Russia's Novatek Reports Resource Bump
The proven and probable oil and gas reserves of Russia's Novatek were estimated by DeGolyer & MacNaughton to be 29.32bn barrels of oil equivalent at the end of last year, the company said on January 19, marking a 2% increase from the end of 2019.
The growth in proven reserves was only 0.6% to 16.37bn boe. Novatek has enough proven reserves to satisfy production in 2020 for 27 years without additional exploration, down from 28 the year before.
Novatek attributed the bump in reserves to exploration work at the Geofizicheskoye, Utrenneye and Nyakhartinskoye fields and production drilling at the Urengoyskoye, East-Tazovskoye, North-Russkoye, Utrenneye and South-Tambeyskoye fields. Recovery rates also increased at the Yurkharovskoye and Yarudeyskoye fields, it said.
The company's gas production also increased 3.6% in 2020 to 77.4bn m3, while its overall hydrocarbon extraction rose by 2.8% to 1.66mn barrels of oil equivalent/day.