Tatneft : Annual Conference of the Labor Collective Was Held at TATNEFT

There was a conference of the TATNEFT's labor collective held at the city of Almetyevsk (Republic of Tatarstan), during which the results of the activities and fulfillment of the Collective Agreement terms in 2020 were summed up and the tasks for 2021 were outlined.

The conference was attended by Nail Maganov, General Director of the Company, Gumar Yarullin, Chairman of the TATNEFT Trade Union Committee, Elena Kuzmicheva, Chairman of the Federation of Trade Unions of the Republic of Tatarstan, Marat Girfanov, Head of the Executive Committee of the Almetyevsk Municipal District, heads of structural divisions and subsidiaries of the Company, oil service enterprises and small oil companies of the Republic.

Nail Maganov, General Director of the Company, presented a report on the work of the TATNEFT's team in 2020 to the conference delegates. He pointed out that the past year had set new challenges for the Company. The experience accumulated made it possible for the entyre TATNEFT Group to create a full-fledged system of working in the extreme conditions and launch stress scenarios, which provide for programs of specific actions and projects for each business segment. All top-priority tasks, including the most important social investments and payment of wages, had been fulfilled completely.

Crude oil production plans were revised. 26 million tonnes were produced in 2020 due to OPEC+ restrictions. The Company focused on improving the efficiency and reducing costs in the new tax environment.

The preservation of the Company's economic stability was ensured by oil refining and a high-quality retail network. There were 13 million tonnes of feedstock processed at the enterprises of the Neftegazopererabotka block in 2020, while there were three units put into operation at TANECO. The plans for 2021 provide for launching 6 new units, increasing the total petroleum feedstock processing volume and the production of Euro-6 gasoline.

According to Nail Maganov, the quality of the TANECO's fuel and customer service made it possible to sell more than 5 million tonnes of oil products. The plans for the coming years provide for increasing the number of filling stations in the regions of Russia and doubling retail sales by 2030.

The tyre manufacturing business demonstrated positive results. KAMA TYRES increased its sales by 18 percent and sold almost 12 million tyre products.

In 2020 'Togliattikauchuk' reached the maximum production in 12 years amounting to 208 thousand tonnes of caoutchouc rubber items and 163 thousand tonnes of fuel additives to gasoline.

As the Company's General Director pointed out, the tyre manufacturing and petrochemicals production are not the only aspects, which ensure the stability and contribution to the common Company's coin box today, but also great opportunities for development, including the areas outside Russia. TATNEFT is implementing a joint project to build the only plant in Kazakhstan for the production of unique high-quality SSC tyres for passenger cars, light trucks and commercial trucks, which will be delivered both to Russia and to the Central Asian countries.

The cooperation with Turkmenistan is developing, where geological and engineering operations are being carried out at the wells of the Turkmennebit State Concern. The joint plans with foreign partners also provide for the implementation of the Company's potential in crude oil production, rendering services, and the construction of petrochemical plants.

The Company's composite cluster demonstrated positive dynamics. The carbon footprint of yielding fiberglass products is 6 times less than the one resulting from the production of metal counterparts. The Company is working today on expanding the production of composite materials. The Company's plans provide for replacing all steel pipes used in TATNEFT with fiberglass pipes.

The main tasks of the Company's banking sector in 2020 included the safety and continuity of business processes, prompt response to changes in the situation during the crisis and the pandemic, as well as maximum fulfillment of the customers' requests. ZENIT Bank has been actively developing digital servicing and has transferred most of its operations online. ZENIT is expanding the Bank's remote service capabilities today, as well as a product line for TATNEFT Group employees.

Striving to become a digital oil firm, the Company is implementing a comprehensive transformation. Tatneft-Digital Development division was established by the Company at the beginning of 2020, which is a single center of competence for key IT processes. The projects were launched on a wide range of processes as part of the digitalization program, from reserves appraisal and well construction planning to the shipment of oil products and the development of digital twins.

All projects and initiatives of TATNEFT are tied to the value tree and provide for the business processes performance impact assessment on the bottom-line cost. This approach is being implemented all the way around the Company's perimeter.

Investing in the innovation is a strategically important area of the Company's ​​activity. The. There were 83 innovative solutions developed in 2020 by the Company's experts.

The Company has a strong school of thought. The key task of the scientific cluster is to maintain leadership positions in priority areas of technological development, increase the operational efficiency, and the access to enter foreign markets. In 2020, over 400 intellectual property titles were received.

