Gas and oil reserves

Gazprom holds the world’s largest natural gas reserves, with a share in the global and Russian reserves amounting to 16 and 71 per cent respectively. As of December 31, 2018, the Group’s domestic A+B1+C1 hydrocarbon reserves (under Russian standards) amounted to 35,195.3 billion cubic meters of gas, 1,604.4 million tons of gas condensate, and 2,015.7 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

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

Reserves of associated companies and joint ventures

In 2018, the A+B1+C1 hydrocarbon reserves of associated companies and joint ventures within the share of the Gazprom Group stood at 1,146.7 billion cubic meters of natural and associated gas, 110.1 million tons of gas condensate, and 592.0 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 2018, the Group’s proven and probable hydrocarbon reserves included 24,255.1 billion cubic meters of gas, 1,090.2 million tons of gas condensate, and 1,335.4 million tons of oil.

The audit covered 93 per cent of gas, 94.1 per cent of condensate, and 93.9 per cent of oil reserves in the A+B1+C1 categories.

Gazprom Group’s reserves under PRMS standards

 

As of 31 December, 2016 As of 31 December, 2017 As of December 31, 2018
Natural gas, billion cubic meters 23,855.1 24,146.6 24,255.1
Gas condensate, million tons 1,018.9 1,105.7 1,090.2
Oil, million tons 1,378.7 1,360.0 1,335.4

Total, billion barrels of oil equivalent

173,3 175.7 176.1

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.

Ekaterina drilling rig performing geological exploration in Yamal Peninsula
Ekaterina drilling rig performing geological exploration in Yamal Peninsula

Ekaterina drilling rig performing geological exploration in Yamal Peninsula

In 2018, the reserves replacement ratio was 1.60 for gas and 0.69 for gas condensate and oil.

Gazprom operates in almost all of Russia’s oil- and gas-bearing regions. In 2018, the Group allocated a total of RUB 86.4 billion for the geological exploration of domestic hydrocarbons.

Geological exploration on Arctic shelf
Geological exploration on Arctic shelf

Geological exploration on Arctic shelf

Throughout 2018, the additions in A+B1+C1 hydrocarbon reserves as a result of geological exploration in Russia amounted to:

  • 796.6 billion cubic meters of natural gas;
  • 21.8 million tons of gas condensate;
  • 19.4 million tons of oil.

2018 saw the discovery of three new fields – Neptun and Triton on the shelf of the Sea of Okhotsk, as well as Blizhnenovoportovskoye in the Yamal-Nenets Autonomous Area – and 12 new deposits in the Yamal-Nenets Autonomous Area, the Khanty-Mansi Autonomous Area – Yugra, the Tomsk and Orenburg Regions, and on the shelf of the Kara Sea. In addition, the Vostochno-Talovoye field in the Tomsk Region and three deposits in the Khanty-Mansi Autonomous Area – Yugra were discovered by the companies investments wherein are classified as joint operations.

Key figures of Gazprom Group’s hydrocarbon exploration (excluding companies investments wherein are classified as joint operations)
  Year ended December 31
2014 2015 2016 2017 2018
Exploratory drilling, thousand meters 165.4 143.6 111.6 85.9 157.6

Number of constructed exploratory wells

41 43 40 36 25

including producing wells

31 38 34 31 20

2D seismic survey, thousand linear kilometers

6.6 0.3 1.1 5.7

3D seismic survey, thousand square kilometers

12.6 20.0 20.6 18.7 9.5

Hydrocarbon development beyond Russia

In line with the existing contractual obligations, the Gazprom Group continues to implement its ongoing projects in foreign countries. In 2018, 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 4.7 billion in 2018.

Key figures of Gazprom Group’s hydrocarbon exploration abroad
  As of December 31
2014 2015 2016 2017 2018
Exploratory drilling, thousand meters 17.6 28.3 9.7 18.4 21.9
Number of constructed exploratory wells 5 4 8 8 10
including producing wells 4 2 7 5 9
2D seismic survey, thousand linear kilometers 1.5
3D seismic survey, thousand square kilometers 1.7 1.4 0.8 1.2 1.1

Within the scope of the geological exploration projects in which the Group serves as the operator, in 2018 exploratory drilling was performed in Serbia and Iraq, with 3D seismic surveys carried out in Serbia.

Exploratory drilling in Serbia
Exploratory drilling in Serbia

Exploratory drilling in Serbia

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 (MRB) 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.