CONCISE HISTORY IN FACTS AND FIGURES
The history of oil industry of Tatarstan officially begins in 1943, the time, when a commercial oil deposit was opened in Shugurovsky region. It marked beginning of the great oil deposits’ discoveries epoch in the Republic.
The chronicle of TATNEFT Company activity is recreated from books and brochures, State and party documents, newspaper and magazine articles, which were published during the last 60 years. It is at least as interesting to study the history of the oil industry origination in the Tatarstan area, which goes back to the remote past.
The end of the XVIIth century. The first records of oil shows and bituminous rocks refer to that period. It was the Military Department that first mentioned about the Kazan oil in 1637: “…43 poods (1600 lb) and 35 and a half grivnas of Kazan black oil”.
The XVIIIth century is characterized by the active search of surface oil and bituminous rock seepage, their description and use.
1703. An article in “Vedomosti” newspaper: “News from Kazan. A lot of oil and copper ore was found on the Soku River; they smelted a lot of copper from the ore and expect to receive great profit to the Moscow State”.
1718. Gotlib Shober, Peter the Great’s physician-in-ordinary, made the first opinion about the Tatar oil.
1738. Miner Ya. D. Shakhanin reported to “The Cabinet of Her Empress’s Majesty Anna Ioannovna” about oil and saltpeter found near Tetyushi settlement.
1753. Master sergeant Nadyr Urazmetov submitted the first application for constructing an oil plant on the territory of his own summer residence: «We would like the Berg-Board to take and examine this black oil and permit us to construct an oil plant on the territory of our own summer residence…»
Attempts by Ya. Shakhanin, N. Urazmetov, his son Yu. Urazmetov, Mozyakov brothers and count Yaguzhinsky to find and use oil and bitumen on the banks of the Volga, Sheshma and Soka rivers were not successful.
1762. P. I. Rychkov, the first correspondent member of the St. Petersburg Academy of Science, made the first scientific description of the Volga region oil sources.
The second half of the XVIIIth century. Natural resources of the Volga Region were studied thoroughly. The Academy of Science organized expeditions. Fundamentals of the region geology were laid, the subsoil structure was studied; the experience of oil economy organization was accumulated.
1868. Ya. Malakiyenko, a landowner from Bugulma city, and his two sons made a lot for oil sources survey. They drilled two bore-holes near Nizhnekarmalskaya settlement and made a contract for oil sources in Sarabikulovo and Shugur villages. Malakiyenko produced the first 80 buckets of oil and produced rather good kerosene from it at his small oil plant.
The 1870s. Laslo Shandor, an American entrepreneur, drilled a number of bore-holes. He reported to the Mining Department: «All my searches were successful in the provinces of Kazan, Samara and Simbirsk. Rich inexhaustible underground basins of liquid oil were found in the valleys of the Soka and the Sheshma rivers north-east from Samara city as well as in Samarsky and Bugulminsky districts. Extended oil-stained lands were located near Shugur and Sarabikulovo settlements».
The end of the XIXth century. There was no oil inflow in any of the prospecting boreholes, drilled in the Volga Region for the reason of imperfect equipment, which couldn’t get deeper and penetrate the oil-bearing horizons, as they occurred at the depth of 600 meters and the deepest wells only reached 350 meters. Exploration drilling in the Volga Region and Tataria were stopped for a long time for the search of liquid oil in the Volga region was considered to have no future. That caused the decline of interest to the showings of oil in the Volga Region and Tatarstan.
The beginning of the XXth century. The growing requirements of the developing industry made the state and entrepreneurs to resume oil prospecting in the Volga Region. It was recommended to recommence searches of oil on a higher scientific level. Attempts of borehole drilling by Yuzbashev, a petroleum producer from Baku, and Nobel Company were not successful. Despite the fact that commercial-value oil deposits were not found, a primary basis for was formed for cognition of oil geology and prospecting. By the way, the level of studies of the geological structure of Kazan province had been much higher than in other regions before the October Revolution.
