Novatek SEC Gas Reserves Stand at 1.8 trillion m³: DeGolyer
Russian independent producer Novatek has 1.775 trillion m³ gas reserves under US Securities & Exchange Commission reporting rules as calculated by petroleum engineers, DeGolyer & MacNaughton, it said January 26.
Total SEC proved reserves, including its share in joint ventures, totalled 12.817bn barrels of oil equivalent (boe), comprising 1.775 trillion m³ of natural gas and 143mn metric tons of liquid hydrocarbons.
Last year 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 774mn boe, inclusive of 2015 production.
At year-end 2015, the company’s reserve to production ratio was 25 years.
Using the methodology of the Petroleum Reserves Management System, Novatek’s total proved plus probable reserves, including its share in joint ventures, was about twice as much, standing at 23.117bn boe, comprising 3.152 trillion m³ of gas and 298mn mt of liquid hydrocarbons.
|
Proved reserves under the SEC methodology
|
Proved plus Probable reserves under the PRMS methodology
|
|||
|
2014
|
2015
|
2014
|
2015
|
|
| Natural gas, bcm |
1,751
|
1,775
|
3,131
|
3,152
|
| Liquid hydrocarbons, mmt |
140
|
143
|
310
|
298
|
| Total hydrocarbon reserves, million boe |
12,643
|
12,817
|
23,069
|
23,117
|
Novatek has earmarked its gas reserves in the far north for its Yamal LNG project, which is set to be the first company to break the Gazprom export monopoly.It will consist of 3 trains each of 5.5mn mt/year, and 95% of the LNG has been pre-sold, Novatek says.
According to the PRMS reserves standards, the proved and probable reserves of the South Tambei feld are estimated at 926bn m³. The production potential of the field amounts to some 27bn m³/year for at least 20 years, Novatek says.
But financing the giant project suffered a setback when the US and the European Union imposed sanctions on a number of Russian entities and individuals to punish the president, Vladimir Putin, for his country's military intervention in Ukraine and the secession of Crimea from the government in Kiev.
These sanctions will remain in place – and probably therefore continue to affect financing for the project – until Moscow-Kiev relations return to how they were before the war. It has a west European shareholder, the French major Total, which owns about a fifth.
William Powell