19 Jan 2021 10:50
FOR IMMEDIATE RELEASE
NOVATEK's 2020 Reserve Replacement Reached 117%
Moscow, 19 January 2021. PAO NOVATEK ("NOVATEK" and/or the "Company") today announced that independent petroleum engineers, DeGolyer & MacNaughton, have completed their comprehensive reserve appraisal of the Company's hydrocarbon reserves as of 31 December 2020.
Total SEC proved reserves, including the Company's proportionate share in joint ventures, aggregated 16,366 million barrels of oil equivalent (boe), including 2,244 billion cubic meters (bcm) of natural gas and 197 million metric tons (mmt) of liquid hydrocarbons. Total proved reserves increased by 0.6% (excluding 2020 production) as compared to the year-end 2019, representing a reserve replacement rate of 117% for the year, with the addition of 710 million boe, inclusive of 2020 production.
The Company's reserves were positively impacted by successful exploration at the Geofizicheskoye, Utrenneye and Nyakhartinskoye fields, production drilling at the Urengoyskoye (Samburgskiy and Yevo-Yakhinskiy license areas), East-Tazovskoye, North-Russkoye, Utrenneye and South-Tambeyskoye fields, and increasing recovery rates at the Yurkharovskoye and Yarudeyskoye fields.
The Trekhbugornoye field was included for the first time to the Company's reserves appraisal under PRMS standards.
The Company continues ongoing exploration activities on the Gydan Peninsula as well as gradual commissioning of new fields. Both of these activities will contribute to the successful implementation of NOVATEK's future large-scale LNG projects in the Arctic zone and ensure the maintenance of natural gas production levels into the domestic pipeline network.
Under the PRMS reserves reporting methodology, the Company's total proved plus probable reserves, including the Company's proportionate share in joint ventures, aggregated 29,318 million boe, including 3,981 bcm of natural gas and 380 mmt of liquid hydrocarbons.
The proved plus probable reserves replacement rate under the PRMS standards amounted to 198%, with the addition of 1,202 million boe, inclusive of 2020 production.
NOVATEK reserves according to international standards
Proved reserves under the SEC methodology | Proved plus Probable reserves under the PRMS methodology | |||
2020 | 2019 | 2020 | 2019 | |
Natural gas, bcm | 2,244 | 2,234 | 3,981 | 3,901 |
Liquid hydrocarbons, mmt | 197 | 193 | 380 | 373 |
Total hydrocarbon reserves,million boe | 16,366 | 16,265 | 29,318 | 28,725 |
Reserves to production (R/P) ratio* | 27 | 28 | 48 | 49 |
* R/P ratio represents total reserves at year-end divided by total production for the same year.
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Information provided in this press release represents expected results of PAO NOVATEK operations in 2020. 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 2020. 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.
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For further information, please visit www.novatek.ru or contact:
Press Service+7 (495) 721 2207press@novatek.ru | Investor Relations+7 (495) 730 6013ir@novatek.ru |
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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. The Company's shares are listed in Russia on Moscow Exchange (MOEX) and the London Stock Exchange (LSE) under the ticker symbol «NVTK».