Russia’s largest independent natural gas producer and LNG project operator Novatek said that the independent petroleum engineers, DeGolyer & MacNaughton, have completed the company’s hydrocarbon reserves appraisal.
Novatek said that as of December 31, 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 percent (excluding 2019 production) as compared to the year-end 2018, representing a reserve replacement rate of 181 percent for the year, with the addition of 1,065 million boe, inclusive of 2019 production.
The organic reserve replacement rate, excluding the effect from acquisitions and disposals, which mainly related to the disposal of 40 percent participation interest in Arctic LNG 2 project, amounted to 252 percent, 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.
Novatek said it has 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’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 its 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 percent participation interest in Arctic LNG 2 project, amounted to 200 percent, with the addition of 1,177 million boe, inclusive of 2019 production.