2006 SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT
The year of continuous growth 2006 4.6 4.6
3.9
3.3
Expenses for environment protection, bln RUB 2006 SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT Table of contents Social policy 48 LABOR MOTIVATION 56 PERSONNEL DEVELOPMENT 64 INDUSTRIAL SAFETY AND LABOR 50 SOCIAL PROTECTION 58 COOPERATION WITH EDUCATIONAL PROTECTION OF EMPLOYEES INSTITUTIONS 66 SOCIAL PROGRAMS IN THE REGION 53 SOCIAL SUPPORT OF RETIRED 59 ACTIVITIES FOR THE YOUTH 76 REGISTER OF CORPORATE SOCIAL PROJECTS (CSP) OF OAO TATNEFT, EMPLOYEES 59 CORPORATE CULTURE 2006 46 55 HUMAN RIGHTS PROTECTION 60 HEALTH PROTECTION
Message Environmental activities
86 ENVIRONMENTAL POLICY AND 97 RESOURCES CONSUMED 112 FIXED CAPITAL INVESTMENTS INTO 06 FROM GENERAL DIRECTOR, MANAGEMENT IN THE COMPANY 102 DYNAMICS OF EMISSIONS ENVIRONMENTAL PROTECTION CHAIRMAN OF THE MANAGEMENT 89 ENVIRONMENTAL MONITORING AND DISCHARGES OF HARMFUL AND RATIONAL USE OF NATURAL BOARD OF OAO TATNEFT 92 QUALITY OF WATER IN WATER SUBSTANCES AND WASTE RESOURCES BODIES AND ATMOSPHERIC AIR PRODUCTION IN POPULATION AGGREGATES 106 IMPROVEMENT OF TECHNOLOGI- ACCORDING TO ENVIRONMENTAL CAL EQUIPMENT RELIABILITY MONITORING DATA 109 INDUSTRIAL WASTE RECYCLING 06 84 96 ENVIRONMENTAL NORMS AND UTILIZATION AND STANDARDS
Company approach Innovation activities to non-financial reporting process 118 SCIENTIFIC AND TECHNICAL BASE OF THE COMPANY 08 REPORT CHARACTERISTICS 13 INDEPENDENT AUDIT REPORT 120 INTELLECTUAL PROPERTY 09 APPLIED STANDARD ON RESULTS OF THE REPORT 123 APPLICATION OF ADVANCED AND RECOMMENDATIONS VERIFICATION TECHNOLOGIES AND EQUIPMENT 10 IMPLEMENTATION 08 OF GRI PRINCIPLES 116
Corporate responsibility and interaction About the company
with stakeholders 142 COMPANY STATUS 148 CORPORATE GOVERNANCE 145 MISSION 148 CORPORATE GOVERNANCE 20 PRINCIPLES OF CORPORATE 32 REPRESENTATION IN INDUSTRY 145 STRATEGIC INITIATIVES AND PRINCIPLES SOCIAL RESPONSIBILITY AND PUBLIC INSTITUTIONS OBJECTIVES UP TO 2010 149 COMPANY MANAGEMENT BODIES 22 NON-FINANCIAL RISK MANAGEMENT 34 PUBLIC EVALUATION OF COMPANY 146 SURROUNDING 25 INFORMATION POLICY ACTIVITY 147 SECURITIES MARKET. 18 26 INTERACTION WITH STAKEHOLDERS 140 STOCK MARKET
Economic performance Appendices 152 INDEX OF LOCATION 38 BUSINESS PERFORMANCE FACTOR 42 PROGRAMS OF INCREASE OF GRI INDICATORS 40 PROCEEDS FROM SALES OF PRODUCTION EFFICIENCY 158 GLOSSARY OF PRODUCTS AND IMPROVEMENT OF CORPORATE 161 LIST OF ABBREVIATIONS 40 VALUE ADDED GOVERNANCE 36 40 TAXES AND PAYMENTS 45 INVESTMENT PROJECTS 152 Message from General Director, Chairman of the Management board of OAO Tatneft
Rich history — great future
Dear readers, vides support to medical institutions, furthers development of physical training and mass sport in the regions of its activity. In order to support 2006 was successful for our Company. The volume of produc- the national project “Education” the Company provides charitable tion achieved 25 million 405 thousand tons of oil; this is the maximum assistance to comprehensive schools and preschool educational insti- level for the last thirteen years. 45% of oil was produced due to use tutions and supports gifted children and teenagers. Cooperation with of advanced technologies. Efficient results were reached in the pet- higher educational institutions is carried out at a permanent basis. rochemical industry — Nizhnekamskshina manufactured 12 million Within the framework of the policy of maintenance of the balance 206 thousand tires. The total volume of retail sales of oil products of jobs and strengthening of social sustainability in the region the through the filling station network exceeded 1.1 million tons. Within Company furthers development of small and medium-scale business. the framework of strengthening the oil production base, construc- Starting from 2005 the special corporate project aimed at creation tion of the complex of oil producing and petrochemical plants began of promising innovation projects is being implemented. in Nizhnekamsk. The project will result in over then three thousand jobs. In 2007 we will celebrate production of 3 billion tons in the Along with solving production objectives Tatneft pays special Republic of Tatarstan. A number of charitable projects are scheduled attention to environmental activity. In accordance with the state strat- to mark this momentous occasion. New socially significant objects egy in the sphere of environment protection, ensuring environmental will be built with assistance of the Company in cities and settlements safety and rational use of natural resources in 2006 the Company of the oil region. During the year Tatneft, at its own expense, will pro- adopted the new corporative Environmental Policy. Independent cer- vide the possibility to have a rest and to restore their health in sanatoria tification audit of the integrated system of management of industrial and preventive clinics not only to oil industry veteran workers but also safety, labor and environment protection on the basis of international to those who input greatly into development of the oil-producing com- standards ISO 14001:2004 and OHSAS 18001:1999 was carried out. plex of Tatarstan with their honest work in other industries and in the Expenses for nature conservation activities exceeded the level of the state-financed sphere. preceding year by 20%. The Company has rich history and great future! We are sure that The Company considers provision of social wealth and adequate further successful development of Tatneft will promote implementation living standards for its employees to be one of its most important of new social projects, and each of them is a grateful answer to people tasks. It is reflected in the corporate policy of remuneration and working in our collective and a contribution into the present and the in social guarantees to the personnel. Within nine years Tatneft has future of our country. been implementing the program of voluntary medical insurance guar- anteeing to its employees timely medical assistance and treatment at health resorts. For ten years the Company has been having the program of non-governmental provision of pensions based on the optimum scheme of formation of non-governmental pension with finds of Tatneft and of employees. In 2006 the corporate project of address assistance to retired employees was started. Following the principles of corporate social responsibility Tatneft participates in implementation of the priority national projects. Participation in the republican program of social mortgage is the Company’s contribution into implementation of the project “Affordable and Comfortable Dwelling — to Citizens of Russia”. Today three thou- General Director, sand of our employees take part in this program; one third of them are Chairman of the Management Board young people. Within the national project “Health” the Company pro- Sh.F. TAKHAUTDINOV
ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006 Company approach to non-financial reporting process
REPORT CHARACTERISTICS The Company’s responsibility to stakeholders APPLIED STANDARDS Standard of interaction with stakeholders is independent report verification for which we invited AND RECOMMENDATIONS AA1000SES The 2006 Sustainability and Social Responsibility specialists of Bureau Veritas Certification. The report Standard AA1000SES is a generally accessible Report is the third non-financial report of the Company. contains the audit report on the results of verification Sustainability Reporting Guidelines normative base for planning, execution, estimation, The previous reports — the 2004 Social Report and the (pages 13-17). (Global Reporting Initiative, GRI) informing and non-financial auditing of quality of inter- 2005 Social, Economic, Environmental and Innovation The electronic version of the report is on the of new generation G3 action with stakeholders. The standard is developed for Activities Report — are located in the official website corporate website www.tatneft.ru, the Corporate The Guidelines of GRI (Global Reporting Initiative) those who starts, observes and estimates interaction of OAO Tatneft www.tatneft.ru in the Corporate Social Social Report section. The printed version of the report in the latest version is a document offering a thoroughly with stakeholders and may be used both for internal and Report section. is sent to shareholders, investors, state authorities, developed approach to generation of reports reflect- external interaction and for connection between them. This report was prepared on the basis of the public institutions and other stakeholders. For infor- ing economic, environmental and social performance It provides organizations with the possibility to develop Sustainability Reporting Guidelines of the Global ming own employees the report is placed into the inter- of an organization. and to practice schemes of interaction with stakehold- Reporting Initiative (GRI) of the third generation (ver- nal corporate portal of the Company. The new Guidelines version contains principles ers on the basis of clear principles and criteria. sion G3). In accordance with the principles of deter- Additional information about the Company activ- determining a report structure and quality of presented Use of standard AA1000SES in the process of mination of the GRI report contents and taking into ity may be found in the Annual Report of OAO Tatneft information as well as the set of elements and indica- organization of interaction of the Company with account the already existing reporting experience, the for 2006 and on the official website www.tatneft.ru. tors reflecting approaches in the sphere of manage- stakeholders furthered improvement of quality list of information disclosed in the report has been con- Together with the Annual Report, the Sustainability ment and organization performance. Special attention of information presented in the report from the siderably expanded. The table showing the standard and Social Responsibility Report forms the balanced is paid to making quality indicators in such topics as point of view of its significance for stakeholders. report elements and activity indicators in accordance description of Tatneft Company activities. human rights, labor protection, etc. more compa- with the GRI Guidelines is given in page 156. We are interested to receive evaluations and rable and focused on results. The primary document Social Charter of Russian business (Russian The decisions on generation of non-financial proposals of our readers concerning completeness, is supplemented with technical protocols for six basic Union of Industrials and Entrepreneurs — reports were taken by the top management of the currency, lucidity of the report information that is why indicators helping in collecting and organizing informa- RUIE) Company. For more complete and high-quality reflec- at the end of the report we have enclosed a question- tion and making it uniform. This is a code of principles and values of business tion of the results of Tatneft activities in 2006 a work- naire. Comments and proposals received from readers Use of the GRI Guidelines in the latest version practice and a methodological instrument outlining ing group headed by the Deputy Director General will be analyzed and will become one of the bases for G3 and technical protocols for main indicators general scope and directions of responsibility of com- for Economics was established for preparation of the subsequent reports. indicates our desire to provide stakeholders panies. non-financial report. In the process of preparation the with complete, balanced and well-grounded The principles set forth in the Charter cover such working group revealed the range of the most sig- information about economic, environmental spheres as economic and financial sustainability, pro- nificant issues relating to the Company activity, defined and social aspects of activity. duction quality and relations with consumers, human the reporting scope and developed the Regulations rights, environmental safety and participation in devel- for preparation of the non-financial report which was opment of local community. This outlines the scope approved by the General Director of OAO Tatneft. of responsibility of business and its obligations allowing All references to the Company or Tatneft or OAO each company to determine its social role and to formu- Tatneft and all reference to “we”, “us” and “our” are late its own goals and objectives. references to OAO Tatneft. Unless other is provided the Implementation of the principles of the Social indicators of economic, social and environmental results Charter at preparation of the report confirms in the report relate to OAO Tatneft (structural units and intention of the Company to follow voluntari- subsidiaries with 100% capital). Section Economic ly the fundamental principles and to pursue Performance contains also information about enter- an active policy in economic, environmental prises of the petrochemical complex of OAO Tatneft. and social spheres in the interests of the whole society.
Company approach to non-financial reporting process ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
IMPLEMENTATION OF GRI PRINCIPLES Importance and significance Completeness of information Comparability Information included into the report is to cover An organization preparing a report must dis- Information included into a report must be Coverage of stakeholders issues and indicators which may influence con- close information about its activity up to the presented in such a way so that it provides An organization preparing a report must reveal siderably decisions of stakeholders. degree sufficient for stakeholders to estimate a possibility to compare results of organization parties interested in its activity and explain All issues and indicators are preliminarily esti- its results during the reporting period. activity with previous period and with results how their needs have been taken into account mated from the point of view of importance and signifi- The Company strives for the most complete dis- of activities of other organizations. at preparation of the report. cance for stakeholders; only those of them are included closure of information in economic, environmental The report ensures comparability of performance Tatneft Company makes every effort to get stake- into the report which are of interest for stakeholders and and social spheres of activity. The aggregate of issues year by year. Explanations are given for each consider- holders involved into the process of discussion of issues may influence their decisions. Using questionnaire poll included into the report is sufficient for the report able change concerning scope, coverage or reporting connected with preparation of the report. These issues of report users as well as employees and public inqui- users to estimate, on their basis, the Company perfor- period. In order to ensure comparability of the Company include: selection of information significant for stakehold- ries, meetings with representatives of the trade union, mance as a whole and its contribution into sustainability performance with performance of other companies the ers, selection of performance indicators, selection of the business partners and representatives of local authori- of society. Sufficiency of information is determined indicators included into the GRI Guidelines and techni- report format, and determination of the report scope, etc. ties we learn which issues of current and future activity both on the basis of polling the report users and on the cal protocols are used at preparation of the report. In order to get stakeholders involved into the pro- of the Company are determined by stakeholders as sig- basis of determination of issues of public interest even cess of preparation of non-financial reports we use nificant and must be included into the report. Besides, if they are not reflected in the process of interaction with Preciseness various methods of feedback. First of all it is a question- at determining relative significance of important issues stakeholders. Information presented in a report must be pre- naire attached to the previous report which allowed us for inclusion into the report we take into account such The report reflects all significant actions and cise and sufficiently detailed for stakeholders to estimate actuality, completeness and clarity of the factors as the goals and objectives of the Company, events which took place during the reporting period to use the report for decision-making with high information for readers presented in the report and to risks and opportunities, success factors, problems as well as grounded estimations of future influence degree of confidence. take their comments and desires. We will continue using of the industry and a number of other factors. of these events if such influence may be foreseen. Information reflecting various economic, environ- questionnaires as a form of feedback from readers and in mental and social issues and indicators is expressed future we will not only attach it to the report itself but place Openness Balance with quantitative data and their corresponding qualita- it in the corporate website as well. Openness is defined as complete and bal- A non-financial report must represent a bal- tive descriptions. The error value of quantitative data A key moment in preparation of non-financial reports anced disclosure of information on issues anced and grounded picture of organization is minimized in order to provide stakeholders with is organization of dialogues between the Company and and indicators significant for decision-making performance. maximum precise information. Qualitative descriptions stakeholders by stakeholders. Within the framework of observance of balance are coordinated with quantitative characteristics, they Within the framework of organization of dialogues The Company seeks to disclose basic perfor- the report reflects both favorable results of activities supplement and explain them. with stakeholders there were meetings with representa- mance indicators in close correlation with its contribu- and problems which the Company is facing. Information tives of shareholders, investors, trade union of employ- tion into change of economic, environmental and social is presented in the format which allows users to esti- ees and Council of the Company Veterans, consultations situation at local, regional and national levels. mate both positive and negative trends in its activity. with representatives the public and mass media as well The degree of attention paid to various issues is propor- as interviews with representatives of state and local tional to their relative significance. authorities. Issues relating to formation of non-financial reporting in the Company were discussed at external and internal conferences.
10 11 Company approach to non-financial reporting process ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
Ratios and specific values used in the report re Possibility of confirmation supplemented with corresponding absolute values. Information and processes used at preparation INDEPENDENT AUDIT REPORT ON RESULTS Disclosed data is presented using generally accepted of a report must be documented, analyzed and OF THE REPORT VERIFICATION international units and are calculated with the use disclosed in such a way that allows for estima- Addressed to: OAO Tatneft Company of standard coefficients. tion and confirmation.
The Company makes every effort to ensure reli- INTRODUCTION Timeliness ability of data presented in the report. The report infor- Bureau Veritas Certification Rus provides OAO Tatneft with auditor services of independent verification of Information is provided in due time and on the mation and data are based on internal documentation reporting in the sphere of sustainability on the basis of the principles of the Report Verification Standard basis of a regular schedule. which may be estimated by independent parties. Data АА1000 Assurance Standard 2003 and Recommendations on Reporting in the Sphere of Sustainability The Company understands the necessity to pro- which cannot be confirmed with documents is not of the Global Reporting Initiative (GRI) of the thirds generation (version G3, Global Reporting Initiative vide timely information in the report since this is con- included into the report. Sustainability Reporting Guidelines 2002). This independent audit report concerns the 2006 Sustainability and Social Development Report (hereinafter referred to as the Report. The Report was prepared by OAO nected with practical benefit received by stakeholders Tatneft Company which is responsible for collection and provision of all the information in the Report. Bureau from the report, that is why publication of the non- Veritas Certification Rus is responsible for the results of the Report verification only to OAO Tatneft within the financial report is carried out with the same periodic- framework of the agreed performance specification and accepts no responsibility for any other estimation ity once a year simultaneously with publication of the or to any third party. financial report.
VERIFICATION FRAMEWORK Clarity Verification framework and method were determined after discussion with Tatneft Company and consisted Information must be disclosed in a form under- of the following: standable and accessible for stakeholders. 1. To verify the Report on the basis of the main principles of standard AA1000 AS: The Company makes every effort to make the • SIGNIFICANCE of presented information about sustainability indicators, information presented in the report clear, understand- • COMPLETENESS of presented information, • RESPONSE to inquiries and remarks of stakeholders; able and useful for various stakeholders, without exces- 2. To verify compliance of the Report with the GRI Recommendations (version G3) for sustainability report- sive and unnecessary details. The report contains ing; a table showing location of issues and indicators 3. To provide recommendations for development of corporate governance within the framework of social in compliance with the GRI Guidelines allowing readers responsibility. At verification of the Report information published on the corporate website of the Company of the report to find necessary data without much effort. www.tatneft.ru was taken into consideration as well as materials of Neft I Zhizn magazine, Neftyanye Vesti The report contains a glossary and a list of abbre- newspaper and various advertising publications. viations explaining scientific and technical terms and abbreviations which may be unclear for a reader. VERIFICATION METHODS The following actions were taken to formulate conclusions: • Interviews with the top managers of OAO Tatneft Company were carried out in order to receive an integral view of significant social and economic, environmental and innovation aspects of the Company activities, intentions, priorities and goals in the sphere of sustainability, means and degree of reaching these goals. • The approach of OAO Tatneft to drawing and taking into account opinions and expectations of stakeholders was analyzed by way of interviewing persons responsible for dialogue with such stakeholders and on the basis of examination of sample of corresponding documentation.
12 13 Company approach to non-financial reporting process ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
INDEPENDENT AUDIT REPORT ON RESULTS INDEPENDENT AUDIT REPORT ON RESULTS OF THE REPORT VERIFICATION OF THE REPORT VERIFICATION
• Sample of documents and data characterizing performance of systems of management of social and eco- AS principles (Significance, Completeness, Response) within the performance specification coordinated nomic, environmental and innovation aspects functioning in OAO Tatneft was inspected. with OAO Tatneft. In the process of verification we analyzed the information provided by the management of • Certificating audit of the system of environmental management, management of professional health and OAO Tatneft and its structural units as well as by representatives of a number of stakeholders. In respect of safety on the basis of international standards ISO 14001 and OHSAS 18001 was carried out. numerical information inserted into the corporate report, the performed work cannot be considered sufficient • Processes of collection, processing, documenting, transfer, analysis, selection and consolidation of data for revealing all possible inaccurate data. subject to inclusion into the Report used in OAO Tatneft were examined.
• Procedure of internal audit of the social reporting process used in OAO Tatneft was checked out. OPINION OF THE AUDIT TEAM • Adequacy of a number of assertions, statements and data presented in the Report was confirmed by way 1. The Report as a whole adequately reflects the indicators of activity of Tatneft Company from the point of of immediate visits to objects of social, production and innovation activity of OAO Tatneft. view of corporate social reporting. • Sample of data of mass media and published statements of third parties characterizing adherence of 2. The Report is written in a clear and understandable form, it is precise, unbiased and informative. Tatneft to its mission and values in the sphere of sustainability was analyzed as reference for checking 3. Tatneft has efficient management systems allowing to identify significant social and economic, environ- validity of statements in the Report. mental and innovation aspects of activities, to manage relating processes, to determine expectations of • The Report and information published in the corporate website were analyzed for compliance with Standard stakeholders in respect of this aspects and to response to them. AA1000 and the GRI recommendations as well as with draft standard AA1000SES. 4. Systems of control of the process of social reporting on the part of the company management are suf- • Provision of accessibility of the Report for all stakeholders and effectiveness of the set feedback mecha- ficiently supported with organizational policy and resources. nism were checked out.
VERIFICATION SCOPE CONSISTENCY OF THE REPORT WITH THREE PRINCIPLES AA1000 AS • Verification was not carried out in respect of performance indicators going out the time boundaries of the Principle 1. Significance of presented information current reporting cycle of 2006. • The Report provides a balanced account of significant social and economic, environmental and innovation • Verification was carried out for the segment “prospecting and development” and did not include the aspects of activity determining the sustainability indicators of Tatneft Company (see the Report section segments “oil refining and sales of oil products” and “petrochemistry”. “Contents”). • Verification did not include attendance in Tatneft’s events in the framework of dialogue with stakeholders. • The Company has determined its approach to defining substantial issues subject to coverage in the Report • Verification did not take into account statements expressing opinions, beliefs or intentions of OAO Tatneft (see the Report section “Approach to the Process of Non-financial Reporting”). to undertake any actions in future. • The Report covers the vast majority of the GRI basic performance indicators applicable to the Company. • Verification at the operational level was restricted with visits to the following objects of the Company: oilrig, • The information presented in the Report and on the corporate site is significant for stakeholders since it may center of stock-taking of finished products of OGPD Almetyevneft, data processing center, personnel influence their future decision and behavior in respect of the Company. training center and training rounds, youth center, Yan sanatorium and primary classical school of OGPD • The Report contains sufficient information about the Company observance of the Russian legislation, Yamashneft, downhill skiing and tennis complexes, Almetyevsk State Oil Institute, sports and social objects regulations and industry standards for oil-producing sphere, international standards and own responsible of Almetyevsk. Dialogues with stakeholders included interviews with representatives of trade unions and business code. Veteran Council. Principle 2. Completeness of reporting • Proceeding from analysis of the Report data and carried out interviews we cannot name any significant BASIS FOR OUR OPINION sustainability aspect identified by the Company which is missing or unreasonably excluded from the report Due to lack, at the present moment, of final recommendations of AccountAbility Institute (developer of by the company management. AA1000 AS) in respect of verification levels at using Standards AA1000 AS the goal of our work was to pres- • The fact that the Report does not contain detailed information about some GRI performance indicators is ent grounded but not absolute verification. The data collected in accordance with the said methods and connected with the fact that at the present moment these issues are of less significance for stakeholders or within the above boundaries is a sufficient basis for formation of conclusion in respect of each of AA1000 their contribution is negligibly small in comparison with the principal activities of the Company.
14 15 Company approach to non-financial reporting process ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
INDEPENDENT AUDIT REPORT ON RESULTS INDEPENDENT AUDIT REPORT ON RESULTS OF THE REPORT VERIFICATION OF THE REPORT VERIFICATION
• The presented information about significant aspects of sustainability of the Company is sufficiently com- STATEMENT OF BUREAU VERITAS CERTIFICATION RUS ABOUT INDEPENDENCE, plete in key reporting directions. OPEN-MINDEDNESS AND COMPETENCE ZAO Bureau Veritas Certification Rus is an independent professional company specializing in provision of Principle 3. Response to expectations of stakeholders services in the sphere of accredited certification of various management systems (in particular systems of • Local authorities and population: Response to the needs of the region is carried out by way of financing a management of quality, professional health and safety, environmental activity, social responsibility, etc.). wide range of social projects. Here special attention is paid to children, retired employees and veterans of Bureau Veritas Certification carries out its activities in all its units in accordance with the Ethics Code. All its World War II. employees keep to high ethical standards in their day-to-day activity and make all necessary effort to avoid • Employees: Interest and expectations are taken into consideration by way of adoption of the Collective conflict of interests. Agreement between OAO Tatneft and the trade union committee. Bureau Veritas Certification Rus has a team of auditors providing systematic services of verification of social • Civil society: The right for favorable environment is ensured with nature conservation activity of the reports and possessing extensive experience in the sphere of estimation of compliance of information, Company within the Environmental Program of OAO Tatneft for the Period 2000-2015. In 2006 expenditures systems and processes in the sphere of quality, labor protection, industrial safety, environment and social for nature conservation activity exceeded 4.6 billion rubles which is by 20% more than in 2005. responsibility. Actions and conclusions of auditors are based both on the requirements of the corresponding • Shareholders: Opinions and expectations are taken into consideration by way of implementation of the standards and on coping with the best world expertise in the sphere of audit and estimation of compliance corporate governance principles of OAO Tatneft including annual general meetings of shareholders. of corporate social reporting. • Consumer (Transneft): Requirements are covered with planned supplies of oil of guaranteed quality. Bureau Veritas Certification Rus officially states that the present Report provides independent estimation of an independent auditor (“third” party audit). COMPLIANCE OF THE REPORT WITH GRI RECOMMENDATIONS The Report is prepared using the GRI recommendations for reporting in the sphere of sustainability and contains Bureau Veritas Certification Rus has no significant and commercial interests in activities of OAO Tatneft aside information practically on all significant elements and GRI performance indicators (coverage over 90%). The from the provided audit services. level of appliance of reporting corresponds to criterion B+. The basic information demonstrating activity of the Company is supported with all necessary data collected in accordance with the audit methodology. Separate examples and numeric data are confirmed by way of compari- son with available sources. In whole the Report verification level may be considered as “positive”. ZAO Bureau Veritas Certification Rus Georgy Klenov
RECOMMENDATIONS FOR SOCIAL REPORTING CORPORATE MANAGEMENT May 16, 2007 Leading Auditor • Improvement of the non-financial reporting management system. • Scheduling and documenting of dialogues with stakeholders. • Development, in cooperation with stakeholders, of the list of performance indicators reflecting the specific character of the oil sector. • Development of the criteria of estimation of efficiency of social programs and projects of the Company. • Improvement of the system of internal audit of social reporting with publication of the audit results in the report of the current cycle. • More complete reflection of comments of stakeholders on the Report of the current cycle in reports of the subsequent cycle.
16 17 298.9 285.0
261.1
about ‘04 ‘05 ‘06 The total amount of social payments to employees of OAO The total Tatneft under the million Collective Agreement amount of social299 (million rubles) payments rubles to employees of OAO Tatneft under the Collective Corporate responsibility Agreement and interaction with stakeholders amounted to CORPORATE RESPONSIBILITY AND INTERACTION WITH STAKEHOLDERS
SOCIAL RESPONSIBILITY OF TATNEFT
SHAREHOLDERS SOCIAL DYNAMIC GROWTH AND DEVELOPMENT EFFICIENCY OF ACTIVITY RESPONSIBILITY OF THE COMPANY OF TATNEFT
INCREASE OF CAPITALIZATION MAINTAINING REPUTATION OF HI-TECH AND RELIABLE COMPANY
PARTNERS FOLLOWING THE ETHICAL PRINCIPLES FAIR COMPETITION OF THE COMPANY PRINCIPLES OF CORPORATE The Company is responsible: SOCIAL RESPONSIBILITY to its shareholders: • for dynamic growth and development TIMELY AND PROPER FULFILLMENT The Company interacts with a wide range of the Company; OF CONTRACT TERMS AND CONDITIONS of stakeholders. The basis for determination • for increase of its capitalization; of key stakeholders is analysis of degree • for efficiency of its activity; of influence which is produced on the Company • for maintaining the reputation of hi-tech activity by this or that stakeholder as well and reliable Company; EMPLOYEES as analysis of influence of products of the to its employees: PROVISION OF ADEQUATE LIVING PROVISION OF SOCIAL GUARANTEES Company on its stakeholders. The most sig- • for provision of adequate living standards; STANDARDS nificant ones among them are: investors and • for opportunity for personal and professional shareholders, employees, consumers of prod- development;
ucts and services, state authorities, suppliers • for provision of social guarantees; OPPORTUNITY FOR PERSONAL SAFETY OF WORK PLACES and business partners, mass media and public • for safety of work places; AND PROFESSIONAL DEVELOPMENT institutions, residents of the regions of activity. to its consumers: Corporate social responsibility means that OAO • for provision of high quality goods and services; Tatneft carries out its activity taking into account inter- • for permanents improvement of quality ests of key stakeholders and basing on the following of products; REGIONAL FAVORING SOCIAL AND ECONOMIC ASSISTANCE IN DEVELOPMENT AND LOCAL fundamental principles set in the Code of Corporate • for aspiring to follow changing demands DEVELOPMENT OF THE REGIONS OF EDUCATION, CULTURE AND SPORT COMMUNITIES Culture: of consumers; OF ACTIVITY to act in accordance with the legislation; • for provision of reliable information about to be responsible partner of the state; products of the Company; to protect shareholders’ rights; to its business partners: COMPETENT AND EFFICIENT NATURE SUPPORT OF SOCIALLY MANAGEMENT VULNERABLE STRATA to value and to respect employees; • for following the ethical principles of the to inform openly its shareholders, customers Company; and employees about its activities; • for timely and proper fulfillment of contract to act in accordance with the highest ethical terms and conditions; ENVIRONMENT PROTECTION standards; • for fair competition; to be intolerant to corruption and bribery; to people of Tatarstan, Russia and world to use resources with maximum efficiency; community: to use up-to-date technological achievements; • for favoring social and economic development of the regions of activity; CONSUMERS to care about environment protection; PROVISION OF HIGH QUALITY GOODS PERMANENTS IMPROVEMENT to cooperate with public institutions; • for competent and efficient nature manage- AND SERVICES OF QUALITY OF PRODUCTS to strive for each employee to be sincerely proud ment; to work in the Company. • for environment protection; The Corporate social responsibility principles • for assistance in development of education, ASPIRING TO FOLLOW CHANGING DEMANDS PROVISION OF RELIABLE INFORMATION of OAO Tatneft are integrated into activity of the culture and sport; OF CONSUMERS ABOUT PRODUCTS OF THE COMPANY Company and are crucial at taking significant manage- • for support of socially vulnerable strata. ment decisions.
