Lukoil reports year-end 2017 reserves estimate
MOSCOW -- Lukoil announced today the results of the oil and gas reserves assessment and independent audit as of Dec. 31, 2017. According to the SEC (U.S. Securities and Exchange Commission) standards, the Company's proved hydrocarbon reserves totaled 16.0 Bboe, 75% of which were oil reserves. The Company's proved reserves life is 19 years.
In 2017, Lukoil added 501 MMboe to its proved reserves in the result of geological exploration and related discoveries as well as development drilling. West Siberia, the Company's main producing region, accounted for the largest reserves addition in the amount of 198 MMboe. Further development of Russian offshore fields in the Caspian Sea ensured another significant addition of 100 MMboe with 95 MMbbl coming from the launched in 2016 Vladimir Filanovsky field. As a result of the development of gas projects in Uzbekistan and the Bolshekhetskaya Depression in Russia, the share of proved developed gas reserves increased from 36% to 47%.
As the average crude oil prices grew by more than 30% in 2017, the Сompany's international projects, developed under production sharing agreements and service contracts, showed a decline in reserves. For instance, Lukoil's reserves of the West Qurna-2 field went down by 153 MMboe.
Lukoil also completed the 3C contingent reserves assessment under the PRMS (Petroleum Resources Management System) standards. As of Dec. 31, 2017 the Company's contingent resources amounted to 13.7 Bboe. Contingent oil and gas resources can be reclassified into reserves as the macroeconomic conditions improve, the commissioning dates of the fields approach, new technologies are introduced and the pilot operations are completed.
