Tatneft: Figures Demonstrating Results of Operations in August and During Eight Months of 2016

September 12, 2016

Crude Oil Production

In August 2016 TATNEFT Croup of enterprises produced 2,429,000 tonnes of crude oil (105.5% versus August 2015) with the eight months volume amounting to 18,747,000 tonnes (104.9% versus 2015, + 881 thousand tonnes).

The production volume of PJSC TATNEFT amounted to 2,399,258 tonnes of crude oil in August (105.5% versus August 2015), while the production for eight months amounted to 18,519,480 tonnes (104.9% +859,237 tonnes).

The Company’s subsidiaries, OOO “Tatneft-Samara” and OOO “Tatneft-Severny” produced 29,894 tonnes in August 2016 at the licensed areas outside the Republic of Tatarstan (104.3 percent versus August 2015) with the eight months volume amounting to 227,843 tonnes (110.5 percent, +21,737 tonnes).

New Drilling

427 new wells were built and delivered to customers during eight months in 2016, which was 9% more than during the similar period of 2015 (393 wells in 2015) with the production well drilling amounting to 305 wells with 42 wells of this number being in-fill wells;   exploratory wells – 4 wells and drilling to bitumen - 118 wells.

Active Well Stock Drilling

There were 61 sidetracks and horizontal wellbores delivered during eight months in 2016 accounting for 24 per cent increase versus the similar period of 2015 (49 wells in 2015).

The average number of crews engaged in conventional drilling during eight months of 2016 amounted to 46 drilling crews. 12 crews were engaged in drilling sidetracks and horizontal wellbores. 11 drilling crews performed drilling to the bituminous deposits.

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

Drilling and completion of 4 of the planned 6 wells was performed at OOO “Tatneft-Samara”.

Construction of 3 wells is underway in the Nenets Autonomous Okrug. 2 wells are still in the process of drilling and one well is under testing.

Construction of 2 wells for OOO "Severgaznefteprom" is underway (No. R-2 Vostochno-Khayatskaya and No. 4 “Tibeyvisskaya”). One well is currently in the process of drilling. And another оne is under testing.

Drilling of well No.1 at Bariernaya area is underway in the Republic of Kalmykia.

Repair of Wells

During eight months of 2016 remedial well servicing was performed in 6,423 wells by the crews of remedial servicing, workover and enhanced oil recovery at the sites of PJSC TATNEFT (856 wells in August), while workover operations were performed in 1,537 wells (236 wells in August).

Outside the Republic of Tatarstan remedial servicing operations were performed in 42 wells for OOO “Tatneft-Samara” and 11 wells for OOO “Tatneft-Severny”.

Formation hydrocracking operations were carried out in 513 wells (82 wells in August).

Crude oil recovery enhancement operations were performed in 1,887 wells (269 wells in August), including chemical methods applied in 927 wells (128 wells in August).

Production Performance of JSC TANECO

The TANECO Complex of Refining and Petrochemical Plants processed 820.2 thousand tonnes of raw materials in August 2016 and 6,382.4 thousand tonnes since the beginning of the year, including 728.63 thousand tonnes of petroleum feedstock and 5,813 thousand tonnes since the beginning of