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Gazprom Neft hydrocarbon reserves up 36%

Gazprom Neft’s total proved and probable hydrocarbon reserves (including the company’s share in joint ventures) reached 3.9 billion tonnes of oil equivalent (btoe) in 2020, giving the company a reserves life of 22 years.

Gazprom Neft’s proved (1P) hydrocarbon reserves (PRMS) have reached 2.1 btoe,* a 34% increase year-on-year, with the company’s total hydrocarbon reserves now exceeding 1.9 btoe (SEC),** up 36% year-on-year. The company’s reserves life (proved reserves, PRMS) has increased from 17 to 22 years — these results having been confirmed under an independent audit by international consulting company DeGolyer and MacNaughton.

Fields being developed by the company under long-term risk-operatorship agreements with Gazprom PJSC and its subsidiaries have made a major contribution to Gazprom Neft’s resource base — these fields having been included in the reserves audit for the first time in 2020, increasing the resource base by an additional 1 btoe. Including new assets, the company’s reserves-replacement ratio reached 1190% in 2020 — a major proportion of this growth being Neocomian and Jurassic deposits at the Bovanenkovskoye and Kharasaveyskoye fields.

Gazprom Neft discovered three new fields in 2020, in the Khanty-Mansi Autonomous Okrug-Yugra and the Orenburg Oblast. The company acquired licenses to 18 new blocks, including 14 new licenses for geological prospecting of underlying strata and “flank” blocks at fields already under development in the Yamalo-Nenets Autonomous Okrug and the Khanty-Mansi Autonomous Okrug-Yugra.

“The greatest contribution to increasing our resource base has come from those assets we are developing under long-term risk-operatorship agreements — which includes deposits at major assets such as the Bovanenkovskoye and Kharasaveyskoye fields in Yamal. We are fully-fledged investors on these projects, investing and being responsible for their development and operation, meaning we own the reserves. These reserves being recognised by an international auditor marks another milestone in project development here, and confirms the correctness of the strategy we have chosen. In the space of just a few years these assets will represent a significant proportion of our annual production volumes.”
Vadim Yakovlev
Vadim Yakovlev Deputy CEO for Exploration and Production, Gazprom Neft
“The portfolio management system Gazprom Neft has put in place over the past few years has demonstrated its effectiveness throughout the turbulence of 2020. During this crisis we have swiftly refocussed our activities towards less risky projects, giving a quick return on investment. Similarly, the company will respond just as quickly as the situation stabilities, returning to more challenging options. We understand the strategic importance of consistent work with hard-to-recover reserves — for the future of the entire industry — and are continuing to invest in projects in developing oil-rim deposits, Achimovsky strata, and Paleozoic, Bazhenov and Domanic deposits.”
Yuri Masalkin
Yuri Masalkin Director for Geological Prospecting and Resource Base Development, Gazprom Neft
Notes for editors

* Estimated “proved+probable — 2P” reserves according to international PRMS standards. 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.

***Long-term risk operator agreements (DCOs) allow Gazprom Neft to invest its own resources in exploration and building infrastructure facilities, while consolidating reserves, production and the financial returns on these projects.