Gazprom Group is the world's largest company in terms of natural gas reserves.
Gazprom Group owns 18 per cent of global and 70 per cent of Russian natural gas reserves.
Gazprom Group replenishes its mineral resource base through geological exploration in Russia and abroad as well as constantly monitors the new projects and assets to be acquired.
As of the end of 2010 according to the Russian classification (A+B+C1 categories), the Company's reserves reached 33.1 trillion cubic meters of gas, 2.98 billion tons of oil and gas condensate.
Reserves of affiliates
By the end of 2010 the reserves (A+B+C1 categories) of associated companies within the share owned by Gazprom Group reached 488.8 billion cubic meters of gas and 626 million tons of liquid hydrocarbons in Russia.
As of December 31, 2010 Gazprom Group was a co-owner of the following associated companies holding subsurface use licenses: Nortgaz gas production company (51 per cent stake), Slavneft and Tomskneft oil production companies (50 per cent stakes), Salym Petroleum Development (50 per cent stake) as well as Sakhalin Energy (50 per cent stake) – the Sakhalin II project operator.
Audit of reserves
As of the end of 2010 an audit of Gazprom Group's hydrocarbon reserves carried out by DeGolyer & MacNaughton in accordance with the international PRMS standards, the Group's proven and probable hydrocarbon reserves were estimated at 28.7 billion tons of fuel equivalent worth USD 269.6 billion. The estimates covered 93 per cent of gas, 86 per cent of condensate and 90 per cent of oil reserves (A+B+C1 categories).
Gazprom Group’s reserves as of December 31, 2010 according to the international PRMS standards|
|
Natural gas, billion cubic meters |
Condensate, billion cubic meters |
Oil, billion cubic meters |
Total, million tons of fuel equivalent |
|---|---|---|---|---|
|
Proven reserves |
18,991.3 |
572.1 |
717.4 |
23,759.9 |
|
Probable reserves |
3,529.0 |
147.2 |
464.5 |
4,947.2 |
|
Proven and probable reserves |
22,520.3 |
719.3 |
1,181.9 |
28,707.1 |
Geological exploration
The main objective of the geological exploration carried out by Gazprom Group is replenishment of the produced hydrocarbons with the commercial reserves and preparation of the feedstock base in promising regions. The growth rates of the Company’s natural gas and liquid hydrocarbon reserves have been surpassing production rates since 2005 and 2008 respectively.
In 2010 the replenishment rates of gas and liquid hydrocarbon reserves were at 108 and 288 percent accordingly.
Gazprom operates in almost all of Russia’s oil and gas bearing regions. The total amount of funds allocated by Gazprom Group for geological exploration of domestic hydrocarbons amounted to RUB 55.6 billion in 2010, including RUB 15.9 billion routed for offshore operations.
In 2010 as a result of the geological exploration 26 new deposits and three new fields were discovered: the large Yuzhno-Kirinskoye gas and condensate field located in the Sea of Okhotsk, the Abakanskoye gas field in the Krasnoyarsk Krai, the Severo-Vakunaiskoye oil field in the Irkutsk Oblast.
Geological exploration of hydrocarbons by Gazprom Group in Russia|
|
Total |
||
|---|---|---|---|
|
|
2008 |
2009 |
2010 |
|
Exploration drilling, thousand meters |
284.9 |
163.7 |
204.9 |
|
Completed exploratory wells |
80 |
75 |
82 |
|
including production wells |
50 |
43 |
64 |
|
2D seismic survey, thousand kilometers |
12.4 |
14.7 |
18.5 |
|
3D seismic survey, thousand square kilometers |
6.6 |
9.5 |
10.8 |
Geological exploration of hydrocarbons by Gazprom Group in Russia
In 2010 2D and 3D seismic surveys covered 18.5 thousand kilometers and 10.8 thousand square kilometers accordingly. The surveys were made for delineation and in-depth investigation of geological structures as well as to select the locations for exploratory wells. The quality seismic surveys of 2010 increased the effectiveness of exploratory drilling to over 75 per cent.
Licensing activity
As of December 31, 2010 the licensed area of Gazprom Group totaled 300 thousand square kilometers in Russia.
In 2010 Gazprom Group obtained ten licenses, seven of them were issued on the basis of the field discovery. Acquisition of licensed blocks cost RUB 1.5 billion.
21 licenses for the right to use the subsurface resources were revoked: 7 of them had expired, 14 had been early terminated due to non-expediency of further operations. Licenses to explore 18 blocks (fields) were extended.
Russian shelf development
One of Gazprom’s strategic activities is hydrocarbon reserves development on the Russian continental shelf. Gazprom elaborated the Program aimed at hydrocarbon resources development on the Russian Federation shelf until 2030. The Program contemplates comprehensive and gradual hydrocarbons development in offshore areas, application of state-of-the-art technical and technological solutions in each and every field of the Company’s activities on the basis of the best global practices.
In 2010 Gazprom Group performed geological and geophysical exploration in the Ob and Taz Bays (Semakovskoye and Antipayutinskoye licensed blocks), on the Yamal shelf (Kruzenshternskoye field) as well as in the Sea of Okhotsk (Ayashsky, Kirinsky and Zapadno-Kamchatsky licensed blocks).
In 2010 the exploratory operations carried out on the continental shelf made a significant contribution to the expanded replenishment of Gazprom’s feedstock base: the total growth of hydrocarbon reserves came as high as 182.5 million tons of fuel equivalent.
