Resource base

The key areas in Gazprom Neft’s resource base development strategy include organic growth of existing assets, development of oil assets owned by Gazprom PJSC, investigating and bringing non-traditional reserves into commercial development, and proactive geological exploration at new prospecting zones and offshore.

Gazprom Neft Group hydrocarbon reservesExcluding NIS reserves. under the SPE-PRMS classificationPetroleum Resources Management System: a system developed by the World Petroleum Council and the Society of Petroleum Engineers, in cooperation with the American Association of Petroleum Geologists.,mtoe
Source: company data.

2019 highlights

  • Sustained positive growth rate of 2P2P – proved and probable reserves. reserves under PRMS standards.
  • Successful licensing programme including access to 32 licence blocks, including joint ventures.
  • A 2020 flexible field portfolio management roadmap developed.
  • Agreements to expand cooperation in production and field development, development of digital technologies and experience-sharing with major market participants
  • Completed development of logistical arrangements for year-round oil shipments and transportation from the Novoportovskoye field
  • Long-term risk-operator agreements with Gazprom PJSC, allowing Gazprom Neft to bring into development reserves at oil-rim and Neocomian-Jurassic deposits.
  • Start of construction of a full-scale complex of oil and gas infrastructure at the Otdalennaya ('Remote') group of fields (OGF).
  • An asset swap transaction (NOVATEK-Yarsaleneftegaz)
  • Approval from the Main State Expert Review Board (Glavgosexpertiza) to construct a gas pipeline crossing the Gulf of Ob.
  • Laser altimetry and aerial photography became an obligatory stage in the detailed design of seismic field surveys.
  • Full-scale deployment of Green SeismicGreen Seismic is a seismic survey technology that leads to a reduction in tree felling. It uses wireless recording equipment that can be installed using lightweight machinery. This makes it possible to reduce the width of clearings for vehicles from between four and five metres to one metre. technology in the KhMAO-Yugra. 100% of field seismic operations in the winter seismic season in the Okrug used this technology.
  • Opening of Integrated Field Development Centre (Tyumen), which provides support for major oil-production projects at all stages, from infrastructure design to well drilling and the production process.

The condition of the company’s resource base is characterised by the deteriorating structure of its remaining commercial reserves, as the majority of fields are entering their late stage of development. The efficiency of developing these fields is improved through the use of advanced drilling and tertiary Tertiary recovery techniques are used to enhance oil flow and the oil recovery factor by injecting gas, chemicals, steam or other substances into formations. (enhanced oil recovery) techniques. In addition to this, Gazprom Neft expands its resource base each year through geological exploration and the acquisition of new assets.

The company’s reserves are audited in accordance with the SPE-PRMS standards and the more conservative SECAn oil reserve classification developed by the US Securities and Exchange Commission, which requires the use of a 12-month average of the first-of-the-month prices in the reporting period. standards. According to a reserves evaluation by independent consultants DeGolyer and MacNaughtonAn oil and gas consultancy., Gazprom Neft’s proved and probable hydrocarbon reserves (including allocations proportional to the company’s interests in affiliated companies) under the SPE-PRMS international standards as at 31 December 2019 are estimated at 2,861 mtoe (1,865 mt of oil and 1,241 billion cubic metres (bcm) of gas), excluding NIS reserves: a year-on-year increase of 0.7%.

Gazprom Neft’s reserves-to-production ratio in terms of proved hydrocarbon reserves (SPE-PRMS standards), including the company’s interest in joint operations and joint ventures, currently stands at 17 years. Total hydrocarbon production in 2019 was offset by new reserves (including acquisitions) in the order of 120%.

