Gas and oil reserves

Gazprom holds the world’s largest natural gas reserves, with a share in the global and Russian reserves amounting to 17 and 72 per cent respectively. As of December 31, 2017, the Group’s domestic A+B1+C1 hydrocarbon reserves (under Russian standards) amounted to 35,355.4 billion cubic meters of gas, 1,595.6 million tons of gas condensate, and 2,045.3 million tons of oil.

In order to replenish its resource base, the Gazprom Group carries out geological exploration in Russia and abroad, as well as continuously monitors new projects and assets eligible for purchase.

Breakdown of Gazprom Group’s explored hydrocarbon reserves by Russian regions

Breakdown of Gazprom Group’s explored hydrocarbon reserves by Russian regions

Reserves of associated companies and joint ventures

In 2017, the A+B1+C1 hydrocarbon reserves of associated companies and joint ventures within the share of the Gazprom Group stood at 1,003.8 billion cubic meters of gas, 100.8 million tons of gas condensate, and 578.3 million tons of oil.

Reserves audit

The PRMS-based audit of the Gazprom Group’s hydrocarbon reserves carried out by DeGolyer and MacNaughton showed that, as of late 2017, the Group’s proven and probable hydrocarbon reserves included 24,146.6 billion cubic meters of gas, 1,105.7 million tons of gas condensate, and 1,360.0 million tons of oil.

The audit covered 94.1 per cent of gas, 92.7 per cent of condensate, and 93.5 per cent of oil reserves in the A+B1+C1 categories.

Gazprom Group’s reserves under PRMS standards

 

As of 31 December, 2015 As of 31 December, 2016 As of December 31, 2017

Natural gas, billion cubic meters

23,705.0

23,855.1

24,146.6

Gas condensate, million tons

933.3

1,018.9

1,105.7

Oil, million tons

1,355.4

1,378.7

1,360.0

Total, billion barrels of oil equivalent

157.2

173,260.1

175.7

Geological exploration

The main objectives of geological exploration performed by the Gazprom Group are to replenish the extracted hydrocarbons with commercial reserves and to prepare the feedstock base in promising regions. The growth rates of the Company’s natural gas reserves have been surpassing the production rates since 2005.

In 2017, the reserves replacement ratio was 1.82 for gas and 1.64 for gas condensate and oil.

Gazprom operates in almost all of Russia’s oil- and gas-bearing regions. In 2017, the Group allocated a total of RUB 82.6 billion for the geological exploration of domestic hydrocarbons.

Throughout 2017, the additions in hydrocarbon reserves as a result of geological exploration in Russia amounted to:

  • 852.9 billion cubic meters of natural gas;
  • 95.6 million tons of gas condensate;
  • 3.3 million tons of oil.

2017 saw the discovery of four new fields – Yuzhno-Lunskoye (Sea of Okhotsk), Salairskoye (Krasnoyarsk Territory), Alexander Zhagrin (Khanty-Mansi Autonomous Area – Yugra), and Novozarinskoye (Orenburg Region) – and 47 deposits within the already discovered fields in the Yamal-Nenets Autonomous Area, the Khanty-Mansi Autonomous Area – Yugra, and the Tomsk, Irkutsk and Orenburg Regions. In addition, the Melimovskoye field in the Tomsk Region and five deposits in the Khanty-Mansi Autonomous Area – Yugra and the Tomsk Region were discovered by the companies investments wherein are classified as joint operations.

Hydrocarbon exploration by Gazprom Group in Russia

 

Year ended December 31

 

2013 2014 2015 2016 2017

Exploratory drilling, thousand meters

146.4 165.4 143.6 111.6 85.9

Number of constructed exploratory wells

53 41 43 40 36

including producing wells

37 31 38 34 31

2D seismic survey, thousand linear kilometers

1.4 6.6 0.3 1.1

3D seismic survey, thousand square kilometers

13.3 12.6 20.0 20.6 18.7
Hydrocarbon exploration by Gazprom Group in Russia

Hydrocarbon exploration by Gazprom Group in Russia

Hydrocarbon development beyond Russia

In line with the existing contractual obligations, the Gazprom Group continues to implement its ongoing projects in foreign countries. In 2017, the Group carried out geological and geophysical exploration in the CIS, Europe, Southeast Asia, Africa, Middle East, and South America.

The amount of funds invested in geological exploration projects abroad totaled RUB 4.1 billion in 2017.

Hydrocarbon exploration by Gazprom Group abroad
  As of December 31
  2013 2014 2015 2016 2017
Exploratory drilling, thousand meters 18.1 17.6 28.3 9.7 18.4
Number of constructed exploratory wells 4 5 4 8 8
including producing wells 1 4 2 7 5
2D seismic survey, thousand linear kilometers 0.4 1.5
3D seismic survey, thousand square kilometers 1.4 1.7 1.4 0.8 1.2

Within the scope of the geological exploration projects in which the Group serves as the operator, exploratory drilling was performed in Serbia, Romania and Iraq, with 3D seismic surveys carried out in Serbia. As a result of exploratory drilling, three fields were discovered in Serbia and one in Romania.

As for the projects in which the Group does not function as the operator, the Winchelsea field was discovered in the North Sea in 2017.

Drilling rig at Badra field in Iraq

Drilling rig at Badra field in Iraq

Mineral resource base development program

The resource base development strategy of the Gazprom Group aims to maintain the balance between reserves growth and hydrocarbon production, as well as to ensure enhanced resource replenishment in the future.

In June 2011, the Gazprom Management Committee approved the Gas Industry Mineral Resource Base Development Program until 2035. The Program envisages the enhanced replenishment of the mineral resource base with due consideration of the changes in the reserve structure and the shift of the gas production centers to the new regions: the Yamal Peninsula, Eastern Siberia, the Far East, and the Russian continental shelf. The Program will provide for the addition of about 20 billion tons of fuel equivalent between 2011 and 2035.

The document places great emphasis on research, development and design activities, which will help dramatically improve the efficiency of prospecting and exploration at new hydrocarbon fields and deposits.