Tatneft obtained the areas, which hold probable oil reserves of some 1 billion metric tons (7.35 billion bbl), through an open tender held in December 2006 among 46 oil companies from around the world.
Under the 30-year contract, Tatneft, which is controlled by the government of the Republic of Tatarstan, in the Volga Region, will drill 16 wells and carry out seismic surveys in Libya.
During the negotiations, CEOs Shafagat Takhutdinov of Tatneft and Shokri Ghanem of the NOC also considered establishing a joint venture with Tatneft's managing company, TNG Group, in Libya.
In December 2005 Tatneft signed another EPSA on Libya's Block 82-4, where exploration is still underway. As soon as seismic surveys, which were launched in March 2007, are completed, the first exploratory well will be drilled later this year.
Libya's annual oil output is 80.1 million metric tons (588.7 million bbl), with consumption standing at about 12 million tons (88.2 million bbl) and the remainder meant for export, mostly to Europe (about 90%). Libya's proven reserves amount to about 5.5 billion tons (40.4 billion bbl) of oil.
Tatneft accounts for over 80% of crude output in Tatarstan and produced 25.3 million metric tons (509,000 bbl/d) of oil in 2006, the same as in 2005.
Tatneft also refines and markets oil and petrochemicals, and holds stakes in the banking sector. Tatarstan owns 36% of Tatneft's authorized capital and the golden share.
Tatneft is carrying out exploration in five Russian regions, and has launched production tests in the Orenburg, Ulyanovsk and Samara Regions, as well as in the Republic of Kalmykia, in southern Russia.
The oil company plans to buy new areas, expand exploration and increase oil production in the above regions in the next few years.
