Reserves

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

 Total SEC proved reserves as of 31 December 2015, including the Company’s proportionate share in joint ventures, aggregated 12,817 million barrels of oil equivalent (boe), including 1,775 billion cubic meters (bcm) of natural gas and 143 million metric tons (mmt) of liquid hydrocarbons. In 2015, NOVATEK increased the proved reserves by 1.4% and recorded a reserve replacement rate of 133%. On an organic basis (excluding the effect of lower share in the SeverEnergia joint venture) the reserve replacement rate amounted to 148%, which is equal to reserves addition of 774 million boe, inclusive of 2015 production.

At year-end 2015, the Company’s reserve to production ratio (or R/P ratio) was 25 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 23,117 million boe, including 3,152 bcm of natural gas and 298 mmt of liquid hydrocarbons.

 

 Natural gas reserves, bcm

 201520142013201220112010
ProvedSEC1,7751,7511,7401,7581,3211,144
Proved plus
Probable
PRMS3,1523,1313,1253,1062,1081,840

 

 

 

 

Liquids reserves, mmt 

 201520142013201220112010
ProvedSEC1431401341069173
Proved plus
Probable
PRMS298310314247199166

 

 

 

 

 Total reserves, mm boe 

 201520142013201220112010
ProvedSEC12,817

12,643

12,53712,3949,3938,088
Proved plus
Probable
PRMS23,11723,06923,08522,35515,40913,386

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

Notes:

The Company’s 2015 net proved reserves include the reserves of the East-Tarkosalinskoye, Khancheyskoye, North-Khancheyskoye+Khadyryakhinskoye, North-Russkoye, Yurkharovskoye, Yarudeyskoye, West-Yurkharovskoye, Utrennee, Geofizicheskoye and East-Tazovskoye 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.

The Yarudeyskoye field reserves are reflected on a 100% basis compared to the 51% share used earlier. Total reserves for 2014 have been amended accordingly.

In 2015, marketable production at the appraised fields amounted to approximately 522 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.