PJSC Tatneft : The Board of Directors Reviewed the Company's Innovative Development Strategy

The meeting of the Board of Directors chaired by R.N. Minnikhanov, President of the Republic of Tatarstan, was held in Kazan on January 27.

The Board of Directors reviewed the results of the PJSC TATNEFT's budget execution for 2021 and approved the budget for February 2022.

There was the information provided to the meeting on the activities' results of the PJSC TATNEFT's Internal Audit Department for the past year and approved the Department's work plan for 2022. The external assessment of the Company's Internal Audit Department activities demonstrated full compliance with International Professional Standards and the Professional Ethics Code of the Institute of Internal Auditors.

The formed in TATNEFT management system based on a risk-based approach makes it possible to control risks, plan actions based on their assessment and make optimal and rational business decisions aimed at achieving the strategic goals and operational results of the relevant business areas and the Company as a whole.

The information on the implementation of the TATNEFT's strategy of innovative development from 2018 to 2021 was presented to the participants of the meeting. A systematic approach to the technology development allows the TATNEFT Group to increase the potential for innovative growth in all business and functional areas.

All projects developed by the Company are assessed in terms of ESG risks and a contribution to the sustainable energy future. Inter alia, the current engineering developments include promising technologies for recovery, cleaning and processing of CO2 into various types of marketable products, including the ones implemented at the TANECO oil refinery.

The Company is developing a system of "open innovations" to address the current industry and new global challenges. The partnership network of TATNEFT includes more than 130 strategic partners.

The successful fulfillment of the business technological tasks is also ensured by the systematized integration of technologies. The synergistic effect is achieved through the application of complex technological developments and IT solutions. One of the examples is the application of complex technologies in the reservoir pressure maintenance system, where, due to the introduction of integrated modeling, the energy-efficient equipment and other innovative solutions, the electricity consumption is reduced by 2 times, greenhouse gas emissions are reduced by 6.5 times and the cost of pipeline construction is reduced by 30 percent.

The technological potential of the Company and the expansion of the Company's presence geography are also demonstrated by patent work. TATNEFT registered the rights to 1,336 intellectual property items during the period from 2018 to 2021. 431 relevant applications were submitted in 2021, including 34 of them registered outside the Russian Federation. The growth accounted for 77 percent Compared to 2017.

The TATNEFT's innovation strategy will pay special attention to the development of intra-corporate collaborations of research, engineering, marketing and production divisions of the Company. A developed ecosystem will make it possible to implement complex technological solutions using the intellectual and production resources of the composite, machine-building, digital, biotechnological clusters, etc.

TATNEFT will focus on the implementation of regional and federal innovation development programs to solve large-scale production problems in the interests of the Republic and the country within the framework of the Company's innovation strategy.

The Board of Directors also considered a number of other issues on the current TATNEFT's activities at the meeting.

Forward-looking Statements and Disclaimers: This press release contains certain statements regarding future events and expectations, which are forward-looking statements in nature. Any statement in this press release that is not a historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements expressed or implied by such forward-looking statements to differ materially. PJSC TATNEFT shall assume no obligation to update such forecasts to reflect actual results, changes in assumptions or changes in factors affecting these statements. The amounts and the interest money indicated or referenced in this press release may be given taking into account the rounding and, accordingly, they may differ from the actual figures and results contained in the Company's reporting documents. PJSC TATNEFT shall assume no obligation to adjust or reimburse any amounts that may make the difference between those specified in this press release and the relevant reporting documents, and all payments shall made by PJSC TATNEFT exclusively in accordance with the decisions of the competent Company's management bodies in the amount and manner specified in such decisions.