"Tatneft" intends to start oil production in Libya in 2021

19 March 2021


PJSC "Tatneft" expects to complete the drilling of wells in Libya in 2021, which were left before the revolution in the country and start production. This was announced on Friday at the conference of the labor collective of the company by the General Director of Tatneft, Nail Maganov.

"We plan to continue projects in Libya, which were suspended due to force majeure in this country. We hope that this year we will finish drilling the wells that we suspended after the Libyan revolution and will start producing the first tons of oil," he said.

As TASS was informed earlier by Tatarstan President and Chairman of the Board of Directors of "Tatneft" Rustam Minnikhanov, according to the preliminary estimates, which will be updated as the exploration works are carried out, the cumulative volume of production in Libya and Syria could reach more than 50 million tons.

"Tatneft" worked in Libya under a concession agreement from 2005 until 2014, when hostilities engulfed the country. In the fall of 2019, Maganov told reporters on the sidelines of Russian Energy Week that Tatneft was exploring new blocks in Libya. Later it turned out that it was about the works in the Gadames basin. In January 2020, Tatneft Deputy Director-General and Chief Geologist Rais Khisamov told reporters that "Tatneft" had carried out seismic surveys in Libya by local companies, which did not have their own staff in the country.

Production Increase

"Tatneft produced 26 million tons by the end of 2020, taking into account OPEC+ restrictions. However, the Company's strategy envisages the growth of indicators by 2030 by almost 50%, up to 38.4 million tons, including through the development of new projects outside the Republic of Tatarstan.

It is stated in the document that the restoration of exploration activities after the end of OPEC+ restrictions as well as the development of assets outside the Republic of Tatarstan and 100% recovery of reserves will make it possible to achieve this target.

Oil refining

Oil refining in 2021 could grow to about 14.5 million tons. "This year we plan to bring the refining to 14.5 million tons of oil," Magamov said.

The presentation to his report said that in 2020 the company increased oil refining by 7%, to 13 million tons. Thus, in 2021 the refining will increase by 12%.

The number of new units in 2021 at the TANECO refinery complex, which is part of the Tatneft group of companies, will increase twofold - up to 6 units.

New strategy

"Tatneft" intends to update its strategy in September 2021, taking into account the decarbonization policy and new trends in alternative energy development. "In our strategy, we also take into account the green future, our company's specialists calculate all the risks and determine the trends that may become dominant. This September we will update our strategy, which will take into account the new policy of decarbonization, and new trends in the development of alternative energy. New growth points for the company will be identified," Maganov said.

In 2019, Russia joined the Paris climate agreement, which includes the reduction of greenhouse gas emissions. Globally, the agreement aims to keep fluctuations in the average temperature on the planet within 1.5 to 2 degrees to pre-industrial levels by 2100.

The main shareholder of Tatneft is the Republic of Tatarstan, which owns more than 36% of the company. Treasury shares account for approximately 3% and 25.75% are ADRs. Other shareholders own 34% of shares.



GSV "Russia - Islamic World"

Photo: Creative Commons

Based on materials from TASS