Replacement of hydrocarbon reserves: key achievementsExcluding NIS reserves., mtoe
Source: company data.
Enterprise Proved reserves (2018) Hydrocarbon production Exploration, development and revision of prior estimates Asset swap Proved reserves (2019)
Gazprom Neft 872.96 (58.25) 57.30 50.33 922.34
Tomskneft 72.71 (4.80) (0.26) 67.65
Slavneft 129.84 (7.37) 8.07 130.54
Salym Petroleum Development 22.95 (3.25) 3.54 23.24
Messoyakhaneftegaz (joint venture) 16.32 (2.81) 2.66 16.17
Arcticgas 386.29 (15.22) 29.26 (40.78) 359.56
Northgas 62.95 (3.12) 3.40 63.23
Total 1,564.02 (94.82) 103.97 9.55 1,582.73

In 2019, as part of an asset swap deal with NOVATEK, Gazprom Neft obtained a 100% shareholding in NOVATEK-Yarsaleneftegaz, which owns the Malo-Yamalsky licence block in the Yamalo-Nenets Autonomous Okrug. The new asset will be included in the “Yamal Gas” project.

In 2019, Gazprom Neft also secured access to field development at a number of further licence blocks belonging to the Gazprom Group. Gas production at the Bovanenkovskoye field began several years ago and full-scale development of the Kharasaveyskoye field started in 2019. To date, however, transport infrastructure for liquid hydrocarbons remains missing at both these fields.

Furthermore, in 2019, Gazprom Neft went into two new prospecting areas: the Taymyr Peninsula (in the Dolgano-Nenetsky District in the Krasnoyarsk Krai) and the north of the Tazovsky Peninsula. These two regions are marked by very limited levels of geological investigation and are relatively remote from transport and oil and gas infrastructure. The company obtained subsoil rights on a declarative basis for geological prospecting at 12 licence blocks in the west of the Taymyr Peninsula, and also won bidding rounds for the Severo-Yamburgsky licence block, which allowed the company to create a new potential opportunity for growth in the north of the Tazovsky Peninsula (YaNAO).

Licences obtained in 2019
Source: company data.
Region Number of licences Licence blocks
Krasnoyarsk Krai 13 Zapadno-Taymyrsky blocks 1–12, Omorinsky
Khanty-Mansi Autonomous Okrug-Yugra, Sverdlovsk Oblast 8 Severo-Vaysky, Srednevaysky, Polevoy, Severo-Ingolsky, Vostochno-Kinyaminsky, Vostochno-Shapshinsky 1, Sverdlovsky 4, Yuzhno-Ostrovnoy
Yamalo-Nenets Autonomous Okrug 6 Severo-Stakhanovsky, Novoromanovsky, Pukhutsyayakhsky, Blizhnenovoportovskoye field, Yuzhno-Obsky, Malo-Yamalsky
Orenburg Oblast 4 Nadezhdinsky, Zapadno-Rubezhinsky, Kornavarinsky, Pervomaysky
Tyumen Oblast 1 Yuzhno-Zimny
Total 32

Overall, in 2019, the company secured exploration and production rights to 32 new licence blocks in the Yamalo-Nenets and Khanty-Mansi Autonomous Okrugs, and other regions. The total number of licences held by the company in Russia reached 215 (including seven offshore licences). Three new fields were discovered across Gazprom Neft’s concessions (in the Orenburg and Tomsk Oblasts) and were recorded in the Russian State Mineral Reserves Register. The company also confirmed the oil- and gas-bearing potential of 48 new hydrocarbon deposits. This expansion of the company’s resource base was facilitated by successful geological prospecting activities at the Alexander Zhagrin field in the Khanty-Mansi Autonomous Okrug, and at assets in the Yamalo-Nenets Autonomous Okrug, Orenburg Oblast, and the Krasnoyarsky Krai.

Partnerships

In 2019, the company not only actively developed cooperation with existing partners, but also entered into dialogues on a broad agenda with other companies.

By building partnerships, the company seeks to gain a wide range of benefits, including risk and investment sharing, obtaining or jointly developing new technologies, accelerating return on capital, and more. In addition to this, cooperation with other companies enables Gazprom Neft to replicate successes it has had in its other projects.