A Regular Meeting of the TATNEFT’s Board of Directors Was Held
A meeting of the Board of Directors of PJSC TATNEFT named after V. D. Shashin chaired by R. N. Minnikhanov, President of the Republic of Tatarstan, was held in Kazan on January 27, 2021.
The meeting reviewed the results of the budget implementation for 2020 and approved the budget for February 2021.
As part of the Company's achievement of the Sustainable Development Goals, the Board of Directors reviewed the activities implemented in accordance with UN SDG, Goal 7: “Ensuring the universal access to affordable, reliable, sustainable, and modern energy sources for everybody“ as related to the challenges of combating climate change, responsible consumption, and production.
The Company has been implementing a targeted program to improve the energy efficiency and energy conservation since 2010, which is one of the essential business planning aspects of the TATNEFT Group. The annual reduction rate of consuming the fuel and energy resources is more than 1% or 40.7 thousand tonnes of conventional fuel. The Board of Directors approved the program expansion aimed at doubling the current rate of the energy efficiency improvement, including projects aimed at reducing the specific energy consumption of crude oil production through changing the displacement agent.
The Company's strategy takes into account the role of renewable energy sources and their importance for a cleaner, low-carbon energy future. The Board of Directors approved projects of constructing wind power plants, small hydropower development, advance heat recovery, primarily for HVO facilities of SVN aimed at significantly increasing the share of renewable energy in the energy production of the TATNEFT Group.
The boar of Directors also considered the implementation areas of the UN SDG, Goal 9 "Industrialization, Innovation, Infrastructure". TATNEFT is expanding the Company’s capabilities in the Company’s value tree at the expense of the development and transfer of the best Company’s technologies taking into account large-scale technological challenges. The plans provide for increasing the innovative projects cycle implementation efficiency from the idea to the financial result, including the time frame and the investment return. The Company considers that strengthening of the own research and educational centers is the most important condition for this. Strategic objectives also include the development of innovative opportunities in the infrastructure of cities and settlements in the territories of the Group's enterprises operation.
The Board of Directors considered the issue of the depository bank with regard to to the American Depositary Receipts program of PJSC TATNEFT and decided to appoint the Citibank, N. A. as the depository bank. The specified appointment will come into force in accordance with the terms of the depositary agreement. The owners of ADRs will be notified of the change of the depositary bank and no action will be required from the owners of the ADR in connection with the upcoming change.
Several other issues were also considered at the meeting.