20 CORPORATE RESPONSIBILITY AND INTERACTION WITH STAKEHOLDERS ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
NON-FINANCIAL RISK NON-FINANCIAL RISK MINIMIZATION SYSTEM
NON-FINANCIAL RISK MANAGEMENT CORPORATE SHAREHOLDERS NON-FINANCIAL RISKS OAO TATNEFT INTERACTION MECHANISMS STANDARDS GOVERNANCE RISKS, REPUTATION RISKS The Company includes into non-financial risks social, personnel, reputation risks, corporate management risks, business partnership risks and other risks aris- INTERACTION SOCIAL RISKS CORPORATE STANDARDS ing in interaction with key stakeholders — state WITH LOCAL AUTHORITIES IN THE SPHERE OF SOCIAL authorities, shareholders, employees, business part- PERSONNEL RISKS EMPLOYEES AND LOCAL POPULATION RESPONSIBILITY ners and regional community, products and services consumers. INTERACTION WITH SHAREHOLDERS CORPORATE GOVERNANCE RISKS CORPORATE GOVERNANCE The Company carries out non-financial risk man- AND INVESTORS AND INFORMATION DISCLOSURE STANDARDS agement through systematic interaction with stakehold- ers, regularly tracking their interests, timely determina- BUSINESS BUSINESS PARTNERS tion of risk situations, search for mutually beneficial PARTNERSHIP RISKS INTERACTION WITH REGULATING ENVIRONMENTAL RISKS CORPORATE STANDARDS solutions, introduction of corresponding changes in the BODIES AND PUBLIC INSTITUTIONS IN THE SPHERE OF ENVIRONMENTAL AND INDUSTRIAL SAFETY Company activity. An important decision in risk manage- ment of the Company was introduction of the uniform system of corporate governance standards — uniform INTERACTION BUSINESS PARTNERSHIP RISKS CORPORATE STANDARDS WITH BUSINESS PARTNERS REGULATING INTERACTION WITH policies, regulations, conditions, procedures and uni- STATE STATE BUSINESS PARTNERS AND ENSURING form approaches to their implementation. For each risk ADMINISTRATION PRODUCT AND SERVICE QUALITY RISKS group a definite set of corporate standards designed to minimize possibility of their appearance was deve- INTERACTION WITH STAKEHOLDERS REPUTATION RISKS CORPORATE STANDARDS loped and implemented. AND MASS MEDIA OF BUSINESS ETHICS, INFORMATION DISCLOSURE State regulation risks are conditioned with the AND UNIFIED CORPORATE STYLE possibility of adoption of regulating decisions resulting REPUTATION RISKS CONSUMERS in growth of operation costs of the Company. Methods INTERACTION WITH STATE STATE ADMINISTRATION RISKS MONITORING OF LEGISLATION, to minimize theses risks include monitoring of the AUTHORITIES AT FEDERAL DEVELOPMENT OF AMENDMENTS existing legislation and legislative initiatives influenc- AND REGIONAL LEVELS AND PROPOSALS, REPRESENTATION IN INDUSTRY AND REGIONAL ing the Company activity, organization of meetings, INSTITUTIONS consultations, conferences with deputies of the State REGIONAL RISKS REGIONAL Duma, participation in theme conferences, parliament (SOCIAL AND COMMUNITIES INTERACTION PERSONNEL RISKS CORPORATE STANDARDS ENVIRONMENTAL) hearings, publishing of analytical materials with the own WITH TRADE UNIONS OF HR MANAGEMENT AND SOCIAL position in mass media. AND EMPLOYEES RESPONSIBILITY As an example it is possible to consider joint activ- ity of the Company with state authorities for differentia- tion of the mining operations tax (MOT) rate depending
22 23 CORPORATE RESPONSIBILITY AND INTERACTION WITH STAKEHOLDERS ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
In order to lower reputation risks the Company has of working-out of oilfields and viscidity of produced introduced corporate In order to minimize risks connected with behav- INFORMATION POLICY oil. Since the major part of the confirmed reserves ior of business partners, development of competitive of OAO Tatneft concentrated mainly in the territory standards for all key environment a complex of corporate standard regulat- Tatneft Company implements information poli- of the Republic of Tatarstan consists of low-productive ing relations in this sphere– Standard of Procedure of cy based on the following principles: high-viscous and high-sulfur oils, it was very impor- business processes Registration of Suppliers of Goods (Work, Services), equal accessibility of information for all sharehold- tant for the Company that the state introduced tax Standard of Pre-Tender and Post-Tender Activity for ers, investors and other stakeholders; preferences meant for stimulation of oilfield develop- and ensures efficient Organization of Supply of Inventory Holdings, Standard periodicity and timeliness of information provision; ment. The Company participated actively in preparation of Claim Activity in OAO Tatneft, Standard of Material reliability and completeness of information; of analytical materials for the concept of differentiation control over their Support, Standard of Relations of Customers and efficiency and accessibility of disclosed informa- of the MOT rates, in activities of the Coordinating Providers of Transportation Services, Methodological tion; Council of Fuel and Energy Complex and in vari- Recommendations for Tenders for Purchase of Inventory observance of confidentiality in respect of informa- ous activities carried out by legislative and executive implementation. Holdings, etc — was developed. tion forming state, office or commercial secret and authorities for this topic. In the result of long work for In order to lower reputation risks the Company control of use of insider information. perfection of the subsoil-use legislation on June 27, has introduced corporate standards for all key business The information policy principles, procedure 2006 the State Duma adopted, and on January 1, 2007 aimed at health improvement and social protection processes including information disclosure and ensures of disclosure and provision of information are deter- put into force the federal law on differentiation of the of personnel, etc. efficient control of their implementation. Constructive mined in the Regulations of Information Policy mining operation tax. It means that oil production at the Regional risks include social and environmental relations with mass media are being formed; regular of OAO Tatneft (www.tatneft.ru/info/polozhnia.htm) Company’s oilfields exhausted for more than 80% is risks. The first ones are connected with social situations press conferences are being held. Placement of information on the official website subject to taxation with application of the lowering coef- in the regions of activity, the latter ones — with influence of OAO Tatneft provides shareholders, investors and ficient to the MOT rate. Decrease of tax burden will allow of production activity of the Company on environment. other stakeholders with the possibility to receive the our Company to direct released funds to activities for In order to minimize social risk factors the Company most complete information about activities of the extension of the profitable period of oilfield operations, implements a project for support of small and medium- Company, its subsidiaries and affiliates. additional prospecting of exhausted resources, and scale business, social programs aimed at development Under the Board of Directors of OAO Tatneft engagement in development of low-productive sites of education, culture, sport, interacts regularly with there is the Disclosure Committee estimating informa- and, as a result, increase of oil extraction coefficient. local authorities and local population. tion disclosure mechanisms and disclosure procedures The Company includes into personnel risks pos- Methods of decrease of environmental risk fac- in the Company. The Committee is responsible for sibility of undesirable events in social and employment tors include introduction of corporate environmental compliance of the corporate policy of information sphere: shortage of skilled personnel, risk of damage and industrial safety standards, organization of efficient distribution with the existing legislation and internal or accident through the fault of an employee, profes- control of their implementation and regular interaction corporate standards of the Company. sional diseases, etc. These risks may be conditioned with regulating and public institutions on environmental both with external factors such as demographic and issues. The important factor of lowering environmental social problems in the region and by internal fac- risks is implementation of the integrated manage- tors such as imperfection of HR policy at personnel ment system in the sphere of industrial safety, labor selection, placing and training. In order to prevent protection and nature and its certification in 2006 for personnel risks the Company developed a complex compliance with international standards ISO 14001 and of corporate standards in the sphere of HR manage- OHSAS 18001. ments regulating hiring and discharge of employees, training and evaluation of professional skills, proce- dures of awarding of employees, work with young per- sonnel, implementation of internal social programs
24 25 CORPORATE RESPONSIBILITY AND INTERACTION WITH STAKEHOLDERS ОАО «ТАТНЕФТЬ» ОТЧЕТ ОБ УСТОЙЧИВОМ РАЗВИТИИ И СОЦИАЛЬНОЙ ОТВЕТСТВЕННОСТИ 2006
METHODS OF INTERACTION WITH STAKEHOLDERS
SHAREHOLDERS AND OAO TATNEFT INVESTORS GENERAL MEETING OF SHAREHOLDERS MEETINGS WITH VISITING PRODUCTION OBJECTS
ANNUAL REPORT INVESTMENT SUMMITS
CORRESPONDENCE, ANSWERS TO INQUIRIES NEGOTIATIONS
FORUMS: EXHIBITIONS, ROUND TABLES, PLACEMENT OF ESSENTIAL INFORMATION PRESENTATIONS IN CORPORATE WEBSITE
TRADE UNION JOINT DEVELOPMENT OF COLLECTIVE INTERACTION WITH TRADE UNION INTERACTION The Company adheres to the principle of open- AGREEMENT (CONCILIATION COMMISSION) AUTHORIZED REPRESENTATIVE FOR LABOR PROTECTION WITH STAKEHOLDERS ness at taking corporate decisions. For this purpose
the Board of Directors has approved the Regulations JOINT LABOR PROTECTION COMMITTEE REGULAR MEETINGS, CONFERENCES Corporate social responsibility is considered by the of Information Policy of OAO Tatneft containing the Company as systematic activity including selection procedure, forms and volumes of disclosure of infor- JOINT LEGAL COMMISSION JOINT ACTIVITIES (CULTURAL, SPORTS, ETC.) and use of methods of optimum interaction with key mation about the Company and its subsidiaries and stakeholders resulting in mutually beneficial decisions. affiliates. Within the set periods all essential information The Company regularly studies opinions of key stake- including reports about material facts including deals BUSINESS PARTNERS holders by way of questioning and consultations, varies with the Company assets, quarterly and annual reports BUSINESS MEETINGS, CONFERENCES CLOSED TENDERS out interaction with them in the form of negotiations, of issuers is placed in the section Information Disclosure meetings, working group for solving particular ques- on the official corporate web portal. WORKING VISITS ADVERTISING tions and permanent commissions, etc. For each group concerned its own methods of informing, feedback and Interaction with employees interaction have been developed and implemented. At present the aggregate number of employees NON-FINANCIAL REPORTING Interaction with shareholders of Tatneft Group is 109,381 persons including 42,378 persons in structural units, 9,057 persons — in subsid- Interaction with shareholders iaries, personnel of affiliates is 57,946 persons. EMPLOYEES MEETINGS OF PERSONNEL CORPORATE NEWSPAPERS: Interaction of the Company with shareholders is 10,636 persons are employed at enterprises of the NEFTYANYE VESTI AND KHAZINE carried out by way of regular general meetings of share- Company located in the Russian Federation outside the holders. Shareholders have the right to be present at Republic of Tatarstan, 124 persons — in Ukraine. SOCIOLOGICAL POLLS CORPORATE MAGAZINE NEFT I ZHIZN meetings personally or through their representatives 30% of personnel are women. 19.3% of personnel with transferring to them their votes. The form of inform- are young people under 30 years. CORPORATE WEB PORTAL CORPORATE TV BROADCASTS: ing shareholders and investors is preparation and dis- 100% of top managers in main regions of activ- VREMYA TATNEFTI AND TATNEFT-INFORM tribution of annual and non-financial reports, publishing ity are local residents; 99.9% of employees of the of press releases about significant events. Besides, the Company are local residents REGIONAL COMMUNITY Company practices meetings of the Company manage- The system of intra-corporate communica- JOINT PROGRAMS WITH ADMINISTRATIONS NON-FINANCIAL REPORTING ment with analysts and investors with visiting produc- tions is operating and constantly improving in the OF SETTLEMENTS tion facilities, participates in negotiations, exhibitions, Company; it ensures timely and impartial informing of PARTICIPATION IN PUBLIC COMMISSIONS PUBLICATIONS IN REGIONAL MASS MEDIA seminars and conferences, investment summits, round employees on issues connected with activities of OAO tables, organizes presentations, teleconferences, road Tatneft. Employees learn about significant events in the shows around world financial centers. Company life from corporate mass media: Neftyanye SOCIOLOGICAL POLLS OF POPULATIONS MEETINGS OF THE COMPANY MANAGEMENT WITH VETERANS, STUDENTS AND OTHER For prompt interaction with shareholders within Vesti and Khazine newspapers, Neft I Zhizn magazine, SOCIAL GROUPS the Securities Office of the Property Management TV broadcasts Vremya Tatnefti and Tatneft-Inform. Department of OAO Tatneft there is a group for Especially for employees the Company created the OTHER ENTERPRISES PF THE relations with shareholders and investors as well internal corporate portal containing a huge data base, INDUSTRY REPRESENTATION AND PARTICIPATION PARTICIPATION IN THEME MEETINGS, IN INDUSTRY ORGANIZATIONS CONFERENCES as a depositary and registrar group and a group of analytical and training materials connected with activity securities and accounting and dividend payment. of Tatneft and the oil and gas production industry of the Specialists of these groups exchange correspon- Russian Federation and the CIS. The corporate portal NON-FINANCIAL REPORTING dence with shareholders, answer their inquiries and contains news, analytical reviews, software manuals hold meetings. and other useful information. The portal is actively used
26 CORPORATE RESPONSIBILITY AND INTERACTION WITH STAKEHOLDERS ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
OAO Tatneft manage- ment has established
2.2 1.0 and is maintaining 18.3 32.9 for solution of these or those production issues. Main fields of activity of the trade union orga- Besides, the sociological service of the Company nization of OAO Tatneft are: conclusion and control constructive relations carries out topical polls aimed at receipt of estimation over fulfillment of the Collective Agreement, control 20.9 of medical service in clinic, sanatoria and health resorts over observance of the labor protection legislation, AGE STRUCTURE with the trade union OF EMPLOYEES of the Company, on issues of implementation of the protection of labor and social rights of employees, OF THE PARENT program of non-governmental provision of pensions health-improving and mass sports activities in labor COMPANY IN 200 of the Company emplo- 24.7 (%) and the project of address assistance to retired collectives. employees. For several years the Company has been The result of joint activity of the Company manage- below 20 years yees, based on principles 21-30 years tracking opinions and estimations of young employ- ment and the trade union is the Collective Agreement 31-40 years ees through monitoring “Young Oil Industry Worker: which is being adopted annually starting from 1992. 41-50 years What Are They? What Does Make Their Lives? What The Collective Agreement covers all employees of the of social partnership. 51-0 years over 0 years Are They Striving For?”. Their results are discussed Company. at annual youth conferences of OAO Tatneft. Thus, Discussion of the Collective Agreement starts 6.6 at the 7th annual conference of young employees in primary organizations: each Company employee The labor protection committee consisting 5.6 5.4 5.5 of OAO Tatneft in 2006 issues and proposals of young has the right and opportunity to participate in this of representatives of the Company and the trade union employees included mainly the following spheres process. At the stage of consideration of received on parity basis has been operating since 1997. of social policy: further training and professional proposals the conciliatory commission consisting Authorized representatives of the trade union take part development of young people, implementation of the of representatives of the Company management and in labor protection public control at work places. social mortgage program, social benefits and guar- the trade union takes decisions about amendments Joint activity with the trade union includes also PERSONNEL TURNOVER antees, organization of sports and cultural activities. in the Collective Agreement on the basis of their signifi- implementation of the dwelling program and program IN OAO TATNEFT (%) cance for employees. of health improvement of employees, organization Interaction with the trade union Through interaction with primary trade union orga- of summer rest of children of employees, implemen- 2003 2004 2005 2006 The Company pays great attention to preserva- nizations the trade union committee studies general tation of the project of address assistance to retired tion favorable social situation in labor collectives, takes feeling of employees, acuteness of social problems, employees, mass cultural and sports and health- necessary measures to regulate social and labor rela- labor conditions at work places. When issues arise, improving activities. by employees of the Company — the number of infor- tions. In this connection OAO Tatneft management has correspondent working groups are established; their In 2006 the Company continued to optimize the mation inquiries is 30,000 per week and the number established and is maintaining constructive relations members converse with workers and specialists imme- business structure, in particular by way of exclusion of active users exceeds 3,000. According to the ques- with the trade union of the Company employees, based diately at work places, prepare information for consid- of service units from primary production and estab- tioning of the corporate portal users 84% of respon- on principles of social partnership. eration at meetings of the trade union committee. lishment of new enterprises on their basis. The actual dents estimated the portal as «excellent» and «good» The trade union organization of OAO Tatneft The legal commission consisting of representa- issue connected with restructuring is the issue of pres- from the point of view of urgency and significance encompasses of 74 primary trade union organizations, tives of the trade union and the Company management ervation of jobs and social guarantees to employees of information presented in it. 675 workshop trade union organizations and 2,200 was established in OAO Tatneft in order to strengthen transferred to newly established structures. In accor- The methods of feedback with employees trade union groups. The total number of trade union activities in the sphere of legal protection of employ- dance with the Standard of Procedure and Principles include both traditional forms of communication members is over 112,000 persons including 27,425 ees. In June 2006 operation of a legal reception room of Reforming Structural Units and Reorganizing (meetings of personnel, meetings with the Company young employees, 2,473 students of Almetyevsk State was organized directly at enterprises. The majority Subsidiaries primary trade union organizations cover- management) and regular sociological polls. Results Oil Institute and 28,803 non-working pensioners. 99.7% of questions asked by employees are connected with ing 11,600 employees were timely created in all newly of polls allow to monitor the level of satisfaction of the Company employees are trade union members. implementation of the social mortgage program in the established enterprises. of employees with labor conditions, social and This is the highest indicator both in the Russian Oil, republic of Tatarstan, possibility to receive a loan for Information and methodological provision of trade psychological situation in collectives, relationship Gas and Construction Workers’ Union and in the Trade housing construction in the country and the remunera- union activists is carried out by way of Tribuna monthly with management, etc. and to receive proposals Union Federation of the Republic of Tatarstan. tion system. information bulletin published in 800 copies. It pub-
28 29 CORPORATE RESPONSIBILITY AND INTERACTION WITH STAKEHOLDERS ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
lishes decisions of higher trade union bodies, trade dure of selection of suppliers is implemented by way 4,000 supplying firms from various cities of the Russian ments mandatory at servicing customers and is aimed union committee of OAO Tatneft, materials considered of a closed tender on the basis of the Regulations Federation and from abroad are registered at the at establishing efficient communication with them. at the joint committee, explanations of the trade union of Bids (Tender) for Placement of Orders for Supply Purchase site; the number of submitted commercial Tire product quality is ensured not only with strict position in these or those important events of public of Goods, Execution of Work and Provision of Services offers is up to 1,200 per month. output control but with control at all stages of tire pro- life of the country, certain decisions of the Government for OAO Tatneft. Within the framework of interaction with business duction including the stages of tire designing, opera- of Russia; information about the trade union commit- In order to determine reliability of a possible sup- partners the Company organizes and participates in tions with raw material suppliers, ensuring preciseness tee activities, legal consultations and consultations plier of goods and work (services) all potential partici- business meetings and conferences, working visits, and stability of technological processes as well as stor- on observance of the existing legislation in the sphere pants in a tender must undergo qualification selection. carries out presentations and excursions to produc- age and shipment of finished products. Effectiveness of labor protection. There are the following selection criteria for suppliers: tion facilities. of the control system is confirmed with certificates of In all structural units and subsidiaries in accessible experience of a supplier in the market; conformity of the quality system with international stan- places there are stands “Trade Union Life”. They contain production facilities and availability of skilled per- Responsibility for products dard ISO 9001. Compliance of tires with state standards information about activities of the trade union organiza- sonnel for supply of goods and work (services) and interaction with consumers and international requirements is confirmed with certifi- tion: trade union committee members and schedule, in needed volumes; Contemporary market conditions determine the cates of conformity in the GOST system and UNECE. Collective Agreement, current information as well as financial condition; primary objective of OAO Tatneft — increase of interac- In order to establish feedback with consumers phone numbers of managers and leading specialists of business reputation. tion quality and establishing long-term relations with OAO Tatneft carries out regular express polls of cus- the trade union committee of OAO Tatneft. Tender offers of suppliers must comply with consumers. In creation of the competitive advantage of tomers about their satisfaction with product quality Joint activity of management of the Company tender requirements in technical characteristics and the Company the bigger role is being played by the fine- and service level. Express polls allow the Company and the trade union organization in 2006 was highly composition, in quality and completeness, terms tuned system of product quality control, high servicing to react properly to changing demands of customers and appreciated by the Presidium of the Russian Oil, Gas of delivery, payment conditions, guarantee liabilities, level and informing of customers. to adjust its strategy accordingly. and Construction Workers’ Union Council. Collective warranty conditions, service type, etc. An application In its activity the Company is guided by the Agreements of OAO Tatneft and OOO Tatneft-Bureniye of an aspirant for supply of goods and work (services) Regulations of Product Quality Control. Oil product Interaction with local community were acknowledged the best ones among enterprises not complying with the necessary requirements may quality control is carried out along the whole production The Company regularly informs local population of the oil and gas industry of Russia. Within the frame- be rejected from a tender with mandatory reasoning chain controlled by the Company: from acceptance and about issues significant for it by way of publishing infor- work of the contest for best organization of labor protec- of such rejection. storage of oil products to shipment and sales through mation in regional mass media. tion the following units of the Company were recognized At selection of suppliers those of them have pref- filling stations. Everything is being done to exclude all For the most effective information provision the as leaders: OGPD Jalilneft, Tatneftegazpererabotka erences which present better terms and conditions factors — both human and technological — which may press service of the Company arranges quarterly press Department, TatAISneft Department, ACPSB ESP. for supply of goods in their tender offers. Selection of worsen quality of products for sale. conferences with participation of the General Director tender winners is carried out under the following crite- In order to increase informing consumers about of OAO Tatneft. Interaction with business partners ria: price and quality of the goods, delivery terms and products and services characteristics, OAO Tatneft The Company pays much attention to its exter- OAO Tatneft interacts with business partners conditions, delivery period. uses the following documents: nal representation in the Internet. The official website including suppliers, contractors and customers on the The share of purchases from suppliers of the oil product quality certificates; of OAO Tatneft is used as one of main sources of infor- basis of honesty, respect, justice, openness and good Republic of Tatarstan in 2006 was 35%. oil product quality passports; mation about the Company for large audience of visi- faith. With respect to ethical principles of its partners An example of efficient use of up-to-date IT tech- certificates of conformity (with type of activity tors in the Russian Federation and abroad. conditioned, among other reasons, with cultural and nologies and their implementation in the marketing and provided services). In order to study estimations of population and other differences OAO Tatneft prefers those business policy of the Company is the project of the “Electronic Another form of informing consumers about to ensure more efficient social policy in the territory partners which adhere to the norms and rules of busi- Purchase Site of OAO Tatneft”. The main objective of product quality and characteristics is the Consumer’s of activity of the Company annual sociological polls are ness ethics accepted in the Company. the project is to expend geography and range of goods Corner. carried out. The poll of 2006 was aimed at determining The Company employees interacting with cus- of suppliers for tenders organized by OAO Tatneft. The Customer Servicing Charter of the Company the degree of awareness of population about social tomers, suppliers, contractors act in a manner allow- The system allows selection of the most com- furthers improvement of the culture of servicing cus- programs implemented by the Company and estima- ing avoidance of conflict of interests. The proce- petitive offers for tenders. At the present moment over tomers at filling stations; it contains basic require- tion of usefulness of these programs, at determina-
30 31 CORPORATE RESPONSIBILITY AND INTERACTION WITH STAKEHOLDERS ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
tion of social problems requiring immediate solution. Since 2006 OAO Tatneft has been a member of the in the sphere of mineral resource mining, legal ensuring tification of marketologists in the Russian Federation, The poll showed that over 90% of respondents were Non-profit Partnership Russian Mining Operators. interests of the Russian Federation in connection with organization and holding of international conferences well-informed about social programs of the Company. The Partnership actively cooperates with the joining the WTO. Besides, the UOGI took active part and exhibitions, holding All-Russian contest Marketing The highest awareness of respondents was recorded Governmental Commission on FEC and Reproduction in multiple domestic and international oil and gas 2007, participated in organization and work of the 11th in respect of programs aimed at development of physi- of Mineral Raw Material Base, Council for forums and other events. Petersburg International Economic Forum. cal training and sport — 98%. According to the poll Competitiveness and Entrepreneurship of the The Company is a founding member of the 95.2% of respondents believe that OAO Tatneft pro- Government of the Russian Federation, Russian Moscow International Oil Club (MIOC). Since 2002 OAO Tatneft has been a member duces positive effect on social and economic develop- Trilateral Commission for Regulating Social and Labor The Club regularly organizes meetings with repre- of the Non-profit partnership Russian Institute ment of the region. Relations, Russian Chamber of Commerce and Industry, sentatives of state authorities, regional administrations of Directors (RID). Coordinating Council of Employers of Russia. In 2006 and Russian public. Establishing and development In 2006 the Russian Institute of Directors jointly the Partnership organized several meetings with the of working cooperation between Russian and foreign with the Association of Managers of Russia and with REPRESENTATION IN INDUSTRY country leaders, heads of federal ministries and agen- energy companies is being carried out. support of the Association for Protection of Investors’ AND PUBLIC INSTITUTIONS cies (M.Ye. Fradkov, S.M. Mironov and others) on par- Rights, the RUIE and Chamber of Commerce and ticular issues of ensuring effective functioning of mining Since 1999 the Company is a member of the Industry of the Russian Federation held the 4th National Representation of the Company in industry organizations. Two meetings of the Highest Mining Union of Oil Exporters of Russia (SONEK). Congress of Corporate Directors. Within the frame- and public organizations is conditioned with Council with participation of profile committees of the SONEK participated in preparation of regulations work of the joint project with Agency for International the Regulations of Participation of OAO Tatneft Russian Chamber of Commerce and Industry, Russian “On Safety of Processes of Oil and Gas Production, Development (USAID) the RID held the international in Public Organizations. The Regulations were Union of Industrialists and Entrepreneurs, Academy Transportation and Storage”, “On Safety of Trunk conference “Three Years of Development of Corporate adopted in order to coordinate interaction with of Mining Sciences were held to discuss issues of state Pipeline Transport, Intra-field and Local Distribution Management of Russia”, participated in the annual All- public organizations and to form centralized and corporate policy in the sphere of development Pipelines”. Under the initiative and with direct participa- Russian Conference of Professional Participants in the recording of participation of the Company of the fuel and energy complex and problems of its tion of SONEK consideration of issues of correction Securities Market, regional investment forums of the in public organizations. implementation, priority objectives of investment policy of customs cost, ensuring payment of customs charges institute of directors “Securities Market”, etc. in the raw material complex, and others. and other issues took place within the framework General Director of OAO Tatneft Sh.F. Takhautdinov of the Advisory Council at the Federal Customs Service Since 1998 OAO Tatneft has been a member of the has been a member of the Board of the Russian Union Since 1994 OAO Tatneft has been a member of the Russian Federation. In the first quarter of 2007 Non-profit partnership Russian National Committee of Industrialists and Entrepreneurs (RUIE) since of the Union of Oil and Gas Industrialists of Russia. proposals for issues of changing conditions of deter- of the World Petroleum Council (RNC WPC). In 2006 2003. In May 2006 the Committee for Energy Safety, General Director of OAO Tatneft Sh.F. Takhautdinov is a mination of customs rates, development of normative Deputy General Director of OAO Tatneft A.F. Yagafarov Energy Efficiency and Development of FEC (Fuel & member of the Board of the UOGI. documents regulating activity of officers of the Central was elected a member of the permanent council of the Energy Complex) Industries was formed within the The Union stands for formation and implementa- Energy Customs and some others were prepared with RNC WPC. RUIE. Deputy General Director of OAO Tatneft A.F. tion of the ideology of the uniform corporate policy. The participation of companies — members of SONEK. In 2006 the RNC participated in the Moscow Yagafarov was approved a member of this Committee. strategic goal of the UOGI is furthering soon adoption SONEK participated in development of proposals for international exhibition Oil and Gas 2006. During the In 2006 issues of competition protection, land and of the Oil Code of the Russian Federation, the Gas state regulation of oil refining including differentiated exhibition the international conference “International tax reforms, development of corporate non-financial Code of the Russian Federation, federal laws On Trunk excises taxes depending on quality of oil products. Standardization: Way to Increase Economic Efficiency reporting, implementation of projects in the special Pipeline Transport and others. In 2006 members of the of Enterprises of Oil and Gas Industry of Russia”. economic zone in the territory of Yelabuga District UOGI took part in the round table in the Federal Council Since 1997 OAO Tatneft has been a member of the Republic of Tatarstan and a number of other on the State Policy in the Sphere of Industrial Safety of the Non-profit organization Russian Marketing Since 2006 OAO Tatneft has been a member issues were considered at meetings of the Board of the of FEC, in parliament hearings in the State Duma on Association (NO RMA). of the Russian Union of Machine-Builders (RUMB). RUIE. Members of RUIE participated in joint meetings issues of increasing environmental safety and technical In 2006 NO RMA was engaged in promotion The Union was established for assistance to sus- with boards of federal ministries, international eco- and economic efficiency of oil and gas production, leg- of marketing in small, medium and large-scale busi- tainability of Russian machine-building, participation nomic forums and conferences. islative ensuring of implementation of priority projects ness, development of the system of professional cer- in development of federal target programs and nation-
32 33 CORPORATE RESPONSIBILITY AND INTERACTION WITH STAKEHOLDERS ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
al projects for support of Russian machine-building, In accordance with the results of the 1st round the program Promotion of Quality of the International Conservation Policy”, OAO Nizhnekamskshina was pursuing efficient investment policy, active promotion of the All-Russian contest Engineer of the Year 2006 Marketing and Management Center. awarded with the winner certificate in the nomination of competitive machine-building production in the the title “Professional Engineer of Russia” was awarded At the international exhibition Tire, Mechanical “Decrease of Polluting Matters”. domestic and foreign markets, etc. to A.G. Nugaibekov, Head of OGPD Yelkhovneft, R.A. Rubber Goods and Rubbers 2006 (Expocenter, Moscow) Gabdrakhmanov, Chief Engineer of OGPD Leninogorskneft, OAO Nizhnekamskshina was awarded with two gold med- OAO Nizhnekamskshina was awarded with the Ye.G. Kormishin, Chief Engineer of OGPD Prikamneft. als, one silver medal and Grand Prize “For Development certificate “Leader of Nature Conservation in Russia PUBLIC EVALUATION OF COMPANY ACTIVITY In accordance with the results of the 2nd round win- and Implementation into Production of Advanced Tire 2006” in accordance with the results of the All-Russian ners were: M.Sh. Kayumov, Head of OGPS Jalilneft, Constructions for Motor Cars and Trucks”. environmental contest. Tatneft Company won the 10th All-Russian contest N.G. Gorbachev, Chief Engineer — First Deputy Director General Director of OAO Nizhnekamskshina was “Best Russian Enterprises 2006” held by the Russian of OOO Tatneftedor, R.G. Ramazanov, Head of the Section In accordance with the results of the International awarded with the Honorary Order “Environmental Shield Union of Industrialists and Entrepreneurs (RUIE) with of Oilfield Development of TatNIPIneft, and N.I. Khamoniv, Contests The Best Automobile Tire on the Roads of of Russia” under the results of the 2nd All-Russian con- support of the Government of the Russian Federation Head of Geological Office of OGPD Aznakayevskneft. Russia OAO Nizhnekamskshina was awarded with two ference “New Priorities of National Environmental Policy in the nomination «Best Enterprise — Stock Market gold medals and one silver medal. in Economy”. Issuers” and was awarded with a bronze statuette of the In accordance with the results of the republican award “Ekaterina the Great”. contest for best organization of inventing and patent At the exhibition MIMS-2006 (Moscow) OAO Under the results of the 2005 annual reports General Director of OAO Tatneft Sh.F. Takhautdinov and licensing activity among enterprises, organizations Nizhnekamskshina received the commemorative Cup contest organized by the Russian Trading System became a winner of the prize Golden ROSING 2006 and institutions of the Republic of Tatarstan OAO Tatneft and Certificate of Record Holder as manufacturer Stock Exchange and rating agency Expert RA the presented for outstanding merit in development of the was awarded the title The Best Enterprise in Inventing of the most popular tire in the nomination Records Annual Report of OAO Tatneft was the best one in the oil and gas industry of Russia. and Rationalization in the Republic of Tatarstan. of Enterprises of Russia. Privolzhsky Federal District. Tatneft joined the ten leaders of the second annual rating of the most expensive Russian brands In accordance with the results of 2006 the author OAO Tatneft was acknowledged the winner of the In 2006 Tatneft won the 4th All-Russian contest published by competent international agency collective of OAO Tatneft was awarded the State prestigious contest ECOleader 2006. Russian Organization of High Social Efficiency in the Interbrand Zyntzmeyer & Lux AG and BusinessWeek Prize of the Republic of Tatarstan in the sphere nomination “Remuneration and Social Payments”. Russia weekly. of science and technology “For Development and OAO Tatneft was awarded the title of prize-winner In accordance with the rating results of the Implementation of New Technologies and Technical of the 2nd degree of the National Environmental Prize of The title of the winner of the 2nd Republican Association of managers of Russia TOP 1000 of Russian Means for Stabilization of Oil and Gas Wells Using Russia Ecoworld established by the Russian Academy of Contest for the prize of the Government of the Republic Managers General Director of OAO Tatneft Sh.F. Expending Pipes”. Natural Sciences and the Fund of Charitable Initiatives in of Tatarstan for quality and high results in products Takhautdinov was one of the best three top manag- the nomination “Environmental Policy” for efficient imple- and services quality in the category of enterprises ers of the fuel complex. D.K. Zakatov, Director of ZAO At the 8th international specialized exhibition mentation of the Environmental Program of OAO Tatneft. and organizations with the number of 250 employees Tatneft-Archangelsk, was one of the best ten manag- “Energy, Resource Saving” OAO Tatneft was awarded and more was awarded to the clinic of OAO Tatneft and ers of this rating. R.S. Ilyasov, General Director of OAO with a winner award and commemorative prize of the In the result of 2006 operations in ensuring environ- of the Almetyevsk City. Nizhnekamskshina, was one of the best three top man- Government of the Republic of Tatarstan. mental safety of its production activity the Company was agers of the petrochemical complex. V.P. Lavushchenko, acknowledged the winner of the 7th All-Russian contest At the conference contest of corporate mass Deputy General Director for Economics of OAO Tatneft, In accordance with the results of the 7th All-Russian 100 Best Organizations of Russia and was awarded media Silver Threads — Povolzhye 2006 organized was one of the best three financial directors of the fuel contest 1000 Best Enterprises and Organizations with a certificate and the gold medal “European Quality”. within the framework of the All-Russian Regional complex. R.R. Akhmetzyanov, Head of the IT Department of Russia in 2006 OAO Nizhnekamskshina was award- Advertising and PR Festival the first place in the nomi- of OAO Tatneft, and R.A. Rafikov, Head of the Office of ed with medal “For Efficient Activity, High Achievements At the 2nd ecological forum “Man. Nature. nation “Best Corporate Magazine” was won by Neft I Technical and Economic Information and Spread of Best and Stable Work”. Science. Technology” held in Kazan OAO Tatneft Zhizn magazine; Neftyanye Vesti newspaper won the Expertise of OAO Tatneft, were in the threes of best IT OAO Nizhnekamskshina was awarded with a gold- was awarded with certificates “For High Efficiency of second place in the nomination “Effective Editorial directors and PR directors of the fuel complex. en certificate of quality with the right to use symbols of Nature Conservation Service” and “For Efficient Nature Policy and Content”.
34 35 171.4
133.9
74.6
48.2
‘03 ‘04 ‘05 ‘06 amounts The absolute amount of taxes and payments accrued for billion OAO Tatneft (billion rubles) The absolute amount of rubles taxes and 171payments of OAO Tatneft into budgets of all levels
Economic performance Economic performance ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
BUSINESS PERFORMANCE FACTOR In the sphere of retail sales of oil KEY BUSINESS PERFORMANCE FACTOR FOR 2006 and oil products In the sphere of oil and gas production The number of filling stations controlled by OAO KEY BUSINESS PERFORMANCE FACTORS UNITS 2004 2005 2006 In 2006 25,405,000 tons of oil were produced Tatneft has reached 559, with 413 of them are located in OAO Tatneft; that makes the maximum production in the territory of the Russian Federation and 146 are Crude oil output thousand tons 25,099.5 25,332 25,405.1 level for the last 13 years. 359,800 tons of oil were pro- located in Ukraine. The total volume of retail sales duced over the plan. of oil products through the filling station network Associated petroleum gas output mln. m3 735.9 736.7 738.5 in 2006 exceeded 1.1 million tons. gas liquids output thousand tons 283.1 295.0 297.0 The volume of associated petroleum gas remained at the level of 2005 and was 738,500,00 m3; Commissioning of new producing wells wells 463 383 348 297,000 tons of gas liquids was produced and submit- Performance stock of producing wells wells 21,682 21,460 21,424 ted. Within the last 15 years one of the highest levels of use of associated petroleum gas among oil com- Production drilling thousand meters thousand meters 710.1 700.0 728.8 panies has been maintained — 96% with the average including for OAO Tatneft thousand meters 502.6 458.0 471.4 industry indicator of 76%. Exploration drilling thousand meters 59.7 80.6 90.2 In the sphere of petrochemistry including for OAO Tatneft thousand meters 50.1 50.0 50.0 The major volume of commodity output is produced by the largest enterprise — OAO Nizhnekamskshina which is the stable leader of tire production in Russia. KEY BUSINESS PERFORMANCE FACTORS OF OIL AND GAS PRODUCTS DELIVERY Its share is 33% of all tires produced in Russia. In 2006 ОАО Nizhnekamsk produced the maximum amount FACTORS UNITS 2006 of tires for the whole history of the enterprise — 12,206,000 tires; that exceeded the 2005 production by 803,500 tires. Oil export deliveries thousand tons 16,048.2 The range of goods manufactured by OAO Oil deliveries to the domestic market thousand tons 8,535.9 Nizhnekamskshina consists of car tires — about 50 dimension types of KAMA tires and 19 dimension Gas products delivery thousand tons 964.4 types of KAMA EURO tires, truck tires — 29 dimension types, light truck tires — 8 dimension types as well as MAIN BUSINESS PERFORMANCE FACTORS OF THE PETROCHEMICAL tires for agriculture and for forklift trucks. Today about COMPLEX OF OAO TATNEFT FOR 2006 23% of production are delivered to Russian automo- bile companies — AvtoVAZ (for Lada Kalina cars), GM-AvtoVAZ (Chevrolet Niva), IzhAvto (Kia Spectra), BUSINESS PERFORMANCE FACTORS UNITS 2004 2005 2006 KamAZ, UralAZ, NefAZ, PAZ abd others.