1918. Kazan Council of National Economy, including the Fuel Department and Oil Section, was established. Later the Section was reorganized into the Regional (Province) Oil committee. During the first years after the Revolution, the Soviet government and V. I. Lenin paid close attention to oil prospect organizing. Great attention was paid to searches in eastern parts of the country – the Volga Region, the Urals and Siberia.
1918. After returning back to Russia from the USA academician I. M. Gubkin immediately began to work in the Central Oil Committee.
By July 1, 1919 all oil enterprises of the Kazan province had been nationalized. In 1920 about 50 oil companies and petroleum storage depots were under the jurisdiction of Kazan Oil District Committee.
1919. I. M. Gubkin took part in the expedition exhibition to the Volga Region, where he organized the work of geological prospecting crews. In September 1919 Presidium of the National Economy of the USSR discussed I. M. Gubkin’s report on Syukeyevo oil deposits and decided to organize prospecting in the Volga-Urals region, including Syukeyevo.
October 1919. I. M. Gubkin: «A great new oil region of global value can appear under favorable conditions of prospecting». Thirteen boreholes were drilled in Syukeyevo. Prospecting had been going on till 1923 with the lack of necessary equipment, qualified specialists and in conditions of starvation, but there was no commercial oil inflow and uncompleted drilling works were stopped in 1924. The Administration of the Volga Region prospecting was closed down.
1924. Mineral resources of the Volga region and Tataria were disregarded, and exploration drilling stopped.
1930. The Central Committee of Communist Party of the USSR adopted a resolution on «Oil Industry» for urgent measures to be taken for substantial prospecting and searching new oil fields especially in the eastern part of the country. Oil prospecting in the Volga and Urals Region were intensified.
1938. Tataria was the least prospected region. Other parts of the Volga-Urals Region made a lot of progress, oil was produced in some of them.
The independent Geological Department of Tatar ASSR was established.
The resolution of the Committee of People’s Commissars and Central Committee of Communist Party of the USSR: «Development of new oil regions» was a turning point in oil-prospecting history of Tataria. In connection with the Kuibyshev hydro-electric station construction and flooding oil areas it was proposed to force prospecting on those territories. Many geological and oil prospecting organizations were invited to Tataria from neighboring regions.
March 1939. The XVIII Congress of the Communist Party of the USSR set a task to make a «Second Baku», a new oil base between the Volga River and the Urals.
1940. Shugurovskaya prospecting party was formed. All geological organizations on the territory of Tataria worked under the jurisdiction of the «Tatgeologorazvedka» Trust.
July 1943. The first commercial oil field was opened in Shugurovo. Well No 1 (with daily production rate of 20 tons) was drilled by a crew of a tool pusher G. Kh. Khamidullin.
1943-1946. The Aksubayevskoye, Bavlinskoye and some other fields were discovered.
1948. One of the biggest fields in the world, Romashkinskoye, was discovered. The beginning of the epoch of intensive prospecting – oil production from Devonian sandstones in Well No 3 (daily rate - 120 tons). Oil production totaled 422.3 thousand tons in the Republic.
1949. Fundamentally new principles of development of the Romashkinskoye field were set. It was proposed to operate the field using contour waterflooding.
First issues of the Company's newspaper «Neftyanik Tatarstana» were published.
By 1950 oil deposits with total commercial reserves of 430 mln tons had been discovered. In spite of the fact, that by early 1950s Tatarstan had the greatest oil reserves in the country, the oil production industry was poorly developed (100 thousand meters of rocks had been drilled and 41 wells had been constructed).
1950. «Tatneft» Amalgamation was established by the resolution of the Soviet of Ministers of the USSR and it incorporated «Bavlyneft», «Bugulmaneft» oil producing trusts, the «Tatburneft» drilling company, the «Tatneftepromstroy» construction and installation trust, and the «Tatnefteproject» design office.
The first mln tons of Tatar oil was produced.
1951. The Drilling Personnel School, which had been initially included into «Saratovneftegas» association earlier, was incorporated into «Tatneft».
1952. «Almetyevneft» oil-and-gas producing trust, «Almetyevburneft» drilling trust as well as «Tatneftegeophizica», «Tattekhsnabneft» and «Tatnefteprovodstroy» were incorporated into «Tatneft» Amalgamation.
