PJSC Tatneft. Annual report 2017
PJSC Tatneft. Annual report 2017

Business Model

The business model of the Company is formed on the basis of a unified strategy integrating the potential of diversified core assets in the field of exploration and production, refining, petrochemicals, sale of oil and oil products, as well as energy, engineering, and technology, providing value and conditions for long-term sustainable development, considering external factors and mechanisms for risks mitigation.

Corporate strategy is aimed at long-term sustainable development of the Company—providing an optimal balance of oil and gas production, oil refining and achieving the maximum operating income in all business segments. The business structure allows the company to make the most of the resource assets and production facilities on the basis of project and process management within a unified investment policy.

TATNEFT is the corporate center of the TATNEFT Group UPSTREAM Ensuring increase in production and replenishment of reserves Strengthening the resource base Geographical extension of mining assets Development of hard-to-recover oil deposits, including super-viscous oil (SVO) RESOURCE BASE PRODUCTION MACHINE BUILDING OIL AND GAS PROCESSING RETAIL DISTRIBUTION NETWORK PETROCHEMICALS DOWNSTREAM Strengthening the quality of core assets and increasing the operating efficiency of business segments in the areas of Oil processing Petrochemicals Sale of oil and oil products Retail oil distribution network Heat power energy SALE OF OIL AND OIL PRODUCTS: EXPORT AND DOMESTIC MARKET CREATION OF VALUE EXTERNAL IMPACT FACTORS Macroeconomics International and domestic prices for oil and oil products Global demand for crude oil and oil products Taxation and rates policy Supply marginality redistribution Inflation rate Exchange rates Transport rates Technological and ecological standards Competitive environment BANK SEGMENT includes PJSC Bank ZENIT and its subsidiaries (ZENIT Banking Group). ZENIT Banking Group is consolidated into the financial statements of the TATNEFT Group, starting from Q4 2016. CORPORATE GOVERNANCE Precise strategy Logical organizational structure Resource consolidation Control over operational efficiency Growth point creation Decrease in intersegment expenses Reinforcement of financial stability Risk management Setting unified standards Interaction with the business environment HEAT ENERGY POWER