Tire production volume thousand units 11,166.2 11,403.0 12,206.5
Technical carbon production volume thousand tons 95.7 100.1 102.3
Commodity output volume million rubles 13,782.3 16,501.4 21,265.6
38 39 Economic performance ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
PROCEEDS FROM SALES OF PRODUCTS Increase of share of value added in production is evidence of positive influence of activities of OAO In the reporting year proceeds from sales of prod- Tatneft on preservation of the social potential of the 52 ucts on OAO Tatneft was 184.1 billion rubles (without city and the republic, to be more specific — on creation 51 VAT and export duty) including 174.1 billion rubles of competitive jobs, increase of payments to budgets of structural units and 10 billion rubles of subsidiaries of all levels, i.e. — on increase of living standards 9 5 2 with 100% participation of OAO Tatneft. in whole. For example, when calculated per 1 employee 39 Proceeds from sales of products of the petro- of the Company the value added share produced 39 chemical complex of OAO Tatneft in 2006 increased by in OAO Tatneft in 2006 was 3,138 rubles per one DYNAMICS OF INCREASE 26% and was 21 billion rubles. person; it exceeds this indicator of the preceding year VALUE ADDED OF PROFIT IN VALUE by 18% (2,652 rubles). STRUCTURE 15 ADDED OF OF OAO TATNEFT OAO TATNEFT IN 200 IN 2003-200 VALUE ADDED 45 (%) (billion rubles)
TAXES AND PAYMENTS Taxes and duties 2003 2004 2005 2006 Value added is a significant indicator of economic Production profit Remuneration performance of the Company. Increase of value added OAO Tatneft regularly pays taxes to budgets of all lev- Depreciation is evidence of manufacturing competitive products. els. In 2006 the amount of accrued taxes and payments Other expenses The volume of value added in 2006 in comparison with in comparison with 2005 increased by 1.3 times and 2005 increased by 9% and was 134.5 billion rubles. was 171.4 billion rubles including VAT and export duty; It includes profit, remuneration, depreciation charges including 17.5 billion rubles to the consolidated budget and taxes. of the Republic of Tatarstan. The quality indicator characterizing value added is production profit. During the period 2003-2006 produc- tion profit of OAO Tatneft in absolute figures increased from 15 billion rubles in 2003 to 52 billion rubles in 2006, its specific weight in value added of the Company 56 19 also increased from 26% to 39% accordingly. 44% of all added value produced in the Republic of Tatarstan is our Company’s share. The share VALUE ADDED OF ENTERPRISES OF OIL of Tatneft in value added of all petrochemical industry VALUE ADDED AND GAS CHEMICAL of Tatarstan consisting of 16 large manufacturers of the OF INDUSTRY OF THE COMPLEX OF THE REPUBLIC OF TATARSTAN REPUBLIC OF TATARSTAN petrochemical industry is 81%. (%) (%) 44 81 Value added share of OAO Tatneft in the total volume of production increased from 60% in 2003 to OAO Tatneft OAO Tatneft Other enterprises Other OGCC enterprises 82% in 2006. It means that today the specific weight of of the Republic of Tatarstan wages, profit, taxes per each ruble of product manu- factured by the Company is over 80%. In other petro- chemical enterprises of Tatarstan share of value added in the total volume of production is from 10% to 48%.
40 41 Economic performance ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
Special attention was as usual paid to activities
PROGRAMS OF INCREASING PRODUCTION out using the new technology of productive forma- for stabilization EFFICIENCY AND IMPROVEMENT tion penetration aimed at well flow rate increase such OF CORPORATE GOVERNANCE as underbalanced drilling, construction of horizontal and increase of oil 39 and down-hole splitters, etc. In the result of applying In 2006 OAO Tatneft continued implemen- these technologies average flow rates of new wells production. Due +13 tation of the Program of Management Organization introduced from drilling reached 7.5 tons/day at the Improvement and Decrease of Production Expenses average flow rate of the stock of producing wells 26 to use of modern for 2005 — 2007. Special attention was as before of 4.1 tons/day. The most advanced technologies paid to activities for stabilization and increase of workover — radial penetration and hydrodraulic frac- of oil production. Due to use of modern methods turing formations, coil tubing technologies are widely methods of oil of oil recovery enhancement, 45.1% of the total volume used. Increase of the average flow rate after such work- of oil were produced in 2006. The share of tertiary over was 2.7 tons/day. recovery enhan- SHARE OF PRODUCTION methods is 20%. This is the highest indicator among oil Special attention was paid to introduction PROFIT IN VALUE ADDED companies of Russia. Over 70,000 tons of oil was pro- of new equipment into oil production. In addition cement 45.1% OF OAO TATNEFT (%) duced outside the Republic of Tatarstan in 2006. Today to chain drives for oil-well sucker-rod pumps with 2003 2006 Tatneft has licenses for prospecting and development stroke length 3 and 6 meters developed in 2005, of the total volume of hydrocarbons on 26 licensed sites in the Republic in 2006 production of chain drives with useful load of Kalmykia, Orenburg, Samara, Ulyanovsk Oblasts, 12 tons and stroke length 7.3 meters was developed. of oil were produ- Nenets Autonomous District. New oilfields discovered Today 418 wells are equipped with chain drives. in these territories showed high average daily produc- In the reporting year the volume of implementation ced in 2006. The tion. For example, the flow rate of the first drilled well at and sphere of use of the technology of simultaneous- the East Khayakhinskoye oilfield (Nenets Autonomous stage development of formations were expanded, share of tertiary 40 28 24 18 District) was 46 tons/day, and the flow rates of new 61 plants were introduced. Implementation of the drilled wells at the Alexandrovskoye oilfield are 80-100 program of introduction of M1-H packers continued. tons/day in well spring. 430 packers were introduced; this is almost 1.5 times methods is 20%. 82 76 In 2006 within the framework of implementation more than in 2005. 72 of the Program of Development of Heavy Oil and Implementation of activities of further specialization 60 Bitumen Reserves the Company started experimental and centralization of work, consolidation of units contin- restructuring allowed to increase the share of external and production activities of development of natural ued within the framework of the program Improvement services in the volume of provided services by 21%. bitumen reserves in the territory of the Republic. The of Management Organization and Structure. Simultaneously with unit restructuring new VALUE ADDED SHARE IN PRODUCTION OF OAO unique system of two parallel horizontal wells with pen- Besides services of workover and maintenance of jobs were created in OAO Tatneft with participation TATNEFT IN 2003-200 (%) etration to surface was drilled at the Ashalchinskoye conventional pumping units repairs of pumping equip- of small and medium-scale business of the Republic
2003 2004 2005 2006 Value added field located in the Republic of Tatarstan. The First ment were centralized in OOO Tataneft-Mechservice. of Tatarstan and due to development of the system Intermediate consumption thousand tons of bitumen oil was produced. Enterprises providing services in cargo-and-passen- of Technoparks. The number of jobs in small and medi- Tatneft has always been a leader in the sphere ger and shift transportation were transferred to OOO um-scale business increased to 9.5 thousand in 2006. of implementation of new equipment and technol- Tatneft-TransService Managing Company. During 2006 Activities of the section Introduction of IT ogy. And today our own research and engineering previously isolated independent construction enterpris- Technologies are aimed at implementation of large- centers develop most contemporary technologies and es were included into OOO Glavneftegazstroiservice scale complex projects in the IT sphere. In 2006 activi- new equipment for application in the Company activi- Managing Company. Besides that NPU POPE&REI ties for implementation of the Concept of SAP Projects ties. Thus, over 95% of the volume of drilling is carried was transferred to TN-TruboprovodService. In whole Development continued. The system of efficient moni-
42 43 Economic performance ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
In 2006 OAO Tatneft toring of the Company’s communication network was started implementation extension of the profitable period of oilfield operations, In 2007 drilling enterprises jointly with TatNIPIneft created in the TatAISneft Department allowing efficient additional prospecting of reserves and inclusion of low- and customers in the person of OGPD will have to fin- use of work time and decrease of transport expenses. of the second stage productive sites into development. ish activity of transition to well drilling with individual In 2006 OAO Tatneft started implementation of In 2006 the Cost-Saving Fund was created in the budgets, and OOO Tataneft-Bureniye will continue the second stage of the Program of Energy Saving set of the Program amount of 1.1 billion rubles; that allowed to balance reorganization of the drilling complex. for the period up to 2010. Implementation of this pro- expenses and sources. The main direction of using Investment into development of retail business gram during the reporting year allowed saving of over of Energy Saving the CSF was overhaul repair of pipelines. During the in 2006 was 190,100,000 rubles. 285,000 tons of reference fuel exceeding the level of reporting year at the expense of the internal repay- 2005 by 16%. set for the period able source (IRS) 8 projects were financed for the Implementation of activities of increase of reli- amount of 52 million rubles, funds repayment was ability of equipment operations and secondary use 128.8 million rubles. of resources allowed to decrease oil pipeline breaches up to 2010. by 15.1% and gas pipelines breaches by 22.2% in com- parison with the preceding year. Well overhaul period Implementation of this INVESTMENT PROJECTS increased by 9% compared to 2005. Implementation of the target program of introduction of oil-well tubing program during the In the last year 25,371,800,000 rubles of invest- with polymeric coating and glass-fiber oil-well tubing ment were drawn in OAO Tatneft. 17,470,700,000 allowed to increase protection of the sewage pressure reporting year allowed rubles were invested into oil production including wells almost by one quarter — up to 69.5%. 14,854,500,000 rubles into oil production in the ter- Measures for optimization of expenses in the saving of over 285,000 ritory of the Republic of Tatarstan and 2,616,200,000 sphere of material support in 2006 were aimed at rubles outside the territory of the Republic of Tatarstan. further development of the network of consignment tons of reference fuel Investment into petrochemical complex enterprises in warehouses and automated centralized delivery. In the 2006 was 902,800,000 rubles, into service and other reporting year the number of consignment warehouses exceeding the level enterprises — 1,245,200,000 rubles. reached 56, the volume of sales of inventory holdings In 2006 1,148 kilometers of pipelines were built from these warehouses was 1.5 billion rubles which is and repaired. Together with other activities it allowed almost 16% of the total commodity turnover. Warehouse of 2005 by 16%. to decrease oil pipeline breaches by 15.1% and gas inventory stock decreased by 67.2 Mio rubles. In the pipelines breaches by 22.2% in comparison with the result of it the level of rationed working capital in 2006 preceding year. decreased by 9.2% to the level of preceding year. allowed to decrease average daily mileage and fuel and For provision of facilities’ construction over 6 In 2006 within the framework of the program of lubricants consumption by 22%. thousand land plots were bought out. For solving optimization of transport provision transport work- The last section of the Program of Increasing issues in the sphere land and legal relations the law “On shops of OGPS were detached into independent struc- Production Efficiency and Improvement of Corporate Amending the Land Code of the Republic of Tatarstan” tural units. As the result, the listed quantity of equipment Governance is the block of organizational and eco- was adopted; implementation of its provisions is one of decreased by 11.8% in comparison with 2006, output by nomic measures. In 2006 in the result of long work for the main objectives of the Company for 2007. one unit of equipment increased by 2.6%. improvement of the subsoil use legislation with active 4.7 billion rubles were spent in 2006 for produc- In 2006 activities of implementation of satellite participation of Tatneft the federal law on MOT differ- tion and exploration drilling. The total volume of head- navigation and motor transport monitoring in order to entiation was adopted, and put into force on January 1, way of OOO Tatneft-Bureniye in 2006 increased by 5% decrease transport expenses continued. Today over 2007. It will make it possible for our Company to lower and was 819 thousand meters of rocks including work 950 transport units are equipped with this system. It tax charges and to direct released funds to activities for for joint ventures and independent oil companies.
44 45 19.6
15.4
12.1
9.9 more ‘03 ‘04 ‘05 ‘06 Dynamics of growth of average wages in OAO Tatneft than (thousand rubles) % The average27 wage-push in OAO Tatneft Social policy in 2006 was Social policy ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
19.6 Primary activity of OAO Tatneft is carried out in the of the Company and reproduction of high-quality 20 territory of 22 districts of the Republic of Tatarstan. manpower resources. 15.4 The Company provides dozens of thousands of peo- All programs, both internal and external, 1 ple with job and adequate remuneration, forms the are developed taking into consideration opinions 12.1 main part of local budgets allowing for complete and of main stakeholders. In order to estimate achievement 12 9.9 timely payment of pensions to veterans and wages of set goals and to work out proposals for improvement 8.3 7.7 to employees of the budget sphere. It may be stated of usefulness and effectiveness of social programs 6.7 DYNAMICS 5.6 OF AVERAGE WAGE without exaggeration that economic and social wealth social polls of employees and local population are car- IN OAO TATNEFT 4 AND MINIMUM of about half a million people populating the south- ried out, regular working meetings of the management 2.3 1.78 1.79 2 CONSUMER BUDGET east of the Republic of Tatarstan in many aspects of OAO Tatneft with representatives of administrative (thousand rubles) 0 depends on successful operations of the Company. bodies of cities and settlements located in the territory 2003 2004 2005 2006 Average wage That is why social policy is necessary and significant of the Company activity are organized. Minimum consumer budget component of the Company activity. * Minimum consumer budget per one male oil industry worker in Almetyevsk Ratio Social policy of OAO Tatneft is implemented in two main directions — internal and external. Within the first direction the Company implements social LABOR MOTIVATION Economically efficient activity of the Company 3,700 thousand rubles. It exceeds the previous year programs aimed at motivating, social protection, allows regular employee wage rise. Indicators at taking indictor by 8%. personnel development, creation of safe labor con- The corporate policy in the sphere of remuneration a decision about wage rise are: Additional motivating factor in the Company ditions. The main goal of internal social programs is is aimed at providing employees with adequate living Consumer Price Index (inflation level); is the system of moral stimulation. Employees making the increase of efficiency of the Company. External standards and development of their professional and minimum wage in the country; an exceptional contribution into production, economic, direction of social policy is implementation of social creative potential. minimum consumer budget in the region; organizational and social development of OAO Tatneft at programs and projects aimed at development The wage structure consists of the tariff (constant) remuneration level in other companies implementation of large corporate programs are award- of education, culture, sports, public health, sup- part and the variable part including current, quarterly of the industry. ed with the sign of honor “For Outstanding Services port of socially vulnerable groups of populations, bonuses and additional stimulating payments: bonus- Average monthly wage in OAO Tatneft in 2006 to OAO Tatneft”. The sign of honor “For Services to OAO development of small and medium-scale business. es for implementation of programs Energy Efficient was 19,600 rubles; that exceeds the minimum con- Tatneft” is awarded to persons making a significant con- With implementation of social programs we seek Economy, Complex Stabilization of Oil Production Level sumer budget in the region by more than two times. tribution into social and economic development of OAO to form favorable social environment in the regions and Implementation of Advances Technologies and Average monthly wage at the starting level in OAO Tatneft Tatneft when participating in implementation of particular of our activity; that, in its turn, favors stable activity Equipment. in 2006 exceeded the minimum wage level of the Russian production and social and economic programs. Federation by 6.3 times. For long honest work in oil industry and high pro- The Company ensures application of the prin- duction performance employees are given the title ciple of equal remuneration to men and women for labor of “Honorary Oil Industry Worker of OAO Tatneft”. For high DYNAMICS OF WAGE FUND IN 2003-2006, billion rubles of equal value (Convention 100 of the World Labor production achievements employees receive the Letter Organization). This principle is implemented by way of Commendation of OAO Tatneft. For execution of extra No. 2003 2004 2005 2006 of use the Unified Scale of Charges for remuneration important tasks of the management of the Company of all categories of employees notwithstanding their sex. employees are honored with the Commendation of the 1. Structural units 6.4 7.4 8.6 10.1 Besides wages, employees receive a consider- General Director of OAO Tatneft. The Anniversary Letter able social package. The share of social payments of Thanks of OAO Tatneft is presented to employees for 2. Subsidiaries 1.1 1.3 1.5 1.8 in the structure of total revenue of personnel is more many-year honest labor in the OAO Tatneft system. As TOTAL 7.5 8.7 10.1 11.9 than 10%. Social expenses of the Company in 2006 per a rule corporate awards are given to employees on the one employee were 25,400 rubles, per one pensioner — day of the industry professional holiday and at celebra-
48 49 Social policy ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
SOCIAL PAYMENTS TO EMPLOYEES OF OAO TATNEFT IN 2006, thousand rubles*
INDICATOR AMOUNT
SOCIAL PAYMENTS TO EMPLOYEES UNDER THE COLLECTIVE AGREEMENT
Material assistance to female workers on maternity leave 5,834.3
Material assistance at child birth or adoption of a child below 14 years of age 3,629.0
Granting one work day to an employee (father) with preservation of average monthly wage 128.9 at discharge of a child from maternity hospital tion of anniversaries by enterprises. Pictures of foremost SOCIAL PROTECTION OF EMPLOYEES Material assistance to Victory Day: workers are placed in the Hall of Fame of OAO Tatneft. In order to mobilize creative potential and to raise Benefits and guarantees to participants in World War II 2,728.8 initiative of employees, to increase efficiency and quality The Collective Agreement annually concluded to widows 1,796.5 of their activity various competitions are held: by OAO Tatneft in the person of the General Director competition of structural units and subsidiaries and employees in the person of the trade union to toilers on the home front 3,148.8 for the title of the Best Structural Unit (Subsidiary, committee chairman considerably expands the list Quarterly material assistance to non-working pensioners who have worked in OAO Tatneft for at least 10 years 55,517.0 Enterprises) of OAO Tatneft; of social benefits and guarantees to employees set and more and retired prior to creation of the NNPF (National Non-Governmental Pension Fund) professional skills competition among young in the existing legislation. The Collective Agreement Material assistance in case of death of near relatives of an employee (pensioner) 6,606.7 employees of OAO Tatneft; of OAO Tatneft covers all employees of structural festival of best units in rationalization and invention; units. Collective agreements in subsidiaries and affili- Material assistance for ritual expenses to family of an employee (pensioner) in case of his/her death 4,685.5 ates are concluded on its basis. forum of foremen; Material assistance orphans who have lost both parents if one of them used 64.4 competition for Accident-Free Operations and High The total amount of social payments to employ- to be an employee of OAO Tatneft Technical Reliability of Transport Facilities; ees and pensioners of OAO Tatneft in 2006 in accor- Material assistance to large families 1,943.0 competition for Maintenance of Aesthetic dance with the terms and conditions of the Collective Conditions of Spring Facilities and Improvement Agreements was 298,900,000 rubles (285,000,000 Material assistance to employees with dependent disabled children 386.7 of Water Quality; rubles in 2005). Material assistance to employees at retirement 16,630.7 competition for landscape and gardening of the ter- In OAO Tatneft much attention is paid to solving ritory adjacent to the roads and production facilities social problems of young employees. A special sec- Material assistance to employees for medical treatment (for vacation) 143,193.6
of OAO Tatneft; tion of the Collective Agreement “Social Protection Granting to employees having children under 16 years of age (disabled children under 18 years of age) 3,584.1 competition for the Best Personnel Training of the Youth” is dedicated to this issue envisaging at least two free hours every week or one free day a month interest-free loans to young families for purchase Center of OAO; Material assistance to a child under 18 years of age parents of whom (or one of them) 395.8 competition for the Best Health-Improving Camp of furniture and essential commodities, one-time died at production of OAO Tatneft of Structural Units and Subsidiaries of OAO Tatneft. material assistance to employees discharge in con- Material assistance to incomplete families 1,251.6 nection with draft, material assistance to people mar- rying for the first time. In 2006 payments under this Material assistance to employees and pensioners at coming of anniversary age 13,055.2 section amounted to 34,800,000 rubles. Granting funds:
for purchase of New Year presents for children of employees of OAO Tatneft 9,029.5
to women for the International Women’s Day — March 8 7,521.8
for the Day of Aged People 13,814.5
SOCIAL PAYMENTS TO YOUNG EMPLOYEES
Interest-free loan for purchase of furniture 30,800.0
Material assistance to employees discharged in connection with draft 123.5 to the Armed Forces and returning to the previous job
Material assistance for the first marriage 3,884.7
* Information is provided for structural units and subsidiaries with 100% capital owned by OAO Tatneft
50 51 Social policy ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
Housing policy needing improvement of housing conditions are grant- SOCIAL SUPPORT TO VETERANS Address assistance to pensioners The Company’s contribution into implementa- ed the right for one-time loan and compensations. For the purposes of social support of pension- tion of the priority national project “Affordable and Non-governmental provision of pensions ers the corporate project of address assistance Comfortable Dwelling — to Citizens of Russia” is par- Organization of children recreation The Company pays much attention to non-gov- to pensioners of OAO Tatneft is being implemented. ticipation in the republican program of social mortgage. OAO Tatneft has on its books 12 children’s health- ernmental provision of pensions to its employees. At the beginning of 2006 implementation of this project Starting from January 1, 2007 the Company has been improving camps. In summer of 2006 about 6,638 chil- The number of employees participating in the corpo- started in all structural units of the Company. Individual performing functions of construction customer in the dren rested in them. rate program of non-governmental provision of pen- registration of pensioners of OAO Tatneft and provision south-east of Tatarstan. Children’s health-improving camps Beryozka sions in 2006 was 43,815 persons. The Company has of address material assistance to them at the expense Today three thousand employees of the Company (OGPD Aznakayevskneft) and Ivolga (OGPD Bavly- the successfully functioning mechanism of formation of the Company’s profit aside from payments set in the participate in the social mortgage program; one third of neft) were named winners in the competition for the of non-governmental pensions at the expense of funds legislation are carried out within this project. For this them are young people. Dwelling for young families will Best health-Improving Camp and were awarded with of the Company and employees themselves. In the purposes average monthly income of each pensioner be additionally furnished. Letters of Commendation of Oil, Gas and Construction reporting year Tatneft transferred 281.4 million rubles to is monitored resulting in formation of the list of pension- In the Company there is a mechanism of granting Workers’ Union of the Russian Federation. the National Non-Governmental Pension Fund (NNPF). ers with income level below the subsistent minimum. to employees a one-time loan in order to compen- Every year the Company provides children In the reporting year 9,744 pensioners of OAO Tatneft Pensioners with income below the subsistent minimum sate for the down payment for purchase of dwelling of employees of the budget sphere with the possibil- received additional pension paid by the NNPF. receive address material assistance in equal quarterly in the social mortgage system. The down payment ity to have rest in its camps. In 2006 representatives payments during the year. In 2006 address assistance is paid by the Company at conclusion of a social mort- of Almetyevsk, Sarmanovsk, Aznakayevsk, Yelabuga, Support of pensioners retired prior to creation was provided to 623 pensioners for the total amount gage agreement and receipt of an apartment. The Zainsky and Nizhnekamsk municipal districts received of the Non-Governmental Pension Fund of 596.1 thousand rubles. amount of loan for each employee is determined in certificates for the total amount of over 2.2 million In 2006 the Company allocated 55.5 million rubles accordance with the established criteria. Writing off of rubles to compensate for 50% of the cost of vouchers for quarterly material assistance to pensioners retired a one-time loan by the Company is carried out twice to children’s health-improving camps. prior to creation of the National Non-Governmental during the set 10-year period: first 50% — after 5 years, Pension Fund. Besides that pensioners receive mate- remaining 50% — upon expiry of the 10-year period Dear Shafagat Fakhrazovich! The Presidium of rial support for the Day of Aged People and discount under the condition of employment of the employee the Russian Trade Union Council would like to vouchers for treatment at health resorts. participating in the social mortgage at an enterprise express to you its gratitude for good organization of OAO Tatneft. of the children health-improving campaign in 2006, NON-GOVERNMENTAL PROVISION OF PENSION TO EMPLOYEES OF OAO TATNEFT* In accordance with the social mortgage program for the attention you pay to children and teenagers OAO Tatneft envisages compensation to young fami- of employees of the organization. We wish you fur- UNITS 2003 2004 2005 2006 lies for a part of payments under mortgage loans in the ther success in upbringing of young generations. amount of 200 thousand rubles at birth of a child. Besides that the program “Young Family” is being Sincerely yours, L. Mironov, Number of participating employees persons 36,058 41,246 41,040 43,815 implemented accumulating funds of federal and repub- Chairman of the Presidium Funds allocated by the Company thousand rubles 120,505 161,710 109,313 284,142 lican budgets. Young people receive the opportunity of the Russian Trade Union Council for non-governmental provision of pensions Personal contributions of employees of more active participation in mortgage due to provi- thousand rubles 71,502 67,527 72,409 85,551 for non-governmental provision of pensions sion of non-repayable subsidies. Number of pensioners receiving In 2006 the Regulation on Providing Dwelling under persons 6,580 7,102 8,512 9,744 non-governmental pension in the NNPF Social Mortgage to Employees of Tatneft Residing in Payment of non-governmental pension thousand rubles 27,008 41,951 60,908 73,962 the Territory of Countryside of the Republic of Tatarstan to pensioners by the NNPF came into force; in accordance with it employees of the * Data on structural units and subsidiaries Company permanently residing in the countryside and
52 53 ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
MECHANISM OF IMPLEMENTATION OF THE NON-GOVERNMENTAL PENSION PROGRAM
ANALYSIS AND PREPARATION OF DECISIONS EMPLOYEES OF OAO TATNEFT FOR FINANCING AND INDEXATION OAO TATNEFT
FINANCIAL DEPARTMENT
LABOR ORGANIZATION AND WAGES OFFICE
PERSONNEL OFFICE FINANCING OF THE NON-GOVERNMENTAL PENSION PROGRAM
HUMAN RIGHTS PROTECTION the right of employees under 18 years for fair wages and additional payments in accordance In its activity OAO Tatneft observes the rights of employ- with the remuneration system is acknowledged; PARITY FINANCING FUNDS OF ENTERPRISES FUNDS OF ENTERPRISES FOR INDEXATION ees in the sphere of labor set in the legislation, assists at hiring employees under 18 years undergo FROM WAGES OF EMPLOYEES FOR BASIC PENSION SCHEMES AND PROLONGATION OF PENSION PAYMENTS 73.5 million rubles 135 million rubles 149 million rubles in prevention of any forms of discrimination and forced medical examination and later undergo annual labor, promotes professional and personal develop- examinations at the expense of OAO Tatneft until ment of its employees, supports their participation 18 years of age; in decision-taking on the fundamentally important employees under 18 years are granted annual paid INDIVIDUAL PENSION ACCOUNTS OF EMPLOYEES (IN THE NNPF) issues of development of the enterprise. leave of 31 days. 36 thousand persons Banning of forced labor Ensuring the principle of equality of rights and OAO Tatneft, through its documents and activities opportunities for implementation of the Collective Agreement, com- OAO Tatneft acknowledges the principle of equal-
RETIREMENT OF EMPLOYEES pletely acknowledges the requirements of international ity of tights and opportunities declared in international 1 thousand per 1 year and Russian legislation for abolishment of forced labor. norms. Nobody can be restricted in labor rights and Besides, the Collective Agreement provides guaran- freedom and to receive any preferences for the reason tees to employees in the form of preservation of their of sex, race, nationality, language, property, social and jobs and average monthly wages in case of refusal to official position, age, residence, religion, political views,
INDIVIDUAL PENSION ACCOUNTS operate defective equipment or in conditions which belonging or non-belonging to public associations as OF PENSIONERS (IN THE NNPF) may result in emergency situations. well as of other circumstances not related to business 8.7 thousand persons qualities of an employee. Banning of child labor In the reporting year there was not any lawsuit Banning of child labor is one of the fundamental or public discussion relating to breach of human rights international legal principles in labor. International or discrimination of employees of the Company. INVESTMENT OF PENSION ACCUMULATION NON-GOVERNMENTAL PENSION PAYMENTS Annual investment income 12% 70.2 million rubles legal documents are dedicated to issues of minimum employment age, labor conditions of minors, etc. Ensuring the right of employees for consolida- OAO Tatneft accepts and implements all these prin- tion for protection of their rights and interests ciples as follows: OAO Tatneft guarantees to each employee the minimum employment age is 16 years; right to be represented by a trade union on his/her own NON-GOVERNMENTAL PENSION FUND PENSIONERS OF OAO TATNEFT persons without completed compulsory educa- choice and the right of a trade union to function freely, tion are not accepted to jobs preventing their without any restrictions except those envisaged in the education; legislation. minimum age for access to hazardous and hard The Collective Agreement sets the following obli- labor is 18 years; gations of the administration: labor hours for persons under 18 years are limited to inform the trade union about all changes (eco- in accordance with the demands of their develop- nomic, financial, structural, organizational) prior ment and professional training; to their acceptance, to provide all documents minor employees are not sent to business trips, necessary for objective estimation of situation, are not attracted to overtime work, nighttime work, to consider jointly issues of future structural trans- work in days off and holidays; formations, reorganizations, changes in the sphere
54 55 Social policy ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
One of the most important directions of the corporate personnel management of remuneration, work hours, employment condi- In 2006 the non-governmental educational insti- The priority direction of HR management policy tions and social and economic problems; tution (NGEI) “Tatneft Personnel Training Center” is versatile and successive training of managers for policy is development to provide representatives of trade union commit- was formed on the basis of the Center of Personnel achievement of tactical and strategic goals of the tees with the possibility of free visiting structural Training and eleven training and course centers. The Company. Special attention is paid to acquiring practi- and training of the units of OAO Tatneft and work places for imple- Center trains workers and specialists including for cal experience in management taking into consider- mentation of charter objectives and rights legally professions connected with maintenance and opera- ation specific features of OAO Tatneft. Training of man- granted to the trade union; tion of hazardous production objects. In whole the agers is carried out at Non-Governmental Educational Company employees. to provide the trade union committee with neces- training and course network carries out training in 213 Institution “Institute of Oil and Gas Business” to where sary information on social and labor issues directly professions including 80 professions under control of each year OAO Tatneft sends, on the basis of competi- influencing interests of employees; the Technical Supervising Committee of the Russian tive selection, promising officers from structural units tial. Special training programs and individual devel- to provide the trade union committee with Federation. Every year over 12 thousand workers and subsidiaries for training under the program “Oil and opment programs are prepared for them including necessary rooms and working conditions for undergo re-training and professional development Gas Business”. short courses, probation, participation in projects and its activity; at the Personnel Training Center. Special attention In 2006 33,809 employees of the Company under- additional education. to provide previous or equal job to elected trade is paid to training of multiprofile specialists who can went professional training and development including union officers upon expiry of their authorities, and work under the condition of interchangeability. 9,111 managers and specialists (26.9%) and 24,698 Certification if it is not available — to preserve average monthly Highly skilled teachers work in the training cen- workers (73.1%). 80.7 million rubles were directed Certification of employees of OAO Tatneft is carried wages for the period of job placement but for not ters. Lecture rooms of the centers are equipped with to these purposes. out every three years in order to establish compliance more than six months. modern equipment allowing not only skill improve- of their level of knowledge and skills with their positions ment, training of new professions and improvement Work with personnel reserve and determination of wage rank in accordance with of personnel competence but provision of services The personnel management policy of OAO Tatneft the Unified Pay Rate Schedule in accordance with the PERSONNEL DEVELOPMENT of training of personnel of other companies. is based on succession of managers at all levels approved Regulations of Procedure of Office Workers Professional development of medium level spe- of management and is implemented in the program Certification and Workers Tariffication. Professional training and professional devel- cialists is carried out in Almetyevsk State Oil Institute of personnel reserve preparation. From the first days At certification attention is paid to the following opment of employees and in other core higher educational institutions of work of an employee the HR service monitors mani- professional and personal characteristics of employees: One of the most important directions of the corpo- of the Republic of Tatarstan and Russia — in Russian festations of leadership qualities and skills necessary ability to fulfill work tasks with due quality and in due rate personnel management policy is development and State University of Oil and Gas named after I.M. for a manager. Personnel evaluation also forms a basis time, complexity of performed work, efficiency, oblig- training of the Company employees — main resource Gubkin, Institute of Professional Development of the for reveling employees with high management poten- ing, responsibility, initiative, etc. of implementation of the corporate strategy. Ministry of Energy of the Russian Federation, Kazan OAO Tatneft is focused on creation of the integrat- State University, Ufa State Oil Technical University ed system of continuous training aimed at permanent and other institutions of additional professional NUMBER OF TRAINING HOURS A YEAR INCLUDING PER ONE EMPLOYEE improvement and development of employees and pos- training. sesses unique conditions for training and development The Company pays special attention to develop- TOTAL NUMBER OF TRAINING AVERAGE ANNUAL NUMBER OF TRAINING HOUR YEAR HOURS IN YEAR PER ONE EMPLOYEE OF OAO TATNEFT, hours of all personnel categories. At the present moment in ment and training of young specialists. Special pro- OAO Tatneft there is a formed and successfully operat- grams developed for them allow to be quickly included ing system of professional training including training into operating processes and to find application for their 2003 2,817,930 54 and professional development of workers, specialists, knowledge and abilities. Training at workplaces, tutor- 2004 3,372,036 66 top and medium managers. ship, exchange of best practice, competitions, theo- The training base of the Company is a system retical and practical conferences, seminars and other 2005 3,035,180 68 of training centers and programs with long history and activities in totality ensure the atmosphere of support 2006 2,820,150 66 rich experience in specialist training. and development to young employees.
