in the Traditional Oil Summit

The annual traditional summit of the republican oil companies’ leadership with participation of Rustam Minnikhanov, President of the Republic of Tatarstan, was held on July 12.

The oil forum was also attended by Kirill Molodtsov, Deputy Minister of Energy of the Russian Federation, Igor Shpurov, General Director of the State Commission on Mineral Resources, Farid Mukhametshin, Chairman of the Republic of Tatarstan’s State Council, top management and professionals of TATNEFT Company headed by Nail Maganov, General Director, Shafagat Takhautdinov, Assistant to President the Republic of Tatarstan on the oil industry, heads of petrochemical, crude oil refining, service and independent oil companies of the Republic, related businesses, regional offices of federal departments, heads of the cities and districts of the Republic of Tatarstan’s oil region, responsible officials of the Presidential Office of the Republic of Tatarstan and the Government of the Republic of Tatarstan.

Prior to the beginning of the event the participants had visited the exhibition of advanced technologies provided by PJSC TATNEFT, JSC “Quart”, JSC “RITEK, OOO TNG-Group, OOO ARM-Service, OOO NPF Packer, ELKAM Company, Kazan (Privolzhsky) Federal University, Corporate University of PJSC TATNEFT and the Almetyevsk State Petroleum Institute. Also as part of the exhibition activities, there was presentation of the posters of the scientific works contests winners among the students and post-graduates of the leading Russian oil universities.

As part of the PJSC TATNEFT’s display, the Company presented the results of introducing digital technologies within the Joint-Stock Company. Nail Maganov, the Company’s General Director, presented to the participants of the event the introductory report on digital technologies, which had become the key driver of the Company’s growth.

Rustam Khalimov, Deputy General Director for oil Fields Development and Production of Crude Oil and Gas, presented intellectual (“smart”) field development technologies base on using the digital double of the field; Rinat Shafigullin, Deputy General Director for Well Workover, Well Drilling and Enhanced Oil Recovery presented a report on the application of digital technologies to improve the development of hard-to-recover oil reserves; Leonid Alyokhin, General Director of JSC TANECO, presented information on the system of maintenance and repair of the equipment at the refinery; Anvar Vakhitov, Director of OOO Tatneft-Neftekhim Management Company, spoke about digital initiatives at the TATNEFT’s tire manufacturing business; Yuri Nesterov, Head of the Transport Department described the results of the service transport efficient operation through the calling system introduction.

The plenary part of the event was opened by Rustam Minnikhanov, President of the Republic of Tatarstan, emphasizing the role of TATNEFT in the economy of Tatarstan.

Albert Karimov, Deputy Prime Minister of the Republic of Tatarstan, Minister of Industry and Trade of the Republic of Tatarstan, spoke in the plenary part of the event presenting a report on the results of the Republic of Tatarstan’s industry development in the first half of 2017.

Nail Maganov presented to the summit participants the results of the PJSC TATNEFT’s activity in the first half of 2017. According to the General Director of the Company, TATNEFT continued its stable development within the framework of the adopted Strategy-2025 program aimed at doubling the Company’s shareholder value, and ensured an increase in crude oil production by 3.4%. At the same time, the Company’s obligations in terms of the agreement between the Russian Federation and OPEC on “freezing” crude oil production at the level of October of the last year.

As Nail Maganov pointed out, TATNEFT continued implementation of a strategic project to develop hi-viscosity oil fields. Cumulative crude oil volume output since the beginning of production amounted to more than 2.5 million tonnes. The average daily flow rate reached about 4,600 tonnes per day.

Dynamic growth was demonstrated by the TANECO refinery complex. The expected volume of processing in the current year will account for 8.4 million tonnes of raw materials. The long-term, safe and reliable operation of the equipment at the TANECO Complex has been ensured by the scheduled overhaul, which significantly increased the efficiency of existing installations and reached a five-year time-between-failures run. Plans for the future provide for increasing the refinery’s mean-time-between-failures period to 8 years.

The plans for the tire manufacturing complex of TATNEFT in 2017 provide for increasing the production at the level of 11%.

As the General Director of the Company emphasized, the basis of the Company’s development against the background of global competition is not only the availability of natural resources, but also the knowledge and the development of intellectual products, digitalization of all spheres of life. TATNEFT has been holding a course for a digital transformation of its production system since 2014, when innovative processes of modernizing all business sectors were launched through the introduction of smart wells, smart plants, as well as through the introduction of high-tech and intelligent production management tools.

According to Nail Maganov, the Company has implemented and successfully operated Drilling and Modeling Centers, joint projects were being implemented with well-known Russian and foreign companies: 1C, Kaspersky Lab, Schneider Electric, RFYAC VNIIEF. TANECO has created a multi-level integrated architecture of automated control systems that allowed for introducing the automated control system over production, including security and operational activities, as a whole. An integrated supply chain management system is being actively implemented at the tire-manufacturing complex, which allows for increasing the level of service and reducing the operating costs. There are digital chip sensors incorporated into the tires to improve the characteristics of the tire products, which, in turn, allows building an intelligent logistics chain throughout the products’ life cycle.

As the General Director of TATNEFT emphasized, the key component in the digital transformation of the Company is the people, and the Joint-Stock Company actively invests into the personnel education and development and this trend will be actively developing.

Fanis Valiyev, General Director of ZAO Nefteconsortium, familiarized the summit participants with the results of the activities of small size oil companies of the Republic of Tatarstan in the first half of 2017.

Igor Shpurov in his speech dwelt on the issues of forming the classification of the oil reserves Russian Federation, including those hard-to-recover.

Kirill Molodtsov read out a congratulatory message on the opening of the Summit from Energy Minister Alexander Novak, who called the Oil Summit the benchmark for holding such events.

According to Molodtsov, Russia’s future lies in the digital economy, the development of cyber security, and the deepening of oil refining as well as obtaining of advanced innovative products.