Marketing of Non-Core Products
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Trading House of OAO TATNEFT
Sales of products manufactured by companies and subdivisions of OAO TATNEFT to outside organizations are carried out by the Trading House of OAO TATNEFT, which is a structural subdivision of the Company.
In 2007, total sales amounted to RUR 1,871.4 million compared to the planned amount of RUR 1,400 million, translated to 21% increase, or, in terms of value, RUR 326.7 million, compared to 2006.
Gross profit in 2007 made RUR 104.8 million, which is RUR 14.7 million more than in 2006.
Tubular Goods Sales
In 2007, 1,031.5 km of different pipes were sold to the amount of RUR 478.7 million to customers from different Russian regions: Samara Region, Perm Region, Republic of Bashkortostan, and other regions.
Primary consumers:
- Plastic reinforced metal pipes produced by Managing Company Truboprovodservis: RUP Belarusneft, OOO Samarneftegaz–servis, OOO Stroymontazh, OOO STT;
- Polymer-coated pipes produced at the Bugulma Mechanical Factory: OAO Bashneft, RUP Belarusneft, OOO STT, ZAO Globalstroyinzhiniring;
- Polyethylene-coated pipes: OAO Stroytekhservis, OAO TNK-BP, OAO Mellyaneft, and other companies.
Small oil companies of the Republic of Tatarstan purchased tubular goods to the amount of more than RUR 42.0 million.
Tubular Goods Sales
| Description | 2006 | 2007 | Increase (+,-) | |||
| km | RUR mln | km | RUR mln | km | RUR mln | |
| Plastic reinforced metal pipes | 97,0 | 61,0 | 68,5 | 75,4 | -28,5 | +14,4 |
| Polymer-coatedpipes | 232,8 | 215,6 | 387,7 | 275,1 | +154,9 | +59,5 |
| Polyethylene-coated pipes | 253,6 | 60,4 | 492,5 | 101,7 | +238,9 | +41,3 |
| Other pipes (tubing, casing, etc.) | 18,2 | 3,4 | 82,8 | 26,5 | +64,6 | +23,1 |
| TOTAL | 601,6 | 340,4 | 1 031,5 | 478,7 | +429,9 | +138,3 |
Delivery of Chain Drives for Sucker Rod Pumping Systems and Oilfield Equipment
- 69 units to the amount of RUR 33.7 million (Customers: small oil companies of the Republic of Tatarstan)
- 2 chain drives (Customer: OAO Samaraneftegaz)
- Oilfield equipment produced by Bugulma Mechanical Factory (air coolers, heat exchangers) for the amount of RUR 526.1 million (Customers: OAO Moscow Refinery, OAO Ufa Refinery, ZAO Mashprom, OAO Kuybishev Refinery, and other customers)
Logistics
Location of the Company’s production facilities in the mid-Russia is one of its major benefits. In the south-east of Tatarstan main traffic routes are concentrated, which connect the central Russia with North-Western, Urals, and Eastern regions of the country, which allows shipment of the OAO TATNEFT products to Chuvashiya, Udmurtiya, Samara, Bashkortostan, Kazakhstan, Chelyabinsk, Nizhniy Novgorod, Western Siberia, Republic of Belarus, and other regions.
Steps Undertaken by the Company to Increase Sale Volumes
- Presentations of the Company’s products for Russian oil majors: Lukoil, TNK-BP, Rosneft, and other interested parties
- Participation in specialized domestic and international shows
- Maintaining contacts with design engineering companies from Perm, Ufa, Tomsk, Usinsk, Samara, and Saratov to promote the Company’s products
- Participation in tenders for supply of tubular goods for oil industry
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