56 57 Social policy ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
100 ACTIVITIES FOR THE YOUTH expensive surgeries for children of the Company employ- 79.91 80.72 ees, purchase necessary goods for orphaned children. 0 5 76.87 75.28 Work with young people is an important direction of the The practice of the youth organization of OAO
0 4 personnel and social policy of OAO Tatneft. Efficient use Tatneft was approved and recommended to organiza- of creative and professional potential of young employ- tions of Oil, Gas and Construction Workers’ Union of the 40 3 ees plays paramount role in development and prosper- Russian Federation for studying and implementation. 2,388 EXPENSES 2,155 2,116 FOR PERSONNEL ity of the Company. 13.4 million rubles were allotted 20 1,872 2 TRAINING PROGRAMS to implementation of youth programs in 2006. OF OAO TATNEFT The youth policy of the Company is implemented CORPORATE CULTURE 0 1 on the basis of the Youth Policy Concept and the 2003 2004 2005 2006 Actual expenses, million rubles Collective Agreement of OAO Tatneft. These funda- Corporate culture is an important factor of the Average amount per one employee, thousand rubles mental documents allow to work on increasing the role Company sustainability ensuring its competitiveness. of working young people in the production process and It unites all types of activities and all relations inside the public life of the Company and to further solving social Company making the collective solidity and productive. problems of young people. Corporate culture helps to focus on major strategic COOPERATION WITH EDUCATIONAL mation technologies have been created in departments The priority direction of activity of the youth organi- directions determined in accordance with the main INSTITUTIONS of the Institute with the support of oil industry workers. zation in 2006 was preservation of the number of young destination of the Company — its mission. In 2006 Students of 3-5 years undergo practical training in the people in the period of restructuring of the Company. the Code of Corporate Culture of OAO Tatneft was Since 1997 OAO Tatneft has been practicing organiza- Company’s units. Leading specialists of OAO Tatneft In all newly established enterprises youth committees adopted; it fixes values and norms of corporate culture, tion of purpose groups in higher educational institu- participate in state certifying commissions for defense were organized. ethical principles for all enterprises of the Company. tions of Kazan and in Almetyevsk State Oil Institution for of graduation projects of the Institute graduates. Moreover, the limits of implementation of the The Code regulates relations among employees replenishment of staff for the most needed specialties. Special personalized scholarships are used corporate youth policy were expanded. In 2006 in the of the Company, determines the norms of behavior with Agreements for higher professional education are con- to stimulate students of Almetyevsk State Oil Institute for Company’s subsidiary Tatneft-AZS-Center covering business partners and describes the rules of business cluded with students, under the result of each term the excellent studies. In accordance with the Regulations the central part of Russia a united youth organization customs. In accordance with the Code employees Company pays scholarship to them in accordance with of Awarding Personalized Scholarships a student nomi- was established. The issue of establishing youth orga- of the Company must always observe the existing leg- the Regulations of Students’ Scholarships. For students nated for it must demonstrate perfect knowledge, must nizations at Ukrainian and Moscow enterprises of the islation definitely knowing and understanding legisla- of purpose groups at job placement at enterprises have scientific publications or participate in scientific Company is being decided. Young people of the clinic tive documents regulating their professional activities. of OAO Tatneft upon graduation from educational insti- activity of the Institute. The total amount of personalized of OAO Tatneft have already joined our organization. Employees must follow the ethical principles set in the tution a one-time payment (allowance) In the amount scholarships paid to student in 2006 was 486 thousand The key aspect of the youth policy is revealing and Code of Corporate Culture even in cases when their of 20,000 rubles is envisaged. There are bonuses for rubles. There is also the tradition of encouragement support of gifted young people, development of their actions may result in financial losses of the Company. excellent study. In case of poor progress an agreement of students actively participating in the public life of the creative potential. Active life attitude of a young man is The Code of Corporate Culture sets norms with a student is cancelled and he/she repays the total Institute. Thus, in 2006 twenty students received schol- shown not only in production activity but in leisure as and rules in the following spheres of interrelations amount spent for his/her education. arships of the trade union organization of OAO Tatneft. well. Games of the KVN league of Tatneft officially rec- of employees: OAO Tatneft pays much attention to quality Due to financial support of the Company nineteen ognized in the Republic in humor and wit are sometimes relations with colleagues; of student training at Almetyevsk State Oil Institute. orphaned students had a rest and improved their health not worse than those of famous teams. Youth tourist relations between managers and subordinates; More than 70% of its graduates become employees at the Black Sea in summer of 2006. movement of the Company is being developed. Regular relations with business partners; of the Company. Joint activities of the Institute teachers unofficial games of youth volleyball, mini football, swim- holding meetings and conferences; and the Company specialists for improvement of quality ming, tournaments of bowling and floor-ball are held. telephone communications; of student training have been developed and are being Charitable activity is greatly supported by young introduction of colleagues and partners; implemented. Unique laboratory complexes using infor- people of the Company. Young employees collect funds for business clothes.
58 59 Social policy ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
OAO Tatneft was the first of Russian oil compa- VALUES OF TATNEFT EXPENSES FOR THE MEDICAL INSURANCE PROGRAM, thousand rubles nies to start creating the multivolume corporate library TOTAL AMOUNT OF INSURANCE FEES which includes sections “Book of Glory”, “History of the Company”, “Scientific Works”, “Biographies”, EMPLOYEES — this the main value of any enterprise that is why we are interested in constant improvement MEDICAL SERVICE 2003 2004 2005 2006 “Selected Works” reflecting the history of formation and development of intellectual and human capital. and development of one of the largest oil companies Outpatient and clinic treatment of the country. Publications of the Corporate Library 94,792 91,751 9, 070 89,770 RESPECT TO MAN — this is respect to opinions Inpatient treatment 23,150 21,286 29,041 34,779 are of particular interest for the Company employees, of others and tolerance to any differences between us, historians, journalists, writers, students and school- open and benevolent discussion of problems, joint solution of production tasks. Rehabilitation and recovery treatment 115,531 115,531 117,759 children. 14 books have already been published 109,084 within this project. Complex medical assistance 32,974 32,282 36,358 48,692 CARE FOR VETERANS — this is responsibility for those In order to preserve succession of generations who have been creating and multiplying our heritage for many years, implementation of social programs, sharing Total under agreement: 260,000 260,850 271,000 291,000 and to multiply labor traditions, to form respect- experience and tutorship. ful attitude of employees, especially young ones, to labor and their professions the Regulations of Labor CARE OF LAND — this is protection of environment, use The clinic of OAO Tatneft is an integrated medical have the opportunity to receive free medical assistance Dynasties of OAO Tatneft have been developed and of environmentally safe technologies, our responsibility to future generations for the land of Tatarstan. institution with all possibilities to provide highly qualified and health resort vouchers. approved in the Company. medical assistance, sufficient material and technical In 2006 8,665 employees of the Company Various activities aimed at uniting of the col- basis including both buildings and constructions and improved their health in various health resorts of the lective, forming of feeling of complicity to activity, EXPERTISE — this is profound knowledge of profession, responsible and honest attitude to duties, quality and timely equipment necessary for high quality treatment and Russian Federation and the Republic of Tatarstan goals and objectives of OAO Tatneft are held in the fulfillment of set tasks, development of professional level. diagnosis and highly qualified medical personnel. for the amount over 110.8 million rubles including Company. Such activities include celebration of the The basic part of medical services for oil industry 7,111 employees in sanatoria of OAO Tatneft for the All-Russian Day of Oil and Gas Industry Worker, fes- workers if the outpatient service of the clinic. There amount 85.5 million rubles. tivities dedicated to jubilee dates of the Company, PERMANENT DEVELOPMENT AND TRAINING — this are therapeutic and surgery sections there, narrow- competition of professional skills of young employees, is continuous movement forward, creation of conditions for development of talents and abilities of our employees, purpose sections, up-to-date medical and diagnosis Organization of catering Sports Contest of OAO Tatneft. support of young people. complex. Health and ability to work of employees depend to a large extent on proper organization of catering at COOPERATION — this is open interaction with Voluntary medical insurance enterprises. The administration and trade union com- HEALTH PROTECTION shareholders, partners and state authorities, coordinated work in one team in which everyone is responsible for Funds of voluntary medical insurance are a con- mittee of OAO Tatneft pay much attention to this issue. common result. siderable source for support and improvement of health Conditions of workers’ canteens are being constantly The personnel health protection activity consists of joint of employees of the Company. In 2006 the agreement controlled. Employees of drilling teams, well servic- activity of the Industrial Safety and Labor Protection EFFICIENCY — this is achieving maximum results with optimum use of human, natural and financial resources. of collective voluntary insurance with the insurance fee ing and workover teams are provided with daily hot Department, clinic, medical station system, managers of 291 million rubles was concluded by and between meals half of cost of which is compensated for by the and trade union organizations of production work- OAO Tatneft and ZAO Chulpan Insurance Company. Company. In 2006 5,064 persons were provided with shops, physical training organizations. INNOVATION — this is development and implementation In accordance with it the insurer ensures organization daily discounted meals; 32 million rubles were allo- The Company carries out permanent monitor- of advanced technologies of tire business, search for the most efficient solutions. and payment for medical and other services under 4 cated to this purpose. ing of sanitary and hygienic labor conditions. Health programs: “Outpatient and Clinic Treatment”, “Inpatient condition of employees is control through the medical SCIENTIFIC APPROACH — this is profound analysis Treatment”, “Rehabilitation and Recovery Treatment” Accustoming employees to healthy way of life station system, if necessary medical assistance is pro- of management, technological and production tasks and “Complex Medical Assistance”. Due to implemen- Spartakiada Sports Contest is traditional in vided. Regular medical examinations and vaccination on the basis of modern knowledge and experience. tation of these programs employees of the Company sports life of OAO Tatneft oil workers. Every year over of employees are carried out.
60 61 название раздела ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
MECHANISM OF IMPLEMENTATION OF THE PROGRAM OF VOLUNTARY MEDICAL INSURANCE 6
49,66 7.7 7.0 02
FORMATION OF THE PACKAGE OF MEDICAL 40,342 6.2 ZAO CHULPAN INSURANCE COMPANY SERVICES AND PLANNING OF FINANCING OAO TATNEFT 5 VOLUME 36,1 OFFICE OF AUXILIARY PRODUCTION AND CONSUMER GOODS
28,77 5.4 FORMATION OF LISTS OF EMPLOYEES BY LABOR ORGANIZATION AND WAGES OFFICE INSURANCE PROGRAMS PERSONNEL OFFICE
CONCLUSION OF AGREEMENTS OF VOLUNTARY DYNAMICS DYNAMICS MEDICAL INSURANCE OF EMPLOYEES OF THE NUMBER OF THE NUMBER OF SICK LISTS OF DAYS OF TEMPORARY in 2003-200 DISABILITY PER ONE (lists) EMPLOYEE (days) CONCLUSION OF AGREEMENTS WITH MEDICAL INSTITUTIONS ISSUE OF VMI POLICIES TO EMPLOYEES (172 institutions) (44,812 policies issued) 2003 2004 2005 2006 2003 2004 2005 2006
SANATORIA OUTPATIENT CLINICS AND HOSPITALS PREVENTIVE MEDICAL 19 thousand people take part in it. Competition is held in The alpine skiing complex of OAO Tatneft has (11 sanatoria of OAO TATNEFT; (14 — at locations of enterprises; INSPECTIONS OF EMPLOYEES 18 health resorts around Russia) 129 — around Russia) (10,595 persons inspected) 15 sports during the whole year in sports bases of been offering its services to winter sports fans for the OAO Tatneft: volleyball, track and field, swimming, ten- third season. Two years ago fine alpine skiing tracks OUTPATIENT MEDICAL CARE SANATORIA AND HEALTH RESORT CARE (827 thousand cases of treatment) nis, shooting, etc. In 2006 fishing competition was held were opened here and in the reporting year a comfort- (8,865 persons underwent treatment) at the restored recreation center Kama within the frame- able hotel and a restaurant complex were built. During work of the Sports Contest. the winter season free transportation of employees INPATIENT MEDICAL CARE (3,432 persons received treatment) OAO Tatneft combined team took the following of the Company from distant places to the alpine skiing places in competitions of the Ministry of Industry and complex was organized. Energy of the Russian Federation: Sports complexes of the Company are available
EMPLOYEES OF THE COMPANY 1st place in men and women volleyball for all residents of the oil region; due to this, more (all employees of the Company) 2nd place in men football and more people are becoming engaged into healthy 1at place in sports festival way of life. In 2006 members OAO Tatneft combined nation- al wrestling team took 2nd and 3rd places at the Health monitoring Championship of Russia in Lipetsk, 1st and 2nd places Effectiveness of the Company activity in health at the Championship of the Republic of Tatarstan in improvement of employees is confirmed with decrease Kazan 1st and 2nd places at the Championship of the of the number of sick lists. Russian Federation in Moscow. There is also a tendency to decrease the number In their spare time employees of the Company of days of temporary disability both in the Company have the possibility to rest and to improve their health in in whole and per one employee as well. nine sports complexes with swimming-pools, saunas, gym apparatus halls, etc.
62 63 название раздела ОАОSocial TATNEFT policy SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
Within the system of industrial safety and labor protection management rights
INDUSTRIAL SAFETY AND LABOR and responsibility and formalized in accordance with the requirements of pation of representatives of bodies of the state labor PROTECTION corresponding legal acts of the Ministry of Public Health inspection and executive authorities. of employees in the and Social Development and appendices to them Statistical reporting about on-the-job injury rate Industrial safety and labor protection policy Investigation of accidents with severe results, and professional diseases is carried out using annual The Company considers the human life to be the sphere of labor safety group accidents, mortis causa accidents at objects form of federal state statistical supervision No. 7-injury highest value and labor safety and health of employees — under control of the State Technical Supervision rate “Information about On-the-Job Injury Rate and to be a key priority of its activity. are clearly defined, Committee of Russia or other state supervision and Professional Diseases” approved with resolution of Within the system of industrial safety and labor control authorities is carried out by commissions head- the Russian State Statistics Committee No. 40 dated protection management rights and responsibility production control ed by representatives of territorial bodies of the State July 05, 2005. of employees in the sphere of labor safety are clearly Technical Supervision Committee of Russia or other defined, production control is organized, the mecha- state supervision and control authorities with partici- nism of receipt and analysis of information for tak- is organized, the ing efficient and timely decisions for elimination or decrease of risk factors is fine-tuned.. mechanism of receipt DYNAMICS OF EXPENSES FOR LABOR PROTECTION IN 2003-2006, thousand rubles In 2006 specialists of the management systems certification agency Bureau Veritas Certification carried and analysis of infor- FUNDS SPENT INCLUDING PER ONE out certification audit of the integrated system of man- YEAR TO LABOR PROTECTION EMPLOYEE agement of industrial safety, labor and environment mation for taking protection for compliance with international standards. 2003 257,233.1 4,839 In accordance with the audit report the integrated man- optimum and timely agement system of OAO Tatneft is developed, docu- 2004 307,590.8 6,020 mented, implemented, maintained in operating order, decisions for elimina- 2005 276,070.5 5,990 is being continuously improved and in whole complies with the audit criteria. tion or decrease of risk 2006 313,726.9 7,394 In order to improve the discipline conditions, industrial safety and labor protection, safety of per- sonnel at workplaces OAO Tatneft has developed the factors is fine-tuned. DYNAMICS OF ON-THE-JOB INJURY RATE IN 2002-2006 Standard for stimulating employees for work without violation of the rules of industrial safety and labor pro- FREQUENCY COEFFICIENT IN FEC tection and for application of punishment measures Tatneft are carried out in accordance with the exist- YEAR NUMBER OF ACCIDENTS INCLUDING MORTIS CAUSA FREQUENCY COEFFICIENT (Fuel & Energy Complex) to employees permitting violation of the requirements ing legislative and normative documents of federal of industrial safety and labor protection in their work. authorities, the Ministry of Public Health and Social 2002 21 4 0.37 * The Regulations cover all structural units and subsidiar- Development and State Supervision authorities of the ies of OAO Tatneft. Information about applying incen- Russian Federation. 2003 27 5 0.51 * tives or punishments to employees is placed on Labor Professional diseases are investigated in accor- 2004 29 3 0.57 2.63 Protection stands in structural units every month. dance with the Regulations of Investigation and Registration of Professional Diseases. Chronic dis- 2005 23 5 0.50 2.40 Investigation and registration of accidents eases arising in the result of long influence of harm- 2006 18 1 0.42 2.00 Investigation, registration and analysis of acci- ful production factor on employees’ health revealed dents, professional diseases and breakdowns in OAO at medical examinations are investigated, registered * Before 2004 such information had not been summarized
64 65 название раздела ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
On-the-job injury rate the trade union organization to ensure the labor protec- tive companies. Within the framework of acceleration of Beautification of cities and In 2006 in structural units of the Company there tion requirements, prevention of on-the-job injuries and technical re-equipping and renovation of technological settlements of the oil region were 18 accidents including one mortis causa. The professional diseases. processes service directions are being transferred to OAO Tatneft pays much attention to develop- accident frequency coefficient in OAO Tatneft is more market economy conditions. In 2006 in accordance ment of infrastructure of cities and settlements than twice lower than the average indicators in the oil with the selected concept exclusion of small structural of the oil region of the Republic of Tatarstan. 2006 was industry of Russia SOCIAL PROGRAMS IN THE REGION units (workshops) of secondary activity from the par- not an exception. Construction of important social ent company continued. Mechanical sector units were objects, beautification and improvement of architec- Labor protection agreement In many settlements in the south-east of the Republic restructured resulting in formation of enterprises with tural appearance of settlements in the south-east of the In order to improve activity in creation of healthy of Tatarstan enterprises of OAO Tatneft form company the total number of over 1,700 employees. Main activity republic took place with the decisive support of OAO and safe labor conditions in production in accordance towns. Assistance to development of social sphere, of these enterprises include ensuring stable operations Tatneft. In the reporting year the Company allocated with the Labor Code of the Russian Federation and care of young generations, support to public health, of mechanical assemblies and units in the oil and gas over one billion rubles for these purposes. recommendations for planning labor protection activi- sports, culture are the basis of social stability necessary production process as well as manufacturing, current ties (appendix to Resolution of the Ministry of Labor for sustainability of the Company. and major repairs of mechanical equipment, instru- Support of schools and preschool institutions of the Russian Federation No. 11 dated February ments and pipe production. Each year OAO Tatneft invests considerable funds 27, 1995) every year structural units of OAO Tatneft Promotion of development of small In whole over 30 small and 30 medium-scale into development of comprehensive schools of the conclude a labor protection agreement between and medium-scale business enterprises have been established with the total num- south-east of the republic. In 2006 RUB 32 million were employers and authorized employees of represen- The Company initiates mutually beneficial coop- ber of about two thousand and eight thousand employ- allocated for reconstruction, repairs and equipping tative bodies. The Agreement fixes labor protection eration with stakeholders in support of small and ees accordingly. of comprehensive schools. activities, their deadlines and cost, as well as the medium-scale business. Basic factors of such coop- Reforming of the production structure of OAO The Company carries out active and purposeful number of employees labor conditions of which are to eration are creation of new promising production Tatneft by way of establishing small and medium-scale activities for improvement of social climate in pre- be improved and the number of employees released of goods and services on the basis of releasing facili- business enterprises stimulates employees of these school educational institutions. In 2006 RUB 7 million from physically hard labor. ties of OAO Tatneft. The region has all necessary con- enterprises for higher production results, increase were allocated for repairs and equipping of preschool In 2006 313,726,900 rubles were directed to labor ditions for development of small and medium-scale interest of their managers in attracting additional orders educational objects: kindergarten No. 14 Rodnichok protection in structural subdivisions of the Company; business: developed network of bank services, leas- and decrease of costs, in selection of suppliers and (Aznakayevo), kindergarten Lyaisan (Karabash), kin- expenses per one employee were 7,394,000 rubles. ing and consulting companies, growing purchasing contractors with the most favorable conditions. dergarten Skazka (Nurlat) and others. capacity of population. The Company further creation of favorable climate Labor protection committee The joint project of OAO Tatneft and OAO AChNF at establishing of an enterprise in the market providing Support to talented youth, On the basis of Resolution of the Ministry of ALSU for organization of a light industry enterprise assistance in formation of working capital, resource gifted children and teenagers Labor of the Russian Federation No. 64 dated October for hosiery manufacturing in industrial settlement Jalil base, package of orders (100% in the first year, 75% in Gifted Children charitable foundation 12, 1994 and Recommendations for Formation and started in 2006. It is planned to employ over 100 per- the second year and 50% in the third year). In order to support gifted children and teen- organization of Activities of Joint Labor Protection sons at the established enterprise. Outcome of first The Company also provides assistance in agers residing in the territory of the south-east Committees (Commissions) at Enterprises, Institutions products is expected in the middle of 2007. solving social issues, in development of collective of Tatarstan in 2004 the Company established Gifted and Organizations the labor protection committee was OOO AgroIdea the project of which was sup- agreements and corporate standards in the sphere Children charitable foundation. Rendering mate- established in OAO Tatneft in 1997 on the basis of the ported by the Company in 2005 started production of management and finance. Analysis of operations rial assistance to talented children from low-income joint decision of the administration and the trade union of rod cultivators KSN-3 and KSN-4 under the order of specialized enterprises in 2006 allows to make the families the Foundation provides schoolchildren with committee. It includes, on a parity basis, five represen- of the Ministry of Agriculture and Food of the Republic conclusion that the selected direction of restructur- excellent starting positions for reaching future heights tatives of the employer and five representatives of the of Tatarstan. First cultivators of OOO AgroIdea will ing is effective — the majority of established enter- in professional development. The Foundation encour- trade union committee. appear in the fields of the Republic in 2007. prises are profitable. ages schoolchildren for achievements in educational Main objectives of the Committee are develop- Today OAO Tatneft is developing taking into activity, finances their participation in regional, repub- ment of the program of activities of the employer and account the experience of the advance world extrac- lican, All-Russian and international conferences, allo-
66 67 название раздела ОАОSocial TATNEFT policy SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
Year by year Tatneft not only finances but initiates and acts as the main mover cates grants for implementation of scientific and cre- Public health support Development of ice hockey and other sports ative projects and supports teachers whose students of qualitative renovation In 2006 construction of the surgery building of the Since 2000 the complex program of development demonstrate high results. About three hundred school- clinic of OAO Tatneft started. The old building was put of children’s and junior ice hockey in the south-east of children and two hundred teachers have received of life in the city and into operation in 1955, during that period only cosmetic the Republic of Tatastan has been developed and imple- material support during the period of activities of the repairs took place in it. mented under the initiative of the General Director of OAO Foundation. the district. The unique character of the new complex under Tatneft Sh. F. Takhautdinov. Its main goal is to attract the Due to support of the Foundation the regional con- construction is that it will be equipped with the up-to- rising generation to sport and healthy way of life. ference of school scientific societies “Schoolchildren — date advanced medical equipment for purchase of Later on successful implementation of this pro- to Science of the 21st Century” is being held for which the Company allocated 515 million rubles. The gram allowed to accept the Program of Development of the third year running. In 2006 about 90 schoolchil- R.F. Abubakirov, total estimate cost of the surgery complex is over 800 Ice Hockey in the Republic of Tatarstan for 2005-2008 dren from Almetyevsk, Bugulma, Zainsk, Nizhnekamsk, head of Almetyevsk million rubles. Medical personnel will undergo training one of sections of which includes activities for develop- Leninogorsk, Azanakayevo, Nurlat, Jalil and other cities Municipal District and study course in leading foreign clinics. All these will ment of children’s ice hockey. and towns participated in the conference. Each partici- allow to raise medical service to qualitatively new level, Within the framework of this program every year pant was presented with educational books and prize to carry out up-to-date diagnosis and treatment without OAO Tatneft provides organizational and financial assis- winners were awarded with encyclopedic editions. leaving Almetyevsk. tance to the whole infrastructure of children’s and adult 17 cities and districts of the oil region of the Republic Due to support of the Foundation schoolchil- Construction of the surgery complex, reconstruc- ice hockey functioning in the oil region, development of Tatarstan participated in the festival. Final rounds dren from Almetyevsk, Bugulma, Nizhnekamsk and tion of other public health facilities, equipping them with of traditions of team spirit of Golden Puck. Every year were held in six children’s health resorts of Tatneft other settlements of the republic became prize winners the newest medical equipment is the contribution of our funds are allocated for purchase of hockey uniform for where children could also have a good rest. The festival of All-Russian theoretical and practical conferences Company into implementation of the priority “Health” junior club teams as well as for remuneration to coach- was closed with traditional gala concerts in Almetyevsk “Start to Science” and “Step into the Future”, interna- national project. es and people servicing skating-rinks. Providing assis- and Kazan with participation of contest winners. Festival tional conference in Romania, international test rating tance to development of ice hockey Tatneft is guided winners were awarded with diplomas and money prizes. contest in Greece, participated in activities of seminar Assistance to inmates of boarding schools by the fact that preservation of health of the nation and The Foundation transferred funds to costume sewing school “Academy of Young People” in Gagra and the Within the framework of the program of support training of professional athletes are impossible without and purchase of musical instruments for art collec- world exhibition EXPO-2005 in Chile, etc. of orphaned children the Company annually assigns corresponding capital investment. tives of Leninogorsk, Zainsk, Bugulma, Almetyevsk, Support of gifted children is very important for the school leavers of Almetyevsk boarding school to its In the south-east of Tatarstan 74 hockey courts Nizhnekamsk, Yelabuga and other cities and settle- Company since it provides the basis for future attracting enterprises. Today Tatneft takes care of 57 school have been reconstructed, constructed and accept- ments of Tatarstan. of talented highly qualified specialists able to ensure leavers of the boarding school. In 2006 the Company ed for maintenance by enterprises of the Company. profitable development of oilfields with minimum envi- provided material assistance to school leavers of the Teenagers’ clubs are actively functioning on their basis Dear Shafagat Fakhrazovich! ronmental load, to develop and apply high information boarding school in the amount of 2.5 million rubles covering over 4 thousand children and teenagers. The teaching staff of Almetyevsk Children’s technologies and to solve other complicated tasks. through the charitable foundation “Charity”. Assistance Tournaments for prizes of OAO Tatneft and Neft I Zhizn Musical School No. 1 with deep respect in the amount of one million rubles was provided magazine are held with participation of neighborhood expresses gratitude to you and to the whole Foundation for spiritual revival Rukhiyat to Leninogorsk children’s home. On the threshold hockey teams. The Company finances OAO Tatneft collective and trade union committee of OAO In 1997 OAO Tatneft established the foundation for of the new year about one thousand and a half Cup regional competitions. During the period from 2001 Tatneft, to the organizational committee of the Rukhiyat spiritual revival in order to accelerate spiritual of inmates of boarding schools, children’s homes, social to 2006 seven skating complexes were built in different festival “Singing Nightingale Country” for care, revival an cultural life of the oil region of the Republic shelters, children’s rehabilitation centers and correction cities of the republic at the expense of the Company. attention and support to talented children and of Tatarstan. schools received presents from the Company. The Company also supports development of other their teachers. The regional festival of children’s arts “Singing sports in the south-east of Tatarstan: boxing, wrestling, Nightingale Country” has been the traditional project swimming, volleyball, figure skating, equestrian sport, R. Nagimov, of the Foundation for 9 years. In 2006 contests were tennis. This investment is justified since it favors health director of Almetyevsk Children’s Musical School held in 11 nominations. About 5 thousand children from improvement of the nation as a whole.
68 69 название раздела ОАОSocial TATNEFT policy SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
Dear Shafagat Fakhrazovich! and equipping of the equestrian sports school includ- Support of culture from 13 to 33 years from 13 cities and districts of the With transition of our hockey school under protec- ing 37 million rubles in 2006. In 2006 the Company established a literary award oil region of the republic took part in the Literary Debut tion of AHC Neftyanik for already 5 years we have named after poetess Sazhida Suleimanova. Every contest. 203 works of art by 49 authors from 8 cities and been feeling your paternal care of our children Tennis complex year on birthday of the well-known poetess members districts were presented to the competition of masters — pupils of the Children’s and Juniors’ Sports Construction of the covered lawn tennis complex of the Union of Authors of Tatarstan will be awarded of arts. The best works of contestants were included School. Those changes that have taken place is being finished in Almetyevsk. The complex will con- personalized prizes in the amount of 30 thousand into books published by foundation Rukhiyat — New during this short period impress with their scales. sist of closed tennis court, club administrative build- rubles for works in poetry, prose, dramatic works pub- Literary Wave and Masters of Arts of the Oil Region of And the season of 2005-2006 in some sense was ing, open tennis grounds and courts, running tracks, lished in the two preceding years. Besides that three the Republic of Tatarstan. unique in its results. parking lot. Much attention is paid to beautification and encouraging prizes of 10 thousand rubles each and On behalf of all parents of children attending the landscape gardening of the complex territory. ten scholarships of S. Suleimanova of one thousand Within the framework of preparation for the hockey school we would like to thank you, dear In future it is planned to build several more ten- rubles each were instituted for students of higher and significant event — celebration of production Shafagat Fakhrazovich, and the whole collective nis courts with different surfaces for perfecting skills high specialized educational institutions having seri- of 3 billion tons of oil in Tatarstan — foundation of the oil company! of amateurs of different ages and physical conditions. ous achievements in literary works. Prize winners will Rukhiyat held the contest of children’s essays In 2006 the Company allocated 42.5 million rubles receive a special badge. Candidates for awards and and drawings. “My Parents are Oil Workers”. Members of the parents’ committee of the Children’s and to construction of this complex. scholarships are nominated by the Union of Authors “Country Named Tatneft”, “Oil and Life”, “Oil Juniors’ Sports School of AHC Neftyanik Besides, in 2006-2007 OAO Tatneft allocated 80 of Tatarstan and are approved by the expert council Country of Tatarstan in 50 Years through Eyes million rubles for construction of a sport hall in Yelabuga of Foundation Rukhiyat of OAO Tatneft. of Children — these topics were offered to par- Alpine skiing complex and 43 million rubles to construction of a swimming- In December 2006 presentation of books pub- ticipants. Participants in the contests included In the reporting year the second stage of the pool in Menzelinsk. lished by the Foundation in 2006 took in the National representatives of all comprehensive schools Alpine Skiing Complex in sanatorium YAN was com- Library of the Republic of Tatarstan; the presentation of Almetyevsk, a number of village schools of missioned; in 2006 the Company allocated to this con- Dear Shafagat Fakhrazovich! ended with gratuitous transfer of books to the National the district and first-year students of ASOI and struction 112,190 thousand rubles. In addition to four Our children has been going in for volleyball is sec- Library of the Republic of Tatarstan, libraries of Kazan KSU. Winners were awarded with diplomas and alpine skiing tracks of various difficulties the track for tion at the methodological center of OSO Almetyevsk State University, Kazan State University of Culture souvenirs.”Everything connected with Tatneft snowboarding and snow-tubing was constructed. The Volleyball Federation for four years. During that and Arts, Tatar State University of Arts and Pedagogy. produces the feeling of beauty and light in our total length of main tracks is 4,100 meters with height time many of them have learnt the taste of victory During 10 years Foundation Rukhiyat has published children,” — this idea expressed by Ludmila difference 126 meters. Lifting is carried out with 4-seat at republican and All-Russian competitions and this over 100 books. Over 200 thousand book copies for the Kuznetsova, leading specialist of the depart- chair lift with capacity of 1,300 persons per hour. is the most important thing for us. After joining sport total amount of 24 million rubles have been gratuitously ment of education, is to the utmost confirmed the boys and girls have become more organized, transferred to republican libraries, museum, educa- with works of young participants in the contest. Equestrian sports school have learnt to value time and, what is the most tional institutions. Best works will be included into the book dedi- In order to attract children and juniors to eques- important, they all have got read of negative influ- In November 2006 the third republican festival cated to production of 3 billionth ton of oil. trian sport in 2006 the equestrian sports school was ence of the streets and related problem of drugs, of students’ works named after S. Suleimanova opened in Almetyevsk. The school complex consists alcoholism, smoking. Thanks to your comprehen- “Tormysh, Isenme!” started; it is conducted by Spiritual revival of the covered riding house for training and exhibition sive support our children have the opportunity Almetyevsk State Oil Institute, the Ministry of Education Construction of the temple of the Icon of Our Lady performances, covered stalls for 80 horses, admin- to grow up worthy people capable of setting objec- and Science of the Republic of Tatarstan and the foun- of Kazan started in 2001 continues in Almetyevsk. The istrative building for servicing personnel and classes tives for themselves and scoring a success. Shafagat dation of spiritual revival Rukhiyat. new temple with height of 43.7 meters from the surface and open riding grounds. Three hundred children and Fakhrazovich, thank you for paying attention to prob- New projects of the Foundations are: the contest to the top of the cross of the main cupola occupies the teenagers may be trained here simultaneously in six lems of children’s sport and volleyball in particular of beginning authors “Literary Debut” and competition territory of 0.74 hectare. Its inner area is 2.5 thousand sections: show jumping, dressage, steeple chase, in this complicated for OAO Tatneft time. of masters of arts which have shown that even in the hi- square meters; the volume is about 19 thousand cubic pony section, horse triathlon and trotting races. The tech age there are many young people seriously infatu- meters. Construction of the building has already been Company allocated 81 million rubles to construction G. Kamaliyeva on behalf and by order of parents ated with literature and art. Over 160 people of ages completed, bells with deep ringing have been mounted.
70 71 название раздела ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
The largest of 11 bells, a gift from OAO Tatneft to the but those who contributed greatly into development church under construction, is 1,350 kilograms in weight. of oil production in the republic with their honest work The smallest one — 11 kilograms. The remaining work in other industries and in the budget sphere will receive includes lining of the building and finishing inside the opportunity to have a rest and to improve their health temple. The Company has allocated about 65 million in sanatoria and health resorts of the Company at the rubles for these purposes. In 2006 the Company allo- expense of Tatneft. cated 41.5 million rubles to construction of the temple, 30 personalized scholarships for students in total — 94 million rubles. of Almetyevsk State Oil Institute have been established In 2006 OAO Tatneft also allocated 7.2 million in honor of production of three billion tons of oil with the rubles to construction of the orthodox temple in Bavly. annual scholarship fund of 1 million rubles.
