Lukoil announced the results of the oil & gas reserves estimation on February 16, 2018, as well as the independent audit as of December 31, 2017.
According to the U.S. Securities and Exchange Commission (SEC) standards, Lukoil’s proved oil and gas reserves totaled 16.0 billion BOE, 75% of which were oil reserves. The company’s proved reserves life is 19 years.
Lukoil added 501 million BOE to its proved reserves in 2017 thanks to geological exploration and related discoveries and development drilling. West Siberia, the Lukoil’s key producing region, accounted for the largest addition of reserves, a total of 198 million BOE.
Further development of Russia’s offshore oil fields in the Caspian Sea ensured another considerable addition of 100 million BOE where 95 million barrels were from the Filanovsky field put into operation in 2016. As a result of the development of Uzbekistan gas projects and the Bolshekhetskaya Depression in Russia, the proportion of proved developed gas reserves grew from 36% to 47%.
As the average crude prices increased by over 30% in 2017, Lukoil’s international projects developed under service contracts and production sharing agreements indicated a decrease in reserves. For example, the company’s reserves of the West Qurna-2 field decreased by 153 million BOE.
The company also completed the 3C contingent reserves evaluation under the Petroleum Resources Management System (PRMS) standards. Lukoil’s contingent resources totaled 13.7 bln BOE. Contingent hydrocarbon reserves can be reclassified into reserves as the macroeconomic conditions improve, the fields commissioning dates approach, new solutions are introduced and pilot operations are completed.