Last checked at 26 Sep 2018 13:51
26 September 2018
Tatneft's Board of Directors Approved the Company's Development Strategy for the Period until 2030
A regular meeting of TATNEFT Board of Directors chaired by R.N. Minnikhanov, President of the Republic of Tatarstan, was held in Kazan (Republic of Tatarstan) on September 26, 2018
The meeting considered the execution of the Company's budget for eight months of 2018 and approved budgets for October and the fourth quarter of the current year.
The Board of Directors approved the goals of TATNEFT Group Development Strategy until 2030. Key parameters of the Strategy are: to increase crude oil production to 38.4 million tonnes per year by 2030 with a 100% reserves replacement, a gradual increase in the volume of crude oil refining to 15.3 million tonnes per year, ensuring maximization of economic benefits from the operation of the TANECO complex, annual sales of 18 million tires, construction of the first stage of the new gas and petrochemical complex. In aggregate successful achievement of the business goals in the base case scenario, based on the economic forecasts of the Government of the Republic of Tatarstan and the Ministry of Economic Development of Russia will allow increasing the Group's capitalization to $36 billion, while ensuring the annual dividend payments to shareholders in accordance with the Company's dividend policy, maintaining leadership positions in the environment protection area, and developing the human capital. The main parameters of the strategy have been published on the Company's official Internet website at:
http://www.tatneft.ru/for-shareholders/information-disclosure/presentations-to-investors?lang=en
At the meeting the Board of Directors discussed the information on the KPIs (key performance indicators) system implementation within the TATNEFT Group. Implementation of the pilot project in 2017 allowed converting the strategic goals into annual measurable indicators, conducting a transparent assessment of the key employees' work results, promoting identification of inefficiencies in the management processes and outlining new areas for further development. In the current year TATNEFT has moved on to the next stage of the KPI system development: increasing the number of employees in the main business areas and involving such functionalities as innovational activities, IT, HR, corporate management, etc.
In accordance with the Company's Charter, the Board of Directors, in reliance on the recommendation of the Board's compensation committee, extended the term of duties of N.U. Maganov as the General Director of PJSC TATNEFT for a period of five years in connection with the expiry of his current term, with effect from November 26, 2018. The powers of Valery D. Ershov, member of the PJSC TATNEFT's Management Council, were terminated in connection with his the retirement.
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