Plans for 2007 In 2007 the Company will celebrate production of three billion tons of oil from the beginning of indus- trial oilfield development in the Republic of Tatarstan. This most important historic achievement and event of the All-Russian level is the result of enormous work of all generations of oil industry workers. In connection with this event the Company plans to implement a number of social projects: commission- ing of the surgery complex of the clinic of OAO Tatneft with unique equipment; opening of the tennis complex in Almetyevsk; completion of construction of the Palace of Culture “Neftche”. The stele commemorating produc- tion of 3 billion tons of oil will be erected in Almetyevsk; the commemorative medal with the status of government award has been instituted; the book dedicated to this event has been published. Medals and commemorative badges will be awarded to employees and veterans of the Company, employees and veterans of the budget sphere, construction and other organizations, party and Soviet bodies contributed greatly into formation and develop- ment of oil industry of the Republic of Tatarstan. Federal TV channels will broadcast a documentary dedicated to the history of the Company. A historical documentary in 16 series is being prepared. This series will reflect basic stages of development of the Company, the most promi- nent facts and figures of historical chronicle as well as people and life of cities of the south-east of the republic. EQUESTRIAN SPORTS SCHOOL Not only distinguished veterans of oil industry
72 73 Social policy ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
IN CHILDREN’S “YOUTH” HEALTH-IMPROVING CAMP SANATORIA “YAN”
74 75 Social policy ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
REGISTER OF CORPORATE SOCIAL PROJECTS (CSP) OF OAO TATNEFT, 2006
SOCIAL DESCRIPTION OF CORPORATE PLACE OF PROJECT SOCIAL DESCRIPTION OF CORPORATE PLACE OF PROJECT INVESTMENT DIRECTION SOCIAL PROJECTS IMPLEMENTATION INVESTMENT DIRECTION SOCIAL PROJECTS IMPLEMENTATION
Program of development of Participation in beautification of the settlement Karabash infrastructures of cities and Participation in construction and reconstruction of social and cultural objects Agrysky District settlements Reconstruction of Prospekt Neftyanikov Yelabuga Participation in construction and reconstruction of social and cultural objects Aznakayevo Participation in city beautification Yelabuga Overhaul repairs of transport part of Gagarina Ul. Aznakayevo Participation in city beautification Leninogorsk Participation in repairs of social and cultural objects Aktanyshsky District Participation in improvement of Tatar and Russian cemeteries Leninogorsk Participation in city beautification Almetyevsk Beautification of Prospekt Imeni Shashina Menzelinsk Participation in repairs of social and cultural objects Almetyevsk Road repairs Nizhnekamsk Construction of drainage sewage Almetyevsk Construction of ring interchange and repairs of Gimatdinova Ul. Nurlat Reconstruction of water conduits Almetyevsk Participation in beautification and overhaul repairs Sabinsky District Beautification of SMS territories Almetyevsk of social and cultural objects
Participation in implementation of the Program Construction of engineering lines in 4D micro-district Almetyevsk Cheremshansky District of Social and Economic Development
Beautification of the pond cascade Almetyevsk Participation in beautification of settlements Severny District, Orenburg Oblast
Beautification of Beloglazova and Tolstogo Ul.s Almetyevsk Gorodishche (Leninsky District, Participation in beautification and development of village infrastructure Orenburg Oblast) Overhaul repairs of roofing of residential buildings on Lenina, Almetyevsk Beloglazova and Valeyeva Ul.s Sergiyevsky District, Participation in implementation of the Program of Social and Economic Development Purchase of small architectural forms for Prospekt Tukaya Almetyevsk Samara Oblast
Construction of facilities at city entrances Almetyevsk Participation in repairs of aquatic health-improving complex Aznakayevo
Participation in the Presidential Program of moving Almetyevsk Program of development Participation in repairs of children’s and juniors’ sports school Askubayevsky District from ramshackle dwelling of mass sport and physical education in the oil region Participation in improvement of cemetery No. 1 Almetyevsk of the Republic of Tatarstan Construction and equipping of equestrian sports school Almetyevsk
Participation in beautification of settlements and construction Almetyevsk District Alpine skiing complex Almetyevsk of social and cultural objects
Tikhonovka Village Development of volleyball Almetyevsk Overhaul repairs of Yelkhovskaya Ul. (Almetyevsk District) Maintenance of sports and health-improving complex Neftche Bugulma Participation in repairs of social and cultural objects Bavly
Participation in city beautification and repairs of social and cultural objects Bugulma Participation in celebration of anniversary of Neftche stadium Bavly
Beautification of Lenina Ul. Karabash Construction of all-purpose sports hall Yelabuga
76 77 Social policy ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
SOCIAL DESCRIPTION OF CORPORATE PLACE OF PROJECT SOCIAL DESCRIPTION OF CORPORATE PLACE OF PROJECT INVESTMENT DIRECTION SOCIAL PROJECTS IMPLEMENTATION INVESTMENT DIRECTION SOCIAL PROJECTS IMPLEMENTATION
oil region of the Participation in construction of equestrian sports complex Yelabuga Work with personnel reserve Republic of Tatarstan Construction of swimming pool Menzelinsk oil region of the Work with target groups Republic of Tatarstan Purchase of equipment for sports and health-improving complex Shinnik Nizhnekamsk oil region of the Youth policy Ski depot Sarmanovsky District Republic of Tatarstan
oil region of the Reconstruction of sports and health-improving complex Urussu (Yutazinsky District) Personnel certification Republic of Tatarstan in cities and settlements Education support program Sports Contests of OAO Tatneft of the oil region of the Republic Participation in overhaul repairs of school No. 1 Aznakayevo of Tatarstan Beautification of the territory of SPK No. 2 and 3 Aznakayevo in cities and settlements Organization and carrying out of sports and health-improving activities of the oil region of the Republic Participation in repairs, purchase of furniture and equipment for school No. 1 Aktyubinsky of Tatarstan Foundation “Gifted Children” Almetyevsk Participation in organization and holding of International Samara Oblast Track and Field Contest “Governor’s Cup” Support of material and technical basis of ASOI Almetyevsk Allocation of funds for children’s and juniors’ sports school Centaur Chelno-Vershiny (Samara Oblast) Repairs of facade IV of school No. 10 Almetyevsk Program of development of ice Construction and equipping of ice sports palace Aktanysh hockey in the south-east of the Reconstruction of roofing of polytechnic college Almetyevsk Republic of Tatarstan Participation in reconstruction of Yubileiny palace of sports Almetyevsk Construction of extension to Novonikolinskaya secondary school Almetyevsk District Participation in construction of ice sports palace Bavly Abdrakhmanovo Repairs of school facade (Almetyevsk District) Maintenance of Neftyanik ice hockey team Leninogorsk Participation in overhaul repairs of Tatar classical school Zainsky District Beautification of the territory of hockey court of school No. 5 Leninogorsk Participation in reconstruction of the building of geological faculty of KSU Kazan Construction and equipping of ice sports palace Nurlat
Construction of children’s skating rink Menzelinsk Participation in celebration of the 75th anniversary of KSFEI Kazan
in cities and settlements of the Support of material and technical basis of KSFEI Kazan Reconstruction and maintenance of ice hockey courts oil region of the Republic of Tatarstan Construction of additional site of CTPE sub-department Kazan Program of improvement of Participation in the republican social mortgage program Republic of Tatarstan s dwelling conditions of the Construction of SPC in Geofizika micro-district Leninogorsk Company employees in cities and settlements Providing employees with interest-free loans for shared participation of the oil region of the Reconstruction of canteen of school No. 7 Leninogorsk in dwelling construction and construction of individual dwelling Republic of Tatarstan Construction of gym in classical school Mendeleyevsk Program of professional oil region of the Training and professional development of personnel development of employees, Republic of Tatarstan Participation in overhaul repairs of secondary school Melken (Menzelinsk District) development of the Company personnel Theoretical and practical conference of young employees Bugulma Participation in overhaul repairs of secondary school No. 4 Nurlat
78 79 Social policy ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
SOCIAL DESCRIPTION OF CORPORATE PLACE OF PROJECT SOCIAL DESCRIPTION OF CORPORATE PLACE OF PROJECT INVESTMENT DIRECTION SOCIAL PROJECTS IMPLEMENTATION INVESTMENT DIRECTION SOCIAL PROJECTS IMPLEMENTATION
Participation in repairs of educational institution Nurlat District Program of spiritual revival Participation in construction of mosque Aktyubinsky
Repairs and equipping of educational institutions Tukayevsky District Participation in construction of cathedral Alexeyevskoye
Pervomaisky District, Orenburg Equipping of schools Participation in construction of orthodox temple Almetyevsk Oblast
Culture support program Purchase of musical instruments and stage costumes for brass band Aznakayevo Maintenance of central mosque named after R. Fakhretdin Almetyevsk
Verkhnyaya Maktama Participation in construction of mosque Participation in repairs of Palace of Culture Aznakayevo (Almetyevsk District)
Purchase of sound recording studio for concert group of M. Sharafiyev Aznakayevo Participation in construction of orthodox temple Bavly
Purchase of sound equipment for Palace of Culture Aktanysh Participation in repairs of central mosque Karbash
Financial assistance to manufacturing of audio and video cassettes of A. Nurgaliyev Aktanysh Participation in restoration of mosque Ak-kul (Leninogorsk District)
Participation in construction of mosque Muslyumovo Participation if repairs of Palace of Culture Neftche Almetyevsk
Participation in construction of mosque Sarmanovo Amusement park Almetyevsk
Participation in construction of temple Cheremshan Participation in overhaul repairs of dormitory of Drama Theatre Almetyevsk Program of social oil region of the Collective Agreement Current repairs of House of Culture Yamashi (Almetyevsk District) guarantees to personnel Republic of Tatarstan oil region of the Program of non-governmental Non-governmental pension fund Sewing stage costumes for Notka company Yelabuga provision of pensions to the Republic of Tatarstan Company employees oil region of the Address assistance to pensioners Support of culture institutions (theatre named after Tinchurin, Variety Theatre) Kazan Republic of Tatarstan
Program of support Participation in overhaul repairs of the building of the Board of Veteran Council Aznakayevo Publishing of book about history of Muslyumovsky District Muslyumovsky District of veterans of WWII and labor of OAO Tatneft Sewing costumes for people’s choir of veterans of WWII and labor Bavly Participation in overhaul repairs of the Museum of Labor Glory Jalil (Sarmanovsky District) Repairs of the building of district Veteran Council Menzelinsk District
Participation in reconstruction of Palace of Culture Jalil (Sarmanovsky District) Sanatorium and health resort health improvement of non-working pensioners, oil region of the veterans of WWII and labor Republic of Tatarstan Purchase of brass instruments, stage costumes for brass orchestra of music school Jalil (Sarmanovsky District) oil region of the Republic Material assistance to war veterans, of Tatarstan Abdullinsky and widows, workers of home front oil region of the Republic Leninsky Districts, Samara Oblast Carrying out youth activities of Tatarstan oil region of the oil region of the Republic Ceremonial activities dedicated to Victory Day Foundation of spiritual revival Rukhiyat Republic of Tatarstan of Tatarstan Verkhnyaya Kamenka oil region of the Republic Overhaul repairs of community entertainment center Solving dwelling and everyday problems of veterans (Cheremshansky District) of Tatarstan
80 81 Social policy ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
SOCIAL DESCRIPTION OF CORPORATE PLACE OF PROJECT SOCIAL DESCRIPTION OF CORPORATE PLACE OF PROJECT INVESTMENT DIRECTION SOCIAL PROJECTS IMPLEMENTATION INVESTMENT DIRECTION SOCIAL PROJECTS IMPLEMENTATION
Program of social insurance oil region of the Republic Health improvement of children of employees of the budget sphere of Almetyevsk in oil region of the Republic Voluntary medical insurance of OAO Tatneft employees of Tatarstan children’s health-improving camps of Tatarstan
Program of support of public oil region of the Republic Organization of sanatorium health improvement of employees oil region of the Republic Voluntary medical insurance health of the south-east of of Tatarstan with children (“mother and child”) of Tatarstan Tatarstan Participation in overhaul repairs and equipping of outpatient clinic Aznakayevo Kinel-Cherkassky, Sergiyevsky, Allocation of funds for orphaned children, children from low-income families Chelnovershinsky Districts, Samara Oblast participation in repairs of central district hospital Alsubayevsky District Labor protection program oil region of the Republic Provision of employees with working clothes Participation in construction of surgery building of clinic Almetyevsk of Tatarstan
oil region of the Republic Reconstruction of engineering lines in sanatorium Ivolga Bavly Certification of workplaces of Tatarstan Reconstruction of sanatorium of Bugulma Mechanical Works Bugulma Program of social assistance Repairs of the building of disabled people society Aznakayevo to population of districts of the Participation in construction of residential building for medics Yelabuga Republic of Tatarstan Installation of water meters in apartments of low-income families Almetyevsk
Participation in reconstruction of sanatorium Kosmos Yelabuga Assistance to disabled people society Leninogorsk
Purchase of medical vehicles for children’s hospital Leninogorsk Allocation of funds to the territorial office of the All-Russian Society of the Blind Menzelinsk
Allocation of funds for purchase of medicines for district hospital Jalil (Sarmanovsky District) Assistance to public organization of disabled people Samara Reconstruction of bedroom building of sports and health-improving complex Nurlat Program of jobs creation Creation of new promising manufacturing of goods and services on the basis of oil region of the Republic Vishnevaya Polyana facilities released in the result of restructuring of Tatarstan
Purchase of boiler room for sanatorium Kazansky Kazan
Program of maternity and Klyavlinsky District, Participation in overhaul repairs of central district hospital childhood protection Samara Oblast
Participation in overhaul repairs of kindergarten No. 12 Rodnichok Aznakayevo
Reconstruction of health-improving camp Solnechny Almetyevsk
Participation in reconstruction of health-improving camp Fakel Zainsk
Participation in overhaul repairs of kindergarten Lyaisan Karabash
Participation in overhaul repairs of children’s home Leninogorsk
Participation in overhaul repairs of kindergarten Skazka Nurlat
Participation in overhaul repairs of kindergarten No. 5 Jalil (Sarmanovsky District)
oil region of the Republic Organization of summer rest of children in children’s health-improving camps of Tatarstan
82 83 More than 4.62
billion 3.86 rubles 3.34 were allocated4.6 by OAO Tatneft in 2006 for protection of environment
‘04 ‘05 ‘06
Expenses for environment protection (billion rubles)
Environmental activity Environmental activity ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
ENVIRONMENTAL POLICY For implementation of the principles STRUCTURE OF THE UNIFIED ENVIRONMENTAL SERVICE OF THE COMPANY AND MANAGEMENT IN THE COMPANY of the environmental policy the Company undertakes: The environmental policy is one of the highest priorities to observe requirements of the existing nature con- of strategic vision of the Company and is viewed by its servation legislation and other normative and legal OAO TATNEFT management as one of the main conditions of preserv- documents adopted by the Russian Federation, its ing the status of OAO Tatneft as a company with high subjects and local authorities as well as industry and environmental responsibility. corporate norms regulating the Company activity in the sphere of environmental safety, environment Main strategic directions of the Company protection and rational use of natural resources; NIS OAO TATNEFT NATURE PROTECTION in the sphere of environment protection: TECHNOLOGICAL OFFICE to observe other external requirements in the FOR PREVENTION GROUP minimization of impact of production activity of the sphere of environment protection which the OF CORROSION AND NATURE PROTECTION Company on environment; Company undertakes to fulfill; rational use of natural resources; to support and to improve continuously the inte- OIL AND DEPUTY CHIEF ENGINEER OFFICE FOR STRUGGLE CHEMICAL AND GAS PRODUCTION FOR ENVIRONMENT AGAINST CORROSION AND ANALYTICAL LABORATORY preservation of environment quality. grated system of management of industrial safety, DEPARTMENTS PROTECTION NATURE PROTECTION The environmental policy of OAO Tatneft is formed labor and environment protection; and implemented in accordance with the state strategy to take every possible effort to prevent environ- TATNEFTEGAZ DEPUTY CHIEF ENGINEER OFFICE FOR STRUGGLE CHEMICAL AND in the sphere of environment protection, industrial and ment pollution; PERERABOTKA FOR NATURE PROTECTION AGAINST CORROSION AND ANALYTICAL LABORATORY NATURE PROTECTION environmental safety as well as with the conditions of to develop and to implement special programs DEPARTMENT the Corporate Code of OAO Tatneft. aimed at improvement of environment condition in the territory of production activity of the Company; WELL-WORKOVER DEPUTY CHIEF ENGINEER ECOLOGY GROUP CHEMICAL AND OPERATION AND FOR ECOLOGY ANALYTICAL LABORATORY Main principles of the environmental policy to carry out open dialogue with all stakeholders IMPROVED OIL RECOVERY DEPARTMENT of the Company: on issues of environment protection and environ- systematic approach at development and imple- mental safety. mentation of environmental programs; In order to implement the principles of the envi- DEPARTMENT FOR CHEMICAL AND ECOLOGIST ENGINEER PREPARATION ANALYTICAL LABORATORY OF PROCESSING FLUID FOR WATER decrease of impact of technological equipment ronmental policy of the Company the following environ- FOR MAINTAINING on environment by way of increase of its reliability ment protection programs of OAO Tatneft have been RESERVOIR PRESSURE
and decrease of production energy intensity; developed and successfully implemented: Ecology UNCS, ACPSB ECOLOGIST ENGINEER ON ESP, BUGULMA development and implementation of technical 1990-1995, Environmental Safety at Oil Production MECHANICAL WORKS AND OTHER SUPPORTING means and technologies ensuring permanent in the South-East of the Republic of Tatarstan in 1995- STRUCTURES increase of the level of environmental safety; 2000. The Environmental Program of OAO Tatneft for
development and implementation of low-waste 2000-2015 is created and is being implemented on the TATNIPINEFT CHIEF ENGINEER ENVIRONMENTAL SAFETY technologies, efficient use of resources; same basis. OF ENVIRONMENT OFFICE PROTECTION PROJECTS control of observance of the requirements of envi- Taking into account natural geographical and ronmental safety, environmental monitoring at the social and demographic characteristics of the region Company objects; of activity of OAO Tatneft special attention is paid openness of environmentally significant informa- to prevention of pollution and improvement of atmo- tion about the Company activity. spheric air, sweet surface and subterranean waters, preservation of soil cover — basis of vital functions of all natural biocenoses.
86 87 экологическая деятельность ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
ENVIRONMENTAL ACTIVITY MANAGEMENT
ENVIRONMENTAL ASPECTS
IDENTIFICATION AND ANALYSIS
NORMATIVE-LEGAL AND NORMATIVE-TECHNICAL FIELD OF RUSSIA General management of environmental activity of lished in the system of integrated hydromonitoring in the AND ITS SUBJECTS ENSURING COMPLIANCE WITH LEGISLATION REQUIREMENTS the Company is carried out by the First Deputy General zone of activities of OAO Tatneft. For tracing dynamics AND PROCEDURES (measurement, limitation, licensing, permissions, directions, instructions, Director for Production — Chief Engineer of OAO of chemical composition of subterranean and surface standards of enterprise, management directives, technical regulations, etc.) Tatneft. Immediate organization of nature conservation waters the Chemical and Analytical Laboratory for Water
STATE SUPERVISION, EXTERNAL OAO TATNEFT MANAGEMENT activity, planning and implementation of environment in the Department for Preparation of Processing Fluid INSPECTIONS AND CONTROL protection activity are carried out by the environmental for Maintaining Reservoir Pressure has been estab-
ENVIRONMENTAL POLICY service of the Company which is headed by technologi- lished and certified. This is the “quick response service” cal office for prevention of corrosion and nature protec- of the Company allowing for efficient and objective tion of the production department of OAO Tatneft. tracking of environmental situation in the region, analysis of water object conditions, revealing and elimination SCIENCE (TatNIPIneft and other TECHNOLOGICAL OFFICE FOR research institutes) PREVENTION OF CORROSION of appearing emergency environmental situations at oil DEVELOPMENT CORPORATE MAINTENANCE AND NATURE PROTECTION production objects. Beside the central laboratory, the AND ENSURING ECOLOGICAL OF ENVIRONMENTAL OF OAO TATNEFT PROGRAM OF PARENT ACTIVITIES OF SUBSIDIARIES ENVIRONMENTAL Company possesses the network of peripheral labora- COMPANY AND AFFILIATES MONITORING tories for control of water object conditions in structural units — chemical and analytical laboratories of OGPD, INDEPENDENT EXTERNAL DEPARTMENTS, SERVICES In OAO Tatneft the source of initial information for Tatneftegazpererabotka Department and TatNIPIneft CONSULTANTS OF EXECUTIVE BODIES planning various nature conservation activities, control which carry out daily monitoring of environment condi- OF OAO TATNEFT FULFILLMENT of implementation and efficiency is data of departmen- tions in the assigned territory. OF ENVIRONMENTAL ACTIVITIES OF PARENT tal monitoring of environment condition. Monitoring In 2006 in order to control quality and conditions COMPANY of environment condition at oilfield development of surface water objects (rivers, brooks, ponds) and includes control of atmospheric air condition, sweet subterranean water sources (springs, wells, artesian EXTERNAL PARTIES (partners, STRUCTURAL UNITS executors, contractors, etc.) OF OAO TATNEFT surface and subterranean waters, hazardous endog- wells) the chemical and analytical laboratory of the enous and exogenous processes. Department for Preparation of Processing Fluid for MONITORING OF RESULTS OF FULFILLMENT Monitoring of atmospheric air condi- Maintaining Reservoir Pressure took 2,277 samples OF ACTIVITIES, INSPECTION, CONTROL (internal audit) tion in the territory of activity of OAO Tatneft is car- from 753 control points and performed 20,733 analyses ried out by the industrial and sanitary laboratory of for 49 parameters. APPEALS OF CITIZENS SUBSIDIARIES AND AFFILIATES Tatneftegazpererabotka Department. Every year sam- All chemical and analytical laborato- AND PUBLIC ORGANIZATIONS OF OAO TATNEFT ANALYSIS OF RESULTS, EVALUATION pling is carried out in 73 settlements of the region for ries of the OGPD, Department for Preparation analysis of atmospheric air for content of main pollut- of Processing Fluid for Maintaining Reservoir Pressure,
ing substances for 9 components: C1-C10 –saturated Tatneftegazpererabotka Department and TatNIPIneft
hydrocarbons, H2S — hydrogen sulfide, NO2 — nitro- have certificates of accreditation in the system of State gen dioxide, CO — carbon monoxide, C H — benzene, Standard of the Russian Federation in the directions INDEPENDENT EXTERNAL AUDIT REPORTING 6 6 HCOH — formaldehyde, dust, SO2 — sulfur dioxide, of their research. carbon-black. The territory of activity of the Company is located Monitoring of water resource condition is car- in the basin of the Kama River and its tributaries. Besides, ried out in order to estimate efficiency of activities here in the interval of upper Permian sediments there CORRECTING ACTIONS of surface and subterranean sweet water protection is concentration of considerable reserves of sweet sub- from pollution and to trace their hydrological, hydro- terranean waters which are used by local population for chemical and hydrogeological conditions. For this pur- everyday and drinking purposes. It is known that sweet poses the network of observation point has been estab- surface and subterranean waters are a good indicator
88 89 Environmental activity ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
Mendeleevsk
Elabuga Menzelinsk Mamadysh Naberezhnye Chelny Nizhnekamsk
Chistopol Zdinsk
Elabuga Naberezhnye Chelny
Dzhalil Almetievsk Aznakaevo
N. Bishevo Karabash Durt Muncha Kaban Bystryk Leninogorsk Bugulma
Nurlat Bavly Mendeleevsk Tat. Utyashkino Tat. Karamaly Elabuga Menzelinsk Sr. Kashir Mamadysh Naberezhnye Chelny Yamashi Aleksandrovka Star. Kashir Leschev Tamak Sloboda Arkhangelskaya St. Mavrino Nizhnekamsk Dusyumovo Kr. Gorka Russky Aktash N. Menzelyabash Ekaterinovka Suleevo Dzhalil Masyagutovo Appakovo N. Kashirovo Chuv. Sirenkino Ursala Alkeevo Chistopol Zdinsk Almetievsk Kama-Ismagilovo Aznakaevo Kichui Nizh. Abdulovo TikhonovkaNizh. Yakeevo Aseevo Nagornoe N. Maktama Kutema Polyanka Minninbaevo Chemodurovo Mitryaevo Vasilievka Dzhalil St. Surkino Abdrakhmanovo Star. Kutush Karabash Biryuchevka Almetievsk Sarabikulovo Aznakaevo Andreevka Kuakbash Leninogorsk Mord. Karmalka Karabash Karaulnaya Gora St. Shugurovo Leninogorsk Shugurovo Bugulma Mal. Kamyshla Zel. Roscha Nurlat Spiridonovka Bavly Nurlat Bavly
SCHEME OF ATMOSPHERIC AIR MONITORING IN THE LOCATION OF REGION OF ACTIVITY OBSERVATION POINTS OF OAO TATNEFT
Border of the Border of the territory of activity territory of activity of OAO TATNEFT of OAO TATNEFT For subterranean waters Points of observation For surface waters
90 91 Environmental activity ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
In the territory of environment condition since they respond with this of the Romashkinskoye Development and implementation of the technol- In OAO Tatneft almost the whole vol- or that efficiency to anthropogenic pollution of surface ogy of trapping of light hydrocarbon fractions (LFT) ume of associated gas (95-96%) is collected and and geological environment. Within the zone of activity oilfield there is the releasing from capacity equipment allowed not only refined at the Minnibayevsky Gas Refinery (MGR) of the Company the network of observation posts was to decrease emissions of hydrocarbons into air (since of Tatneftegazpererabotka Department. In order created to control surface and subterranean waters observation network 1991) by 4.2 times but to receive over 1.2 million tons of to decrease emission of hydrogen sulfide into air pollution and has been in operation since 1969. additional hydrocarbon raw material. associated gas produced in production wells of the Today the observation system consists of 1,381 Introduction of the LFT systems allowed for mul- Company is refined in parallel with the primary produc- sampling points. It includes points of observation of sur- consisting of 1,050 tiple decreasing of specific emissions of hydrocarbons tion in desulfurization plants (5 plants). In the result face (at rivers and brooks) and subterranean (springs, from 6.4 kilograms in 1990 to 1.9 kilograms per one ton of this in the reporting year there was no any exceeding artesian wells, wells) waters. Water analysis is carried out observation points of produced oil in 2006. The quantity of hydrocarbons of maximum permissible concentrations of saturated for the following parameters: chloride-ion, sulphate-ion, trapped with the LFT plants in tank farms of OAO Tatneft hydrocarbons С1-С10 and hydrogen sulfide H2S in atmo- general hardness, hydrocarbonates, hydrogen index, including points of the in 2006 is 62.3 thousand tons. Today at OAO Tatneft spheric air of any settlements in the region of activity calcium, biochemical consumption of oxygen-5, anion- facilities 42 of such plants are operating. of OAO Tatneft. active surface-active substances, oil and oil products state geodesic network For utilization of flare gas at booster pump stations in dissolved and emulsified state. If necessary analysis in 2005 5 multi-phase pumps were commissioned. may be carried out for 49 parameters. and specially equipped Monitoring of geological environment is car- observation points. ried out in respect of exogenous and endogenous processes which may influence negatively on opera- tion of oilfields and on engineering and geologi- 0 QUALITY OF WATER IN WATER BODIES cal stability of constructions and communications. AND ATMOSPHERIC AIR IN POPULATION 73 In the process of development of oilfields there may 0 AGGREGATES ACCORDING 68 be deformations of earth surface, structural plans TO ENVIRONMENTAL MONITORING DATA 63 of oilfields being developed which in some cases result 0 59 60 if well deforming and subsidence phenomena 57 By 2006 pollution of river and subterranean waters (of karstic and suffusion genesis). Activity of subsidence with oil products had lowered by 50-60 times 50 50 processes depends on local geological and tectonic 48 on average in the result of implementation of large com- 46 and engineering and geological conditions, oil pro- plex of activities for water objects protection. Results 41 40 39 40 duction intensity, technical conditions of oilfield opera- 38 of laboratory chemical and analytical research show 36 tions (with compensation of formation pressure by way that today quality of water of main rivers in the territory of pumping water into wells or without compensation of activity of OAO Tatneft (the Stepnoi Zai River, the 30 in the process of oil production). 27 Mellya River, the Sheshma River, the Ik River, the Kichui Monitoring of hazardous exogenous and endog- 21 River) is stable. Content of pollutants such as chlorides, 20 20 MONITORING enous processes is organized to control of geolog- oil and oil products in the largest rivers and in majority OF ATMOSPHERIC AIR ical environment conditions. In the territory of the 14 13 14 13 14 14 IN SETTLEMENTS of springs does not exceed the set maximum permissi- IN THE REGION Romashkinskoye oilfield there is the observation net- 10 ble concentration (MPC). At the present moment there OF ACTIVITY work consisting of 1,050 observation points including OF OAO TATNEFT is the process of stable decrease of chlorine content (number of settlements) points of the state geodesic network and specially 0 in subterranean waters. equipped observation points. 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006
92 93 Environmental activity ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
400
350 0.14
300 0.12
250 0.1
200 0.0
150 0.0
OIL AND OIL PRODUCT 100 CHLORIDES CONTENT 0.04 CONTENT IN DISSOLVED IN MAIN RIVERS AND EMULSIFIED STATE IN THE TERRITORY IN MAIN RIVERS IN THE 50 OF ACTIVITY OF 0.02 TERRITORY OF ACTIVITY OAO TATNEFT OF OAO TATNEFT (milligram/liter) (milligram/liter) 0 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 The Stepnoi Zai River 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 The Stepnoi Zai River The Kichui River The Ik River The Ik River The Mellya River The Sheshma River The Sheshma River The Mellya River The Kichui River MPC – 300 milligram/liter MPC – 0.05 milligram/liter
40 1
35 14 13.5 13.3 33.4 13.8 12.4 12.2 30 12 11.3
10.2 10.2 25 10
20 6.8 6.4 15 13.2 5.1 4.3 4.2 4.15 DYNAMICS OF EXCEEDING DYNAMICS OF EXCEEDING 4 3.6 10 3.4 THE MPC OF HYDROGEN 8 THE MPC OF HYDROCAR- 2.8 SULFIDE IN ATMOSPHERIC BONS IN ATMOSPHERIC
AIR IN SETTLEMENTS AIR IN SETTLEMENTS IN 1.73 2 1.45 IN THE REGION OF ACTIVITY 5 THE REGION OF ACTIVITY 0.76 OF OAO TATNEFT 2.2 OF OAO TATNEFT 0.54 0.42 0 (%) 0.9 (%) 0 0 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 1990 1994 1998 2002 2006
94 95 Environmental activity ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
Tatneft has efficient management systems
ENVIRONMENTAL NORMS AND STANDARDS appearing environmental problems and outline activi- allowing to identify ties for their solution and elimination. In the process of oilfield development various types of In its activity OAO Tatneft follows the 15th prin- waste are formed; they are subject to mandatory utili- essential social and ciple of precaution of the Rio de Janeiro Declaration zation in accordance with the norms of environmental on Environment and Development. In accordance with safety. Therefore in accordance with the existing legis- economic, environmental it, absence of complete scientific certainty cannot be lation of the Russian Federation activity connected with sufficient reason for delaying economically efficient 10 handling of hazardous waste is subject to licensing, and innovative aspects measures for prevention of deterioration of environ- 94,8 one of mandatory conditions of which is development mental conditions. 85,355 of programs and technologies for environmentally safe of activity, to manage waste recycling. In accordance with this draft norms of waste formation and limits for its placement (DNWFLP) processes relating are developed for all structural units of the Company in RESOURCES CONSUMED compliance with the requirements of the Methodological to them, to determine 20,950
Guidelines for Development of Draft Norms of Waste Materials 6,500 1 Formation and Limits for Its Placement. The oil-producing industry is one of the most All drafts are coordinated with corresponding expectations of stake- material-consuming types of production and economic authorities and comply with the requirements for activities. OAO Tatneft consumes wide range of various 2005 inclusion into materials for licensing grounding. For holders in respect materials consisting mostly of metal (including rolled all type of waste (over 230) passports are devel- metal and pipes of various assortment), cement, gel oped in accordance with the Instructions for Filling-in of these aspects and powder and a number of other types. Hazardous Waste Passport Form approved with the order of the Ministry of Natural Resources of the to respond to them. Volumes of consumption of basic materials at Russian Federation. oil production
OAO Tatneft carried out activity for develop- In 2006 there was some decrease (except metal) 06,940 1 ment of necessary nature conservation documents present moment the most effective way to study the of material-consuming production resulting from improve- for its structural subdivisions and received license degree of anthropogenic impact on environment is the ment of equipment and technology of oil production and 94,350 No. 16M04/0010/L dated September 13, 2004 for method called “Estimation of Impact on Environment” optimization of placement of oil-producing objects. Thus, activities of handling hazardous waste for the period (EIE). In OAO Tatneft estimation of impact of this or that decrease of consumption of gel powder was reached of five years. oil production project on environment is carried out in the result of wide implementation of polymer-based All structural units of OAO Tatneft have normative with demonstration of quantitative levels of impact and low-clayey drilling agents.
