Investment management

Investment activity of the Company is exercised according to the development strategy of TATNEFT Group. Priorities of the Company’s corporate investment policy are ensuring of investments efficiency and increase of profitability in each area of activities.

Performance of the investment activity management of the Company is ensured by the Investment Committee. Activity of the Committee is supervised by General Director of OAO TATNEFT. The overall organization and coordination of the Investment Committee activity is arranged by the Investment Department. The Committee considered 57 investment projects during 2009 and 49 of them were approved for realization.

At the moment the company implements a procedure of formation and allocation of investment sources for drilling and capital construction based on available estimates. Individual estimates are applicable for exploration drilling, side tracking and drilling of horizontal wellbores, slim holes, as well as in exploration drilling outside the Republic of Tatarstan.

The Company improved the procedure for evaluating the effectiveness of investment projects on geological engineering activities using additional efficiency criteria.
The Company completed preparation for transition and formation of an investment program for development of facilities with profitability assessment of wells and fields.
The total volume of investments of TATNEFT Group of companies in 2009 amounted to 104,323 million rubles.

Investment Portfolio Structure

• 70.7% of investments were directed to the construction of the oil refinery and petrochemical plants complex in Nizhnekamsk;
• 20.9% of investments were directed to support and expand production capacities in the oil fields of the Republic of Tatarstan and outside, including foreign projects;
• 6.9% of investments were directed to development of the petrochemical complex, including 6.4% to the construction of the solid steel cord tire factory;
• 1.5% of investments were directed to other projects.