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

Growth Strategy

KEY FUNDAMENTALS OF THE GROWTH STRATEGY

Tatneft is one of the leading Russian oil and gas producers. The strategy of vertical integration of the full industrial cycle is implemented at the group level.
PJSC TATNEFT is the corporate center of the Group, which coordinates the activities of enterprises that form business segments of the CompanyThe management of the TATNEFT Group is based on a unified mission and development priorities, while respecting fair interests of all the participants of the Group.

Our mission consists in ensuring the progressive development of the company as one of the largest russian vertically integrated companies producing oil and gas, refined products, petrochemicals based on the efficient asset management of the shareholders, management of natural resources and corporate social responsibility.

Сorporate strategy is aimed at longterm sustainable development of the company — providing the optimal balance of oil and gas production, oil refining and achieving the maximum operating income in all business segments.

Increasing the volume of profitable oil and gas production, enhancing oil recovery at the producing license fields, and actively developing new fields, including high-viscosity and difficult-to-recover oil deposits in the Republic of Tatarstan, while reducing specific operating and investment costs.
Expanding the geography of activities and the resource base outside the Republic of Tatarstan and the Russian Federation, including access to oil and gas reserves with the possibility of forming strategic alliances and mastering new markets for manufactured products.
Increasing the volumes of production and sale of competitive finished products with high added value meeting world environmental standards and prospective market requirements, developing our own oil refining and petrochemical industry facilities.
Hold leadership positions on the Russian tire market and develop new market niches through efficient marketing programs, improved quality and product line expansion.
Improve efficiency and competitive advantage of the retail network. Sales of gasoline and diesel fuel produced by the Company’s Refinery through filling stations and small wholesale over 50%. Modernization of existing fuel filling stations based on renewed format brandconcept and increase fuel filling station network’s marginality based on quality of selling proposition and development of related services.
Strengthening the technological potential with effective investment in the development and modernization of the production base, accumulation of high-tech digital solutions, development of new equipment and technologies and improvement of the effectiveness of those already in use as a new generation unified production management platform at all stages of the value chain.
Ensuring sustainable development based on the high level of corporate social responsibility, industrial and environmental safety, and balance of the environment in the course of production and other economic activities.

In unstable external conditions, the Company’s program allows it to ensure profitability of oil and gas production, maintain a high level of hydrocarbon resources, effectively develop its own refining and petrochemical industry, ramp up the innovative potential, and introduce progressive digital solutions to create a reliable technological foundation for the Company.