Gazprom Neft boosts hydrocarbon reserves by nearly 10.5% in 2012

08 February 2013

As at 31 December 2012, Gazprom Neft's total "proven and probable" (2P) reserves (including its interests in joint ventures) under PRMS international standards amounted to 2.14 billion metric tonnes of oil equivalent (15.87 billion barrels), marking a 10.43% increase over 31 December 2011 or 202.5 million metric tonnes of oil equivalent (1.561 billion barrels).

Category 2P oil reserves increased by 6.19% to 1.68 billion metric tonnes (12.45 billion barrels), while gas reserves increased by 29% to 581.3 billion cubic meters (20.5 trillion cubic feet).

Taking into account its production volume for 2012, the replacement level of Gazprom Neft's category 2P hydrocarbon reserves was 438% including new acquisitions, or 230% excluding new acquisitions.

The main factors behind the growth of reserves in 2012 were the results of geological exploration, a reassessment of reserves at SeverEnergia's fields and license areas located in the Orenburg Region, as well as the acquisition of Gazprom Neft Novyy Port, which owns the license to the Novoportovskoye field.

Vadim Yakovlev, First Deputy Director of Gazprom Neft, commented:

"Gazprom Neft’s current reserves-to-production ratio PRMS demonstrate proven hydrocarbon reserves of more than 20 years. The increase in reserves is not only driven by the acquisition of new sites, but is also a result of active exploration. In particular, over the past year we have achieved good results through prospecting and exploration drilling, with a success rate of 83%. Going forward, the start of operations at our major new projects on the Yamal Peninsula, including the Novoportovskoye and Messoyakha projects, will make a significant contribution to our proven reserves base.”

The reserves of Gazprom Neft and its joint ventures were audited by DeGolyer and MacNaughton.

REFERENCE

Gazprom Neft's total reserves include the company's stake in the reserves of dependent companies, recorded on the basis of the Equity accounting method: the enterprises of Slavneft, Tomskneft, SalymPetroleum Development, SeverEnergia and Messoyakhaneftegaz.

For over 10 years Gazprom Neft's reserves have been audited according to the PRMS (Petroleum Resources Management System) standards of the Society of Petroleum Engineers.