and permission documents of regional nature protec- is based on the complex approach envisaging determi- 1 tion authorities for unorganized discharge of pollutants nation of loads on all landscape components taking into Consumption of energy resources ,600 6,34 16 1 VOLUMES OF CONSUMP- to earth surface and organized discharge of pollutants consideration effects of summation, accumulation and At the present moment oilfields of Tatarstan are TION OF MAIN MATERIALS into water areas within the limits of set norms: maximum forecast of subsequent chain reactions. at the late stage of development; that requires con- (tons) permissible discharges (MPD) and maximum permis- It is necessary to point out that in the Company siderable power consumption, therefore the Company 2006 Total metal sible emissions (MPE). the basis for future environmental stability is laid at the carries out systematic activity to lower consumption Cement Mortar sand All structural units of the Company with station- design stage, since in all types of designs of oilfield of energy for oil production including: Gel powder ary sources of emission of pollutant into atmospheric development all nature conservation activities are set development and implementation of resource- air have draft MPE of pollutant into atmosphere. At the in sections of EE, EIE. They contain clear solutions for saving equipment and technologies;
96 97 Environmental activity ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
CONSUMPTION OF FUEL, ELECTRIC AND HEAT ENERGY
2004 2005 2006 730,983 61 77 Fuel and furnace oil, tons of reference fuel 77 296,252 73,409 6 292,7 1 78,8 10 282,499 663,4 TOTAL 296,252 282,499 268,929 2 ,22 268,929 5,1 1 264,058 61 including production consumption 292,761 278,877 264,058 61 73,422 Heat energy, Gcal 5
TOTAL 730,983 663,477 615,110
including production consumption 673,409 611,221 573,422
Electric energy, million kilowatt-hours
TOTAL 3,190.0 3,124.9 3,156.0 HEAT ENERGY FUEL CONSUMPTION, including production consumption 3,178.1 3,111.2 3,142.8 CONSUMPTION, tons of reference fuel Gcal Gasoline and diesel fuel, tons 80,273 64,248 60,325 2004 2005 2006 Fuel and furnace oil, 2004 2005 2006 Heat energy, total total Including production Including production consumption consumption
structural transformations of transport enterprises; demand for which is satisfied, first of all, with transit flow changes of composition of the transport fleet of the Kama River. Surface waters of the Kama River, the (replacement of buses of large capacity for small- Ik River, the Stepnoi Zai River, the Sheshma River and the er capacity, trucks of large capacity for smaller Karabashskoye reservoir are used as secondary sources 73
capacity); of water supply to oil production objects, industrial needs 90.0 78.1 .2 4.9 48 56.0 42.8 80,2 2 3,1
lowering of the number of own vehicles; of enterprises, cities and settlements. 3,1 111 3,1 3,1 3,1 3, transformations in filling activity, supplies with fuel Conditions of water supply of settlements with 64,2
and lubricants. subterranean drinking waters in the region are far from 60,325 Implementation of the above activities in 2006 being favorable everywhere. It is connected with wide allowed to decrease consumption of fuel and lubri- expansion of upper Permian sediments the degree cants, heat energy, fuel and furnace oil in comparison of water content of which depends on geological and with 2005. tectonic conditions of the country and their complicat- ed hydrochemical characteristics. Incidentally obtained Use of water resources and sewage waters are used in large volumes for Availability of corresponding water resources is maintenance of reservoir pressure maintenance. Thus, ELECTRIC ENERGY GASOLINE AND DIESEL CONSUMPTION, FUEL CONSUMPTION, a necessary condition for efficient oilfield development almost 100 % of incidentally obtained water is used million kWh tons since in OAO Tatneft over 90% of oil is produced with in the RPM system. 2004 2005 2006 Electric energy, total 2004 2005 2006 Gasoline and diesel fuel the use of various water flooding systems (formation In order to detain accidental oil spills, to avert its Including production pressure maintenance). Therefore OAO Tatneft is char- further migration and to prevent pollution of open res- consumption acterized with high level of use of water resources, ervoirs with oil and oil products stationary oil-recovery
98 99 Environmental activity ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
BALANCE OF UTILIZED WATER RESOURCES, million m3 0 0
2005 2006 61 20,800 20,26 1, 4 ,430 35 1 1, Total amount of taken water 41.1 39.8 3 12 1, including water taken from natural sources 35.8 34.3
Sweet water used for reservoir pressure maintenance 26.1 25.9 AREA Used for industrial needs 13.7 12.0 OF USED AND RETURNED AREA OF DISTURBED
VOLUME REPEATEDLY AND RECURRENTLY 0 LAND AND RE-SOILED LAND
54 USED WATER, MILLION м3 706 (hectares) (hectares)
2005 2006 Total land allocated 2005 2006 Disturbed land Volume of incidentally obtained and sewage waters for use 119.6 124.7 Re-soiled land recurrently used for reservoir pressure maintenance Total returned land
constructions have been built on small rivers, Use of land resources Heterogeneity of physical and geographical connection special attention in nature conservation brooks and in dry ravines. At the present moment At the present moment OAO Tatneft produces conditions of the region of activity of OAO Tatneft activity of OAO Tatneft is paid to the issues of rational in OAO Tatneft there are 585 operable stationary con- oil in the territory of 21 administrative districts of the (Bugulmino-Belebeyevskaya Elevation, Melekesskaya use of land resources, prevention and decrease of soil structions, biological ponds and stationary slick bars. Republic of Tatarstan and a number of districts of adja- and Kamsko-Belskaya Depressions), relief, distribu- cover pollution. Besides that there are over 1,858 meters of reserve por- cent republics and regions of the Russian Federations tion of heat and atmospheric precipitation predeter- Within the framework of environmental programs table slick bar manufactured of pipes of large diameter. with the total area of 30 thousand square kilometers. mine mixed character of soil cover. On the whole there large-scale activities have been carried out in OAO In each OGPD there are easily movable slick bars with The Company is one of the largest land users is logical change of composition and type of soils from Tatneft for decrease of volumes of allotment of agri- polyethylene filler and separators allowing harvesting in Tatarstan and its main production objects are located the north-west to the south-east of the territory, preva- cultural lands for construction of oil production objects of oil from water surface. Today in OAO Tatneft there are in the region with high agricultural production where lence of turf and spodosol soils gradually replaced and recovery of fertility of disturbed lands. Decrease 15 separators equipped with hydraulic pump. arable lands are 80% and more. with gray forest-steppe soils and with regular black of allotment of lands for drilling, well construction and Lands of the majority of administrative districts earth in the very south-east. cost lowering are achieved due to introduction of clus- of the republic in the territory of which oil is produced These types of soils with firm granular structure ter method of well construction and drilling. have high natural fertility. Soil cover consists mainly have natural anti-erosive stability. That is why the Analysis of sizes of land allotments demonstrates of the most valuable and fertile in the Republic integrated estimation of conditions of the soil and that since 1971 the areas have been reducing due of Tatarstan black earth and gray forest soils. growth cover attributes the region of activity of OAO to decrease of withdrawal for communications and pipe- Tatneft to the category of “favorable with restrictions”; lines. At that the total area of alienated lands presently that makes it possible to implement technological operated by OAO Tatneft is less than 1% of the total area oil production processes without prior activities for of administrative districts of the Republic of Tatarstan improvement of environmental conditions of the soil where structural units of the Company are functioning. and growth cover. From the point of view of the number and forms The main distinction of influence of OAO Tatneft of rare species of animals and plants which are indicators on the soil cover is vast coverage of the territory. In this of environment condition the east of Tatarstan (region
100 101 Environmental activity ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
of activity of OAO Tatneft) corresponds to the condi- The report is PRODUCTION WASTE VOLUMES, tons tions of subboreal northern semi-damp (Melekesskaya Depression and Bugulmino-Belebeyevskaya Elevation) a balanced statement 2005 2006 and boreal (Eastern Prikamye — Northern Tatar Vault) landscape zones of the Republic. It is populated mainly about significant Formed at the enterprise 56,688 129,192 with the following rare species of mammals and birds: rodents — speckled souslik, European bobac social and economic, Used at the enterprise 3,995 40,247 (marmot), sylvan dormouse, sylvan birch mouse; Neutralized completely at the enterprise 2,889 4,224 cheiroptera — night mouse-eared bat, brown environmental and long-eared bat, sylvan noctule, giant noctule; Transferred to other enterprises for processing and utilization 55,577 107,315 vermin — stone marten, weasel and otter; innovative aspects birds — osprey, field harrier, steppe eagle, golden eagle, eagle-owl, gray tawny owl, gray crane, fowl- like birds. of activity determining reconstruction of oil treatment plants with optimi- In the reporting year emissions of nitric oxides The following rare plants grow in the region zation of the technological process and traffic. decreased in comparison with 2005 from 1,718 tons of activity of the Company: pinnate feather grass, dotted the indicators of Inventory of emissions of greenhouse gases into to 1,068 tons. globe daisy, large-flowered tick trefoil and wormseed. atmosphere from movable and stationary sources has The results of large scale nature conservation Analysis of rarity category of animal forms sustainability of the been carried out for fulfillment of Federal Law No. 128- activities showed that in 2006 in the territory of activity in accordance with the Red Book of the Republic FZ dated November 04, 2004 “On Ratification of the of OAO Tatneft the level of anthropogenic load on envi- of Tatarstan shows that in the territory of activity of OAO Company. Kioto Protocol to the Framework Convention of the ronment did not exceed the potential of ecosystems Tatneft there are no species of class “apparently dis- United Nations Organization on Climate Change” and stability. This is evidenced with decrease of concentra- appeared”, there are only several types of class “very Directive of the Cabinet of the Republic of Tatarstan No. tion of pollutants in subterranean and surface water rare” and “rare”. This excursus of variety of fauna and 1047-r dated July 11, 2005. sources and absence of accidental spills, discharges introduction of the technology of trapping of light flora shows that landscape conditions in the territory In accordance with these documents activities and emissions of chemical compounds, oil and oil hydrocarbon fractions (LFT) releasing from capac- of activity of the Company are satisfactory; the level of collection, transportation, acceptance and refin- products, fuel, sewage into environment in the territory ity equipment; of anthropogenic impact on environment does not exceed ing of OAO Tatneft oilfield gas are carried out by of activity of the Company. decrease of volumes of associated gas flaring; the potential of self-regeneration of natural systems. Tatneftegazpererabotka Department. Practically whole purification of associated gas in desulfurization volume of gas is directed to the MGR of this depart- plants; ment and a part of it (about 10%) is used for own needs repairs and replacement of reservoirs and other DYNAMICS OF EMISSIONS of structural units of the Company. Products of oil capacity equipment, application of rust-preventive AND DISCHARGES OF HARMFUL gas refining are: condensed gases (propane, regular coating on them; SUBSTANCES AND WASTE butane, isobutane), stable gas naphtha, hexane frac- replacement of commodity technological oil PRODUCTION tion, ethane, net gas and lump sulfur. and gas pipelines. At that within the last 4 years The ration of use (utilization) of oil gas in OAO 2.4-3 thousand kilometers of pipelines have Special attention of environmental activity of OAO Tatneft is 95-96 % including Devonian gas — over been replaced every year in the system of oil Tatneft is paid to decrease of emissions of harmful 99 %, hydrogen sulfide containing gas — 70%. harvesting. Besides that a program of recon- substances into atmosphere, subterranean and surface In 2006 emissions of sulfurous anhydride (SO2) struction of the gas pipeline system with annual hydrosphere and soils. This is ensured, first of all, by increased in comparison with 2005: 7,946,866 tons replacement of 100-150 kilometers has been maintenance of technical conditions of existing equip- in 2006 and 6,447,039 tons in 2005. developed; ment at a proper level through the following activities:
102 103 Environmental activity ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
00
00 582.6 578.3 7
500 25 7 94 9.808 1 7, 6,566.83 4,595.985 7 2,498.1 7 7 400 7 70,8
337.4 6,44
331.2 300 245.3 223.9 189.8 200 222.3 202.0 147.9 NUMBER OF EMISSIONS 126.7 8 160.1 OF HARMFUL SUBSTANCES 71
98.3 8
85.0 1, 100 120.9 78.5 76.0 74.7 76.6 INTO ATMOSPHERE FROM DYNAMICS OF EMISSIONS GROSS EMISSION 70.0 70.7 72.5 06 65.1 62.0 59.8 STATIONARY SOURCES
102.0 OF SULFUR DIOXIDE 0.852 OF HARMFUL SUBSTANCES 1,
77.7 OF OAO TATNEFT AND NITRIC OXIDES, 78.808 INTO ATMOSPHERE 97 63.3 58.7 6 56.6 46.5 47.3 47.4 48.3 (thousand tons) 1, 43.4 42.1 44.6 46.3 tons 1, (tons) 0
1980 1985 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Total number of emissions 2005 2006 Sulfur dioxide 2005 2006 Total Including hydrocarbon Nitric oxides Gaseous and liquid emissions Solid
120 92.1 98.4 46.86 100 73,283.8 91.5 29,1
90.0 73,1 88.7 87.5 1 83.1 80.6 0 74.7 76.6 72.5 70.0 70.7
62.0 59.8 0 46.3 47.3 47.4 48.3 44.6 1.9 43.4 42.1 40 56,688.3 45,32
EMISSIONS .9
OF POLLUTANTS INTO DYNAMICS OF EMISSIONS 37
20 ATMOSPHERE FROM OF GREENHOUSE GASES ,0 DYNAMICS
STATIONARY SOURCES INTO ATMOSPHERE 15 OF WASTE FORMATION (thousand tons) (thousand tons СО ) (tons) 0 2 2000 2001 2002 2003 2004 2005 2006 Permitted emission (MPE) 2005 2006 2005 2006 Waste formed during the year Total number of emissions Including oil sludge Including hydrocarbon emissions
104 105 Environmental activity ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
IMPROVEMENT OF TECHNOLOGICAL VOLUMES OF ACTIVITIES FOR INCREASE OF RELIABILITY EQUIPMENT RELIABILITY OF OIL DEVELOPMENT EQUIPMENT
Monitoring of technical conditions INDICATOR 2005 2006
4,223.7 of oil development equipment Planning and implementation of activities for Manufacturing of corrosion inhibitors, tons 4,863.3 6,051.5 increase of reliability of technological equipment are
2,888.9 Manufacturing of metal-plastic + polypropylene pipes based on the results of monitoring of its technical con- 1,012.4 1,290.9 (total), kilometers (w/o oil-well tubing) ditions. In the first place it is conditioned by the fact Corrosion protection of VSST and HDT with paintwork 21,269 9,312 that the accident rate of oil development equipment materials, m2 is the most significant factor of anthropogenic impact DYNAMICS Cathode protection of well casing pips, units 590 550 OF NEUTRALIZATION of oil production on environment. Results of diagnosis AND USE OF WASTE 366.2 352.5 of oil development equipment form the basis for mak- (tons) ing reasoned programs of scheduled preventive repairs 2005 2006 Waste neutralized allowing to avert accidents of various types. VOLUMES OF REPLACEMENT and used at the enterprise One of the main directions is timely diagnosis OF WORN GAS PIPELINES, km Including oil sludge of conditions and determination of the remaining life of oil development pipelines. Growth of volumes 2005 2006 of diagnosis of pipelines has been reached due to activities of OAO Tatneft for optimization of expenses for such activities, attracting firms possessing mod- Volumes of replacement of worn gas pipeline 34.0 78.1 5.2
31 ern software and technologies for determination 7, of the remaining life of pipelines. It allowed to decrease 10 considerably expenses for diagnosis and to accelerate VOLUMES OF POLYETHYLENE AND POLYPROPYLENE PIPES completion of these activities. USED AT CONSTRUCTION OF GAS PIPELINES, km In 2000-2006 14,966.4 kilometers of pipelines 77 were diagnosed in OAO Tatneft in total including 2005 2006 55,5 3,104 kilometers in 2006.
43,065.3 WASTE 7 TRANSFERRED Polyethylene gas pipelines 12.9 21.1
4. Activities for increasing reliability TO EXTERNAL
,02 of technological equipment ORGANIZATIONS Gas pipelines with polypropylene pipes 12.5 0.0 13 FOR PROCESSING OAO Tatneft carries out purposeful activities for (tons) Gas pipelines constructed increasing reliability of oil development equipment and 25.4 21.1 with corrosion-resistant materials, total 2005 2006 Waste transferred to external decreasing its accident rate. In 2006 1,290.9 kilome- organizations Including oil sludge ters of polymer-coated and metal-plastic pipes were manufactured. In order to protect gas pipelines of Tatneftegazpererabotka Department form corrosion, in 2006 OAO Tatneft carried out work for implementation of active electrochemical protection, supply of corro-
106 107 Environmental activity ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
sion inhibitors, use of corrosion-resistant material pipes INDUSTRIAL WASTE RECYCLING of its utilization, decreases the volumes of use of primary at replacement of pipelines and overhaul repairs (replace- AND UTILIZATION polyethylene if pipe casing production. ment) of worn sections. For this purposes 6,051.5 tons The used cable recycling line allows to disas- of corrosion inhibitors were manufactured and used One of the main directions of nature conservation semble cable for all its components (polyethylene, non- for treatment of highly-aggressive media. The above activity of OAO Tatneft is permanent decrease of anthro- ferrous metal cores, metal armor). Received second- arrangements allowed to decrease outbreak rate of gas pogenic load on environment though collection and ary raw materials are used at production of enamel pipelines by more than 45% in comparison with 1999. utilization of waste produced in oil development techno- wires, polyethylene spools, various polyethylene techni- In 2006 279 gas pipeline construction quality logical processes. Utilization of waste has special mean- cal products and consumer goods. Armor is directed inspections were carried out. This control covered prac- ing for OAO Tatneft since waste forms the largest part to re-melting. During the period of operating of the cable tically all teams working at the facilities of the Company in environmental payments of the Company. In accor- disassembly plants over 15,700 kilometers of cable at all stages of pipeline construction. dance with the environmental policy of the Company products have been recycled, over 4,900 tons of cop- Electrochemical protection is efficient and rational special attention is paid to issues of lowering waste rate per wire have been recovered, more than 2.7 thousand 52.8 04
method of protection of oil development equipment 3,1 during oil production and treatment. For these purpose tons of secondary granulated polyethylene have been since it provides reliable protection of non-covered 3,1 new equipment and technologies are being developed manufactured. (exposed) metal sections from aggressive influence of and implemented providing efficient solutions for this Used oils refined using the Klockner technology environment components. Taking this into consideration problem. Besides that waste is used as an additional comply with the technical requirements for lubricant 9,312 square meters of inner surface of VSST and HDT non-traditional source of raw materials for commodity oils for oil development equipment. The plant allows were protected with anti-corrosion coatings. For corro- output — liquid hydrocarbons, secondary polyethylene, to recycle over 4.8 thousand tons of used oils; refined oil sion protection of reservoirs and capacity equipment cable products, etc. output is 75%. During the period of operating of this plant the following was carried out: The Company has the system of collection and over 8 thousand tons of used oils have been refined; anti-corrosion coating of storage tanks and devic- VOLUME recycling of production and consumption waste using 1,108 thousand tons were refined in 2006. OF OILFIELD es (high quality anti-corrosion coating allows for PIPES it as raw materials for commodity output. This system DIAGNOSTICS includes the following works: accident-free operating of tanks in aggressive (kilometers) environment for 10 years and longer); oil sludge recycling (oil sludge recycling plants 2005 2006 electrochemical protection (ECP) of the following at OOO Promekologia, OGPD Prikambeft, types: protectors from inner and outer corrosion; Yamashneft, Nurlatneft); cathode protection from inner and outer corrosion. recycling of worn tires and other rubber products In 2006 special attention was also paid to decrease (UPASh-1200 plant of OGPD Leninogorskneft); of expenses for overhaul repairs of well casing pipes polyethylene waste recycling (secondary ther- because of their corrosion destruction; 550 wells were moplastics granulating line at the MPT center); equipped with cathode protection. recycling of used cables (CPSB for ESP); recycling of used industrial and motor oils (OOO Vtornefteprodukt). The worn tires recycling workshop allows utilization of this raw material in the volume of 1,500 tons a year, tire recycling products (metal cord, liquid solvent) are used as secondary raw materials. The polyethylene waste granulating line allows to recycle all appearing plastic waste and to return it to the primary production thus solving the problem
108 109 Environmental activity ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
Presented Rod restoration information WORN TIRE RECYCLING, tons Increase of capacities for restoration of used rods in the Company started in 1997; at present 9 OGPD about essential 2005 2006 have such service centers. In 2006 467.7 thousand rods selected for repeated use underwent restoration. Rods Recycled 232.2 129.6 restoration also allowed to prolong their service life due aspects to elimination of tensions in metal. Today the average Received: operation life of rods is 10 years with the depreciation of sustainability liquid fraction 70.73 55.6 period of 5.5 years. Revealing defects in rod bodies during restoration allowed to decrease the number has sufficient solid fraction 100.7 46.4 of underground repairs because of breaks. metal cord 40.0 10.8 Aside from economic benefit from restoration and completeness recurrent use of used rods (prevention of non-sched- uled underground well repairs because of rod defects) in key reporting OAO Tatneft has also received environmental effect low- DELIVERY OF BLACK METAL SCRAP, tons ering the volumes of metal waste and waste from UWR. fields. ENTERPRISE 2005 2006 Repeated use of oil-well tubing The Company pays much attention to restoration In 2006 the volume of additional gathering of hydro- Structural and subsidiary enterprises of OAO Tatneft 21,659.54 21,783.44 and repeated use of OWT. Restoration of OWT pipes carbons using these plants was 62.3 thousand tons is carried out on stationary equipment on the basis External enterprises 261.7 1,031.4 and since the beginning of implementation (1991) — of the Bugulma Mechanical Works (repairs of mechani- about 1.2 million tons. TOTAL 21,921.3 22,814.8 cal deformations, washing, annealing, grit blasting The total volume of emissions of pollutants into of inner surface, coating and rustproof oiling). atmosphere from stationary plants in 2006 was 76.5 thou- sand tons (72.5 thousand tons in 2005). Implementation Trapping of light hydrocarbon fractions VOLUMES OF USED OWT RESTORATION AND REPEATED USE, km of the LFT systems allowed multiple decrease Development and implementation at the of specific hydrocarbon emissions from 6.4 kg Company’s facilities of the systems of trapping of 2005 2006 in 1990 to 1.9 kg per one ton of produced oil in 2006. light hydrocarbon fractions (LFT) from reservoirs is one of the efficient methods of rational and ecologi- Restored and repeatedly 659.8 560.1 cally important use of side products of oil development. used in injection wells In 2006 one plant was put into operation. At the present Restored using repeated vitrification 88.2 72.0 moment 42 plants are in operation. and repeatedly used
VOLUMES OF RESTORED RODS, units
2005 2006
Number of restored rods 472,629 467,700
110 111 Environmental activity ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
FIXED CAPITAL INVESTMENTS INTO Within the period 2000 — 2006 investment EXPENSES FOR ENVIRONMENT PROTECTION, thousand rubles ENVIRONMENTAL PROTECTION AND of OAO Tatneft to nature conservation from all sources RATIONAL USE OF NATURAL RESOURCES of funding were over 23 billion rubles including 4.6 bil- 2005 2006 lion rubles in 2006. Considerable funds are directed Main directions of investment aimed at environment pro- to research and development in the sphere of increase tection and rational use of natural resources include: of environmental safety of oil development objects. Current expenses for environment protection: 3,075,682.0 3,955,361.8
protection and rational use of water resources In 2006 19.75 million rubles were allocated for these protection and rational use water resources 2,366,878.4 2,544,361.6 (sewage purification; oil, black oil, garbage gath- purposes in 24 topics. ering from river water areas; equipping construc- Expenses for environment protection which are protection of atmospheric air 157,788.5 315,123.1 tions and territories with water recycling systems, included into cost price of products and services protection of land resources from industrial and consumption waste 507,797.2 1,044,919.4 car-washes, rainwater sewage, purification sta- (including current expenses for environment protection land restoration 56,152.6 50,957.7 tions; necessary riverside buildings); and expenses for overhaul repairs of basic production atmospheric air protection (installation of plants for assets for environment protection) are shown in the Expenses for overhaul repairs of basic production assets for environment protection: 787,687.8 667,929.7 trapping of light hydrocarbon fractions from various table. constructions and plants for sewage purification and rational use water resources 646,520.7 596,025.2 tanks and vessels, for purifying gas from hydrogen constructions, plants and equipment for trapping and neutralization sulfide; control and regulating points to check and 41,430.6 13,180.5 of harmful substances polluting atmospheric air decrease of toxicity of vehicle exhaust gases); protection and rational use of land (land restora- constructions, plants and equipment for waste placement and neutralization 99,736.5 58,724.0
tion, landscape gardening); Average yearly cost of basic production assets for environment protection: 13,998,557.3 16,982,163.1 protection and rational use of forest resources; waste utilization; for protection and rational use water resources 11,716,644.8 14,221,122.4 subsoil protection and rational use of mineral for protection of atmospheric air 1,599,228.3 1,676,498.3 resources. for protection of environment from industrial and consumption waste 682,684.2 1,084,542.4
INVESTMENT INTO FIXED CAPITAL FOR ENVIRONMENT PROTECTION AND RATIONAL USE OF NATURAL RESOURCES, thousand rubles
2005 2006
Investment into fixed capital aimed at environment protection and rational 143,288.0 166,357.6 use of natural resources from all sources of funding. total
Including:
1. For activities of protection and rational use water resources 30,188.2 111,069.3
2. For building of constructions for protection of atmospheric air from pollutants 77,231.6 483.4
3. For activities of protection and rational use of land (except melioration) 30,446.2 54,804.9
4. Plant for utilization and recycling of industrial waste 5,422.0 0
112 113 Environmental activity ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
114 115 1.48 1.34
0.82
0.55
‘03 ‘04 ‘05 ‘06 about Economic effect from use of industrial property objects billion (billion rubles) Economic rubles effect from use of industrial 1.5 property objects amounted to Innovation activity Innovation activity ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
For 10 years the number of implemented inventions and rationalizing proposals has grown by more than 3.5 times and effect from SCIENTIFIC AND TECHNICAL Methods to enhance oil recovery and stimu- eficial business contacts have been established with BASE OF THE COMPANY lating wells with chemical, physical and micro- companies and firms in many countries: the USA, their application — biological impacts (the Prize of the Government Japan, Germany, France, China, Vietnam, Middle East Scientific and technical of the Russian Federation in science and technology and African countries, etc. almost by 5 times. Profit potential of TatNIPIneft in 1995; the State Prize of the Republic of Tatarstan The Institute performs the complete cycle of sci- Tatar Scientific, Research and Design Institute in science and technology in 1999). entific and research and designing and survey works from implementation of Oil Production established in 1956 is the basic Projects of geological prospecting and oilfield for development of the oil production industry in Russia research and development unit of the Company; development in basic districts of the Republic and abroad. Efficient and constructive cooperation, of developments under it is still one of the largest scientific centers of the oil of Tatarstan, regions of the Russian Federation and adherence to accepted obligations, individual approach industry of Russia. TatNIPIneft specializes in geological neighboring and distant foreign countries. to solving and fulfillment of set tasks form the style of prospecting of oilfields, designing of well construction Complex of equipment and technologies of local international activity of TatNIPIneft. Today partner rela- the activity plan for and repairs, development of production methods, cor- well casing with steel profiled pipes with preserva- tions are maintained with the leading oil companies rosion protection of oil-producing equipment as well tion of technologically necessary well diameter of Russia: LUKoil, TNK-BP, Rosneft, Gazpromneft and improved oil recovery as estimation of reserves development of oil fields. (gold medal and certificate at the inventory exhi- a number of leading foreign firms: Weatherford (USA), In 2005 the Institute celebrated its 50th anniversary. bition INPEX XVII in the USA in 2001, 50 foreign Norsk Gydro (Norway), Vietsovpetro, national oil com- and application of advan- The seminar of chief engineers combined with the sem- patents for inventions in 13 countries). panies of Iran, China and others. inar of chief geologists and the scientific and technical System of light hydrocarbon fraction trapping (the TatNIPIneft is one of organizers of exhibition ced technologies and conference were dedicated to this event. State Prize of the Republic of Tatarstan in science and fair activities of OAO Tatneft, constant participant Within 50 years of activities TatNIPIneft has accu- and technology in 1997). in prestigious forums thus promoting its world image equipment of OAO Tatneft mulated considerable scientific potential. Since the Development and wide industrial implementa- and recognition. The results of promotion of scien- day it was established, 187 employees have become tion of the complex of technologies and technical tific and technical potential at exhibitions in many has grown up more than Candidates of Sciences and 47 — Doctors of Sciences. means of protection and restoration of flow tubing aspects have predetermined new directions of activity Today 10 Doctors of Sciences and 52 Candidates (the State Prize of the Republic of Tatarstan in sci- of OAO Tatneft at the international level. In the recent twice within 5 years. of Sciences work in the Institute. ence and technology in 2001). years specialists of TatNIPIneft have participated During five decades of the Institute’s activities Development and introduction of geoinforma- in 70 largest international and Russian exhibitions over 160 oilfields have been put into development, tion systems for planning and implementation including exhibitions in Germany, Austria, England, MAIN SPECIALIZATION: over 200 projects of technological equipment of oilfield of nature conservation activities in the south- Greece, China, France, Italy, Libya, Iran, Alma Ata, equipment for fathering, transportation and treat- facilities have been implemented, over 1,500 inventions east of the Republic of Tatarstan (the State Prize Moscow, Ufa, Kazan, St. Petersburg, Kiev, Tyumen, ment of oil, gas and water at oilfields; have been created, 52 of them are patented in the of the Republic of Tatarstan in science and tech- Nizhniy Novgorod and others. equipment for heat and physical and chemical USA, Great Britain, Canada, France, Japan, Germany, nology in 2004). methods of improved oil recovery and oil produc- in Middle East countries. Results of scientific research Scientific fundamentals and industrial implementa- Scientific and technical potential of tion intensification; are published in 75 collected works, 140 monographs, tion of the complex of technologies for stabilization TatNIIneftemash movable units for mechanization of labor-inten- over 6,400 scientific articles have been published. of oil production at the late stage of development The subject of activity of TatNIIneftemash, one sive works at oilfields and specialized workshops The most prominent resent scientific develop- of large oilfields (the State Prize of the Republic of the leading institutes of oil mechanical engineer- for equipment maintenance and repair; ments of the Institute include: of Tatarstan in science and technology in 2006). ing in Russia, is R&D in the sphere of oil development equipment for power plants of oil and gas fields; Permanently operating geological and technical Within 50 years of activities TatNIPIneft has mechanical engineering, manufacturing of certain equipment for offshore oilfields; models and progressive systems of oilfield devel- acquired solid reputation and wide business ties in the types of equipment including manufacturing in lots equipment for development and field treatment opment (these works were marked with the State country and abroad. Specialists of the Institute take or individual units of oil development equipment (spe- of high-viscous oils and natural bitumen; Prize of the Republic of Tatarstan in science and active part in work of domestic and world congresses, cialized transport means, flares, multi-phase pump wellhead and well equipment; technology in 1999). symposia, competitions and exhibitions. Mutually ben- plants, intra-well equipment).
118 119 Innovation activity ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
00 equipment and instruments for well repairs; INTELLECTUAL PROPERTY 546 equipment for protection and elimination of conse- quences of environment pollution. Activity for development of intellectual property has 500 482 The system of quality management has been become an integral part of scientific and production developed and implemented in TatNIIneftemash. The activity of the Company. Significant growth of the num- 400 383 certificate of conformity of the quality management ber of received protective documents clearly shows system with the requirements of international standard sharp increase of intellectual property of OAO Tatneft. 295 ISO 9001:2000 was granted to the Institute in 2002 and In 2006 546 protective documents were received, 482 300 confirmed in 2005. Now new prospects open for the patent applications were submitted. 6,865 rationalizing 228 Institute. Growth of competitiveness of products result- proposals, 88 inventions and 36 utility models were 200 171 ing from this fact will help TatNIIneftemash to enter new introduced into production. Economic effect of this was 192 SUBMITTED APPLICATIONS AND 119 markets including foreign ones. 1,480.2 million rubles including 771 million rubles from 110 150 RECEIVED PROTECTIVE Over 50 types of oil exploration equipment have applied inventions and utility models. 100 DOCUMENTS FOR SUPPOSED INVENTIONS 45 98 been developed and implemented in TatNIIneftemash For 10 years the number of implemented inven- 81 AND UTILITY MODELS 15 23 24 18 20 19 10 12 (items) within the last 10 years. These are movable units tions and rationalizing proposals has grown up by 34 0 for mechanization of labor-intensive works at oil pro- more than 3.5 times and effect from their applica- 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Submitted applications duction, well-workover operations and underground tion — almost by 5 times. Profit from implementation for supposed inventions well repairs as well as other equipment for imple- of developments under the activity plan for improved and utility models Received protective documents mentation of technological processes of oil produc- oil recovery and application of advanced technologies tion: dimension-type line of flares with instrument and equipment of OAO Tatneft has grown up more than 1 00 000 000 of remote ignition and burning control, a range of intra- twice within 5 years. 1 480 189 well equipment; system for maintenance of formation 1 400 000 1 339 665 000 pressure aimed at intensification of oil production 6 865 6 661 completed with locking, regulating and other devices 1 200 000 000 manufactured at the facilities of the republic in accor- 5 282 dance with the elaborations of the Institute. 1 000 000 4 762 5 000 Creative work of the Institute employees has 4 083 821 061,2 received multiple rewards. Thus, in December 2002 for 00 000 3 802 4 000 development of the furnace for thermal decomposition 3 103 2 926 of hydrocarbon raw materials the group of develop- 00 000 551 310 3 000 ers was awarded with the State Prize of the Republic 2 332 2 327 2 068 of Tatarstan in science and technology. At the 5th 400 000 2 000 International Show of Industrial Property Archimedes 293 263,8 216 849,9 INDICATORS OF OAO 2002 (Moscow) the plant was awarded with the gold 200 000 1 000 117 627,5 TATNEFT ACTIVITY IN medal. One year prior to this at the same exhibition 82 073,8 RATIONALIZATION AND 25 394 47 733 48 288 INVENTION another brainchild of the Institute — multi-phase screw 0 pump UNVG received the silver medal. 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Economic effect from use of industrial property objects (thousand rubles) Number of implemented rationalizing proposals and inventions
120 121 Innovation activity ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
3,000,000 APPLICATION OF ADVANCED 1. CREATION OF GEOLOGICAL AND TECHNOLOGIES AND EQUIPMENT HYDRODYNAMIC MODELS OF DEVELOPMENT
2,500,000 2,434,000 TARGETS ON THE BASIS OF UPDATED RESIDUAL IN THE SPHERE OF OILFIELD EXPLORATION RESERVES AND DEVELOPMENT PURPOSE 1,943,718 1,949,395 2,000,000 OAO Tatneft prospects and produces oil in 77 3D geological and hydrodynamic modeling is the oilfields, main of which — Romashkinskoye — is one main method of revealing residual oil reserves for 1,547,854 1,500,000 of the largest in the world. oilfields at the late stage of development. Modern PROFIT FROM 1,205,098 IMPLEMENTATION Today a part of oilfields is at the late stage of devel- software and hardware allow to analyze and OF THE ACTIVITY opment complicated with high depletion of reserves to forecast sites with non-developed reserves with 1,000,000 PLAN FOR IOR AND APPLICATION and watering of productive formations. In such condi- maximum reliability and to calculate efficiency OF ADVANCED tions creation and implementation of new designs and of planned activities. The technology under con- TECHNO-LOGIES 500,000 AND EQUIPMENT technologies have special meaning. sideration is based on additional perforation and OF OAO TATNEFT Permanent improvement of technological know- re-perforation in wells (with isolation of watered IN 2002-200 (thousand rubles) how allows OAO Tatneft to decrease expenses for formations). 0 2002 2003 2004 2005 2006 survey and prospecting of oil reserves, to increase productive capacity of existing oilfields and to extend the operation period.
