NOVATEK ranks amongst the top five companies globally in terms of proven natural gas reserves.

Total SEC proved reserves as of 31 December 2016, including the Company’s proportionate share in joint ventures, aggregated 12,775 million barrels of oil equivalent (boe), including 1,755 billion cubic meters (bcm) of natural gas and 152 million metric tons (mmt) of liquid hydrocarbons.

Excluding the decrease in the Company’s proportional share in the Yamal LNG joint venture, total proved reserves increased by 2.8% year-on-year, with an organic reserve replacement rate of 168% due to successful exploration works and drilling, which amounted to reserves addition of 899 million boe, inclusive of 2016 production. The primary contributors to additions were the Utrenneye, the South-Tambeyskoye, the Kharbeyskoye, the Dorogovskoye and the Yarudeyskoye fields.

Total proved reserves dynamics during the reporting period was primarily affected by the decrease in the Company’s proportional share in the Yamal LNG joint venture from 60% as at year-end 2015 to 50.1% as at 31 December 2016, resulting from the sale of a 9.9% equity stake in Yamal LNG to China’s Silk Road Fund. Therefore including the decrease in the equity stake and 2016 production total proved reserves decreased by 0.3%, representing a reserve replacement rate of 92% for the year.

At year-end 2016, the Company’s reserve to production ratio (or R/P ratio) was 24 years.

Under the PRMS reserves reporting methodology, the Company’s total proved plus probable reserves, including the Company’s proportionate share in joint ventures, aggregated 22,756 million boe, including 3,067 bcm of natural gas and 319 mmt of liquid hydrocarbons.


Natural gas reserves, bcm

Proved plus





Liquids reserves, mmt 

Proved plus





 Total reserves, mm boe 



Proved plus

















The Company’s 2016 net proved reserves include the reserves of the East-Tarkosalinskoye, Khancheyskoye, North-Khancheyskoye+Khadyryakhinskoye, North-Russkoye, Yurkharovskoye, Yarudeyskoye, West-Yurkharovskoye, Utrennee, Geofizicheskoye, East-Tazovskoye, Kharbeyskoye and Dorogovskoye fields, Olimpiyskiy and West-Urengoiskiy license areas, based on NOVATEK’s 100% ownership interest, as well as the reserves of the South-Tambeyskoye, Termokarstovoye, North-Chaselskoye and Yaro-Yakhinskoye fields, Yevo-Yakhinskiy, Samburgskiy and North-Urengoyskiy license areas according to NOVATEK’s shareholdings in the joint ventures.

In 2016, marketable production at the appraised fields amounted to approximately 534 million boe.

The reserve replacement rate is calculated by taking the difference between the opening balance of reserves and the ending balance of reserves plus production for the period and dividing the sum by production for the period.

Conversion factors:

1,000 cubic meters of gas equals 6.54 barrels of oil equivalent.

Liquids have been converted from tons to barrels using specific density factor for each field.

Information presents expected results of PAO NOVATEK operations in 2016. The information represents preliminary assessment only, which can be adjusted after statistical, financial, fiscal and business reporting becomes available. The information on PAO NOVATEK’s operational results depends on many external factors and therefore, provided all permanent obligations imposed by the London Stock Exchange listing rules are unconditionally observed, cannot qualify for accuracy and completeness and should not be regarded as an invitation for investment. Therefore, the results and indicators actually achieved may significantly differ from any declared or forecasted results in 2016. PAO NOVATEK assumes no obligation (and expressly declares that it has no such obligation) to update or change any declarations concerning any future results, due to new information obtained, any future events or for any other reasons.