An annual general meeting of OAO TANECO shareholders, which approved the Company's annual report and financial statements for 2011, was held in Nizhnekamsk (Tatarstan) on May 25.
The summary report on the results of the Joint Stock Company activities was presented by Khamza Bagmanov, General Director of OAO TANECO. He emphasized in his speech that the year of 2011 had been a turning point in the implementation of the Project finally shifting the focus from the construction to the start of the production activity. Obtaining a license for operation of explosive hazardous facilities on December 2 and inclusion of the TANECO's facility into the list of operating refineries by the Ministry of Energy of Russia had consolidated TATNEFT Company's position at the market, completing the full cycle of vertical integration. The results achieved to a great extent became possible due to the sustainable financing of the Project by TATNEFT. 30.4 billion rubles were invested into the Refinery and Petrochemical Plants Complex during the period under review with the total investments since the beginning of construction exceeding the amount of 214.8 billion rubles.
The cost of construction and installation works amounted to 67.9 billion rubles excluding VAT with 14 billion rubles of this amount being disbursed in 2011. The equipment and materials for the amount of 3.4 billion rubles were delivered during the period under review for completion of the oil refinery construction with 6.9 billion rubles spent for performance of erection works.
1.7 million tons of Tatarstan's oil were used during comprehensive testing and 400 thousand tons were refined from the beginning of commercial operation in 2011. The technology applied enabled yielding of quality products in accordance with the design parameters and with minimal production processes impact on the environment.
The Annual General Meeting of Shareholders approved the results of the OAO TANECO operation for the period under review. The key Company's objectives of this year include increasing the efficiency of crude oil refining, bringing all the facilities of 1A1 start-up complex to stable and safe commercial operation, as well as ensuring fulfillment of monthly and annual plans for crude oil refining and petroleum refined products yielding.
The participants of the Shareholders' Meeting decided to expand the Board of Directors of OAO TANECO from 10 to 11 persons resulting in a renewed composition of the Board including the following persons:
Alexander A. Babynin, General Director of OOO "INCO-TEK"; Khamza A. Bagmanov, General Director of OAO TANECO; Nikolay M. Glazkov, Deputy General Director of OAO TATNEFT for Capital Construction; Farit Kh. Davletshin, Head of the Investment Department of OAO TATNEFT; Nail U. Maganov, First Deputy General Director - Head of the URNiN Department of OAO TATNEFT, Vassily A. Mozgovoy, Assistant to General Director of OAO TATNEFT, Corporate Finance; Rudolph D. Rempel, Manager of the Hydrocarbon Raw Materials Processing Office, Crude Oil and Petroleum Products Sale Department of OAO TATNEFT; Rinat K. Sabirov, Assistant to President of the Republic of Tatarstan; Evgeny A. Tikhturov, Head of the Finance Department of OAO TATNEFT; Fyodor L. Shchelkov, Deputy General Director of OAO TATNEFT on General Issues; Azat F. Yagafarov, Deputy General Director - Director of OAO TATNEFT Representative Office in Moscow.
The Auditing Commission was elected as a result of the Shareholders' Meeting:
Ferdinand R. Galiullin, Chief Accountant of NGDU "Jalilneft" of OAO TATNEFT; Enzhe F. Latyfullina, Deputy Chief Accountant - Head of the Consolidated Accounting Office of TANECO; Iraida Yu. Panfilova, Manager of the Financial Department of OAO TANECO.
ZAO "Energy Consulting/Audit" Company was approved as the Auditor to carry out statutory audits of the annual financial statements of OAO TANECO for a one year period.
The Annual General Meeting of Shareholders approved the amended Articles and Regulations on the Management Board of OAO TANECO.
A meeting of the new Board of Directors of OAO TANECO took place upon completion of the General Shareholders Meeting, which elected Nail Maganov, First Deputy General Director - Head of the URNiN Department of OAO TATNEFT, as Chairman of the Board of Directors.