18 Jan 2022 08:04
FOR IMMEDIATE RELEASE
NOVATEK's 2021 Reserve Replacement Reached 107%
Moscow, 18 January 2022. 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 2021.
Total SEC proved reserves, including the Company's proportionate share in joint ventures, aggregated 16,409 million barrels of oil equivalent (boe), including 2,261 billion cubic meters (bcm) of natural gas and 189 million metric tons (mmt) of liquid hydrocarbons. Total proved reserves increased by 0.3% (excluding 2021 production) as compared to 2020, representing a reserve replacement rate of 107% for the year, with the addition of 669 million boe, inclusive of 2021 production. The gas reserves replacement rate amounted to 120%, with the addition of 96 bcm, inclusive of 2021 production.
In 2021, NOVATEK increased its total hydrocarbons production by 2.9%. The Company continued its systemic efforts to commence production at new fields, boosting the share of developed reserves and laying a particular focus on resource base monetization.
NOVATEK carries on with its active exploration on Gydan and Yamal Peninsulas as well as within the reach of the Unified Gas Supply System, 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 Geofizicheskoye, Gydanskoye, South-Tambeyskoye and the Urengoyskoye (Samburgskiy license area) fields, production drilling at the Utrenneye, South-Tambeyskoye, Urengoyskoye (Samburgskiy and Yevo-Yakhinskiy license areas) and the North-Russkoye fields, as well as increasing the recovery rate at the Yurkharovskoye field.
Under the PRMS reserves reporting methodology, NOVATEK's total proved plus probable reserves, including the Company's proportionate share in joint ventures, aggregated 28,970 million boe, including 3,948 bcm of natural gas and 363 mmt of liquid hydrocarbons.
NOVATEK reserves according to international standards
Proved reserves under the SEC methodology | Proved plus Probable reserves under the PRMS methodology | |||
2021 | 2020 | 2021 | 2020 | |
Natural gas, bcm | 2,261 | 2,244 | 3,948 | 3,981 |
Liquid hydrocarbons, mmt | 189 | 197 | 363 | 380 |
Total hydrocarbon reserves,million boe | 16,409 | 16,366 | 28,970 | 29,318 |
Reserves to production (R/P) ratio* | 26 | 27 | 46 | 48 |
* 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 2021. 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 2021. 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
Press Service | Investor Relations |
+7 (495) 721 2207 | +7 (495) 730 6013 |
press@novatek.ru | ir@novatek.ru |
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NOVATEK is one of the largest independent natural gas producers in Russia and in 2017 the Company entered the global LNG market with a successful launch of the Yamal LNG Project. Founded in 1994, the Company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. NOVATEK's fields and license areas are mainly located in the Yamal-Nenets Autonomous Area, the world's largest natural gas producing region that accounts for about 80% of Russia's and approximately 15% of the world's natural 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".