1953. The first meeting of young oilmen of Tatarstan took place in January. Mass socialist emulation started. The foremost crews of tool pushers G. Z. Gaifullin, M. M. Gimazov, M. P. Grin', M. F. Nurgaleyev and M. M. Beloglazov broke records in drilling.
On November 3, 1953 Almetyevsk workmen’s settlement was given a city status by the Order of the Presidium of the Supreme Soviet of the RSFSR.
1954-1955. Oil producing trusts were reorganized to oilfield departments. Novaya Pismyanka workmen’s settlement became the city of Leninogorsk.
1956. Directives of the XX Congress of the Communist Party of the USSR defined the tasks for the sixth five-year plan on new oil field development in the Tatar ASSR. The «TatNII» Tatar oil research institute was founded. The Advisory Center of the Moscow Oil-Industry Institute named after I. M. Gubkin was opened in Almetyevsk city. Later it was reorganized to the Tatar part-time faculty of the Moscow National Economy Institute, and then - to Almetyevsk Oil Industry Institute.
«Tatneft» produced 18 mln tons of oil. The amalgamation took the first place in the Soviet Union by the volume of oil produced.
1957. The first section of Minnibayevo Gas-and-Petrol Plant was put into operation.
1958. The Yelabuga consolidated oil field was organized.
1960. The main facilities of the «Druzhba» pipeline were located near Almetyevsk city.
1961. «Prikamneft» Oilfield Board was established. Oil Production Board «Bugulmaneft» was renamed into «Leninogorskneft» Oil Production Board.
1962. Waterflooding was used for the first time on Zelenogorsk area of the Romashkinskoye field (its oilfield application started in 1966). A group of «Tatneft» scientists and officials was awarded the Lenin Prize.
«Tatneftegaz» trust and «Yelkhovneft» Oil Production Board were established.
1964. «Irkenneft» and «Aktyubaneft» Oil Production Boards were founded.
1966. «Tatneft» Production Amalgamation was awarded the Order of Lenin.
1968. «Suleyevneft» and «Jalilneft» Oil Production Boards were established.
1969. «Yamashneft» Oil Production Board was organized.
1970. The highest level of annual oil production in the country – 100 mln tons, was achieved and maintained till the year of 1976.
1971. TATNEFT produced the first billion tons of oil. NGDU «Almetyevneft» was awarded the Order of Lenin.
1975. The highest level of annual oil production – 103.7 mln tons - was reached in the Republic.
1981. On October 2 TATNEFT Amalgamation produced the second billion tons of oil since the beginning of fields development in the Republic.
The 1980s. The Ministry of Oil Industry issued the order «Development of a number of fields in Tyumen Region by «Bashneft» and «Tatneft» Associations». The oilmen of Tatarstan made a great contribution to the development of oil fields in western Siberia.
August 1990. The first wide-scale ecological program of TATNEFT was worked up and successfully implemented.
The early 1990s are characterized by export policy strengthening. Oil industry workers asserted their rights to oil export with further use of currency proceeds to implement social programs of the Republic.
The External Trade Council of the amalgamation was formed, since January 1992 - the External Economic Company (EEC).
1992. Realization of one of the largest and most essential EEC contracts – the unique diagnostic center was built based on the project of the world-famous American surgeon Dr. Michael Debakey.
1993. The Republic of Tatarstan celebrated the 50th jubilee of the commencement of Tatar oil commercial development. The EEC signed a record number of contracts - 110 for a total sum of 60.41 mln dollars.
February 1994. Tatarstan and Russia signed a treaty on delimitation of the spheres of interest and mutual delegating of powers. Interests of Tatarstan and Russia related to the oil production were defined by special agreements
1994. «Tatneft» Amalgamation was reorganized into a joint stock company.
1995. TATNEFT stabilized its level of oil production. It was the first time since 1966 when the increase of oil reserves exceeded the annual output in the Republic. Kichuy Refinery of estimated power 400,000 tons of oil per year was constructed.
1994-1996. TATNEFT got several awards of international financial institutes, funds and academies.
December 1996 – March 1998. OAO (JSC) TATNEFT became a pioneer among the Russian oil companies in introduction of its shares to the world markets of long-term capital.
