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12

Nortgaz Reserves Up

The reserves' value stepped up from $1.8 billion to $2.8 billion

In terms of value, the reserves of Nortgaz went up by a third vs. 2004, says the latest audit report of DeGolyer & MacNaughton, Kommersant reported.

The auditor might have improved evaluation once Gazprom got 51 percent in Nortgaz, which guarantees the stable prices and access to the Unified Gas Transport System, the analysts speculate. The second owner of Nortgaz, senator Farhad Ahmedov (49 percent) attributes the gains to including the oil reserves of 39 million tons into the value of company?s assets.

The reserves? value stepped up from $1.8 billion to $2.8 billion, Nortgaz announced Monday, July 10, 2006. DeGolyer & MacNaughton completed evaluation of the Neocomian accumulations of North Urengoy field under the SPE as of January 1, 2006 and confirmed the availability of 367.3 billion cu meters of gas, 63.7 million tons of gas condensate and 38.9 million tons of oil.

Today?s targets of Nortgaz are launching crude production in 2008 and annually producing 500,000 tons from 23 wells by 2013, according to Nortgaz Financial Director Vyacheslav Sotnikov. Sources with the company are yet unable to say whether it will be the joint production with Gazprom Neft.

Holder of 51 percent in Nortgaz, Gazprom hasn?t yet added the company?s indicators to the statement of consolidated reserves. Nevertheless, the gas monopoly is bound to benefit from the better reserves of subsidiary. Now Gazprom can report material extension of reserve base to holders and calm down the agitated clients in Europe.