Tatneft: Results of Operations for the First Ten Months of 2017

Crude Oil Production

TATNEFT Croup of Companies produced 2,459 thousand tonnes; while the oil volume produced during the ten months amounted to 24,124 thousand tonnes, which was 499 thousand tonnes more than the figure for the similar period in 2016.

PJSC TATNEFT’s production amounted to 2,429 thousand tonnes; and 23,829 thousand tonnes (+ 495 thousand tonnes) during the ten months; 102.1 percent versus the level of 2016.

The production volume at the licensed areas outside the Republic of Tatarstan amounted to 29,884 tonnes of crude oil with the volume produced during ten month amounting to 294,894 tonnes (+3.8 thousand tonnes; 101.3 percent).

New Drilling

645 new wells were built and delivered to customers during ten months of 2017, which was 20% more than during the same period in 2016 (538 wells in 2016), including 617 production wells drilling, 7 exploratory wells drilling and 21 wells drilling to the bitumen.

Active Well Stock Drilling

There were 68 sidetracks and horizontal wellbores delivered during ten months in 2017.

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

Testing operations had been completed on well No. 1 at the Barrieryaya Area in the Republic of Kalmykiya.

Drilling of well No. 18 was completed in the Ulyanovsk region. The work is underway to perform the completed well testing.

The operations are in progress on drilling the exploratory well No.130r. Well testing is in progress. Drilling of exploratory well No. 342r had been completed: testing operations are underway.

Repair of Wells

During ten months of 2017, the remedial well servicing crews performed remedial servicing operations in 9,214 wells at the sites of PJSC TATNEFT), while workover operations were performed in 2,199 wells (219 wells in October).

There were 55 wells repaired for OOO “Tatneft-Samara” and 6 wells for OOO “Tatneft-Severny” outside the Republic of Tatarstan.

Formation hydrocracking operations were carried out in 700 wells (60 wells in October).

Oil recovery enhancement operations were performed in 2,426 wells), including chemical methods applied in 1,142 wells (114 wells in October).

Production Performance of JSC TANECO

The TANECO Complex of Refining and Petrochemical Plants processed 794.8 thousand tonnes of raw materials in October 2017 and 7116,3 thousand tonnes since the beginning of the year, including 736.4 thousand tonnes of petroleum feedstock processed in October and 6,400.7 thousand tonnes of petroleum feedstock processed since the beginning of the year.

The TANECO Complex yielded 753.66 thousand tonnes of petroleum products in October 2017 and 6,708.9 thousand tonnes since the beginning of the year.