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all Oil Company "LUKOIL" press releases

Oil Company "LUKOIL"

April 28, 2003

OAO LUKOIL’s consolidated reserves amount to 19.7 billion barrels of oil equivalent

OAO LUKOIL has completed an evaluation and independent audit of its oil and gas reserves as of January 1, 2003. According to the data audited by Miller and Lents (USA), LUKOIL’s proved reserves as of the above date are estimated at 19.3 billion boe (compared with 16.8 billion boe as of January 1, 2002), including 15.3 billion barrels of crude oil and 24,2 trillion cubic feet of natural gas.

LUKOIL’s consolidated reserves amount to 19.7 billion barrels of oil equivalent as a result of an acquisition of controlling stakes in a number of companies in the Republic of Komi (namely OAO TEBUKneft, OAO Ukhtaneft, ZAO RKM-oil, OAO YaNTK) early in 2003 and following a reclassification of interests in some affiliates after post-report acquisitions. LUKOIL continues to be the world’s second largest private company (with ExxonMobil being #1) in terms of proved oil and gas reserves.


* Source: annual reports of the companies.

** Source: 22.04.2003 Yukos & Sibneft joint press-release.


As of January 1, 2003 Crude oil,
Gas, bn. cub. feet Crude oil and gas,MMbbl of OE*

Audited reserves as reported

(subsequent acquisitions are not included)

15,258 24,164 19,285

Acquisition of companies from Urals group

(net of prevoiously held reserves)

175 78 188

Acquisition of OAO YaNTK

133 0 133

Reclassification of affiliated interests held by ZAO LUKOIL-Perm ZAO LUKOIL-AIK (net of prevoiously held reserves)

56 11 58

Total (including acquisitions)

15,622 24,253 19,664

6,000 cubic feet of natural gas = 1barrel of oil equivalent


The evaluation of the reserves was performed in accordance with the US SPE requirements. The proved  reserves included those volumes which are recoverable up to and past license expiry dates.. The Company’s total reserves in all categories constitute 100% net reserves owned by the consolidated subsidiaries and net share in appropriate reserves of  affiliates. The  Company resource base increased  by 5% for crude oil and 82% for gas over the year.

The main factors behind the growth of the reserves are:

  • Discovery and record of four new hydrocarbon fields in the northern Caspian (oil and gas reserves)
  • Purchase of the controlling stake of OAO Nakhodkaneftegas (gas reserves)
  • Additions to reserves as a result of exploration activity carried out in the regions where the Company traditionally operates (mostly crude oil reserves)
  • Revision of the previous estimates using renewed or updated  geological and development information
  • Improvement of both international and domestic economic environment (growth of international prices, cost-cutting measures, increase in export deliveries)

Exploration remains a top priority in the Company’s development. Exploration drilling amounted to 181,000 meters (which accounts for 22% of the overall figure in Russia); construction of 68 exploratory wells was completed; 16 hydrocarbon fields and 15 reservoirs of oil, gas and gas condensate were discovered at the existing properties. The Company’s hydrocarbon production has been fully replaced for the last 3 years. In 2000-2002 the replacement ratio reached 170%.


Oil (million barrels), gas (billion cubic feet)

as of January 1, 2003 Western Siberia Central Russia Timan Pechora Overseas LUKOIL total
  oil gas oil gas oil gas oil gas oil gas
Proved reserves 8,459 14,904 2,796 7,067 3,478 460 525 1,733 15,258 24,164
Developed 5,631 740 1,936 639 1,695 315 245 645 9,507 2,339
Undeveloped 2,828 14,164 860 6,428 1,783 145 280 1 088 5,751 21,825
Probable reserves 3,915 3,576 501 5,072 1,654 64 124 248 6,194 8,960
Possible reserves 1,076 1,159 320 1,066 1,374 29 169 239 2,939 2,493

as of January 1, 2003 million USD

Future cash flows from sales of oil and gas


Future production  and development cost


Future undiscounted cash flows*


Effect of discounting (10% p.a.)


Future discounted net cash flows*


*Before income taxes


The Company’s development guidelines in the area of exploration and management of reserves till 2013 are as follows:

• Annual replacement ratio of no less than 80% (on average).

• Increase in proved oil reserves up to 2.5 billion tons by 2012, gas – up to 1 trillion cubic meters (by means of prospecting and exploration works and acquisitions)

• Increase of the share of developed reserves up to 75% for oil (compared with 63% in 2002) and up to 60% for gas (compared with 10% in 2002).

• Maintenance of high financial performance of exploration activities. 

•Certain statements in this press-release are not historical facts and are “forward-looking.”  Examples of such forward-looking statements include, but are not limited to:

  • projections or expectations of revenues, income (or loss), earnings (or loss) per share, dividends, capital structure or other financial items or ratios;
  • statements of our plans, objectives or goals, including those related to products or services;
  • statements of future economic performance; and
  • statements of assumptions underlying such statements.

• Words such as “believes,” “anticipates,” “expects,” “estimates”, “intends” and “plans” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.

• By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved.  You should be aware that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements, including our ability to execute our restructuring and cost reduction program. 

When relying on forward-looking statements, you should carefully consider the foregoing factors and other uncertainties and events, especially in light of the political, economic, social and legal environment in which we operate.  Such forward-looking statements speak only as of the date on which they are made, and we do not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise. We do not make any representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved, and such forward-looking statements represent, in each case, only one of many possible scenarios and should not be viewed as the most likely or standard scenario.


Press Centre  OAO "LUKOIL"
phone.: (095)927-1677,  fax: (095)927-1653,



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