Hydrocarbon resources development beyond Russia
According to the existing contract obligations Gazprom Group continues with implementation of the ongoing projects abroad, including Vietnam, India, Libya, Algeria as well as the countries of Central Asia, namely, Uzbekistan, Kyrgyzstan and Tajikistan. The amount of funds invested in the geological exploration projects abroad totaled RUB 14.9 billion.
As of September 2011 Gazprom Group holds 15 licenses for the right to use subsurface resources beyond the Russian Federation: 8 of them – for the right to produce hydrocarbon resources, 7 – for the right to perform geological surveys.
Geological exploration of hydrocarbons by Gazprom Group abroad|
|
Total |
||
|---|---|---|---|
|
|
2008 |
2009 |
2010 |
|
Exploration drilling, thousand meters |
32.1 |
30.7 |
21.8 |
|
Completed exploratory wells |
4 |
10 |
10 |
|
2D seismic survey, thousand linear kilometers |
6.2 |
12.5 |
11.4 |
|
3D seismic survey, thousand square kilometers |
7.4 |
3.6 |
2.6 |
Note: excluding NIS volumes
Between 2005 and 2010 four fields have been discovered as a result of the geological exploration abroad: the Bao Vang and the Bao Den gas and condensate fields in Vietnam (discovered in 2007 and 2009 respectively), the Dzhel gas field in Uzbekistan (2009) and a gas and oil field in Algeria (2010).
In 2010 a field development plan was prepared on the basis of the Wingate structure located in the North Sea. Gazprom Germania Group owns a 20 per cent stake in this structure. Gas production is planned to be launched in the fourth quarter of 2011.
In 2010 the associated company Overgas (with a 50 per cent stake held by Gazprom Group) obtained a permit to perform geological exploration of the Provadia block located in Bulgaria.
In September 2010 Gazprom Group and French petroleum company Total signed a Farmout Agreement on geological and exploration development of the Ipati and Aquio blocks located in southern Bolivia and comprising the Subandino petroleum basin. According to the document, the equity stake of Gazprom Group in the project will make up 20 per cent, Total – 60 per cent, TecPetrol – 20 per cent. Negotiations are in progress between Gazprom and the Bolivian state-owned petroleum company on finalizing the terms and conditions of a joint venture creation.
Oil projects abroad
In December 2009 Gazprom neft acting as an operator of an international consortium also involving Kogas (Korea), Petronas (Malaysia) and TPAO (Turkey) won a tender for the Badra field development in Iraq. In early 2010 Gazprom neft as a member of the consortium and the Government of Iraq signed a contract on the field development. Gazprom neft joined the project as an operator with a 30 per cent stake in the consortium. It is expected that in 2016 the field will be brought to the maximum daily production capacity of 170 thousand barrels.
Late in 2010 a subsidiary company of Gazprom neft and Petronas signed the documents on the terms and conditions for geological exploration and subsequent development of four blocks offshore Cuba. The documents envisage that Gazprom neft will hold a 30 per cent stake in the project. The company will partially refund the costs incurred by Petronas and will finance the ongoing projects pro rata the company’s stake. In July 2011, after a supplement to the Production Sharing Agreement (PSA) was signed, Gazprom neft has become a rightful participant of the project.
In June 2010 Gazprom neft, Equatorial Guinea’s Ministry of Mines, Industry and Energy, and the national company of Equatorial Guinea (GEPetrol) signed a PSA for the development of two offshore blocks with the estimated recoverable oil reserves of some 110 million tons. Gazprom neft is the project operator and owns an 80 per cent stake at the exploration stage.
While executing projects in Equatorial Guinea Gazprom neft simultaneously pursues several objectives: continues formation of the production centers in West Africa, gains new experience in managing international project and expands its competence in offshore operations.
In Venezuela Gazprom neft acts as part of the Russian National Oil Consortium also engaging Rosneft, Lukoil, TNK-BP and Surgutneftegaz. Gazprom neft was awarded a leader status of the Junin-6 project for the development of the heavy oil zone in the Orinoco River basin (Venezuela). This status grants the authority, on behalf of the Russian side, to coordinate activities of PetroMiranda, a Russian-Venezuelan joint venture established for the Junin-6 block development. The leading company is responsible for making a final investment decision on further development of the Junin-6 block.
As part of the strategic cooperation with Italian Eni, Gazprom neft was able to participate in the development of Libya's Elephant oil field with oil reserves averaging 210 million tons.
In addition, the Serbian oil company NIS, a subsidiary of Gazprom, is active on the Balkans. The company carries out production activities in Serbia as well as implements projects in Hungary, Romania, Bosnia and Angola.
Mineral Resource Base Development Program
The Gazprom Group development strategy is aimed to balance the reserves growth and hydrocarbons production, and to secure the expanded resource replenishment in the future.
In June 2011 the Gazprom Management Committee adopted the Gas Industry Mineral Resource Base Development Program until 2035. The program envisages expanded replenishment of the mineral resource base with due consideration of changes in the reserves structure and a shift of the gas production centers to the new regions: the Yamal Peninsula, Eastern Siberia and the Far East, the Russian continental shelf. The Program implementation will enable adding some 20 billion tons of fuel equivalent between 2011 and 2035.
The document pays special attention to the research and development activities that will allow for a considerable increase in the efficiency of the new fields and hydrocarbon reserves exploration and prospecting.