Nail Maganov emphasized that all activities of TATNEFT are being implemented today through the adopted Sustainable Development Goals. They are nothing new for TATNEFT in any way. The Company carries out a conscientious and responsible business. The Company integrated 17 Sustainable Development Goals into the Company's business model of the sustainable Development Goal. The urgent tasks for TATNEFT, inter alia, include climate challenges, decarbonization and clean energy, resource efficiency, innovation, and infrastructure opportunities; health issues, access to clean water and sanitation, urban safety and affordable housing.

The Company pays a lot of attention to ecology. TATNEFT Group allocated RUB 16 billion for the implementation of environmental projects in 2020 only. The Company has developed a whole range of measures to reduce its carbon footprint in terms of preserving terrestrial ecosystems and combatting the climate change. Greenhouse gas emissions (Scope 1) have been reduced by 5% since 2016. Compensatory measures are expanding through planting the forests. There were 2 million seedlings planted in 2020. The plans for 2021 provide for planting 5 million trees. And this is not enough according to the General Director's statement. It is necessary to form a culture of responsibility for the preservation of the environment, which will be a corporate model of rational consumption, while fostering positive environmental thinking and replicating 'green initiatives'.

A risk-based approach is applied at the Company, when managing industrial safety at production facilities. The main thing in a well-built system is not elimination, but rather the prevention of emergencies. The compliance with the requirements in this area must be brought to automatism. Therefore, each representative of the Company - from a worker to a manager - must strengthen the culture of compliance with the industrial safety requirements and demand this from employees of contracting companies

The people have been and remain the priority of the Company despite of all external factors, including their health, moral and material well-being. The Company pays great attention to improving the competence of the personnel. The dedicated 'School of Business Analytics' program is one of the most demanded professions. The intellectual potential of business analysts and IT technologies are planned to be used for increasing the efficiency of business processes at the Company.

According to Nail Maganov, motivation for work, which should be adequately paid, is very important for every person. The remuneration in the Company is interconnected with the results of the work and the achievement of the goals set. The average wages increase by 5% will be performed on April 1, 2021. The increase will be carried out on a differentiated basis a including the indexation for blue-collar occupations will be 6%.

An updated corporate pension program is implemented in 2021. The program's fundamental differences includes is a significant increase in the financial support provided by the Company

Almost all large-scale projects of TATNEFT are aimed at improving the life of the society at large. The Company creates a harmonious comfortable ecosystem, which has all the conditions for a comfortable life: education, healthcare, creativity, spiritual heritage, sports, cultural life.

Nail Maganov dwelled on the importance of preventing coronavirus infection, as well as vaccination in his presentation.

In conclusion, General Director of TATNEFT stressed that the main task of TATNEFT is to maintain and improve the Company's competitiveness. Only the constant focus on the best results, continuous improvement of the staff and business processes will allow the Company to achieve the goals set.

Gumar Yarullin, Chairman of the Company's Trade Union Committee, presented to the audience the results of fulfilling the Collective Agreement of TATNEFT in 2020 and the draft Collective Agreement for 2021. He pointed that the Collective Agreement for 2020 was significantly strengthened by increasing in the amount of payments and material assistance to employees and non-working pensioners.

In 2021, the indexation of material assistance was introduced into the Agreement on nine points. The guarantees for the health improvement of employees and pensioners, as well as corporate non-governmental pension provision for employees have been updated. A number of proposals were accepted for study and appropriate decisions based on the results of 2021.

During the conference of the labor collectives, the reports on the activities of the Company and its structural divisions were presented by Rustam Khalimov, First Deputy General Director for Exploration and Production of Oil and Gas - Head of Tatneft - Production; Vitaly Gataullin, Deputy General Director for Digital Development of PJSC TATNEFT; Azat Khabibrakhmanov, Deputy General Director for Industrial Safety, Labor Protection and Ecology of PJSC TATNEFT; Nurislam Syubayev, Deputy General Director for Strategic Development.

Elena Kuzmicheva greeted the conference participants on behalf of the Federation of Trade Unions of the Republic of Tatarstan and the Neftegazstroyprofsoyuz of Russia, emphasizing the high level of the Collective Agreement of TATNEFT and a wide range of implemented social programs.

Marat Girfanov, Head of the Executive Committee of the Almetyevsk Municipal District, thanked the Company for its contribution to the social and economic development of the region.

The awarding ceremony for the TATNEFT Group employees was also held within the framework of the conference based on the results of the Company's operation in 2020.

The Collective Agreement for 2021 was adopted by the delegates of the conference.

Forward-looking statements:

This press release contains certain statements regarding future events and expectations, which are forward-looking 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.