Downstream Activities

General management of the oil/gas refining and petrochemical production is performed by the Department of Oil and Petroleum Products Sales. Priority areas in the oil/gas refining and petrochemical segments of the Company's activity are increasing products output as well as sales volume of highly competitive finished products.

OAO TATNEFT own oil refining was carried out at the oil refinery of NGDU Elkhovneft in 2009 with a high level of the plant production capacities loading. In June 2009 the Elkhovo refining plant started production of diesel fuel with sulfur content0,05% and declared for compliance with the Technical Regulations Requirements.

At present modernization of production capacities of the plant is on the way to provide for yielding oil products (petrol, diesel fuel) which meet the requirements of Euro-3, 4 and 5 standards. Processing of the associated petroleum gas, which is a link in the chain of receiving caoutchouc, which is the main component of tire manufacturing, is made at the Minnibaevo Gas Processing Plant of Tatneftegazpererabotka Administration. Tatneftegazpererabotka Administration proceeded with improving the process flow sheet and improving safety of the oilfield gas lines.

Yield of Oil Products at Elkhovo Oil Refinery(thousand tons)

In 2009 the gas processing facilities worked in the stable technological mode, which enabled high-quality processing of hydrocarbon stock in the volume of 671.7 mln. cubic meters of associated petroleum gas and 287.4 thousand tons of gas liquids. In 2009 the work on improvement of the process flow chart of the Minnibaevo sulphur removal unit aimed at
increasing gas purifying and drying quality, increase of the gas pipeline life period and essential reduction of the sulphur dioxide emission to the atmosphere. The works on stripping hydrogen sulfide from oil were started at the facilities of NGDU Almetyevneft and NGDU Yamashneft.
GFU-300 was modernized, which enabled increase of the facility stock loading and growth of the products output.

For the purpose of oil refining facilities strengthening, the Company participates in the construction of the Complex of oil refining and petrochemical plants (OAO TANEKO) in Nizhnekamsk.

The following basic principles of the Complex development were defined during designing:

• integration and optimal combination of oil refining and petrochemical production works;
• maximization of the product added value;
• replacement of the petrochemical products import on the basis of mid-scale and small-scale business development in the field of polymers processing;
• outside stock consumption and sale of intermediate products to outside customers shall be reduced to minimum;
• application of energy saving technologies; minimal thermal environmental pollution;
• maximum energy self-sufficiency.

Low waste technologies will be used for high production ecological compatibility.
The new complex will consist of the oil refining plant, the plant for the deeper oil conversion, and the petrochemical plant for production of products on the basis of aromatic hydrocarbons. The Complex will produce all kinds of motor fuels according to the prevailing ecological standard specifications. With commissioning of the new complex OAO TATNEFT will have refining capacities which will satisfy the needs of retail network in the ecologically safe motor fuels.
The following IT solutions accepted as a corporate standard in OAO TATNEFT were used in the project implementation: electronic circulation of documents, logistics automation, office systems and the system of video conference.

Associated gas processing which is a link in the production chain of rubber and the main stock for tire production is carried out at the Minnibaevo gas processing plant.

Finished Products Output by Tatneftegazpererabotka Administration in 2008 and 2009