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NOVATEK’s 2019 organic reserve replacement reached 252%

NOVATEK’s 2019 organic reserve replacement reached 252% NOVATEK’s 2019 organic reserve replacement reached 252%

Moscow, January 22 - Neftegaz.RU. NOVATEK today announced that independent petroleum engineers, DeGolyer & MacNaughton, have completed their comprehensive reserve appraisal of the company’s hydrocarbon reserves as of 31 December 2019.


Total SEC proved reserves, including the company’s proportionate share in joint ventures, aggregated 16,265 million barrels of oil equivalent (boe), including 2,234 billion cubic meters (bcm) of natural gas and 193 million metric tons (mmt) of liquid hydrocarbons. Total proved reserves increased by 3% (excl. 2019 production) as compared to the year-end 2018, representing a reserve replacement rate of 181% for the year, with the addition of 1,065 million boe, incl. of 2019 production.


The organic reserve replacement rate, excluding the effect from acquisitions and disposals, which mainly related to the disposal of 40% participation interest in Arctic LNG 2 project, amounted to 252%, with the addition of 1,487 million boe, inclusive of 2019 production.


The company’s reserves were positively impacted by successful exploration at the Geofizicheskoye, Utrenneye and Kharbeyskoye fields, production drilling at the Urengoyskoye, East-Urengoyskoye+North-Esetinskoye (Samburgskiy license area),  East-Tazovskoye, North-Russkoye and South-Tambeyskoye fields, as well as the discovery of the Nyakhartinskoye field and new Achimov deposits in the Gydanskiy license area. The Soletsko-Khanaveyskoye field acquired in 2019 was included into our reserves appraisal. The Company's reserves appraisal under PRMS standards also includes the new North-Obskoye field discovered in 2018.


The company significantly increased its exploration activities in 2019 as well as acquired new license areas on the Gydan Peninsula. The inclusion of large geological discoveries in reserves appraised under international reserve standards will contribute significant hydrocarbon resources to successfully implement future NOVATEK’s large-scale LNG projects in the Arctic zone and ensure the maintenance of natural gas production levels into the domestic pipeline network.


Under the PRMS reserves reporting methodology, the company’s total proved plus probable reserves, including the company’s proportionate share in joint ventures, aggregated 28,725 million boe, including 3,901 bcm of natural gas and 373 mmt of liquid hydrocarbons.


The organic proved plus probable reserves replacement rate under the PRMS standards, excluding the effect from acquisitions and disposals, which mainly related to the disposal of 40% participation interest in Arctic LNG 2 project, amounted to 200%, with the addition of 1,177 million boe, inclusive of 2019 production.


To read the news in Russian.


NOVATEK reserves according to international standards
 
Proved reserves under the SEC methodology
Proved plus Probable reserves under the PRMS methodology
2019
2018
2019
2018
Natural gas, bcm
2,234
2,177
3,901
4,021
Liquid hydrocarbons, mmt
193
181
373
387
Total hydrocarbon reserves,
million boe
16,265
15,789
28,725
29,619
Reserves to production (R/P) ratio*
28
29
49
54

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