 1 well.

Active Well Stock Drilling

There were 64 sidetracks and horizontal wellbores delivered during eight months in 2017, accounting for a 5 percent increase versus the number during a similar period of 2016 (61 wells in 2016).

Drilling of wells for OOO “Tatneft-Samara” in the Nenets Autonomous Okrug and the Republic of Kalmykia

Drilling of well No. 1 at the Barrieryaya Area was completed in the Republic of Kalmykia. 5,800 m had been penetrated according to the plan. The well testing operations are underway.

Drilling of well No. 18 was completed in the Ulyanovsk region. The work is underway to perform the well completion and testing.

There are wells Nos. 354, 342р and 91bs in the process of drilling in the Samara region.

Repair of Wells

During eight months of 2017, the remedial well servicing crews performed remedial servicing operations in 7,250 wells at the sites of PJSC TATNEFT (826 wells in August), while workover operations were performed in 1,765 wells (263 wells in August).

There were 39 wells repaired for OOO “Tatneft-Samara” and 5 wells for OOO “Tatneft-Severny” outside the Republic of Tatarstan.

Formation hydraulic-fracking operations were carried out in 576 wells (58 wells in August).

Oil recovery enhancement operations were performed in 1,888 wells (261 wells in August), including chemical methods applied in 914 wells (138 wells in August).

Production Performance of JSC TANECO

The TANECO Complex of Refining and Petrochemical Plants processed 827.5 thousand tonnes of raw materials in August 2017 and 5533.8 thousand tonnes since the beginning of the year, including 735.7 thousand tonnes of petroleum feedstock processed in August and 4,952.4 thousand tonnes of petroleum feedstock processed since the beginning of the year.

The TANECO Complex yielded 783.4 thousand tonnes of petroleum products in July 2017 and 5,208.8 thousand tonnes since the beginning of the year.