NOVATEK’s 2022 Reserve Replacement Reached 282%
Moscow, 23 January 2023. PAO NOVATEK (“NOVATEK” and/or the “Company”) today announced that independent petroleum engineers, Advantage Energy (Russia), have completed their comprehensive appraisal of the Company’s hydrocarbon reserves as of 31 December 2022.
Total SEC proved reserves, including the Company’s proportionate share in joint ventures, aggregated 17,571 million barrels of oil equivalent (boe), including 2,431 billion cubic meters (bcm) of natural gas and 194 million metric tons (mmt) of liquid hydrocarbons. Total proved reserves increased by 7.1% as compared to year-end 2021, representing a reserve replacement ratio* of 282% for the year.
In 2022, the Company continued its systemic efforts to commence production of new reserves, boosting the share of proved developed reserves by 6% to further monetize its resource base.
NOVATEK carries on with its active exploration in the Gydan and Yamal peninsulas, which will contribute to future growth of proved reserves under the international standards.
The Company’s reserves were positively impacted by successful exploration at the Gydanskoye, South-Tambeyskoye, Verkhnetiuteyskoye, and the North-Chaselskoye fields, production drilling at the Utrenneye, South-Tambeyskoye, North-Russkoye fields and the Urengoyskoye field within Samburgskiy, Yevo-Yakhinskiy, Ust-Yamsoveyskiy, Olimpiyskiy license areas, acquisition of new licenses in auctions (the Arkticheskoye and the Neytinskoye fields), and the increase of ownership stake in Terneftegas to 100%.
Compared to the end of 2021, NOVATEK’s total proved plus probable reserves under the PRMS reserves reporting methodology, including the Company’s proportionate share in joint ventures, increased by 2.6% and aggregated 29,726 million boe, including 4,069 bcm of natural gas and 359 mmt of liquid hydrocarbons.
NOVATEK reserves according to international standards
|Proved reserves under the SEC methodology||Proved plus Probable reserves under the PRMS methodology|
|Natural gas, bcm||2,431||2,261||4,069||3,948|
|Liquid hydrocarbons, mmt||194||189||359||363|
|Total hydrocarbon reserves, million boe||17,571||16,409||29,726||28,970|
|Reserves to production (R/P) ratio**||28||26||47||46|
* Reserve Replacement Ratio represents the change in reserves, increased by production during the year, divided by total production for the same year.
** R/P ratio represents total reserves at year-end divided by total production for the same year.
Information provided in this press release represents expected results of PAO NOVATEK operations in 2022. 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 in this press release 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 2022. 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.
PAO NOVATEK is the largest independent natural gas producer in Russia, and in 2017, entered the global LNG market by successfully launching the Yamal LNG project. Founded in 1994, the Company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. Upstream activities of the Company’s subsidiaries and joint ventures are concentrated mainly in the prolific Yamal-Nenets Autonomous Region, which is the world’s largest natural gas producing area and accounts for approximately 80% of Russia’s natural gas production and approximately 15% of the world’s gas production. NOVATEK is a public joint stock company established under the laws of the Russian Federation.