Rosneft Increased the Amount of Proved Hydrocarbon Reserves by 6% in 2017, Reserve Life Reached 20 Years
Moscow. As of December 31, 2017, the Rosneft's SEC (United States Securities and Exchange Commission) proved hydrocarbon reserves achieved 39,907 mmboe (5,395 mmtoe). The hydrocarbon reserves increased by 2,135 mmboe (284 mmtoe) or by 6% compared to the reserves at the end of 2016. The audit, which provided for the reserves estimation till the end of fields commercial life, was performed by DeGolyer&MacNaughton.
By the end of 2017, Rosneft’s SEC proved reserves life totaled about 20 years. The organic SEC proven hydrocarbon reserves replacement ratio was 184% in 2017*.
For several years Rosneft remains the leader among the largest public international oil and gas companies with a significant margin in terms of proven reserves life and replacement ratio. At the same time, the Company demonstrates the lowest finding and development costs among international peers.
Under the PRMS (Petroleum Resources Management System) classification, as of December 31, 2017, the Company’s 1Ð hydrocarbon reserves stood at 46,520 mmboe (6,303 mmtoe), 2Ð – 83,838 mmboe (11,357 mmtoe), 3Ð – 120,853 mmboe (16,386 mmtoe). 1P reserves grew by 1%, 2P reserves growth was 2%, total 3P reserves increased by 4% over 2017.
For many years, Rosneft has consistently provided high levels of current production replacement with incremental reserves. In 2018-2022, the Company intends to replace not less than 100% of the produced hydrocarbons. At the same time, accelerated reserves development is expected with a reduction in the time of projects preparation, resources conversion to reserves taking into account their profitability, and more successful exploration drilling in the Russian Federation. In the medium term, production enhancement at mature fields and active development of new promising oil and gas projects, including Vankor cluster, Erginsky cluster, Russkoe, Kharampur and North Komsomolskoye fields, Rospan, will increase the Company's production through organic growth.