1998. 50 years since the beginning of Romashkinskoye field development. By the decision of OAO (JSC) TATNEFT Board of Directors the construction of Nizhnekamsk Refinery was considered to be a strategic line of activity of the company.
The end of the XX century. JSC TATNEFT was formed as a vertically integrated holding company. It bought considerable blocks of shares of petrochemical enterprises of Tatarstan. The Nizhnekamsk Refinery and a network of filling petrol stations were being constructed quickly. TATNEFT came into oil markets of several countries, showing its technical and technological power, and used opportunities to increase its reserves and enhance production activity.
JSC TATNEFT got into contacts with officials of the oil companies of Iran, Iraq, Vietnam, Mongolia, Jordan, China, Egypt, and Italy. The KalmTatneft Joint Venture was founded in Kalmykia for exploration and development of oil fields. The volumes of exploration and production drilling increased almost twofold.
2000. The fiftieth anniversary since JSC TATNEFT foundation. The 2,700,000,000th ton of oil was produced from the fields of the Republic of Tatarstan. The JSC TATNEFT Youth organization was established.
2001. TATNEFT participated in the IV International Show of Industrial Property «Archimedes» in Moscow and gained the victory (three golden and one silver medals).
The 500-mlnth ton of oil was produced by NGDU «Jalilneft».
TATNEFT was acknowledged as the best exporter of Russia in 2000.
Mountaineers from Almetyevsk city hoisted TATNEFT flag on Elbrus, the highest peak in Europe.
2002. The base complex of the Nizhnekamsk Refinery was put into operation.
The company broke the record in production and sales of Nizhnekamsk tires. In October OAO «Nizhnekamskshina» produced 1,013,000 tires per month for the first time during the last ten years. The same number of tires was sold by KAMA Trade Firm by the results of the month.
The management structure of TATNEFT was optimized with establishment of gas (TatNefteGazpererabotka Department) as well as petrochemical (TatNeft – NefteKhim) sections.
TATNEFT participated in financing the construction of a bridge across the Kama River.
TATNEFT's victory in All-Russia Contest «1000 best Companies of Russia».
Year 2003. The year witnessed TATNEFT's reconstructing and building new social facilities in the city of Almetyevsk at unprecedented paces: a horse racetrack, Maidan, a cascade of ponds, an ambulance station, a fluorography facility, a boarding school, schools No.10 and No. 16, medical treatment facilities for children.
Celebrations were held on the occasion of the 60th anniversary of the Tatarstan oil and the 50th anniversary of the city of Almetyevsk.
Participation in the last pre-war Iraqi exhibition in Baghdad «Iraq Oil Show-2003», the International «Oil and Gas-2003» Exhibition in Moscow, in the Vth International Conference of the Oil and Gas Chemistry. The VIIth All-Russian Scientific and Practical Conference «Geoinformatics in the Oil and Gas Industry» was held at the premises of TatNIPIneft Research Institute in November. The IVth Conference of the Young Workers of JSC TATNEFT was held in December.
Preferred shares of JSC TATNEFT were included into the Listing «A2» Category of the RTS trading system. The International rating agency Fitch raised the rating of Tatneft liabilities from B- to B. The Standard & Poor's Agency raised the credit rating of the Company.
The 30th anniversary of JSC Nizhnekamskshina, the largest enterprise of OOO Tatneft-Neftekhim. Nizhnekamskshina was acknowledged to be the most dynamically developing exporter in Russia in 2002. Five models of OAO Nizhnekamskshina tires were awarded gold, silver and bronze medals at the VIth International specialized exhibition.
Year 2004 – the year of awards. Six awards were presented to the specialists of TATNEFT at the «Engineer of the Year» Contest. The Ministry of Youth and Sports of the Republic of Tatarstan and the Administration of Kazan awarded Tatneft with Diploma «For contributions into the development of domestic tourism» based on the results of the «Tourism. Recreation. Sports-2004» Exhibition. «Neftyanik Tatarstana» (Oilman of Tatarstan) newspaper won the prestigious all-Russian journalists' contest of «PE-GAS-2003», and it was acknowledged as the best regional corporate newspaper at the all-Russian Forum of the corporate media. Following the decision of the Supreme Council of the «Russian Brand» the golden Sign of Quality was awarded to the network of filling stations operated by ZAO Tatneft-Moscow. In August Tatneft was awarded a Diploma of the «Best exporter of the Republic of Tatarstan», as well as the 1st place Diploma for the best arrangement of invention, rationalization and patent/licensing activity among industrial enterprises.