00,000 23,775 DEFAULT 25,000
525,200 500,000 20,000
20,200 16,264 14,959 400,000 (01.01.) Kказаньazan 15,000 370,000 365,672 NaberНабережныеezhnye Челн Chelnyы 13,456 331,000 300,000 13,139 292,000 283,800 12,918 276,000 10,000 10,815 10,982 200,000 10,078 9,436 Almetievsk 136,258
5,000 100,000 89,159 6,598 84,400 75,596 74,815 FUNDING OILFIELDS 4,318 OF R&D IN OAO TATNEFT (31.12.) OF THE REPUBLIC BY YEARS OF TATARSTAN 0 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Thousand US dollars Thousand rubles
122 123 Innovation activity ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
OAO Tatneft has the program of development of reserves of heavy oils IN THE SPHERE OF WELL DRILLING 2. TECHNOLOGY OF UNDERBALANCED DRILLING APPLICATION WELL DRILLING TECHNOLOGIES PURPOSE Development of oilfields at late stage. and bitumen for 2005-2006; Special attention is paid to application of new tech- The technology of underbalanced drilling allows OPERATION TECHNOLOGY nologies in drilling. Recently Tatneft has mastered the ensuring stable inflow of oil due to constant con- Scanning and digitizing of geological prospecting in accordance with this technology of underbalanced drilling. trol and regulation of pressure in well bottomhole materials from paper media. In 2006 OAO Tatneft drilled 334 wells, 307 of them — without exceeding formation pressure. Detailed correlation of geological cross-section. program experimental and producing wells and 27 — exploratory wells; 66 side- APPLICATION: Plotting of various types of geological maps. tracks (ST) and horizontal laterals (HL) were made, oilfields with low formation pressure; Building of 3-D geological models of oilfields. 20 multilateral wells were drilled. depleted oilfields; Building of geological cross-sections. industrial activities started The volume of capital investment into drilling oilfields with hard-to-extract reserves. Estimate and updating of reserves. at the Ashalchinskoye in 2006 was 7,137.8 million rubles including 3,849.1 million DEVELOPER rubles invested into operational drilling for OAO Tatneft NPO Bureniye, Krasnodar 2. TECHNOLOGY AND COMPLEX OF TECHNICAL or 53.9% of the total volume of drilling. Horizontal drilling MANUFACTURER MEANS TO REPAIR THE WELL BY SIDETRACKING heavy oil field. is most efficient; its volume in 2007-2008 will be increased. OOO Tatneft-Bureniye OK DRILLING HORIZONTAL LATERAL BOREHOLE Underbalanced drilling and multilateral drilling are most IMPLEMENTATION EFFICIENCY: PURPOSE efficient for development of oilfields with hard-to-recover increase of productivity of oil formations; The sidetracking technology allows to leave old In accordance with the technology, steam is pumped into reserves, specific weight of which in the total structure decrease of expenses and time for well devel- wells with poorly cemented flow tubing, break the upper horizontal well, and heated heavy oil with con- of reserves is 60.5%. opment due to: increase of mechanical speed of water or gas in the perforation zone, tubing densate is extracted from the lower one. These horizontal of deepening; prevention of lost circulation of drill- damage which cannot be eliminated, etc., opens wells were provided with necessary facilities, the unit for 1. TECHNOLOGY OF DRILLING OF HORIZONTAL ing agent and lowering of possibility of freeze-in wide opportunities for increase of oil production. treatment of heavy oil was built and the steam generator AND MULTILATERAL WELLS of drilling instrument; The cost of recovered well is from forty to seventy was mounted. After preliminary warming of the both wells PURPOSE lowering negative impact on environment due to per cent of the cost of a new well. In 2006 66 side- in order to establish hydrodynamic link between them Multilateral horizontal well drilling technology is absence of need to utilize worked-out drilling agent. tracks were made. development of the productive well started and on July designed for development of oilfields with compli- In 2006 at oilfields of Tatarstan 15 wells in 30, 2006 the first ton of heavy oil was produced. At the cated geological structure. pressure mode and 5 wells in balance mode 3. DEVELOPMENT OF THE EXPERIMENTAL present moment the current flow rate of heavy oil is float- APPLICATION were drilled. Drilling was performed using sets SITE OF THE ASHALCHINSKOYE OILFIELD WITH ing within the limits of 11-12 m3/day. In 2006 1,005 tons oilfields with complicated geological setting; of equipment for pressure drilling. HEAVY OIL of heavy oil were produced in total. depleted oilfields; OAO Tatneft has the program of development In future it is planned to expand and to implement oilfields with hard-to-recover reserves. of reserves of heavy oils and bitumen for 2005-2006; this technology at pools of heavy oil and natural bitumen DEVELOPER IN THE SPHERE OF OIL AND GAS in accordance with this program experimental and indus- of OAO Tatneft; the reserve is over 1 billion tons and OAO Tatneft (TatNIPIneft) PRODUCTION trial activities started at the Ashalchinskoye heavy oil is being specified at the present moment. OPERATOR OAO Tatneft is one of the largest oil and gas field. Viscosity of Ashalchinkoye heavy oil is by 60- OOO Tatneft-Bureniye companies of the Russian Federation in oil production. 80 times higher in comparison with Devonian oil and TECHNOLOGICAL EFFICIENCY Due to changed conditions of operations of oilfields by 10-20 times in comparison with sulfur-bearing oil. increase of productivity of oil formations; at the late stage and natural decrease of volumes In accordance with the design of TatNIPIneft in the oilfield saving capital investment since operations of vari- of produced oil OAO Tatneft carries out systematic two unique horizontal wells with two well heads each (i.e. ous formations uses one stand of pipes; activities aimed at increase of efficiency of operations with exit to the surface) parallel to each other and coincid- increase of average daily flow rate by 2-2.5 times. of well production fund, reduction of costs for oil pro- ing vertically were drilled. In the productive formation the In 2006 43 horizontal wells were drilled includ- duction, decrease of associated water and withdrawal horizontal boreholes are located at a distance of 5 meters ing 20 multi-bottomhole horizontal wells. of unprofitable wells from operations. from each other vertically and are equipped with filters.
124 125 Innovation activity ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
For these purposes effective technologies and APPLICATION CHAIN DRIVES OF OAO TATNEFT equipment are developed and are widely implemented Chain drives with stroke length 3 meters are allowing to increase well overhaul life and to decrease applied in low flow rate wells with high-viscous oil. the number of frequently repaired wells. A demonstra- Chain drive with stroke length 6 meters is used in wells tive example may be implementation of chain drives for with fluid withdrawal up to 100 m3/day. oil-well sucker-rod pumps and the system simultane- DEVELOPER IN OPERATION ously separated operations of two objects of one well. OAO Tatneft (TatNIPIneft) MANUFACTURER PTs 60-3-0.5/2.5 PRODUCTION, WATER-VACUUM PUMP, 1. CHAIN DRIVES WITH STROKE OAO Tatneft (the Bugulma Mechanical Works, WITH STROKE LENGTH 3 METERS OFFSHORE WELL, UP TO 20 CUBIC LIFTING CAPACITY 6 TONS METERS/DAY LENGTH 3 AND 6 METERS Bugulma) In 2000 TatNIPIneft developed and the Bugulma OAO Izhneftemash, Izhevsk Mechanical Works manufactured the first experimen- PTs 60-6-0.25/1.25 PRODUCTION, WATER-VACUUM PUMP tal industrial specimen of chain drive (PTs) with lifting IMPLEMENTATION EFFICIENCY OF WITH STROKE LENGTH 6 METERS UP TO 20 CUBIC METERS/DAY capacity 6 tons with stroke length 3 meters. Within the PTs60-18-3-0.5/2.5 WITH STROKE LIFTING CAPACITY 6 TONS shortest period a batch production was implemented, LENGTH 3 METERS and today 343 chain drives with stroke length 3 meters decrease of total number of underground well are operating in the Company. Upon implementation of repairs by 1.6 times (including due to emulsion PTs 80-6-1/4 PRODUCTION, PERMANENT OFFSHORE these drives well overhaul life increased by 375 days. formation — by 4 times, due to rod malfunction WITH STROKE LENGTH 6 METERS PLATFORM, INSTEAD OF ROTARY PUMP LIFTING CAPACITY 8 TONS PLANT UP TO 100 CUBIC METERS/DAY In 2005 6 chain drives PTs 60 were supplied to the — by 2 times); Republic of Kazakhstan, four more drives — to OAO decrease of specific power inputs for lifting prod- Bashneft in 2006. In 2007 it is planned to implement ucts by 10-20% on average in comparison with 234 chain drives in OAO Tatneft and at least 100 chain beam-pumping unit. drives PTs 60 — in independent oil companies of the PTs 80-6-1/4 WITH STROKE LENGTH 6 METERS Republic of Tatarstan. possibility to operate sucker-rod pump in high PROSPECTIVE On the basis of the theory developed in flow rate wells including wells with highly viscous
TatNIPIneft and practical expertise accumulated at products; PTs 120-7.3-1/4 PRODUCTION, PERMANENT OFFSHORE development, testing and adjustment of chain drives possibility to operate sucker-rod pump in wells with WITH STROKE LENGTH 7.3 METERS PLATFORM, INSTEAD OF ROTARY PUMP LIFTING CAPACITY 12 TONS PLANT UP TO 130 CUBIC METERS/DAY with stroke length 3 meters, chain derived with stroke additional flow tubing of small diameter without length 6 meters (PTs 80) were created in coop- losing productivity; eration with the Bugulma Mechanical Works and OAO decrease of dynamic loads, increase of service life Izhneftemash. At the present moment 75 chain drives of well equipment at operating sucker-rods in wells are operating. In 2007 it is planned to manufacture with flow rates up to 100 tons/day; and to deliver to OGPD 60 chain drives with stroke decrease of specific power inputs for lifting length 6 meters and to continue testing of new dimen- of product in comparison with the rotary pump sion types of chain drives. plant by 58% on average; PURPOSE unlike the rotary pump plant it ensures possibility Chain drive is designed to drive oil-well sucker- of regulation of well operating mode in wide limits rod pump in the process of lifting well product and without losing efficiency and without attracting to ensure, at that moment, favorable mode of rod UWR team for replacement of the plant for another movement. dimension type.
126 127 Innovation activity ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
VOLUME OF IMPLEMENTATION OF CHAIN DRIVES
2006 2007 (plan)
OAO TATNEFT NNK OAO TATNEFT NNK
PTs 60 343 71 234 at least 100
PTs 80 75 – 60 at least 100
2. DUAL COMPLETION 42 38 PURPOSE The dual well completion method is designed for simultaneous separated operations of 2 or more formations of one well. APPLICATION:
wells with considerable differences of formations NUMBER OF WELLS reservoir features and oil characteristics; EQUIPPED WITH DUAL COMPLETION 10 9 watered wells with great pressure differentials; INSTALLATIONS for connecting of low-productive bed, operation TO PRODUCE OIL FROM 2 2 TWO RESERVOIRS of which in a separate well is unprofitable, to already operating bed; 2003 2004 2005 2006 One-lift Dual Completion wells with long depth distance between objects. Installations DEVELOPER Two-lift Dual Completion OAO Tatneft (TatNIPIneft) Installations MANUFACTURER OAO Tatneft (OOO CPSB and ST, Leninogorsk) TECHNOLOGICAL EFFICIENCY: increase of well average daily oil flow rate by 3.3 tons, growth of profitability of separate wells due to connection of other objects of development; high productivity;
decrease of drilling volumes due to development ONE-LIFT DUAL TWO-LIFT DUAL of different formations in one well; COMPLETION COMPLETION INSTALLATION INSTALLATION total additional oil production was 66,056 tons.
128 129 Innovation activity ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
In order to decrease accident rate of pipeline IN THE SPHERE OF RPM 1. OWT WITH POLYMERIC COATING 2. PACKER M1-H (Reservoir Pressure Maintenance) PURPOSE PURPOSE systems and negative Due to changes in the conditions of oilfield devel- OWT with polymeric coating are designed for Removable packer M1-H is designed for protec- opment in the 90s OAO Tatneft needed radical restruc- operating in wells of the system of reservoir pres- tion of well flow tubing from high pressure and impact on environment turing of the oil-well tubing pump stock of the RPM sys- sure increase. corrosion. tem. Thus, when in the 80s annual volumes of pumping SPHERE OF APPLICATION APPLICATION OAO Tatneft has of working agent were over 300 million cubic meters, In pressure wells at pumping of highly-aggressive Packer M1-H is applied in producing (oil) wells and then with the beginning of the completing stage of devel- oil development sewage water for increase of res- in pressure wells of the reservoir pressure increase arranged manufacturing opment it became necessary to decrease pumping vol- ervoir pressure. system. umes to 150-160 million cubic meters with simultaneous DEVELOPER & MANUFACTURER DEVELOPER increase of delivery pressure. Developer of coating PEP-585 –TatNIPIneft, man- Smith International (USA) of pipes with anti- In OAO Tatneft 150 horizontal pump plants manu- ufacturer — Bugulma Mechanical Works. MANUFACTURER factured by REDA has been implemented and are TECHNOLOGICAL EFFICIENCY OAO Tatneft (OOO CPSB RBO and ST) in coop- corrosion coating — successfully operating as well as 29 similar plants Increase of service life of OWT by 2-3 times. eration with Smith International (USA) manufactured by CPSB ESP — Sinyaya Ptitsa pump- ECONOMIC EFFICIENCY IMPLEMENTATION EFFICIENCY metal and plastic pipes, ing plant. In the result of this the OWT pump stock Economic effect is 155.6 thousand rubles/well. increase of service life from 5 to 15 years is renewed for more than 75% and today OAO Tatneft Application in any industry is possible including increase of research periodicity from 2 to 5 years polypropylene pipes. possesses up-to-date pumping units with all necessary aggressive environments with pumping of fluid. decrease of man-hours per 1 packer M1-H technical parameters. In order to decrease accident rate In 2006 OWT with polymeric coating were intro- WWO teams — 40 hours of pipeline systems and negative impact on environ- duced in 995 wells, 560.1 kilometers of used geophysical research — 8 hours Today the most advanced technologies in the ment OAO Tatneft has arranged manufacturing of pipes OWT with polymeric coating were produced. decrease of expenses for research of pressure well sphere of well repairs are implemented in the Company: with anti-corrosion coating — metal and plastic pipes, In total 4,276 pressure wells are equipped with leaktightness by 34% formation hydrofracturing, coiltubing methods and polypropylene pipes. At the present moment the RPM OWT with anti-corrosion coating. Payback period — 1 year. many other aimed at stimulation of well operations and pipeline system of sewage for 98% is equipped with ant- In 2006 377 packers M1-H improved oil recovery. corrosion pipes therefore decreasing pipeline accident were put into operation. Long well overhaul period and the minimum fund rate by dozens of times. waiting for repairs are achieved due to increase of qual- The program of OWT optimization has become IN THE SPHERE OF WWO AND IOR ity of operations and repairs. an integral part of the program of protection of flow Natural ageing of the well stock and increase ,555 ,555 ,222 21 21 ,060
tubing of pressure wells from high pressure and cor- 21 of the share of hard-to-extract reserves at the late stage 1. COILTUBING TECHNOLOGIES 18 rosion — introduction of M1-H packers combined with of the Company oilfield development predetermined PURPOSE OWT with polymeric coating and leaktight clutches. 450 450 increasing role and significance of well repairs and oil Well repairs through hole annulus without lifting 443 Manufacturing of highly reliable packers M1-H with 377 recovery services in maintenance of the achieved level bottomhole pumping equipment. the annual production volume of 450 packers started 20 of oil production. OPERATOR 4,1 in 2004 in OAO Tatneft CPSB RBO and ST in cooperation Great significance is paid in the Company Aktyubinsk Department of Cable-Container and with Smith International. The program is scheduled for to improvement of equipment and technology of well Packer Methods SAVING FROM IMPLEMEN- TATION OF PACKER M1-H 5 years. Implementation of the program will result in pro- 86 repairs. Today the repair service possesses technical TECHNOLOGICAL EFFICIENCY IN COMPARISON WITH tection of 23.7% of the operation fund of pressure wells A REGULAR PACKER means and technologies allowing not only to restore shorter duration of work by 3-4 times in comparison working on sewage water with highly reliable packers. well operational capability but also to increase consid- with traditional methods; 2004 2005 2006 2007 2008 Implementation in pressure wells erably its productivity. decrease of the cost of repairs in comparison with Saving, thousand rubles traditional methods;
130 131 Innovation activity ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
146 treatments of pressure wells have been performed; selective delivery of chemical agent to the well bot- IN THE SPHERE OF EOR possibility to use both sweet and sewage mineral- their current total techno- tomhole; (Enhanced Oil Recovery) ized water for preparation of the composition; exclusion of contact of aggressive environment Over 45% of all oil is produced today due possibility of broad regulation of viscous, rheologi- (acid, solvent) with underground equipment; to application of various modern hydrodynamic and cal and structural and mechanical characteristics logical effect amounts exclusion of round-trip operations; tertiary methods of enhanced oil recovery. During of the gel-forming composition allowing optimum environmental safety, possibility of operations with- 4 last years a lot of work has been carried out impact on productive formations. to 259,680 tons of additio- out killing of well. for selection of the most efficient technologies. In ECONOMIC EFFICIENCY In 2006 603 wells were repaired using the coil- the result of this about 60 most technological and In oilfields of OAO Tatneft large-scale implementa- nally produced oil. tubing technologies. highly efficient technologies have been selected out tion of the technology has been carried out since of 150 EOR technologies on the basis of maximum 2004. 90 treatments of pressure wells have been 2. FORMATION HYDROFRACTURING effectiveness with application of up-to-date software performed; their current total technological effect SPHERE OF APPLICATION PURPOSE and 3D modeling, and are being used today. At that amounted to 301,765 tons of additionally produced It is recommended to apply the technology at the Application of this method allows to increase consid- it was possible to ensure increase of volumes of addi- oil. Besides, specific technological efficiency late and final stages of oilfield development repre- erably productivity of producing and injecting wells. tional oil production without growth of expenses for is 3,353 tons of additionally produced oil per one sented with terrigenous collectors with heteroge- OPERATOR implementation of technologies. The most efficient well treatment with continuing technological effect. neous permeability. Leninogorsk Department of IOR and WWO methods of enhancement of oil recovery of formations Duration of the technological effect is 2-3 years. TECHNOLOGICAL EFFICIENCY SPHERE OF APPLICATION are DKM and SPK technologies. the technology is base on use of accessible and not HF is applied in the following wells: 2. TECHNOLOGY OF INCREASE expensive chemical agents; with weak inflow at testing; 1. TECHNOLOGY OF INCREASE OF FORMATION OF FORMATION OUTPUT WITH mineralized water applied in the system of reservoir with high formation pressure but low reservoir per- OUTPUT AT THE LATE STAGE OF OILFIELD APPLICATION OF YIELDING SYSTEMS pressure maintenance is used as the source of cre- meability; DEVELOPMENT WITH APPLICATION OF AND POLYMERIC COMPOSITIONS ation of the dispersed system; with polluted bottomhole formation zone; CROSS-LINKED CELLULOSE ETHERS (DKM (SPK TECHNOLOGY) the technology does not envisage change of the with lowered productivity; TECHNOLOGY) PURPOSE existing system of impact on productive formation with high gas-oil ratio (in comparison with surround- PURPOSE The technology is designed for enhancement and does not require complicated non-standard ings); The technology is designed for drawing non-drain- of formation oil recovery through complex impact technological equipment; injecting wells with low injection capacity; age oil reserves into development through expan- on productive formations by way of simultaneous in comparison with similar sediment-forming tech- injecting wells for expanding the injection capacity sion of formation watering. increase of covering of formations with watering nologies based on clay suspensions this technol- interval. TECHNOLOGY DESCRIPTION and oil-driving. ogy does not have the disadvantage connected with TECHNOLOGIES APPLIED The technology is implemented by way of pump- TECHNOLOGY DESCRIPTION irreversible processes of mud injection of potentially local hydrofracturing technology; ing gel-forming composition of simple cellulose The technology is based on pumping of sedi- productive collectors. impulse hydrofracturing technology; ethers, polyacrylimide and cross-linker into pres- ment-forming compositions based on alkali, ECONOMIC EFFICIENCY deep-penetrating hydrofracturing technology; sure wells. water-soluble polymers and mineralized water In OAO Tatneft oilfields industrial implementa- tip screen out fracturing technique (TSOF); SPHERE OF APPLICATION used for watering of productive formations into tion of the technology has been carried out since forced fracture closure technology; It is recommended to apply the technology at the pressure wells. When the pumped composi- 2003. 146 treatments of pressure wells have been per- mini hydrofracturing technology (Mini Frac); late stage of oilfield development represented tion gets into high-permeability watered parts formed; their current total technological effect amounts acid hydrofracturing technology. with reservoirs with heterogeneous permeability. of formation they become partially or completely to 259,680 tons of additionally produced oil. Besides In 2006 hydro-fracturing of formation was car- TECHNOLOGICAL EFFICIENCY blocked. It results in change of direction of filtra- specific technological efficiency is 1,779 tons of addi- ried out in 102 wells. this technology uses environmentally safe not tion flows of formation fluids with subsequent tionally produced oil per one well treatment with con- expensive simple cellulose ethers of domestic pro- inclusion into development of previously non- tinuing technological effect. Duration of the technologi- duction; drained productive inter-layers and lenses. cal effect is 2 years.
132 133 Innovation activity ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
IN THE SPHERE OF ENVIRONMENT 1. PLANT FOR TRAPPING LIGHT HYDROCARBON ECONOMIC EFFICIENCY IN THE SPHERE OF IT TECHNOLOGIES The environment protection and ensuring environ- FRACTIONS EVAPORATING FROM RESERVOIRS decrease of expenses for purchase of oils by up In 2006 the Company had particular progress in the mental safety is one of the priority for OAO Tatneft. (LFT) to 75%; sphere of information technologies. Telecommunication Activity in this field started as long ago as in PURPOSE decrease of expenses for utilization of used oils. infrastructure and the data processing center were 70s but were scientifically grounded and formulated Trapping light hydrocarbon fractions from reser- In 2006 1,108.2 tons of used oil were processed further developed; due to that accident-free function- for the first time in the form of the program Ecology voirs. The plant maintains practically unchange- in the plant. ing of corporate information system was achieved. 1990-1995. The next stage was set in the complex able pressure in vapor phase of reservoirs Solving of the problem of information gaps between program Environmental Safety at Oil Production in the at changing mode of oil inflow. 3. TECHNOLOGY OF GAS PURIFICATION main corporate information systems is being success- South-East of the Republic of Tatarstan. Today the SPHERE OF APPLICATION FROM HYDROGEN SULFIDE fully continued using perspective foreign technology environmental program of OAO Tatneft for the period Oil reservoir stock at oilfields, oil refineries and oil PURPOSE of IBM Corporation; that will allow saving time for their 2000-2015 is being implemented. This program takes transportation enterprises. Purification of hydrocarbon and acid gases integration. In order to maintain currency of information into consideration solution of environmental tasks at all TECHNOLOGICAL EFFICIENCY of amine refinement from hydrogen sulfide to any protection of the Company the corporate information stages of oilfield development along the whole techno- Application of the plant allows: requirements with output of elementary sulfur. security has been established and is operating; it carries logical chain of oil production, treatment, transportation to liquidate losses of light hydrocarbon fractions Operation principle out permanent monitoring of security of the information and reservoir pressure maintenance. from reservoirs and to receive additional profit; It is based on liquid-phase oxidation purification system of OAO Tatneft and ensures repelling attacks. The Company is also successful in solving other to lower air pollution in the area of the reservoir process with transforming hydrogen sulfide into Corporate information systems in commercial operation complicated environmental issues such as utilization stock; elementary sulfur. Adsorbents may be solutions are: automation of technological objects of oil and gas of worn vehicle tires and rubber-containing waste, to preserve oil features; of complex of iron and ethylenediaminetetracetic production, power saving and RPM (Mega, Disk 110, trapping oil vapors from reservoirs, purification of used to decrease fire risk of the reservoir stock; acid. Regeneration of used adsorbent is carried Protok), Tatneft-Neftedobycha and information com- industrial and motor oils, etc. to lower internal corrosion of reservoir roofs out with expulsion. Separation of sulfur from the plex of engineering and technological service ARMITS, Technologies developed in OAO Tatneft are wide- through prevention of air access. system is done with filtering. geoinformation system, geological and hydrodynamic spread in Udmurtia, Perm Oblast, Western Siberia, ECONOMIC EFFICIENCY SPHERE OF APPLICATION modeling, inventory flows management, automation in the CIS countries and in distant foreign countries. Recoupment period is about 1 year depending oilfields; of material support on the basis of SAP R/3, cash flow The majority of works are done on the level of modern on the plant efficiency. gas fields; management on the basis of SAP R/3, office business achievements and confirmed with patents for invento- In 2006 2 light hydrocarbon fraction trapping oil refineries; correspondence and document circulation system, uni- ries. All technological processes are aimed at resource plants were assembled, one of them was put chemical works. fied information processing system. saving, are environmentally safe and economically effi- into operation. 42 LFT plants in total are operat- TECHNOLOGICAL EFFICIENCY Among the most efficient technologies it is neces- cient. The results of large-scaled nature conservation ing in OAO Tatneft. high purification degree; sary to point out the satellite system of motor transport activity of OAO Tatneft could not but influence the con- low process temperatures; monitoring, intellectual station of management of con- ditions of environment of the south-east of the Republic 2. OIL REGENERATION PLANT technological scheme flexibility; ventional pumping unit SKAD application of which allows of Tatarstan. Environmental situation in the south-east PURPOSE low capital and operational expenses. for considerable decrease of operational and time costs, of the Republic of Tatarstan has improved considerably; The plant is used for mechanical and thermal puri- In 2006 743,456 thousand cubic meters of gas optimization of well operation mode, increase of motor by 1999 chloride content in main rivers of the region fication of used industrial and motor oils. were purified in the plant for gas purification from transport efficiency. became lower than the maximum permissible concen- DEVELOPER hydrogen sulfide. trations (MPC); springs, brooks and atmospheric air KHD Humboldt Wedag AG (Cologne) 1. INTELLECTUAL STATION OF MANAGEMENT have become cleaner. OPERATOR OF CONVENTIONAL PUMPING UNIT SKAD OOO Vtornefteproduct PURPOSE TECHNOLOGICAL EFFICIENCY Intellectual station of management of conventional application of used oils in production activity; pumping unit is designed for managing operations minimum output coefficient 0.75; of conventional pumping unit in autonomous and
134 135 Innovation activity ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
remote modes; it ensures functions of protection 2. SATELLITE SYSTEM OF MOTOR TRANSPORT 3. DEVELOPMENT OF THE DATA PROCESSING 4. RECONSTRUCTION OF FIRMWARE COMPLEX of well equipment and control of access to telem- MONITORING CENTER OF OAO TATNEFT OF INFORMATION SECURITY ISS echanization equipment. PURPOSE PURPOSE PURPOSE SPHERE OF APPLICATION Optimization of motor transport routes and intensi- Organization of highly productive cluster con- Ensuring observation of attempts of unauthorized control of basic technological parameters of wells fication of control of use of specialized equipment. figurations connected to centralized data storage access using means of the firmware complex ISS. including control of the dynamic level at pump suc- SOLVED ISSUES devices. Introduction of centralized computing SPHERE OF APPLICATION tion with dynamometer card; assignment of motor transport under orders facilities for support of the infrastructure and small Information storage and processing systems. management of operations of conventional pump- of a customer, planning and issuing of shift tasks; design solutions with the use of blade servers. ing unit in autonomous and remote modes; efficient management of motor transport opera- SPHERE OF APPLICATION SPHERE OF IMPLEMENTATION anti-accident protection of well equipment. tions, control of performance and change of shift Information processing systems. TatAISneft Department, information security MANUFACTURER tasks, if necessary; SPHERE OF IMPLEMENTATION center. ACPSB for ESP receipt and analysis of information about emer- TatASUneft Department, data processing center. DEVELOPER TECHNOLOGICAL EFFICIENCY gency situations; DEVELOPER ZAO ISS Optimum well operation allows: registration of fulfilled works and analysis of opera- ZAO Hewlett-Packard AO. TECHNOLOGICAL EFFICIENCY to transfer to operation of the oil-well fund with dif- tions of motor transport in order to determine the TECHNOLOGICAL EFFICIENCY the complex is capable to store ten times more ferentiated buckles, ways to increase efficiency of its use. increase of productivity, better reliability and data about events for operative access and to maintain optimum bottomhole pressure at mini- DEVELOPER accessibility of centralized corporate information processing; mum pump intake pressure, ZAO Alliance OMS resources; additional complex sensor is installed to observe to optimize operational mode of well formation TECHNOLOGICAL EFFICIENCY operation of computing facilities for support of the the data processing center traffic; and equipment, to increase consecutively the rate decrease of non-productive and idle mileage infrastructure and small design solutions without attempts of unauthorized access to information of production yield. if technological transport; increase of the number of personnel of administra- recourses of the Company are suppressed. ECONOMIC EFFICIENCY better discipline of drivers and exclusion of improp- tion and technical support services. ECONOMIC EFFICIENCY decrease of well down time, increase of the coef- er use of transport and mileage doctoring; ECONOMIC EFFICIENCY productivity of the complex was increased ficient of well operation by 1.5-2%; reduction of transport idle time both in garage and no time is spent on system recovery at failures with by 3 times; decrease of expenses for well research; on route and at customer enterprises; the use of cluster configurations; during the year not any virus epidemic was admit- decrease of expenses for repairs of surface higher responsibility of customers at use of tech- decrease of idle time at failures of small design ted under the conditions of once-a-minu-te attack- equipment, use of information received with the nological transport; solutions from 4 hours to 1 hour; ing the computer network of OAO Tatneft. automation means for organization of servicing decrease of number of ungrounded ordering decrease of operational costs per one item of well equipment in accordance with its actual of transport. of equipment paced in the data processing center conditions; ECONOMIC EFFICIENCY by more than 3 times (for blade servers). power saving approximately by 5%; decrease of average daily mileage of transport technological effect of optimization of equipment by 25% on average; and well operation mode for various wells is from decrease of fuel consumption up to 22%; 80 to 700 thousand rubles/year. increase of coefficient of motor transport usage Payback period for a well with oil flow rate over by 8%; 10 tons is less than 1 year, profitability index — 2.8. shortening of time for fulfillment of production target In 2006 674 microprocessor-based stations by 15% on average. of management of conventional pumping units In 2006 the satellite monitoring system was SKAD were manufactured. implemented in 26 structural subdivisions and subsidiaries for 1,011 vehicles.
136 137 Innovation activity ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
5. AUTOMATED SYSTEM OF POWER SUPPLY optimization of operation modes of technological Operation of the system of management of finan- EFFECTS OF IMPLEMENTATION MANAGEMENT AND ELECTRIC POWER equipment. cial activity of the Company started in 2001. In 2003 the Creation of the integrated management system COMMERCIAL ACCOUNTING DISK 110 ECONOMIC EFFICIENCY system of warehouse activity of Tatneftsnab Department allows to make the processes of financial and eco- PURPOSE decrease of oil losses through more reliable was added to it, and later on transformed into the cor- nomic activity of the Company transparent thereby The systems ensures fulfillment of the following power supply; porate system of material support “E-Store”. considerably increasing investment attractiveness and tasks: decrease of expenses for purchase of elec- At the beginning of centralization of SAP imple- raising capitalization of the Company. on-line control and management of electric power tric power due to control of power consumed mentation projects management (2004) the Concept of Best world expertise included into SAP busi- supply objects; in on-line mode; Creation of the Integrated Management System on the ness solutions is adjusted to the conditions of Tatneft. control and measuring of technological parameters decrease of expenses for maintenance of power Basis of Sap Products was formed. Since 2005 in accor- It results in optimization of the Company management of power supply; supply process. dance with the Concept, large-scale implementation of system: new business processes are automated, dupli- commercial and technical accounting of electric the integrated management system has been carried out cation of data input is excluded, functions of users and power supply; 6. CREATION OF THE INTEGRATED MANAGEMENT with constant expansion of the project geography and their responsibilities are re-distributed, etc. stock-taking of power supply object equipment; SYSTEM ON THE BASIS OF SAP PRODUCTS coverage of new directions of the Company activity. Today Gradually OAO Tatneft begins to realize that records of emergency situations at power supply PURPOSE the SAP portfolio includes about fifteen large-scale proj- the integrated system on the basis of SAP products objects; The integrated management system on the basis ects. There are activities of creation of the concept of SAP is created for the Company as a whole but not for interaction with power-supplying organizations. of products of company SAP AG (Germany) implementation for the Nizhnekamsk Refinery, business separate units. It is this approach that can justify SPHERE OF APPLICATION belongs to the class of ERP systems (Enterprise enterprises, standardization of management systems of expensive implementation of SAP and ensures the automated systems of power supply technological Resource Planning). This is a complex of manage- subsidiaries and affiliates of the group of companies. maximum effect. processes management; ment technologies and business solutions aimed automated systems of electric power commercial at provision of complete, reliable and efficient EXPECTED RESULTS accounting. information about activities of the Company at all The ultimate result of the project of SAP imple- SPHERE OF IMPLEMENTATION management levels. mentation will be the integrated system of management power supply objects (substations) of OAO Tatneft SPHERE OF APPLICATION of the whole group of companies ensuring planning, and OAO Tatenergo; Implementation of SAP is carried out in the form accounting and analysis of use of all types of corporate control services of electric workshops of structural of consecutive deployment of functional modules resources: material, financial and personnel. Because units; and geography of the system. Preparation of the of this multi-variant on-line modeling of the Company chief power engineering specialist service of struc- decision about necessity to use the ERP system development will be possible ensuring timely deci- tural units; in OAO Tatneft started in 1997. In July 1999 the sion-making on the basis of most reliable information. power engineering department of Tatneft. Board of Directors took the decision about imple- The system will allow to see on the monitor in figures, DEVELOPER mentation of the system of management and graphs and charts the past, present and future days ZAO Sterling Grupp, Moscow control of financial and commodity flows in OAO of the Company. Besides, transparency of information TECHNOLOGICAL EFFICIENCY Tatneft on the basis of SAP R/3. will be ensured right up to on-line receipt of primary purposeful maintenance of the power supply tech- documents on each economic operation. nological process and provision of adjacent and The Concept of SAP development is meant for higher management systems with on-line reliable 2-3 years and presupposes completion of all large- information; scale projects of SAP implementation at enterprises increase of reliability of power supply of end-users of Tatneft group of companies. Upon implementation due to timely liquidation of emergency and con- of the projects maintained and scheduled for this ductive to accident situations; period about five thousand users will work in the inte- ensuring safe functioning of objects; grated system.
