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bln boe of proved hydrocarbon reserves
globally among publicly traded companies
by proved natural gas reserves under SEC
bcm of natural gas
produced in 2014
of total Russian
natural gas production
№7globally among publicly traded companies
by natural gas production volumes
of total natural gas deliveries
to the domestic market via the UGSS
OAO NOVATEK is Russia’s largest independent natural gas producer. The Company is principally engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons and have 20 years of operational experience in the Russian oil and natural gas sector.
Our principal operating areas are concentrated in the Yamal-Nenets Autonomous Region (YNAO) in Western Siberia. The YNAO is the most significant gas producing region in Russia, accounting for approximately 80% of Russia’s natural gas production and approximately 16% of global gas production.
As of 31 December 2014, we had 12.6 billion barrels of oil equivalent (boe) of SEC proved reserves. Most of our reserves are located onshore or can be developed from onshore locations and are attributed to the conventional categories.
We aim to expand our resource base through geological exploration at fields and license areas not only in close proximity to existing transportation and production infrastructure, but also in new potentially prospective hydrocarbon areas. In 2014 the organic replacement rate (excluding acquisitions) of our proved reserves amounted to 152%.
We carry commercial production of hydrocarbons at nine fields. Our three core fields—Yurkharovskoye and East-Tarkosalinskoye. Marketable production of natural gas increased by 1.5% and production of liquids increased by 27% in 2014.
Gas Condensate Processing
We process our unstable gas condensate at our Purovsky Plant, which produces stable gas condensate and liquefied petroleum gas (LPG). In June 2013 we launched processing of stable gas condensate at the newly built Ust-Luga Complex on the Baltic Sea. The Complex produces light and heavy naphtha, jet fuel, heating oil and gasoil. Beginning in the second quarter 2014 all of the light hydrocarbon volumes (feedstock for LPG production) are delivered by pipeline to SIBUR’s Tobolsk Petrochemical Complex for further processing.
We sell our natural gas to end customers in the Russian Federation (power generation companies, industrial users, regional gas distributors) and to gas traders. Stable gas condensate products are sold internationally, whereas our LPG and crude oil are sold domestically and internationally.
We generate revenues primarily from natural gas and stable gas condensate product sales and, to a lesser extent, sales of other liquid hydrocarbons. Our total revenues and EBITDA in 2014 amounted 358 bln RUB and 160 bln RUB respectively.
Shares and Credit Ratings
Shares of NOVATEK are listed on the Moscow Exchange and the London Stock Exchange (in form of GDR). NOVATEK has credit ratings from the three leading credit rating agencies - Moody’s Investor Services (Ba1), Standard & Poor’s (BB+) and Fitch Ratings (BBB-).
Our strategy is to maintain our position as the leading independent natural gas producer in Russia, based on increasing our hydrocarbon production, while expanding our resource base, optimizing our marketing channels and exploring new projects.