Description
SWOT ANALYSIS OF TATNEFT
Tatneft
Parent Company
Tatneft
Category
Oil and Gas
Sector
Energy
Tagline/ Slogan
-
USP
One of the largest, internationally recognized Russian oil companies STP
Segment
Corporates and individuals seeking to fulfill energy needs
Enterprises which require Crude Oil, Petrochemical products and Target Group natural gas
A vertically integrated Russian oil and gas company with purity of Positioning intent and business transparency SWOT Analysis
1. Tatneft has a strong market position, being one of the largest vertically integrated companies in Russia terms of crude oil production and proved oil reserves. 2. Tatneft is a vertically integrated company with a strong presence in each unit of the value chain from exploration through refining to marketing, which imparts operational flexibility to the company and allows it to retain profits, as a result of having no dependence upon any third party players in any phase of the value chain 3. Over 80,000 employees in the workforce Strength 4. One of the biggest oil companies in Russia
1. Tatneft’s operations are geographically concentrated in the Weakness Tatarstan region (between the Volga river and the Ural mountains), which exposes the company to political and business risks associated
with the region, thereby placing it at a disadvantage with respect to its competitors 2. Heavy dependence upon Transneft’s pipeline system places Tatneft at a competitive disadvantage against companies that have their own pipeline systems, as Transneft crude oil pipeline systems are only allocated quarterly based on certain considerations/specifications
1. Increasing oil demand in the European Union from sources other than the North Sea (whose crude oil production is depleting) can benefit Tatneft owing to its vast oil reserves and geographical proximity to European Union 2. Compared to conventional fuel sources like coal and oil, Natural gas as an alternative is gaining ground globally and Tatneft, as an integrated oil &gas company, can derive advantage from this phenomenon and thereby gain significant profit 3. Environment friendly technological innovations by Tatneft as Xanthon, MGS-KPS technologies and cathodic protection to the underground and surface facilities at industrial sites to protect from ground corrosion, help Tatneft cut costs, increase operational Opportunity efficiency along with boosting its brand image
1. Fluctuations in prices of crude oil and natural gas due to external factors outside the control of Tatneft can affect the company’s level of production and lead to decline in its growth 2. Russian Ruble/US $ exchange rate fluctuations could have adverse effect on the company as its operational expenses are dominated by the Russian Ruble, while export sales of its products are mostly in USD 3. With conventional fossil fuel base fast diminishing and the world being more conscious to their harmful effects on the environment, the demand for renewable energy is growing, which can jeopardize the demand for crude oil, which in turn will affect companies like Threats Tatneft Competition
1. Rosneft 2. Gazprom 3. Lukoil Competitors 4. Surgutneftegas
doc_358952963.docx
SWOT ANALYSIS OF TATNEFT
Tatneft
Parent Company
Tatneft
Category
Oil and Gas
Sector
Energy
Tagline/ Slogan
-
USP
One of the largest, internationally recognized Russian oil companies STP
Segment
Corporates and individuals seeking to fulfill energy needs
Enterprises which require Crude Oil, Petrochemical products and Target Group natural gas
A vertically integrated Russian oil and gas company with purity of Positioning intent and business transparency SWOT Analysis
1. Tatneft has a strong market position, being one of the largest vertically integrated companies in Russia terms of crude oil production and proved oil reserves. 2. Tatneft is a vertically integrated company with a strong presence in each unit of the value chain from exploration through refining to marketing, which imparts operational flexibility to the company and allows it to retain profits, as a result of having no dependence upon any third party players in any phase of the value chain 3. Over 80,000 employees in the workforce Strength 4. One of the biggest oil companies in Russia
1. Tatneft’s operations are geographically concentrated in the Weakness Tatarstan region (between the Volga river and the Ural mountains), which exposes the company to political and business risks associated
with the region, thereby placing it at a disadvantage with respect to its competitors 2. Heavy dependence upon Transneft’s pipeline system places Tatneft at a competitive disadvantage against companies that have their own pipeline systems, as Transneft crude oil pipeline systems are only allocated quarterly based on certain considerations/specifications
1. Increasing oil demand in the European Union from sources other than the North Sea (whose crude oil production is depleting) can benefit Tatneft owing to its vast oil reserves and geographical proximity to European Union 2. Compared to conventional fuel sources like coal and oil, Natural gas as an alternative is gaining ground globally and Tatneft, as an integrated oil &gas company, can derive advantage from this phenomenon and thereby gain significant profit 3. Environment friendly technological innovations by Tatneft as Xanthon, MGS-KPS technologies and cathodic protection to the underground and surface facilities at industrial sites to protect from ground corrosion, help Tatneft cut costs, increase operational Opportunity efficiency along with boosting its brand image
1. Fluctuations in prices of crude oil and natural gas due to external factors outside the control of Tatneft can affect the company’s level of production and lead to decline in its growth 2. Russian Ruble/US $ exchange rate fluctuations could have adverse effect on the company as its operational expenses are dominated by the Russian Ruble, while export sales of its products are mostly in USD 3. With conventional fossil fuel base fast diminishing and the world being more conscious to their harmful effects on the environment, the demand for renewable energy is growing, which can jeopardize the demand for crude oil, which in turn will affect companies like Threats Tatneft Competition
1. Rosneft 2. Gazprom 3. Lukoil Competitors 4. Surgutneftegas
doc_358952963.docx