OREANDA-NEWS. September 30, 2009. A visiting session of the Board of Directors of OAO TATNEFT chaired by R.N. Minnikhanov, Prime Minister of the Republic of Tatarstan, was held in the city of Nizhnekamsk (Tatarstan Republic), reported the press-centre of TATNEFT.

The Board of Directors reviewed the budget execution of OAO TATNEFT for eight months and approved the budget for October and the fourth quarter of the current year.

The Board heard the information on the main parameters and conditions of the forecast formation on the financial and economic activities of OAO TATNEFT for 2010.

The Board discussed the construction progress of the petrochemical plants and refineries complex in the city of Nizhnekamsk. The first complex was outlined for the beginning of the launch operations is in the process of implementing Phase 1 of the Project (refinery). As of today the "Engineering Design" stage has been completed for the whole Complex, favorable conclusion of Glavgosekspertiza of the Russian Federation and permission for its construction have been received.

Under the complicated financial and economic situation in the country the project is implemented in accordance with the schedule. Contracts for the supply of equipment worth more than 31.3 billion rubles have been concluded. The maximum amount in the structure of supply is allocated to domestic producers (over 60%). 6.5 thousand persons are engaged in the construction, and 1 thousand pieces of construction equipment are involved.

OAO TATNEFT uses both its own retained funds as well as borrowed loans to finance the project. Total funding amounts to 102 billion rubles (VAT included) with 61 billion rubles already spent, including the amount of 30.8 billion rubles spent in 2009. The monthly expenditures for construction and installation works amount to about 3 billion rubles.

Implementation of the Investment Agreement on co-financing by the Investment Fund of the Russian Federation in the amount of more than 16.5 billion rubles for the design and construction of the external transport infrastructure continues with active support on the part of the Russian Federation. The State contract for the design and construction of the railway infrastructure has been concluded with OOO "Financial and Construction Company" MostGeoTsentr" (Moscow). According to the agreement between OAO TATNEFT and OAO AK Transneft the crude oil pipeline and the product pipeline construction is intensely implemented in accordance with the approved schedule.

The Board of Directors has also considered a number of other issues of OAO TATNEFT activity.