Novatek, the developer of Russia’s Yamal LNG project, said that independent petroleum engineers, DeGolyer & MacNaughton, have completed their comprehensive reserve appraisal of the company’s hydrocarbon reserves as of 31 December 2013.
Total SEC proved reserves, including the vompany’s proportionate share in joint ventures, increased by 1.2% as compared to year-end 2012 and aggregated 12,537 million barrels of oil equivalent (boe). Proved gas reserves amounted to 1,740 billion cubic meters (bcm) and reserves of liquid hydrocarbons were estimated at 134 million metric tons (mmt). In 2013, Novatek added 582 million boe of proved reserves under the SEC reserves reporting standards, inclusive of 2013 production, and recorded a reserve replacement rate of 132%. At year-end 2013, the company’s reserve to production ratio (or R/P ratio) was 29 years.
Proved reserves of liquid hydrocarbons increased by 26% as compared to year-end 2012. The ongoing field development at the company’s SeverEnergia joint venture contributed a substantial proportion of this increase, with the successful exploration works at these fields contributing approximately 10 mmt of gas condensate to our overall proved reserves, based on our current ownership in this joint venture.
Under the PRMS reserves reporting methodology, the Company’s total proved plus probable reserves, including the company’s proportionate share in joint ventures, increased by
730 million boe as compared to year-end 2012 and aggregated 23,085 million boe, including 3,125 bcm of natural gas and 314 mmt of liquid hydrocarbons.
Chairman of the Management Board of Novatek, Leonid V. Mikhelson stated “Our major achievements in 2013 with regards to reserve management were the full replacement of our proved reserves despite selling a 20% stake in the Yamal LNG project and divesting our 51% stake in Sibneftegas, as well as increasing the proportional share of liquid hydrocarbons in our reserve base, providing further support to our plans to increase the share of gas condensate and crude oil in our hydrocarbon production mix.”
LNG World News Staff, February 10, 2014; Image: Novatek