Republic of Tatarstan:

2. economy
the profitable level of oil and gas production, to ensure full replenishment
and improvement in the structure of reserves, to expand the resource base,
to further develop oil refining, and to build up retail business.
METREAGE OF DEvELOPMENT DRILLING
IN THE REPUBLIC OF TATARSTAN, ‘000 METRES
In accordance with the programme for the development of fuel and energy
sector of Tatarstan, the achieved level of crude oil production in the
republic should be supported through exploiting the deposits of natural
bitumens.
OAO Tatneft is currently performing pilot operations at Ashalchinskoe
bitumen deposit. The company has mastered the technology of drilling
wells with parallel horizontal wellbores and developed its own technology
of steam-assisted gravity drainage for heavy oil deposits. In 2009, it
extracted 18,400 tonnes of extra-viscous oil.
In 2009, OAO Tatneft continued the work on implementing its strategic
task of increasing the stock of hydrocarbons, including those outside of
the Republic of Tatarstan and the Russian Federation. A total of 16 new deposits,
including 10 in the Republic of Tatarstan, 3 in Samara Region and 2
in Orenburg Region have been discovered. A new oilfield was discovered
in Syria and 4 exploratory wells were drilled identifying the oil productive
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horizon with crude oil flowing at the rate up to 150 cubic metres per day.
Two exploratory wells were drilled in Libya; when testing the first one
a crude oil inflow was obtained in the amount of 103 cubic metres per
day, while the development of a second well yielded 130 cubic metres
per day.
OIL REFINING
According to State statistics, the value of shipped goods of own manufacture,
works performed and services rendered by own forces in the production
of oil products totalled RUR 80.5 billion in 2009. Industrial production
index constituted 104.7%.
PRODUCTION OF SOME OIL PRODUCTS, %
In 2009, OAO TAIF-NK produced RUR 75 billion worth of oil products.
OAO TAIF-NK is implementing an anti-crisis programme for 2009-2012,
which includes measures for optimising the logistics structure and commercial
expenses, technological measures of aimed at cutting processing
costs, organisational measures aimed at decreasing the administrative expenses.
For the purpose of making products with higher added value, OAO TAIF-
NK is implementing a number of investment projects. In 2010, underway is
the implementation of the projects for increasing the capacity of catalytic
cracking installation in the gasoline plant up to 1 million tonnes of crude
oil and building the facilities for processing of the heavy oil residue (bringing
the oil refining depth to 98%). At present, a feasibility study has been
completed and contracts for base design are scheduled for signing. The implementation
of this project would allow the company to increase its profit
up to US$ 500 million a year.
Another major trend of oil refining development in the republic is the
ongoing construction of the Complex of Oil Refining and Petrochemical
Plants which would make it possible to carry out deep processing of the
crude oil produced in the Republic of Tatarstan and to make oil products
and petrochemicals. In 2010, OAO Tatneft plans to put into operation a
start-up complex of the oil refining plant with capacity of 7 million tonnes
of crude oil a year.
CHEMICAL AND PETROCHEMICAL INDUSTRy
Petrochemical enterprises account for about 17% of the republic’s industrial
output and some 12% of the national output of petrochemicals.
Today, the republic’s enterprises manufactured some 60% of the Russia’s
polystyrene, over 40% of synthetic rubbers, over 30% of polypropylene and
tyres, and over 50% of polyethylene.
In 2009, petrochemical enterprises of Tatarstan manufactured and
shipped over RUR 142 billion worth of goods. Industrial production index
in the chemical branch constituted 107.5%, while in the production of rubber
and plastic products it was 77.4%.
Even under the conditions of limited financial resources, key enterprises
continue the implementation of their large-scale investment projects.
Polyethylene production with capacity of 230,000 tonnes a year was put
into operation in OAO Nizhnekamskneftekhim.
The construction of the all-steel tyre plant with capacity of 1.2 million
tyres a year has been completed in the city of Nizhnekamsk with investments
from Tatneft.
The production of non-woven Spanbond with capacity of over 10,000
tonnes a year has been launched in SEZ Alabuga (ZAO Polimatiz).
The Industrial Park Kamskiye Polyany hosted the lines for the multifilament
polypropylene yarn production with capacity of up to 2,000 tonnes
a year and the stretch film production with capacity of over 8,000 tonnes
a year.
Nefis Cosmetics has expanded its production of consumer goods up to
the international standards.
Republic of TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy Republic of TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy
13
2. economy
OAO Kvart has launched the production of products from dynamic thermoplastic
elastomers for the needs of automotive industry.
Small businesses in the industry focused on the production of chemicals
begin to play an increasingly important role in the republic. A number of
them produce goods with an economic output well comparable with that
of a medium-sized enterprise. For example, Safplast, Danaflex, Polimatiz
are the enterprises with a billion turnovers. Also vigorously developing are
chemical businesses in Kamskiye Polyany and in the territory of Khimgrad.
This complies favourably with the decisions of the republic’s leadership
about the deeper processing of raw chemicals to the converted products
with high added value.
2.5. MEchAnicAL EnGinEErinG
And METALWOrKinG
In 2009, the mechanical engineering enterprises manufactured commodities
to a total of RUR 177.2 billion, the industrial production index in
this sector constituted 69.4%; this accounted for 20.6% of the total commodities
produced in the manufacturing industry.
A year elapsed since the onset of the financial crisis had a drastic impact
on the priorities and environment of economies in the Russian Federation
and the world community in general. This resulted in the falling consumer
demand for investment-oriented products, and primarily, for mechanical
engineering products.
The greatest decline in the production in this sector was due to a resource-intensive
pattern of the mechanical engineering enterprises and
rather low labour productivity, which entailed low competitiveness of economic
entities and their products.
To overcome the consequences of the crisis, virtually all large and medium-sized
enterprises of mechanical engineering and instrument making
industries worked out their anti-crisis programmes, the implementation of
which, along with the continuous work on the mastering of new kinds of
competitive products, largely promoted the stabilisation of the situation in
these industries.
Within the framework of its programme, OAO KamAZ is performing the
work on optimising the expenditures (purchases of completing parts, wage
fund, administrative expenses), increasing labour productivity, selling noncore
assets, and on a number of other areas. This enables the company,
even under conditions of the crisis, to expand its consumer market sales
niche in virtually all segments of the manufactured vehicles: dump-body
trucks, platform vehicles, and specialised machinery.
For increasing the competitiveness of its truck line, OAO KamAZ was participating
in the creation and successful development of the joint venture
companies with world’s leading automotive component manufacturers,
such as OOO Knorr-Bremse Kama (drum-type and disk brakes), ZAO Cummins
Kama (engines), Federal Mogul Naberezhnye Chelny (piston rings and
sleeve assemblies), OOO ZF Kama (automatic transmissions).
Strengthening the market positions of the republic’s automotive industry
was promoted by an efficient state support rendered at the levels of
the Government of the Russian Federation and the Cabinet of Ministers the