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Tatneft investment in petrochemical facility to total $8.9 bln, says CEO

The target long-term concept envisions investment worth over 570 bln rubles

MOSCOW, October 22. /TASS/. Russia’s oil producer Tatneft will invest around 570 bln rubles ($8.9 bln) in the construction of a petrochemical facility in Tatarstan with potential refinery capacity of 3 mln tonnes per year, Chief Executive Officer Nail Maganov told TASS.

"The target long-term concept envisions investment worth over 570 bln rubles. Fully configured plants will refine more than 3 mln tonnes of petrochemical feedstock and produce 32 types of products," he said, adding that the project for construction of a petrochemical facility is an important growth area of Tatarstan and has huge prospects.

The products of the facility will be processed into consumer goods, which will trigger the development of small-and medium-sized enterprises (SME) in the region, CEO explained.

Tatneft operates in Tatarstan, the Samara, Orenburg and Ulyanovsk regions, the Nenets Autonomous District, and Kalmykia. The company accounts for around 8% of oil production in Russia and over 80% of output in Tatarstan.

The Republic of Tatarstan, which owns more than 36% of the company's ordinary shares, is the main shareholder of Tatneft. Treasury shares account for roughly 3%, while 25.75% is placed in ADR. Other shareholders own 34% of shares, among them there are no owners of more than 5% of share capital.

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