Tatneft (; traded as: (ordinary shares), (preferred shares), (ADRs)) is a Russian
vertically integrated oil and gas company with headquarters in the city of
Almetyevsk,
Republic of Tatarstan
Tatarstan, officially the Republic of Tatarstan, sometimes also called Tataria, is a Republics of Russia, republic of Russia located in Eastern Europe. It is a part of the Volga Federal District; and its capital city, capital and largest city i ...
,
Russian Federation
Russia, or the Russian Federation, is a country spanning Eastern Europe and North Asia. It is the list of countries and dependencies by area, largest country in the world, and extends across Time in Russia, eleven time zones, sharing Borders ...
. It is the fifth largest oil company in Russia
and the eighth largest listed company in Russia by market capitalization (as of 31 December 2019). In the 2020
Forbes Global 2000
The ''Forbes'' Global 2000 is an annual ranking of the top 2000 public companies in the world, published by: sales, profit, assets and market value. The list has been published annually since 2003.
By country
Forbes Global 2000 as of 2023:
...
, Tatneft was ranked as the 539th-largest public company in the world.
Tatneft holds most of the exploration and production licenses and produces substantially all its crude oil in Tatarstan. Out of approximately 581.5 thousand barrels of oil produced daily 35.5% (206.7 thousand barrels per day) is refined at Tatneft's TANECO refinery (as of 31 December 2019).
Tatneft is also involved in treatment and refining of associated petroleum gas, petrochemicals', mainly tires, production and marketing, manufacturing of equipment, engineering, procurement, and construction services for oil, gas and petrochemical projects and, from the fourth quarter of 2016 upon obtaining control ove
Bank ZENIT in banking activities.
History
Tatneft was created by the Decree of the
Council of Ministers of the USSR
The Council of Ministers of the Union of Soviet Socialist Republics ( rus, Совет министров СССР, r=Sovet Ministrov SSSR, p=sɐˈvʲet mʲɪˈnʲistrəf ˌɛsˌɛsˌɛsˈɛr), sometimes abbreviated as Sovmin or referred to as the ...
in April 1950 as a production association under the
Ministry of Oil Industry of the USSR
The Ministry of Oil Industry (Minnefteprom; ) was a government ministry in the Soviet Union.
History
The Ministry of the Petroleum Industry was created by the 28 December 1948 ukase of the Presidium of the Supreme Soviet USSR merging the Ministry ...
by uniting several drilling and derrick maintenance crews operating in Tatarstan.
Upon its establishment Tatneft commenced the production from various crude oil fields in Tatarstan, most notably the
Romashkino (Romashkinskoye) unique super-giant field discovered in 1948. By 1956 Tatneft became the largest crude oil producer in the USSR. In 1971 Tatneft extracted the 1st billionth tonne of crude oil. The annual crude oil production by Tatneft reached 104 million tonnes in 1975. In 2019 Tatneft's annual production was 29,798 thousand tonnes or 212,252 thousand barrels.
In 2022, the company's revenue amounted to 1.3 trillion rubles.
In 1994, upon its privatization Tatneft was reorganized into an open joint stock company. In October 1995 Tatneft shares started to be quoted on the
Russian Trading System (RTS) and became one of the first constituents of the RTS Index RTSI. In December 2016 Tatneft listed its American Depositary Receipts (ADRs) on the London Stock Exchange Tatneft also had its ADRs listed on the New York Stock Exchange (stock symbol TNT) between March 1998 and September 2006.
In August 1999, Tatneft shares were listed on
MICEX
The Moscow Interbank Currency Exchange () or MICEX () was a stock exchange that operated in Russia from 1992 to 2011. MICEX was the leading Russian stock exchange and one of the largest universal stock exchanges in Eastern Europe. It merged with ...
. Currently the
Moscow Exchange
The Moscow Exchange (MOEX; , ) is the largest exchange in Russia, operating trading markets in equities, bonds, derivatives, the foreign exchange market, money markets, and precious metals. The Moscow Exchange also operates Russia's central secur ...
(which was formed following the merger of MICEX and RTS in 2011) is the primary market for Tatneft's ordinary and preferred shares, and the London Stock Exchange for its ADRs.
Tatneft's ADR program is registered with the US Securities and Exchange Commission as Level 1.
In 2005 Tatneft launched the project of building a new large refining and petrochemicals complex in
Nizhnekamsk
Nizhnekamsk (, ; ) is a types of inhabited localities in Russia, city in Tatarstan, Russia, located to the south of the Kama River between the cities of Naberezhnye Chelny and Chistopol. Population:
History
As its population increased, spurre ...
, Tatarstan, which was called TANECO (the company implementing the project and later operating the refinery received the same name – JSC TANECO). The first stage of the new refinery complex was completed in 2010 and put into operation in 2011.
In 2006 Tatneft launched the project of developing heavy oil natural bitumen (super-viscous or highly-viscous oil, HVO) reserves in Tatarstan. After exploring various options of carrying out the project in cooperation with its global peers, Tatneft decided to do so on its own. As of 31 May 2020 Tatneft is producing over 65 thousand barrels of highly-viscous oil per day from 1042 horizontal wells.
