Gazprom Neft boosts 2P reserves replacement level to 367% in 2013

27 February 2014

Gazprom Neft’s total proved and probable (2P) hydrocarbon reserves (including the Company’s share in joint ventures) as of 31 December 2013 amounted to 2.29 billion tonnes of oil equivalent, according to the SPE-PRMS international standards*, a 7.7% increase on the end of 2012. Category 2P oil reserves reached 1.7 billion tonnes, an increase of 2.6% y-o-y.

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Gazprom Neft’s proved hydrocarbon reserves (1P) amounted to 1.34 billion tonnes of oil equivalent at the end of 2013, an increase of 11.9% on the end of 2012; proved oil reserves increased by 4.9% to 960.6 million tonnes. Gazprom Neft’s current proved hydrocarbon reserves-to-production ratio, according to SPE-PRMS, exceeds 20 years.

The more conservative SEC** standards estimate the Company’s total hydrocarbon reserves at 1.13 billion tonnes of oil equivalent (a 11.3% increase y-o-y) and oil reserves at 829.1 million tonnes (a 5% increase y-o-y).

The increase in reserves significantly outpaced Gazprom Neft’s production growth, which reached 62.24 million tonnes of oil equivalent in 2013. Based on this level of production, Gazprom Neft’s 2P hydrocarbon reserves replacement level reached 367%, and 1P hydrocarbon reserves replacement level was 333%.

The main driver for growth in resources in 2013 was the increase of Gazprom Neft’s ownership in SeverEnergiya and the results of the Company’s geological exploration works. Gazprom Neft’s exploration drilling saw a 75% success rate. In 2013 the East Myginskoe field was discovered in the Tomsk region, along with a further 31 oil deposits and 1 gas deposit. Through targeted program involving the development of hard-to-recover reserves the Company has managed to increase its oil recovery factor at 9 fields. 

Gazprom Neft and its joint ventures have been audited by independent international consulting firm DeGolyer and MacNaughton

REFERENCE

* SPE-PRMS (Petroleum Resources Management System) is the most commonly used hydrocarbon reserve evaluation system. Developed by the Society of Petroleum Engineers (SPE), the system takes into account not only the potential of finding oil and gas in the field, but also the economics of their extraction. Reserves are measured in three categories: proved, probable and possible (3P).

** Another widely used system evaluating reserves is the classification developed by the US Securities and Exchange Commission (SEC). This valuation is more conservative than the SPE-PRMS standards.

The Gazprom Neft Group’s total reserves include the Company’s share in the reserves of its subsidiaries, recorded on the basis of the Equity accounting method. These subsidiaries are Slavneft, Tomskneft, Salym Petroleum Development, SeverEnergiya, Messoyakhaneftegaz, assets in Iraq (the Badra project) and Venezuela (the Junin 6 project). 

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