| OAO Tatneft engages in the exploration, development, production, and marketing of crude oil in Russia. All of its production and other operations are located in Tatarstan, a republic of Russia situated between the Volga River and the Ural Mountains, and located approximately 750 kilometers southeast of Moscow. In addition to crude oil production, the company has diversified its operations by building up refining capabilities; developing a network of retail service stations; creating a petrochemicals holding division centered around Russias tire producer OAO Nizhnekamskshina; and providing banking services through its subsidiaries, OAO Bank Zenit and Commercial Bank Devon-Credit. The company has three exploration and production joint ventures (with western and Russian partners): TATEX, ZAO Tatoilgas, and ZAO Kalmtatneft. TATEX installs Tatnefts vapor recovery system in its holding tanks and also produces small amounts of crude oil from an oil field using horizontal drilling techniques. ZAO Tatoilgas specializes in recovery of oil from sludge; and operates small oil fields and gas stations in Tatarstan. ZAO Kalmtatneft is an exploration and development joint venture for oil fields in the Republic of Kalmykia. As of January 1, 2003, the companys total proved reserves of crude oil were approximately 838.4 million tons (5,972.0 million barrels). It markets the crude oil in Russia; CIS; and non-CIS countries, including Germany, Poland, the Czech Republic, Slovakia, France, and Turkey. The company competes with YUKOS, LUKOIL, Surgutneftegas, Sibneft, Tyumen Oil Company, Goodyear, Michelin, Continental, Pirelli, Nokian Tires, OAO Alfa Bank, MDM Bank, and OAO Uralsib Bank. |