Since September 2018 Tatneft is implementing the Strategy until 2030, which encompasses amongst other things the growth of crude oil production, expansion of Tatneft's refining capability, its service stations network, and the development of petrochemicals segment.
In 2019 Tatneft acquired from
Neste Oil Corporation the Russian fuel retail business consisting of 75 fuel stations in North-West Russia and a terminal in Saint Petersburg.
In November 2019 Tatneft completed the acquisition of certain assets, including the production of various types of synthetic rubber used for the manufacturing of high-performance tires, located in
Togliatti, Samara Region, Russia, from
SIBUR
SIBUR (PJSC SIBUR Holding) is a Russian petrochemicals company founded in 1995 and headquartered in Moscow.
SIBUR is the largest integrated petrochemicals company in Russia and one of the fastest-growing companies in the global petrochemicals i ...
.
Bank Zenit was sanctioned by the UK in March 2023, with sanctions increased in December 2023 to include a prohibition on correspondent banking relationships.
Operations
The main activities of Tatneft are:
* gas and oil exploration and production
* gas and oil refining and marketing
* petrochemicals (including Nizhnekamskshin tire-making plant)
* banking services (through its subsidiaries Bank Zenit and Bank Devon-Credit)
Tatneft is the first Russian oil company, which developed a contract with
Syria
Syria, officially the Syrian Arab Republic, is a country in West Asia located in the Eastern Mediterranean and the Levant. It borders the Mediterranean Sea to the west, Turkey to Syria–Turkey border, the north, Iraq to Iraq–Syria border, t ...
to extract oil. The contract became effective in March 2005.
In 2007, Tatneft had total proved reserves of approximately 6.140 billion barrels of crude oil according to the audit by
Miller and Lents. It operated 77 oil fields, including the main field of the company –
Romashkino, with total production capacity of 25 million tons of oil and a very high amount of natural gas annually. Other main oil fields are Novo-Yelokhov and Bavly.
[ In addition to Russia, it conducts exploration and production operations also in Libya, Angola, Syria, Iran, Vietnam, Oman and Saudi Arabia.] In 2008, Tatneft's crude oil
Petroleum, also known as crude oil or simply oil, is a naturally occurring, yellowish-black liquid chemical mixture found in geological formations, consisting mainly of hydrocarbons. The term ''petroleum'' refers both to naturally occurring u ...
production was 189 million barrels and was expected to shrink by 1.5% to 186 million barrels in 2009.
As of 1 July 2010, Tatneft had 626 filling station
A filling station (also known as a gas station [] or petrol station []) is a facility that sells fuel and engine lubricants for motor vehicles. The most common fuels sold are gasoline (or petrol) and diesel fuel.
Fuel dispensers are used to ...
s, of which 490 are located on the territory of the Russian Federation and 136 are located in Ukraine.
In September 2007, Tatneft formed a strategic partnership with Royal Dutch Shell
Shell plc is a British multinational oil and gas company, headquartered in London, England. Shell is a public limited company with a primary listing on the London Stock Exchange (LSE) and secondary listings on Euronext Amsterdam and the New ...
to develop heavy crude oil
Heavy crude oil (or extra heavy crude oil) is highly viscous oil that cannot easily flow from production wells under normal reservoir conditions.
It is referred to as "heavy" because its density or specific gravity is higher than that of light cr ...
(bitumen) production in Tatarstan.[
] It considers similar partnership with Chevron.[
]
Through its subsidiary TANEKO, Tatneft is constructing the Nizhnekamsk
Nizhnekamsk (, ; ) is a types of inhabited localities in Russia, city in Tatarstan, Russia, located to the south of the Kama River between the cities of Naberezhnye Chelny and Chistopol. Population:
History
As its population increased, spurre ...
refinery and petrochemical complex, which it intends to commission in phases in 2009 and 2011–2012.[
] The complex will include of refineries with the capacity of seven million tons per year, deep oil conversion plant of 3.5 million tons per year and petrochemical plant, which will produce linear alkyl benzene for production of washing materials and oil lubricants, paraxylene and terephthalic acid
Terephthalic acid is an organic compound with formula C6H4(CO2H)2. This white solid is a commodity chemical, used principally as a precursor to the polyester PET, used to make clothing and plastic bottles. Several million tons are produced annuall ...
for production of polyester fibers (u1074), cellophane film and bottles, and polypropylene
Polypropylene (PP), also known as polypropene, is a thermoplastic polymer used in a wide variety of applications. It is produced via chain-growth polymerization from the monomer Propene, propylene.
Polypropylene belongs to the group of polyolefin ...
