TATNEFT Has Signed an Ecology Cooperation Agreement

TATNEFT Company has signed a Quadripartite Cooperation Agreement with the Ministry of Natural Resources and Ecology of the Russian Federation, the Federal Supervisory Natural Resources Management Service and the Government of the Republic of Tatarstan. The parties have also signed a List of environmental measures planned for the Year of Ecology in the Russian Federation in 2017.

2017 in Russia is passing under the sign of the Year of Ecology and Natural Areas of Preferential Protection. In Tatarstan, the year has been assigned the status of the Year of Ecology and Public Spaces. The initiative of concluding such an agreement with large companies in order to implement the decree of the President of the Russian Federation on holding the Year of Ecology and addressing the issues of environmental development in the Russian Federation belongs to the Ministry of Natural Resources and Rosprirodnadzor. All enterprises, institutions and organizations are called upon to contribute to solving environmental issues, improving the state of the environment, and improving the country’s environmental security.

Signing this document, TATNEFT Company has committed to implement environmental measures at its own expense and to report on their implementation to Rosprirodnadzor on a quarterly basis.

The list of environmental measures includes the largest and most significant projects of the Company’s structural divisions. Among them, there is the construction of a gas gathering system from the facilities of NGDU Yamashneft and NGDU Elkhovneft with a length of 42 km, which will increase the level of effective use of associated petroleum gas. Technical re-equipment of the Kuakbash heat supply system of the high sulfur treatment unit (UPVSN) of NGDU Leninogorskneft is aimed at energy saving and reducing emissions to the air. In addition, a light hydrocarbon (vapor) recovery system (VRS) will be replaced at the preliminary water removal unit of the crude oil treatment and pumping station of NGDU Bavlyneft.

Significant capital investments are envisaged to equip the production wells of the NGDU with a storm water collection system from the wellhead sited, which will prevent pollution of surface and underground water bodies and will exclude storm water and process fluids from draining to the terrain.

There are activities implemented in the oil and gas production divisions (NGDUs) of the Company aimed at re-equipping gas flaring units to ensure sootless (smokeless) combustion of gas in the event of preventive maintenance at the gas processing plant of “Tatneftegazpererabotka” company.

The List of activities also includes measures to modernize a number of facilities of the “Tatneftegazpererabotka” division itself, including the technical re-equipment of the plant’s recycling water supply system, which will allow more efficient and rational use of primary water resources; construction of skid-mounted treatment facilities for this system.

The implementation of these and other planned activities will allow minimizing the impact on the nature of man-made factors and improving the state of the environment in the territory of the activities of TATNEFT.