A new company was established in Tatarstan: TATNEFT, Nizhnekamskneftekhim, Svyazinvestneftekhim and the South Korean LG Company established JSC Tatar-Korean Petrochemical Company (TKNK).
Extensive activities were launched in the social sphere. JSC Aznakay Kiemnere Branch was open in Shugurovo to address the problems of unemployment. Gifted Children Foundation was established in March. Tatneft started operation of the European standard ski mountaineering base in December.
Year 2005. TATNEFT was in the first dozen of 50 leading companies of Russia. The 2005 Russia 50 rating was arranged based on the standards of the famous Fortune 500 list and it was published for the first time in the «Big Business» magazine. TATNEFT was named the «Best Company in the area of invention, rationalization and patent/licensing» by the results of the annual contest for the arrangement of inventive, rationalization and patent/licensing activity.»
The idea of the multilateral wells drilling was implemented. The wellbores in well No. 8249 were branched horizontally by the azimuth as well as by the productive layers of the pay thickness providing for improved coverage of productive horizons. OOO Tatneft-Burenye (Drilling) drilled on its own the first horizontal well with application of the underbalanced drilling technology. The same year TATNEFT drilled the first wildcat in Orenburg District. NGDU Dzhalilneft completed drilling of downhole branched splitters in deposit No.12.
A new Administration for Geological Exploration and Development of Hydrocarbons in new territories was established. ZAO Nizhnekamsk Refinery was established.
TATNEFT and Sibneft won the battle: the controlling stake in the Moscow Oil Refinery had been transferred to the alliance of the two companies.
Year 2006. NGDU Aznakaevskneft acquired a new leader - Razif Galimov. OOO Tatneft-Energoservis celebrated its 15th anniversary. NGDU Almetyevneft introduced the technology of co-mingled injection.
TATNEFT began cooperation with AvtoVAZ in such areas as supply of Tatneft petrochemical complex products to AvtoVAZ, namely, synthetic motor oils and high-quality motor gasoline, as well as KAMA EURO tires manufactured under European technologies by the Nizhnekamsk tire factory controlled by TATNEFT.
Drillers of TATNEFT drilled a unique U-shaped horizontal well exiting to the surface at Ashalchinskoe bituminous field with application of a conventional drilling rig BU-75 in May.
JSC TATNEFT received compliance certificates with the requirements of ISO 14001:2004 and OHSAS 18001:1999 in August.
Initial 100 tons of bituminous oil were produced.
TATNEFT sale of technology earnings exceeded one billion rubles for the first time.
2007. Production of bituminous oil from the Ashalchinskoye natural bitumen field with the application of SAGD technology by TATNEFT Company exceeded 1000 tons in the first days of 2007.
A large-scale celebration of production of the 3rd billion ton of Tatar oil was held in Almetyevsk.
JSC Nizhnekamskshina reached a record-breaking production level: the three hundred mlnth «Kama» tire came off the conveyor belt on July, 22.
The Company had won many awards. TATNEFT became a winner of the VIth All-Russia contest «Russian organization of high social efficiency» in nomination «Wages and welfare payments». It is for the forth time that TATNEFT Company was awarded the title «Best enterprise on invention and rationalization in the Republic of Tatarstan» in 2006. The General Director of JSC TATNEFT Shafagat Takhautdinov became a winner of the premium «Golden ROSING-2006», awarded annually for outstanding service in the development of the Russian oil and gas industry. In March TATNEFT became a laureate of the All-Russia Contest «100 best organizations of Russia. Ecology and ecological management », and it was awarded a diploma and a golden medal of «European quality».
Ak Bars hockey team ranking No.1 in the Russian Super league Championship crushed HPK Finnish team scoring 6:0 in the final game in St. Petersburg.