.[ The complex is expected to cost US$3–3.2 billion, of which $2 billion was invested in 2008, and $1–1.2 billion would be invested in 2009.][
]
''Metal Mining Wire'' reports that in the first half of 2013, Tatneft has installed 630 gas filling stations across Russia. In Ukraine, the number of filling stations has reached 114, and Belarus has received a total of eight gas filling stations. Tatneft delivered 730,000 tons of petroleumand gas products to its filling stations. Tatneft also upgraded many of its stations to deliver diesel fuel
Diesel fuel, also called diesel oil, heavy oil (historically) or simply diesel, is any liquid fuel specifically designed for use in a diesel engine, a type of internal combustion engine in which fuel ignition takes place without a spark as a re ...
and eco-friendly grade five gasoline, both of which have a lower negative environmental impact than traditional gasoline. As of July 2013, Tatneft is evaluating ways to install solar panels at its filling stations in an effort to save resources.
In January 2022 Federal Antimonopoly Service
The Federal Antimonopoly Service of Russia (FAS) () is the federal-level executive governmental organ that controls the execution of the antitrust law and related areas.
The FAS was established by President Vladimir Putin through Decree #314, ...
approved the purchase by Tatneft of six oilfield service companies of "Tagras" holding: "Tagras-Khimservis", "Mekhservis-MPO", "NKT-Servis", "KRS-Servis", "TMS-Logistika" and "Tatburneft", all based in Almetyevsk.
Shareholders
Shareholders of the company include the Republic of Tatarstan
Tatarstan, officially the Republic of Tatarstan, sometimes also called Tataria, is a Republics of Russia, republic of Russia located in Eastern Europe. It is a part of the Volga Federal District; and its capital city, capital and largest city i ...
through its holding company Svyazinvestneftekhim, and Russian Oligarch Matvey Yozhikov through his holding company Guernsey No. 3 owning percentages of 34% and 51% respectively of Tatneft. [
] According to Stanislav Belkovsky, Matvey Yozhikov is the overall beneficial owner of Tatneft and has a revenue share agreement with the government.
Controversies
Tatneft has an ongoing dispute with the Government of Ukraine over control in Ukrtatnafta
Ukrtatnafta is a Ukrainian oil refining company based in Kremenchuk and founded in 1994. It is one of the largest producers of oil products in the country. The company operates the largest oil refinery in the country located in Kremenchuk with a c ...
, an owner of the Kremenchuk
Kremenchuk (; , , also spelt Kremenchug, ) is an industrial city in central Ukraine which stands on the banks of the Dnieper, Dnieper River. The city serves as the administrative center of Kremenchuk Raion and Kremenchuk urban hromada within ...
oil refinery
An oil refinery or petroleum refinery is an industrial processes, industrial process Factory, plant where petroleum (crude oil) is transformed and refining, refined into products such as gasoline (petrol), diesel fuel, Bitumen, asphalt base, ...
.[
] Ukrainian state-owned energy company Naftogaz Ukrainy
Naftogaz of Ukraine (, ''Naftogaz Ukrainy''; literally "Naphtha-Gas of Ukraine") is the largest national oil and gas company of Ukraine. It is a state-owned company owns 43.1% of shares in Ukrtatnafta, Tatneft owns 8.6% and Government of Tatarstan owns 28.8%.[
] 18% of the shares were transferred to two offshore companies allied with Tatneft, transaction which was not recognized by Ukrainian authorities. According to the court decision, these share were handed over to Naftogaz and in October 2007, there was a management change, which is not recognized by Tatneft. In March Tatneft filed international arbitration against Ukraine.[
On 9 July 2008, after signing an agreement between the United States and the Czech Republic to host a tracking radar for an antiballistic missile system, Tatneft reduced oil supplies through the Druzhba pipeline to the Czech Republic. Tatneft said that it re-routed volumes from the Czech Republic to Turkey due to better prices.][
] Although officially the linkage between reduction of oil supplies and the radar agreement was not claimed, it was suspected.[
]
Assets of Tatneft in Ukraine were seized in May 2022, following the Russian invasion of Ukraine
On 24 February 2022, , starting the largest and deadliest war in Europe since World War II, in a major escalation of the Russo-Ukrainian War, conflict between the two countries which began in 2014. The fighting has caused hundreds of thou ...
.
Ecology
In 2013, TatNIPIneft, the Tatar Oil Research and Design Institute devised a new technology called SSG-VUKSZHS, which increases the depletion of oil reservoirs using a composition based on silica gel. The technology has been applied by Tatneft to enhance the recovery of oil, after winning the Grand Prix for best exhibit, engineering design or technical solution at the XX International Oil and Gas Exhibition 2013 held in Baku
Baku (, ; ) is the Capital city, capital and List of cities in Azerbaijan, largest city of Azerbaijan, as well as the largest city on the Caspian Sea and in the Caucasus region. Baku is below sea level, which makes it the List of capital ci ...
, Azerbaijan, in June.
References
External links
*
Tatneft analytics information
{{authority control
Companies listed on the Moscow Exchange
Companies in the MOEX
Oil companies of Russia
Natural gas companies of Russia
Oil companies of the Soviet Union
Natural gas companies of the Soviet Union
Companies established in 2000
2000 establishments in Russia
Government-owned companies of Russia
Companies based in Tatarstan
Russian brands