JSOC Bashneft has announced the results of the latest independent audit of hydrocarbon reserves conducted by Miller and Lents, Ltd. in accordance with the PRMS classification (Petroleum Resources Management System).

The auditor has evaluated reserves at 190 oil and gas condensate fields of the Company in the Volga-Urals, West Siberian and Timan-Pechora oil and gas provinces, including the R. Trebs and A. Titov fields and the Sorovskoye field.

Total oil and condensate reserves of PJSOC Bashneft as of December 31, 2015

* — the barrel-tonne conversion factor is 7.16. ** — the barrel-tonne conversion factor is 7.13; including 100% of reserves of LLC Bashneft-Polyus

The audit findings have revealed that by December 31, 2015, Bashneft’s proved reserves had increased by 7.0% year on year to 2,323.6 million barrels. In 2015 the reserve replacement ratio totalled 202.0%. The audit findings suggest that Bashneft’s reserves-to-production ratio amounts to 16.3 years.

Overall, according to Miller and Lents, as of December 31, 2015, Bashneft’s total probable and possible reserves amounted to 1,893.8 million barrels. Probable reserves increased by 19.1% to 802.9 million barrels of oil, while possible reserves added 25.8% and reached 1,090.9 million barrels. The audit has revealed that total reserves of liquid hydrocarbons gained 13.6% and reached 4,217.4 million barrels.

‘In 2015 Bashneft fully replaced oil extracted at brownfields in Bashkortostan with proved reserves and once again provided evidence of efficiency of geological and engineering operations and the geological exploration programme carried out in the Republic,’ commented Mikhail Stavskiy, Bashneft’s First Vice President for Upstream. ‘Successful development of greenfield projects in Timan-Pechora and Western Siberia has enabled us not only to boost proved reserves considerably but also to achieve a significant increase in probable and possible reserves.’

Further development of the R. Trebs and A. Titov fields has enabled the auditor to revise their reserves upwards significantly. According to Miller and Lents, by December 31, 2015, proved oil reserves at the R. Trebs and A. Titov fields had increased by 129.0% to 240.2 million barrels. The auditor has estimated total reserves (3P) of these fields as of December 31, 2015 at 475.3 million barrels, up by 75.0% compared to December 31, 2014.

The auditor has considerably increased the estimate of oil reserves of LLC Burneftegaz in the Khanty-Mansi Autonomous District as of the end of 2015. Thus, according to Miller and Lents, by December 31, 2015, proved oil reserves at the Sorovskoye field had increased by 38.6% to 53.1 million barrels, while probable and possible reserves grew by 45.5% (to 88.3 million barrels) and by 44.3% (to 189.2 million barrels) respectively. Total reserves (3P) at the Sorovskoye field increased by 43.6% year on year to 330.5 million barrels.

Miller and Lents has also confirmed its assessment of recoverable reserves of natural gas and condensate at four gas condensate fields of the Saratovsko-Berkutovskoye group in the Republic of Bashkortostan. According to Miller and Lents, as of December 31, 2015, possible reserves at the gas condensate fields forming part of the Saratovsko-Berkutovskoyegroup amounted to 869.1 billion cubic feet (24.6 billion cubic metres) of gas and 7.9 million barrels of condensate.