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NOVATEK announces year-end 2015 reserves

Moscow, 26 January 2016. OAO NOVATEK (“NOVATEK” and/or the “Company”) announced that independent petroleum engineers, DeGolyer & MacNaughton, have completed their comprehensive reserve appraisal of the Company’s hydrocarbon reserves as of 31 December 2015.

Total SEC proved reserves, 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.

NOVATEK reserves according to international standards
Proved reserves under the SEC methodology
Proved plus Probable reserves under the PRMS methodology
Natural gas, bcm
Liquid hydrocarbons, mmt
Total hydrocarbon reserves,
million boe


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.


Information provided in this press release presents expected results of OAO NOVATEK operations in 2015. The information represents preliminary assessment only, which can be adjusted after statistical, financial, fiscal and business reporting becomes available. The information on OAO 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 2015. OAO NOVATEK assumes no obligation (and expressly declares that it has no such obligation) to update or change any declarations concerning any future results, both due to new information obtained, any future events or for any other reasons.

PAO NOVATEK is one of the largest independent natural gas producers 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 Area, 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.