Rosneft Announces 179% Hydrocarbon Reserves Replacement in 2013

Rosneft revised upwards its reserves, confirming Moscow’s dominant position in energy markets. According to the results of the audit performed by DeGolyer & MacNaughton under the SEC life-of-field classification, Russia’s top crude producer reported a 179% hydrocarbon reserves replacement ratio in 2013. 

‘Reserves growth was achieved primarily due to the delivery of the geological exploration program, drilling and bringing into development new sections of the Company's key fields, wellwork performed to maintain base production, and due to increase of stakes in OOO Taas-Yuryakh Neftegazodobycha and Itera Oil and Gas Company,’ reads a note released on Tuesday.

In particular, gas reserves grew year-on-year by 29% to 46,941 billion cubic feet.

“During the past 5 years, the Company has been steadily replacing over 100% of its production by adding new reserves. Resource base growth is one of the key elements of increasing shareholder value of an oil company", Rosneft President Igor Sechin commented in the communiqué.

Under PRMS classification, the company reported a 36.83% increase in probable gas reserves and a 13.07% growth of possible gas reserves.

‘As of the end of 2013, Rosneft's reserve life was 24 years; 20 years for oil and 50 for gas,’ adds the note, referring to the amount of time reserves would last at current rates of production.

In terms of prospective resources, the company led by Sechin reported a staggering 64.82% yearly increase to 872,576 billion cubic feet.

The company explained the results in light of the exploration activities performed in the Kara Sea, Laptev Sea, the Black Sea and the new licences for new offshore blocks in the Barents Sea, Pechora Sea, Kara Sea, Chukchi Sea and the Laptev Sea.