OJSC OC Rosneft (Rosneft) has today announced the results of the annual independent audit of its oil and gas reserves prepared by DeGolyer & MacNaughton.

According to the report prepared by DeGolyer & MacNaughton, as of December 31, 2005, Rosneft’s estimated net proved reserves totalled 18.9 billion barrels of oil equivalent (boe), of which include 14.9 billion barrels (2.05 bln tons) are liquids and 24.4 trillion cubic feet (691 billion cubic meters) are gas according to the SPE classification.

Rosneft’s probable and possible reserves were estimated by DeGolyer & MacNaughton at 10.9 and 9.8 billion barrels of oil equivalent (boe) respectively, which include 8.3 billion barrels of oil and 15.7 trillion cubic feet of gas of probable reserves and 7.2 billion barrels of oil and 15.4 trillion cubic feet of gas of possible reserves, according to the SPE classification.

DeGolyer & MacNaughton also for the first time has identified expected values of prospective resources for a number of Rosneft’s ongoing exploration projects, such are Sakhalin offshore projects, West Kamchatka continental shelf, acreages in the vicinity of Vankor field (Krasnoyarsk region) as well as certain other projects. Expected values of prospective resources after taking into account the probability of geological success were estimated by DeGolyer & MacNaughton to be at 7.7 billion barrels of oil equivalent (boe) (Rosneft’s share), which include 7.2 billion barrels of oil and 2.8 trillion cubic feet of gas.

Rosneft expects that through successful exploration and development of these world-class projects these prospective resources will be converted into proved, probable and possible reserves over time.

The audits conducted by DeGolyer & MacNaughton confirm Rosneft’s position as a world leader in terms of total hydrocarbon resources and also confirm the company’s potential for continued industry leading growth.

Rosneft Oil and Gas Reserves – SPE methodology

Rosneft’s total reserves comprise 100% of the reserves owned by Rosneft’s consolidated subsidiaries and Rosneft’s net share of affiliates’ reserves.

A key priority of the company currently consists of raising its oil and gas production to such a level consistent with its leading global ranking in reserves.