13 May 2021
Tatneft announces the results of its crude oil and gas reserves audit as of year-end 2020
Based on the audit by an independent oil and gas consulting firm Miller & Lents, Ltd. net recoverable oil and gas reserves of Tatneft in accordance with the standards of the Petroleum Resources Management System prepared by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE-PRMS) as of 31 December 2020, assuming full economic life of the fields and forecast prices, were:
Reserves Category Crude and Condensate Gas
(MBbls) (MMcf)
Proved Developed 3 000 847 690 297
Producing
Proved Developed 2 397 411 561 785
Nonproducing
Proved 944 734 256 623
Undeveloped
Total Proved 6 342 991 1 508 705
Probable 2 266 720 490 404
Possible 263 075 7 772
At the end of 2020 total proved reserves of crude and condensate were estimated at 892.1 million tonnes, and of gas at 42.72 billion cubic meters.
In addition to the audit of reserves, net contingent resources in the company's fields were estimated at year-end 2020:
Resources Category Crude and Condensate Gas
(MBbls) (MMcf)
Low Estimate (1С) 655 093 234 933
Best Estimate (2С) 947 561 395 910
High Estimates (3С) 1 997 759 1 946 574
Contingent resources are defined by the SPE-PRMS as those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations by application of development projects not currently considered to be commercially recoverable due to one or more contingencies.
For the audit of oil and gas reserves as of 31 December 2020 in accordance with the SPE-PRMS standards forecast (in the range between US$37 and US$78 per barrel) and not constant prices for crude oil were used. In the Company's opinion, the use of forecast prices allows to evaluate commercially recoverable reserves for the purposes of implementation of Tatneft Group Strategy more accurately. The use of constant prices, especially based on the results of such crisis year as 2020 was, does not reflect the potential of development of the Company's oilfields considering the recovery of oil markets as well projected future demand and supply. If the constant price scenario from US$31.45 to US$35.69 per barrel was used to evaluate Tatneft Group oil and gas reserves then estimated oil and condensate reserves of the Company would be around 5.4 billion barrels of proved (2.7 billion barrels of proved developed producing, 1.9 billion barrels of proved developed nonproducing and 0.8 billion barrels of proved undeveloped), 1.8 billion barrels of probable and 215.2 million barrels of possible.
Besides the use of forecast prices, the changes in oil industry taxation resulting in the reduction of commercially recoverable reserves had the largest impact on the quantity of Tatneft Group's proved reserves.
This press release contains inside information.
Forward-looking statements: This press release may contain or rely on statements about future events and expectations that are forward-looking in nature. Any statement that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements expressed or implied by such forward-looking statements to differ. PJSC TATNEFT assumes no obligations to update the forward-looking statements to reflect actual results, changes in assumptions or changes in factors affecting these statements.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
