Gazprom Neft’s total proved and probable hydrocarbon reserves (2P — PRMS,* including the company’s share in production at joint enterprises),** reached 2.86 billion tonnes of oil equivalent (toe) in 2019, with the company’s reserves-replacement ratio now standing at 123 percent.
Gazprom Neft’s proved (1P) hydrocarbon reserves as at end 2019 reached 1.58 billion toe, a 1.2% increase on 2018. Gazprom Neft’s reserves life in terms of proved hydrocarbon reserves (PRMS) currently stands at 17 years. According to SEC standards,*** the company’s total hydrocarbon reserves stand at 1.45 billion toe, a 3.6% increase year-on-year (these results having been confirmed under an independent audit by international consultants DeGolyer and MacNaughton).
Gazprom Neft discovered three fields in the Orenburg and Tomsk Oblasts in 2019, as well as confirming the oil- and gas-bearing potential of 48 new deposits throughout the regions in which the company operates. This expansion of the company’s resource base was facilitated by successful geological prospecting activities at the A. Zhagrin field in the Khanty-Mansi Autonomous Okrug (discovered in 2017), and at assets in the Yamalo-Nenets Autonomous Okrug, Orenburg Oblast, and the Krasnoyarsky Krai.
Fifty-nine exploratory and prospecting wells were drilled in 2019 as part of the company’s resource-base development strategy — a record level for the company. Exploratory drilling in 2019 reached 167,700 metres, 2D-seismic surveying 14,500 linear kilometres (including 12,900 kilometres offshore), and 3D seismic 5,600 square kilometres.
Gazprom Neft acquired 32 licenses in 2019. The company continued its development of a promising exploratory cluster on the shores of the Arctic Ocean at the mouth of the River Yenisei, having won licensing rounds for two sites on the Gydan Peninsula and acquiring 12 sites on the Taimyr Peninsula. These are now Gazprom Neft’s northernmost onshore license blocks. All of these new acquisitions have been made in line with the resource-base development strategy approved by the Board of Directors in 2016 and updated in November 2017.
“The company’s production volumes have practically doubled in recent years, reaching almost 100 million tonnes of oil equivalent per year. Our production growth has been the fastest in the industry and has, throughout that time, been offset with new reserves. Gazprom Neft’s resource base, in fact, has increased by 60% (or one billion tonnes of 2P reserves) over the last 10 years. Added to which, the company is now not just investigating assets in traditional areas of activity (such as the Orenburg Oblast and the Khanty-Mansy and Yamalo-Nenets Autonomous Okrugs) but is also moving into new ones — including under-researched Arctic areas, while continuing to expand its resource base, looking ahead to 2030.”Вадим Яковлев Deputy CEO for Exploration and Production, Gazprom Neft
* Gazprom Neft’s total reserves include allocations proportional to the company’s interests in affiliated companies (including Slavneft, Tomskneft, Salym Petroleum Development, SeverEnergia, Messoyakhaneftegaz and Nortgaz, as well as assets in Iraq and Venezuela), but exclude the company’s reserves arising from its interests in NIS, Serbia.
** The PRMS (Petroleum Resources Management System) is the most widely used hydrocarbon reserves evaluation system in the world. Developed by the Society of Petroleum Engineers (SPE), the system not only takes into account the likely detection of oil and gas reserves, but also the economic viability of their recovery, with reserves classified according to three categories — proved, probable, and possible.
*** The reserves classification system developed by the US Securities and Exchange Commission.