In August the team of mountaineering oilmen ascended Mont Blanc (4,810 m), the highest peak in Western Europe.
2008. The program came into effect to improve the efficiency of production management and strengthening the financial and economic condition of JSC TATNEFT for the period to 2015.
Non-core activities were withdrawn from JSC TATNEFT, management of oil service companies was efficiently reorganized and the institution of management companies was formed by the activity segments as part of the Compamy’s restructuring.
JSC TATNEFT was included into the Platts Top 250 global rating of the most effective energy companies.
JSC TATNEFT and GK "Turkmenneft" signed a protocol on cooperation in the oil and gas industry in the territory of Turkmenistan. The Cooperation Agreement was signed between the Government of the Samara region and JSC TATNEFT.
The corner stone was laid into the foundation of the plant for the production glass fiber and glass fiber based products at the "Alabuga" free economic zone (SEZ).
2009. JSC TATNEFT reaffirmed the highest environmental rating becoming the third year consecutive winner of one of the the most prestigious environmental contests in the country "One hundred best companies in Russia. Ecology and Environmental Management". The contest highest award - badge of honor "Environmentalist of the Year" was conferred to Sh.F. Takhautdinov, General Director of the Company.
A unique "DRECO 2000" slant rig started operation at Ashalchinskoye field. Nizhnekamsk Solid Steel Cord Tires factory was commissioned in October. The first commissioning stage of the the plant for the production of glass fiber and glass fiber based products at the "Alabuga" free economic zone (SEZ) was completed.
The construction of the oil refining and petrochemical plants complex in Nizhnekamsk was continued. More than 100 million rubles were daily assimilated at the construction site. Laying of a trunk oil pipeline from "Kaleykino" pumping station to the refinery under construction was completed. The work has started on the reconstuction of the "Nizhnekamsk - Almetyevsk - Kstovo" main product pipeline.
Hockey club "Ak Bars" was a three-time champion of Russia and the first winner of the Gagarin Cup. JSC TATNEFT received an encouraging Letter of thanks of the President of the Republic of Tatarstan for the worthy contribution to the development of physical culture and sports in the Republic of Tatarstan and the winning of the hockey club "Ak Bars" team in the Russian Championshp of 2008-2009 season.
Revaluation of probablehydrocarbo reserves in Tatarstan resulted in the stock volume reaching 1.47 billion tons with the increase amounting to about 0.5 billion tons.
2010. TATNEFT received the trademark "Leader-2010" of the "Archimedes-2010" International Salon of Industrial Property. The Company was awarded the Grand Prix for the best exhibit in the nomination "Enhanced oil recovery” at the International Specialized Exhibition "Oil. Gas/Petrochemistry - 2010". TATNEFT was awarded a Diploma "Pride of Tatarstan" for implementing the project of the plant for the production of glass fiber and glass fiber based products. Sh.F. Takhautdinov, General Director of JSC TATNEFT was awarded the honorary sign "Best leader in environmental and industrial safety" of the All-Russian contest "100 Best Companies of Russia. Ecology and Environmental Management".
In 2010, for the first time in its history, TATNEFT has started commercial oil production abroad - in Syria. The Company produced the first million tons of oil from the licensed fields outside the Republic of Tatarstan in the Russian Federation since the beginning of their development.
A significant event was test products obtaining in the mode of comprehensive testing the Refining and Petrochemical Plants Complex in Nizhnekamsk.
2010 witnessed the construction completion of the dry stripped gas deep processing installation, which allowed increasing the level of extracting the ethane fraction from associated petroleum gas. Serial production of new truck tires under the Continental technology was started at the Solid Steel Cord Tires factory in Nizhnekamsk. A significant step was the start of a new business: generation of heat and electricity. An electronic marketplace for purchasing material and technical resources was put into operation. The "Intelligent field" project was implemented within the area of one oil field being a testing ground for the advanced technological solutions at all stages of the production process. The German-Russian joint venture for the production of glass fiber started operaton at the territory of the "Alabuga" special economic zone, which provided jobs for more than 400 persons. Implementation of a new ten-year "Resource saving" program was started at TATNEFT.