Russia’s largest independent natural gas producer, and Yamal LNG project operator, Novatek, said that an independent appraisal of its hydrocarbon reserves as of December 31, 2017, has been completed.
Independent petroleum engineers, DeGolyer & MacNaughton completed the comprehensive reserve appraisal, showing that total SEC proved reserves, including the Novatek’s proportionate share in joint ventures, aggregated 15,120 million barrels of oil equivalent (boe).
Novatek said in its statement the figures include 2,098 billion cubic meters (bcm) of natural gas and 164 million metric tons (mmt) of liquid hydrocarbons.
Total proved reserves increased by 12.8 percent compared to the year-end 2016, representing a reserve replacement rate of 435 percent for the year.
The company’s reserves were positively impacted by exploration works at the Utrennee, Kharbeyskoye, West-Yurkharovskoye and Urengoyskoye (Samburgskiy license area) fields, production drilling at the South-Tambeyskoye field, as well as the new licenses obtained through tender auctions (Gydanskoye, Verhnetiuteyskoye and West-Seyakhinskoye fields).
Recent asset acquisitions (South-Khadyryakhinskoye, Syskonsynyinskoye fields and West-Yaroyakhinskiy license area) also contributed to company reserves.
Excluding the effect of obtaining new licenses, our total proved reserves increased by 1.3 percent, representing an organic reserve replacement rate of 134 percent.
At year-end 2017, Novatek’s reserve to production ratio (or R/P ratio) was 29 years.
Under the PRMS reserves reporting methodology, the company’s total proved plus probable reserves, including its proportionate share in joint ventures, aggregated 28,471 million boe, including 3,879 bcm of natural gas and 366 mmt of liquid hydrocarbons.