The Company’s Budget Structure

Great importance is attached in the service to improving the methodological framework. In order to improve the work of the Company's cash flow management there were new provisions developed and changes were introduced into the existing regulatory documentation.

The PJSC TATNEFT’s balanced budget of cash flow for 2016 was executed. The budget structure of the Company consists of 14 Control and Responsibility Centers (CRC). Each CRC, headed by Deputy General Director or Head of Department, supervises a respective type of activities, schedules financing a respective activity and is responsible for purposeful and effective use of funds.

Allocation of the company's costs by centers of control and responsibility (2014-2015)

 № CCA ADMINISTRATOR AREAS OF FUNDS SPENDING 2015,% 2016,%
 1URNiN
(Oil and Petroleum Products
Sales Department)
Head of URNiN (Oil and Petroleum
Products Sales Department)
Business expenses related to sale of crude oil, petroleum products, gas products and petrochemical products; funding of the investment program for development of the selling infrastructure 32 34
 2Service of Deputy
General Director,
Economics & Finances
Deputy Genera Director,
Economics & Finances
Expenses for salaries; travel allowance; expenses for introduction of SAP R/3 and other information systems; expenses from profit 3 4
 3 Financial Department Head of Financial
Department
Repayment of credits and interests on credits, granting of loans, repayment of promissory notes, commissions of banks, expenses for investment activities (in terms of financing construction and revamping of the Petrochemical and Energy Complex, foreign projects and projects outside the Republic of Tatarstan), payments for services 16 20
 4 Accounting & Reporting
Department
 Head of Accounting and
Reporting Department –
Chief Accountant
 Tax payments 22 22
 5Services of Chief EngineerFirst Deputy General Director for Production - Chief EngineerCorporate unit expenses
(with regard to major
Repairs of other fixed
assets and services of
production related nature);
other operating charges
(In terms of communication
services, R & D expenses; environmental costs)
 4 1
 6 Capital
Construction
Department
 Deputy General Director for
Capital Construction
Expenses for capital construction of production and nonproduction facilities, capital repair, liquidation of facilities, landfill operations for temporary access roads, water lines and power lines (when drilling) 1 1
 7 Service of Logistics
and Transport
Head of Logistics DepartmentPurchase of materials and equipment; payment for transport services of the corporate unit, maintenance of roads and roadsides 2 2
 8 Service of Chief
Geologist
 Deputy General Director –
Chief Geologist
Geological exploration works, geological and technological services, R&D 1 1
 9Corporate Integrated Business Development Center Head of the Corporate Integrated Business Development Center complexLease payments, participation
in other organizations: contributions to authorized capitals of
third-party companies, acquisition of shares
 5 1
 10 Service of Deputy
General Director
for HR and Social
Development
 Deputy General Director for
HR and Social Development
Expenses for social area issues and HR, expenses for mass media, image of the Company, advertizing 1 1
 11 Reserve of General
Director
 General DirectorDistributed between other Centers of Control and Responsibility acc. to the results of the actual budget funds spending  4 2
 12 Structural Divisions Managers of Structural
Divisions
 Decentralized expenses for current activities of structural divisions 5 4
 13Service of Deputy
General Director
for Well Workover,
Drilling and EOR
Deputy
General Director for Well
Workover, Drilling and EOR
Expenses for well workover and drilling and oil recovery enhancement, production services during well workover 4 4
14Service of Deputy
General Director
for oil and gas fields development and production
Deputy
General Director
for oil and gas fields development and production
Expenses of crude oil production processes (production related services, w, transport services, geophysical services) 0 3
     100 100