138 139 exceeded 10.0 30% 7.5 Growth 3.4 of capitalization 2.5 of the Company in 2006
‘03 ‘04 ‘05 ‘06
Dynamics of capitalization (billion US dollars)
About the Company About the Company ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
COMPANY STATUS SPHERES OF ACTIVITIES OF TATNEFT GROUP GEOGRAPHY OF ACTIVITIES OF TATNEFT GROUP
Tatneft Open Joint-Stock Company is one of the largest GEOLOGY vertically integrated companies in Russia’s oil & gas 1 AND DRILLING sector. The Company forms the Group including oil and gas production, oil and gas refineries, petrochemical facilities, departments and enterprises for sales of oil, gas, oil and gas products and petrochemicals. 2 OIL AND GAS PRODUCTION Naryan-Mar From the point of view of demonstrated reserves the Company takes the 21st place in the world. Annual volume of production is 180 million barrels. The Company implements the policy of efficient OIL SERVICE increase of reserves by way of expanding and 3 RUSSIA strengthening the resource base. Production priorities of the Company include strengthening of oil and gas Moscow refining capacities, expansion of markets for sale of oil, gas and petrochemicals and development of the OIL AND GAS REFINING 4 Kazan retail fuel network. Orenburg Basic activities of the Company are carried out Samara Astana mainly in the territory of the Russian Federation. At present the Company owns the majority of oil KAZAKHSTAN prospecting and development licenses in the territory 5 SALE OF OIL AND OIL PRODUCTS of Tatarstan. The Company implements projects Elista abroad as well.
6 PETROCHEMISTRY CHINA Damascus Teheran IRA N Tripoli
SCIENCE AND INNOVATION LIBYA SAUDI 7 ARABI A Hanoi Riyadh OMA N
Masqat 8 FINANCIAL AND INSURANCE ACTIVITIES
142 143 О КОМПАНИИ ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
TATNEFT GROUP STRUCTURE
EXECUTIVE BODIES
OIL AND GAS PRODUCTION SERVICES DEPARTMENT FOR SALE DEPARTMENTS: OF OIL AND OIL PRODUCTS, ALMETYEVSKNEFT DEPARTMENTS FOR INCREASE MISSION KEY FACTORS OF GROWTH OF CAPITALIZATION OOO TATNEFT AZS-CENTER AZNAKAYEVNEFT OF BED OIL RECOVERY OF OAO TATNEFT AND OIL AND OIL PRODUCT BAVLYNEFT AND WELL CAPITAL REPAIRS SALE ENTERPRISES, ETC. To strengthen and enhance the status of an internationally JALILNEFT recognized, financially stable company as one YELKHOVNEFT GROWTH FACTOR CORPORATE ACTIONS LENINOGORSKNEFT of the largest vertically integrated domestic producers NURLATNEFT of oil, gas, refined products and petrochemicals and OIL PRIKAMNEFT TECHNOLOGICAL to maintain a high level of corporate social TRANSPORT DEPARTMENT responsibility. INCREASE OF OIL RESOURCES IMPLEMENTATION OF OIL RESOURCE TURNING OVER OIL AND GAS REFINING (TATNEFTEGAZPERERABOTKA DEPARTMENT, KICHUISKY REFINERY OF YELKHOVNEFT, STRATEGIC INITIATIVES AND OBJECTIVES ETC.) UP TO 2010 INCREASE OF OIL PRODUCTION 1. INCREASE OF CAPITAL OTHER SERVICE STRUCTURAL VOLUMES AND AVERAGE WELL INVESTMENT INTO OIL UNITS (TGRU, UTNS, CBPO, To stabilize and optimize profitable oil and gas FLOW RATE PRODUCTION OOO TATNEFT-NEFTEKHIM MC EPU, BMZ, etc.) production 2. IMPLEMENTATION OF NEW TECHNOLOGIES OF DRILLING (Management Company) RESEARCH, To expand the resource base including outside the AND OIL PRODUCTION DESIGN, Republic of Tatarstan VALUATION, ANALYSIS To ensure financial and economic stability To increase the value of the stock capital PRODUCTION EFFICIENCY 1. STRENGTHENING OF VERTICAL OOO TATNEFT-BURENIYE MC INTEGRATION AND BUSINESS TatNIPIneft INSTITUTE To increase the sales of highly competitive finished DIVERSIFICATION RDS products 2. OPTIMIZATION OF ASSETS STRUCTURE. RESTRUCTURING ENGINEERING CENTER To continue development of own oil refining OF SECONDARY ASSETS To formulate and implement an innovation-oriented 3. DECREASE OF OPERATIONAL COSTS engineering and technological policy (R&D). To ensure a high level of corporate social OOO TATNEFT-ENERGOSERVICE responsibility. MC
DIVIDEND POLICY 1. INCREASE OF PROFIT 2. INCREASE OF FINANCIAL STABILITY
OTHER SERVICE SUBSIDIARIES AND DEPENDENT COMPANIES
CORPORATE BRAND 1. IMPROVEMENT STRENGTHENING OF CORPORATE GOVERNANCE 2. STANDARDIZATION AND CERTIFICATION OF MANAGEMENT PROCEDURES 3. INCREASE OF PRODUCTION AND SERVICE QUALITY
144 145 About the Company ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
SURROUNDING SECURITIES MARKET. STOCK MARKET
In the petrochemical sector the Company mainly At the present moment ordinary and preferred shares On June 26, 2006 the Company declared its competes in Russian and CIS tire markets with other of OAO Tatneft are included into quotation lists of the intention to seize registration of its securities with SEC. Russian tire manufacturers — Yaroslavl, Omsk, Moscow following stock exchanges: On July 10, 2006 the Company and the depositary and other plants. RTS Stock Exchange — A1 (ordinary shares), A2 of the Bank of New York signed the amended and The factors ensuring high competitive capacity (preferred shares); supplemented depositary agreement. On September of the Company in the main segments include: MICEX Stock Exchange — First Level “A” List 15, 2006 the Company’s securities were voluntarily development of own oil and gas refining and (ordinary and preferred shares). delisted at the New York Stock Exchange (NYSE). petrochemical facilities In 2006 the Company’s stock prices continued American Depositary Receipts, beneficial owners use of advanced technologies ensuring profitable to rise both on the Russian and foreign trading floors. of which submitted corresponding applications, were development of reserves and a high oil recovery RATIO OF BASIC Thus, at the end of December 2006 its ordinary shares transformed into GDR (CUSIP: US6708312052). INDICATORS rate at the fields of OAO Tatneft while maintaining OF ACTIVITIES traded at RTS at $4.6 per share, more than one third As on December 29, 2006 426,873,620 ordinary a competitive cost level OF OAO TATNEFT higher than in 2005. shares were deposited for conversion into GDR (19.6% AND AVERAGE availability of service units within the holding INDICATORS At the end of 2006 the Company’s market of the total number of issued ordinary shares and about OF SIX LARGE OIL structure, engaged in geological prospecting, COMPANIES capitalization reached $10 billion compared to $7.5 18.3% of the stock capital). drilling, construction of wells, transport support, FOR 200 billion in 2005, experiencing 33% growth year on year. By the end of the reporting period Global Depositary engineering and scientific research ensuring Volume of trade at the MICEX was 98.28 billion RUB, Receipts (GDR) of the Company were listed at the Estimated average necessary control of capital and operating indicators of the at the RTS — over $86 million. London Stock Exchange and the Deutsche Boerse AG. industry expenses. Estimated average OAO Tatneft is on the 6th place among the leading indicators of OAO Tatneft Average daily oil companies of Russia in respect of the volume of oil flow rate, tons/day 150 RTS Index $ .0 production. A number of oilfields of the Company are 10 1550 characterized with high exhaustion. Today the average .0 flow rate of Tatneft wells is up to 4.1 tons per day; operating Profitability, % 1350 well stock is over 21 thousand. But notwithstanding the 5.0 fact that oil production volumes and proceeds from sales 32 57 Oil 4 production 1150 of finished products are 2-3 times lower than the ones volume, 22 million tons of other large oil holdings of Russia, qualitative showings 50 4.0 of Tatneft — expenses for one ruble of commodity 25 output and net profitability have better parameters. 50 The average expense for 1 ruble of commodity output 3.0 174 in the Russian oil industry in 2006 was 0.7 ruble. 550 OAO TATNEFT In OAO Tatneft this showing was 0.64 ruble. ORDINARY SHARES 0.64 465 Net profitability of OAO Tatneft considerably exceeds 2.0 DYNAMICS 350 AND RTS INDEX, the average industry showing (22%) and is 32%. 0.7 2004-200 (USD) Expenses Proceeds 150 1.0 per 1 rubles from sales, January April June October January April June October January April June October January RTS of commodity billion RUB 2004 2004 2004 2004 2005 2005 2005 2005 2006 2006 2006 2006 2007 output, RUB Tatneft
146 147 About the Company ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
CORPORATE GOVERNANCE Openness at taking corporate decisions independent assistance to the chief executive and chief Realizing their responsibility to shareholders, COMPANY MANAGEMENT BODIES financial officers in development, implementation and Fulfilling its obligations to shareholders, investors, management bodies consider it necessary to follow the regular estimation of the Company’s mechanism of control employees, partners and the society as a whole the principles of openness at taking corporate decisions. The Meeting of shareholders of information disclosure and disclosure procedures. Company strictly complies with the existing legislation, Company follows the standards of information disclosure In accordance with the Charter and the Corporate The Audit Committee is to assist to the Board norms and principles of international law, requirements on the basis of equal accessibility, efficiency, reliability Governance Code of OAO Tatneft the general meeting of Directors in fulfillment of the obligation to control of regulating authorities as well corporate governance and completeness. of shareholders is the supreme management body. reliability of financial statements of OAO Tatneft, standards set in the Corporate Governance Code. Personal responsibility of members of the Board The general meeting of shareholders is held by the observance of laws and regulations by OAO Tatneft of Directors and executive bodies and their accountability Company once a year not earlier than two months and as well as selection of independent auditors, check to the Company and its shareholders not later than six month after the end of a fiscal year. over their independence and over work of independent CORPORATE GOVERNANCE PRINCIPLES Members of management bodies are accountable Besides the annual general meeting, extraordinary auditors and the internal audit system of OAO Tatneft. to shareholders and are liable for execution of their duties meetings of shareholders may be convened. The main objective of the HR and Compensation Equal treatment of all shareholders in accordance with the existing legislation. Committee is to create conditions for attracting Members of the Board of Directors and executive Board of Directors. Committees competent specialists to management of the bodies undertake to manage the Company in the Compliance with the business ethics standards General management of the Company activity Company and to create necessary incentives for their interest of all shareholders. Following the corporate standards of business is carried out by the Board of Directors. The Board of efficient work. ethics the Company ensures protection of interests Directors takes decisions concerning all key issues of Protection of shareholders’ rights of shareholders as well as other stakeholders — the Company activity except for issues included into the General Director. Management Board Executive officers of the Company undertake personnel, local population, partners on the basis competence of the general meeting of shareholders in The General Director and the Management Board to act in the interest of shareholders ensuring their of corporate social responsibility and adherence to the accordance with the existing legislation. Members of the manage current activities of the Company and report rights envisaged in the legislation, the Charter and policy of environmental safety. Board of Directors are elected and their authorities are to the Board of Directors and the general meeting internal documents of the Company. The Company cancelled by the general meeting of shareholders. The of shareholders. The General Director and members ensures maintenance and storage of the Register Permanent improvement of corporate behavior Board of Directors consists of 15 members including at of the Management Board carry out their activity of Shareholders in accordance with the legal documents standards present three independent directors. in accordance with the existing legislation and the Charter of the Russian Federation. The Company ensures the The Company improves the corporate behavior of the Company. The Management Board is a collective right to participate in the Company management, the standards in order to increase efficiency of corporate Four committees are established and are executive body. The General Director is a chairman right for regular and timely, complete and reliable resource management and to maintain long-term operating under the Board of Directors of the Management Board. The General Director organizes information about activities of the Company. economic growth, to ensure guaranteed protection of OAO Tatneft: current activities of the holding Company through of investment of shareholders and investors, assets Corporate Governance Committee his deputies, specialized structures and authorized Mutual trust and respect of the Company as a whole simultaneously with Disclosure Committee representatives of the Company in management bodies Relations amongst shareholders, members of the strengthening of the corporate control system and Audit Committee of subsidiaries and dependent companies. Board of Directors and executive directorate of the procedure of interaction between management and HR and Compensation Committee Company are based on mutual trust and respect. control bodies. The main objective of the Corporate Governance Executive bodies Shareholders, members of the Board of Directors, Committee is to develop and to improve the corporate For ensuring efficient management of vertically executive bodies of the Company and other stakeholders governance system in OAO Tatneft: regulation integrated business the Company has the corresponding undertake to fulfill their duties and exercise their rights of relations amongst shareholders, the Board executive structure (under the General Director). in good faith in order to create and to maintain mutual of Directors and management of the Company as well The mechanism allowing shareholders trust and respect. as interaction with subsidiaries and other stakeholder. to direct activities of the Board of Directors or to The Disclosure Committee is a consultative and provide recommendations to it is exercising of such advisory body and is designed for unprejudiced and shareholders’ rights as:
148 149 About the Company ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
MANAGEMENT STRUCTURE OF OAO TATNEFT in interests of third parties confidential information fulfillment of the maximum level of operational direct participation in formation of the Board about OAO Tatneft. costs per 1 ton of oil; of Directors. In accordance with the Charter Requirements to competence of members fulfillment of the program Energy-Efficient of OAO Tatneft shareholders (shareholder) owning of the Board of Directors are fixed in the Corporate Economy; in total at least 2 per cent of voting shares of the Governance Code of OAO Tatneft located on the fulfillment of the Complex Program of Stabilization Company have the right to nominate candidates official website of the Company in section “Information of the Oil production Level in OAO Tatneft; to the Board of Directors; GENERAL CORPORATE Disclosure” (www.tatneft.ru/info/polozhnia.htm). implementation of advanced technologies and formation of the agenda of a meeting of the Board MEETING OF STANDARDS SHAREHOLDERS equipment. of Directors. In accordance with the Regulations Processes of estimation of own performance of the Board of Directors an agenda of a meeting by the Board of Directors include: of the Board of Directors mandatorily includes control of the process of execution of taken issues proposed for consideration by shareholders decisions; owning in total at least 5 per cent of ordinary repeated consideration of issues in accordance with shares of the Company; the results of implementation of taken decisions; offering proposals for consideration by the Board LAWS, COMMITTEES BOARD annual reporting of the Board of Directors of Directors through the committees of the Board NORMATIVE ACTS, OF DIRECTORS DIRECTIONS to shareholders; of Directors or specialists (services) participating AUDIT regular reports of Committees of the Board in preparation of materials for a meeting of this COMMITTEE of Directors to the Board of Directors. collective body.
DISCLOSURE Remuneration of members of the Board of Directors In order to prevent the conflict of interests a COMMITTEE is carried out in accordance with the Regulations number of norms are applied in the Board of Directors: of Payment of Remuneration to Members of the Board prohibition to vote to members of the Board of MANAGEMENT of Directors. Criteria for determination of the amount Directors concerned at taking a decision about BOARD CORPORATE GOVERNANCE of remuneration are financial and economic indicators: approval of a deal in which this member of the COMMITTEE actual profitability of production and economic Board of Directors has any interest; activity of the Company; number of executive directors who may join the HR AND change of the capitalization level of the Company Board of Directors is limited; COMPENSATION COMMITTEE in the reporting period; at taking decisions members of the Board change of ratio of the level of expenses for of Directors are obliged to be guided with the dividends to the net profit of the Company in the perspectives of long-term plans but not with short- EXECUTIVE reporting period. term personal interests; BODIES members of the Board of Directors must fairly Material incentives of top managers of the Company and completely disclose information about his/her are carried out in accordance with the Regulations interest in conclusion of the Company’s deals, of Formation of Wage Fund and Material Incentives must notify the Board of Directors in writing to Employees of Structural Units and Subsidiaries about intention to conclude deals with securities of OAO Tatneft. Basic indicators for material incentives of OAO Tatneft and its subsidiaries; of top managers are financial and economic indicators: members of the Board of Directors must not fulfillment and over-fulfillment of the plan of oil disclose and use in personal interests and production;
150 151 ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006 Appendices
INDEX OF LOCATION OF GRI INDICATORS 3 REPORT PARAMETERS PAGE
1 STRATEGY AND ANALYSIS PAGE 3.1 Reporting period 8
3.2 Date of publishing of the last of the preceding reports 8 1.1 Message from the General Director 6 –7 3.3 Reporting cycle 8 1.2 Characteristics of key influences, risks and possibilities 142, 145, 146 3.4 Report contact information 162
3.5 Process of determination of report contents 8, 10 –12
2 CHARACTERISTICS OF ORGANIZATION PAGE 3.6 Report limits 8
3.7 Restrictions in the report coverage 8 2.1 Name of organization cover, 142 3.8 Inclusion of data of joint ventures and subsidiaries into the report 8 2.2 Main products and services 38 – 39 Methods of measuring data and calculations, used for preparation of indicators and other data 3.9 12 included into the report 2.3 Structure of organization activity 144 Description of meaning of any re –formulating of information of previous reports and reasons 3.10 N/A 2.4 Head office location 162 for such re –formulating
Significant changes in respect of previous reporting periods in the sphere of coverage or 2.5 Countries of operation 143 3.11 8 methods of measuring used in the report 2.6 Property character and organizational and legal form 142 3.12 Table of GRI indicators 152 –157 2.7 Markets of operation 146 3.13 Policy and current practice in respect of independent confirmation of the report 8, 12,13 –17 2.8 Organization scale 26, 40 – 41, 147
2.9 Significant changes of scale, structure or property in the reporting period 43
2.10 Awards received in the reporting period 34 – 35 4 MANAGEMENT, LIABILITIES AND INTERACTION WITH STAKEHOLDERS PAGE
4.1 Structure of organization management including main committees under the Board of Directors 149 –150
4.2 Is the chairman of the Board of Directors an executive director of the Company? 149
4.3 Independent members of the Board of Directors 149
4.4 Mechanisms allowing shareholders to produce recommendations to the Board of Directors 150
Connection between payments to members of the Board of Directors, representatives of the top 4.5 151 executive management and chief managers and results of organization activities
4.6 Processes aimed to avoid conflict of interests in the Board of Directors 150 –151
4.7 Processes of determination of qualification and competence of members of the Board of Directors 151
152 153 Annexes ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
4 MANAGEMENT, LIABILITIES AND INTERACTION WITH STAKEHOLDERS PAGE ENVIRONMENTAL INDICATORS PAGE
Declarations of mission and values of the organization, corporate behavior codes and ЕN1 Used materials 97 4.8 principles significant from the point of view of economic, environmental and social 20, 86, 145, 148 performance developed in the organization and the degree of their implementation ЕN2 Share of raw materials which are recycled or repeatedly used waste 109 –111
Procedures used by the Board of Directors for supervision of estimation of the results by 4.9 149 the organization ЕN3 Direct usage of power 98, 99
4.10 Processes of estimation of own performance by the Board of Directors 151 Power saved as the result of activities for decrease of power consumption and increase of ЕN5 44 4.11 Application of the precaution principle 97 energy efficiency (add.)
Economic, environmental and social charters, principles or other initiatives developed by 4.12 9 Initiatives for presentation of energy efficient goods and services, or goods and services outside parties and supported by the organization ЕN6 based on use of renewable energy and decrease of need for energy in the result of these 44 initiatives (add.) 4.13 Membership in associations 32 – 34
4.14 List of stakeholders 20 ЕN8 Total volume of in-taken water 100
4.15 Grounds for revealing and selection of stakeholders 20 ЕN9 Water sources the most impacted by the Company’s consumption (add.) 98, 100 4.16 Approaches to interaction with stakeholders 26 – 32
EN10 Share and total volume of multiple and repeatedly used water (add.) 100 4.17 Key issues and interests revealed in the process of interaction with stakeholders 26 – 32
Location and area of lands owned, rented or managed by the Compny, located in protected ЕN11 100 –102 natural territories or territories adjacent to them
ECONOMIC INDICATORS PAGE Description of significant influence of the organization activities on biological diversity in ЕN12 102 protected natural territories
Created and distributed economic cost including profit, operational costs, payments to ЕС1 40 – 41 ЕN13 Preserved or restored habitats (add.) 102 employees, donations and other investment of the Company
Strategies, implemented actions or plans for future for management of influence of the ЕN14 102 organization on biological diversity (add.) ЕС3 Provision of liabilities of the organization related to the pension plan 53, 54
Number of species entered into the Red Book of the International Union for the Conservation ЕС4 Financial assistance received from state authorities N/A ЕN15 of Nature and Natural Resources and the national list of protected species with habitats in the 102 zone of activity of the organization (add.) Range of ratio of wage at the initial level and set minimum wage in the regions of activity of the ЕС5 49 company ЕN16 Greenhouse emissions 105
Policy and practical approaches to purchases from local suppliers and share of such ЕС6 31 purchases ЕN18 Initiatives for reduction of greenhouse gas emissions and achieved reduction 102, 103, 105
Development and influence of investments into the infrastructure and of services provided to ЕС8 66 – 83 the Company with public purposes ЕN20 Emissions of NOı, SOı and of other significant pollutants 104, 105
154 155 Annexes ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006
ENVIRONMENTAL INDICATORS PAGE SOCIAL INDICATORS PAGE
Total number of discharges and sewage quality ЕN21 94, 95, 100 LA12 Share of employees whose of performance and career are regularly evaluated 57
ЕN22 Total mass of waste 103, 105 LA13 Structure of managing bodies and of the staff by sex and age 26, 28 ЕN23 Total number and total volume of significant spills N/A
Initiatives for easing of impact of products and services on environment and the volume of the 92 – 93, 96, 97, LA14 Ratio of basic wage rate of men and women with division into employee categories 49 ЕN26 achieved result 100 –102, 104 –108
ЕN27 Share of products returned to manufacturer upon expiration of service life not applicable HR1 Policies, principles and procedures relating to all aspects of human rights 55, 56
Monetary value of significant penalties and total number of non-financial sanctions imposed ЕN28 N/A HR2 Share of significant suppliers and contractors estimated from the point of view of human rights 30 for non-observance of environmental legislation and regulations
ЕN30 Total environmental expenses and investment 112, 113 HR4 Cases of discrimination N/A
Activity within which the right for freedom of associations and collective negotiations may face HR 5 55 – 56 significant risks
HR6 Activity within which there is significant risk of cases of use of child labor 55
HR7 Activity within which there is significant risk of cases of use of forced or obligatory labor 55
Character, coverage and results of programs estimating influence of activity of the organization SO1 66 –72 SOCIAL INDICATORS PAGE on communities and managing this influence
SO4 Actions taken in response to cases of corruption N/A LA1 Total number of labor force by type of employment and region 26
LA2 Total number of employees and personnel turnover 26, 28 SO5 Position in respect of state policy and participation in formation of state policy 24 LA3 Social benefits and preferences provided to employees 50 – 52, 60 – 62 SO6 Total monetary amount of financial and in kind donations to political parties N/A LA4 Coverage of employees with Collective Agreement 29
Monetary value of significant penalties and total number of non-financial sanctions for non- In accordance with SO8 N/A LA5 Minimum period of notification in respect of significant changes in activities of the organization observance of the legislation and normative requirements Labor Code of Russia Stages of lifecycle at which influence of products and services in health and safety is estimated PR1 31 LA7 On-the-job injury rate, level of professional diseases, number of accidents with mortis causa 64, 65 in order to reveal possibilities of improvement, and share of products and services
PR3 Types of information about features of products and services 31 Existing programs of education, training, consulting, prevention and control of risk for assistance LA8 to employees, their family members and representatives of population in respect of serious N/A diseases PR5 Practices relating to consumer satisfaction (add.) 31
LA9 Reflection of issues of health and safety in official agreements with trade unions 66 Monetary value of significant penalties imposed for non-observance of the legislation and PR9 N/A regulations relating to provision and use of products and services LA10 Average number of training hours per one employee a year 57
Compliance of content of the report with the GRI system is estimated by us at level B+ though by a number of criteria the report satisfies requirements of level A+. 156 In the next report we plan to expand the sphere of application of the GRI system to level A+. 157 ОАО TATNEFT SUSTAINABILITY AND SOCIAL RESPONSIBILITY REPORT 2006 Glossary
Safe labor conditions — labor conditions with no It is determined as margin between proceeds from Poll form of revealing social and economic situation Certification — confirmation of conformity of qualita- impact of harmful and hazardous industrial factors sales of products, goods, services produced by the firm by way of questionnaires or telephone contacts. tive characteristics with the requirements of a quality on employees at all or with the impact not exceeding and its costs including purchase of materials, semi-fin- standard. hygienic norms. ished goods, services. Labor protection — system of ensuring safety of life and health of employees in the process of labor activity GRI reporting system — generally accepted report- Charitable activity — voluntary activity of citizens Collective Agreement — agreement between owner including legal, social and economic, organizational ing system in respect of economic, environmental or legal entities for disinterested (unpaid or on pref- or administration of an enterprise, on the one part, and and technical, sanitary and hygienic, medical and pre- and social performance. The system consists of the erential conditions) transfer of property to citizens work collective represented by trade union committee, ventive, rehabilitation and other activities. Sustainability Reporting Guidelines, technical proto- or legal entities including money, unpaid work, provi- on the other part. Such agreement determines routine cols and industry-specific annexes. sion of services, or other assistance. of work, remuneration, leave duration, labor conditions, Risk assessment — process of risks assessment for labor safety provision insurance, benefits. safety of life and health connected with impact of dan- Board of Directors executive body of a joint-stock Repeated use of resources — drawing materials gers at work. company elected by shareholders, solving principal resources once already used or waste of one produc- Stakeholder — groups or persons who, in accordance issues of company management within the period tion into other production. with reasonable expectations, may experience signifi- Profit money income determined as margin between between meetings of shareholders, establishing the cant influence from activity, products and/or services amount received from sales of product (gross income) management board for operative management of the Global Reporting Initiative — independent organiza- of the organization, and whose actions, in accordance and expenses. company business. tion with mission to develop and to distribute globally with reasonable expectations, may influence ability applicable Sustainability Reporting Guidelines. of the organization to implement successfully its strat- Living wage cost of minimum necessary set of wel- Social policy at enterprise — activity of employ- egy and to reach set goals. fare, funds allowing maintenance of vital functions. ers, management and employees for preservation and Annual report — financial report of a firm or report change of their social conditions, for satisfying social about economic activity for a year. On-the-job accident — any organic or functional Professional disease disease of a working person needs, coordination of social interests, exercising injury to health or causing mutilation, or mental insanity which arose and developed under systematic and long social rights and social guarantees, provision of social Government regulation of economy — influence resulting from external unexpected and forcible reason impact of a harmful factor peculiar to this occupation or services, social protection of personnel. of government in the person of state authorities on eco- during work or in the result of execution of any work, of the totality of labor conditions typical only to specific Social partnership system of relations of employees nomic objects and processes and on persons partici- and resulting in death, complete or partial, permanent production. (representatives of employees), employers (represen- pating in them; it is carried to make processes in order, or temporary disability. tatives of employers), state authorities, local authori- to streamline actions of economic subjects, to ensure Restructuring — overall transformation of activities ties aimed at ensuring of coordination of interests observance of laws, state and public interests. Disability temporary or permanent, partial or com- of an enterprise consisting of changing of the structure of employees and employers in issues of regulation plete loss of ability to work in the result of disease of production, assets, liabilities and management sys- of employment relationship and other relations directly Report limits — range of organizational units perfor- (professional), accident (on-the-job injury) or other tem aimed at increase of stability, profitability, competi- connected with them. mance of which is reflected in the report of a com- reasons. tiveness, overcoming unprofitability or transformation pany. of organizational structure of production. Strategy — long-term most fundamental, important Non-financial risks probability of an event resulting directions, plans, intentions of management of enter- Business reputation — opinion of consumers, part- from collision with external surrounding, which will pro- Risk possibility of an event resulting in any additional prises in respect of production and investment. ners and other stakeholders about a firm. duce negative influence on the process of reaching the expense in conducted activity. goals by the company. Trademark — individually executed special distinc- Business ethics — rules and norms of office behavior. Personnel rotation — systematic, under initiative tive sign of a trading firm which it may place on goods Parent company, parent enterprise — company of administration, vertical or horizontal movement manufactured under the order of this firm. Value added — part of cost of goods, services incre- owning controlling interest and possessing managing of employees to new positions and occupations within mented immediately in this enterprise or in this firm. authorities in respect of its subsidiary companies. one enterprise (organization).
158 159 Glossary List of abbreviations
MTM Motor Transport Means TGPD Tatar Geological Prospecting Department
EEHRS Electrical equipment hire-and-repair shop ASK Joint-Stock Insurance Company
OAO Tatneft Open Joint-Stock Company Tatneft named after V.D. Shashin TNG Tatneftegeofizika
ZAO Closed Joint-Stock Company OGPS Oil and gas production shed OOO Limited Liability Company BMP Bugulma Mechanical Plant OGPD Oil and Gas Production Department (structural unit of OAO Tatneft) OCPP Oil complex preparation plant ACPSB Almetyevsk Central Production Servicing Base TTD Technological transport department Department for Implementation and Technical Maintenance of Automated Production TatASUneft Management Systems (structural unit of OAO Tatneft) FS Filling station
TatAISnet Department of Operations of Automated Information Systems (structural unit of OAO Tatneft) NYSE New York Stock Exchange
IOR Improved oil recovery SEC US Securities and Exchange Commission
EOR Enhanced oil recovery RTS Russian Trading System Stock Exchange
GTA Geological and technical activities MICEX Moscow Interbank Currency Exchange
VSST Vertical stainless steel tank MC Managing Company
HDT Horizontal dump tank NPZ Refinery
OPER Oil-producing equipment repair NGEI Non-governmental educational institution
ESP Electric submersible pump IT Information technologies
R&D Research and Development CIS Corporate information system
EPW Experimental and production work AWS Automated workstation
RPM Reservoir pressure increase ARMITS Engineering and technological service automated workstation
POPE&REI Protection of oil producing equipment from corrosion and reservoir pressure increase AS OGP TPM Automated system of oil and gas production technological process management Tatar Scientific and Research and Designing Institute of Oil Production TatNIPIneft (structural unit of OAO Tatneft) AS RPM TPM Automated system of reservoir pressure maintenance technological process management
SAC Subsidiary and affiliate companies ASKUE Automated system of commercial accounting of electric power
RETO Repair of electric equipment NFC Neighboring foreign countries
ESP Electric submersible pump DFC Distant foreign countries
TTD Technological transport department ENICE Equipment not included in construction estimates
SM Specialized machinery TNSD Tatneftesnab Department Department for Preparation of Processing Fluid for Maintaining Reservoir Pressure DPPFMRP IH Inventory holdings (a structural unit of OAO Tatneft)
SRS Standards Research Station (a structural unit of OAO Tatneft) TTH Trading and Technical House of OAO Tatneft
FEF Foreign-economic firm MOT Mining operations tax
160 161 CONCEPT OF THE REPORT: V.P. Lavuschenko R.N. Mukhamadeyev I.R. Ilmukova N.E. Dorpeko
© V.P. Lavuschenko, R.N. Mukhamadeyev, I.R. Ilmukova
WORKGROUP I.R. Ilmukova FOR THE PREPARATION R.M. Gareyev OF THE REPORT: A.F. Rakhmanova V.Yu. Makarov G.M. Ibragimov R.M. Garifullin P.V. Karpunin A.T. Yukhimets
DESIGN AND PRINTING BY: Direct Design Visual Branding
OAO Tatneft contact information
HEAD OFFICE 75 Lenina Ul., Almetyevsk, 423450 Tatarstan, Russia Tel.: (+7-8553) 25 58 56 Fax: (+7-8553) 25 68 65
MOSCOW 17 Tverskoy Boulevard, REPRESENTATIVE OFFICE Moscow 123104, Russia Tel.: (+7-495) 937 55 33 Fax: (+7-495) 937 55 32
INFORMATION 10 Gagarina Ul., Almetyevsk, FOR SHAREHOLDERS 423450, Tatarstan, Russia Tel.: (+7-8553) 31 97 48 Fax: (+7-8553) 25 07 00