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 2016, assuming full economic life of the fields, were:
Reserves Category Crude and Condensate Gas
Proved Developed 3 510 967 915 713
Proved Developed 2 224 638 582 855
Proved 478 131 125 270
Total Proved 6 213 736 1 623 839
Probable 2 518 154 659 220
Possible 394 476 13 982
In 2016 Tatneft Group produced 28.7 million tones or 204.3 million barrels of crude oil, which is equivalent to approximately 558 thousand barrels per day. Therefore, Tatneft’s proved oil reserves life at current production rates is over 30 years, and 43 years taking into account the probable reserves (2P).
In addition to the audit of reserves, net contingent resources in the company’s fields were estimated at year-end 2016:
Resources Category Crude and Condensate Gas
Low Estimate (1С) 686 067 182 699
Best Estimate (2С) 884 643 258 163
High Estimates (3С) 2 011 602 1 102 521
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.
Forward-looking statements: These materials contain statements about future events and expectations that are forward-looking in nature. Any statement in these materials 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 contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.