Resource base

The key contributors to the Gazprom Neft resource base include organic growth through additions from existing assets, proactive exploration in frontier areas, and production from the assets under long-term risk-operatorship agreements with Gazprom.

Commercially-recoverable reserves at mature fields make up a meaningful part of the company’s resource base. Gazprom Neft is using advanced-drilling and tertiary-recovery techniquesOil production and recovery efficiency are boosted by tertiary recovery techniques, including inert-gas injection, chemical flooding, steam injection, etc. to increase production from these fields. Also, some additions to the resource base annually come from geological exploration and new-asset acquisition.

The company’s reserves are audited in accordance with the SPE-PRMS standards and the more conservative SECSEC stands for the U.S. Securities and Exchange Commission, which developed an oil reserve classification system that requires the use of a 12-month average of monthly opening prices in the reporting period. standards. According to a reserve report by DeGolyer & MacNaughton,A petroleum consulting firm. an independent petroleum consulting firm, Gazprom Neft’s total proved and probable hydrocarbon reserves (including allocations proportional to the company’s interests in affiliated companies) under the SPE-PRMS international standards were estimated at 3,908 mtoe as at 31 December 2020 (2,001 mt of oil and 2,311 bcm of gas), excluding the reserves associated with NIS, Serbia.

The driving force behind this record-breaking year-on-year increase of 36.6% were farm-inBearing exploration and field infrastructure development costs in farm-in agreements gives Gazprom Neft an opportunity to add farm-in reserves, production, and financial returns to its balance sheet. reserve additions at oil rims and Neocomian-Jurassic gas and gas condensate deposits at Gazprom PJSC fields (primarily the Bovanenkovskoye and Kharasaveyskoye fields). By booking these reserves for the first time in the 2020 audit, more than 1 btoe was added to the resource base.

Gazprom Neft’s 1P reserves-to-production ratio (SPE-PRMS standards), including interest in joint operations and ventures, has increased from 17 to 22 years. The company’s 1P reserve-replacement ratio (RRR) is 670%, while 1P+2P RRR is 1,190%.

Gazprom Neft Group hydrocarbon reservesExcluding reserves associated with NIS, Serbia. under the SPE-PRMS classificationPetroleum Resources Management System. The Petroleum Resources Management System was jointly developed by the World Petroleum Council, the Society of Petroleum Engineers, and the American Association of Petroleum Geologists. mtoe
Reserves status 2016 2017 2018 2019 2020
Developed 726 719 734 763 757
Undeveloped 788 803 830 820 1,366
Proved 1,514 1,522 1,564 1,583 2,123
Probable 1,205 1,259 1,277 1,278 1,785
Proved+probable 2,719 2,781 2,841 2,861 3,908
Possible 1,189 1,241 1,204 1,426 2,158
TOTAL 3,908 4,022 4,045 4,287 6,066
Source: company data
Reserve-replacement highlights, mtoe
Enterprise Proved reserves (2019) Hydrocarbon production Exploration, development and revision of prior estimates Reserve additions Proved reserves (2020)
Gazprom Neft 922 (61) 56 564 1,481
Tomskneft VNC (JV) 68 (3) (1) 64
Oil and Gas Company Slavneft (JV) 131 (5) 6 132
Salym Petroleum Development N.V. (JV)  23 (3) 3 23
Messoyakhaneftegaz (JV) 16 (3) 7 20
Arcticgas (JV) 360 (17) 8 351
Northgas (JV) 63 (3) (8) 52
TOTAL 1,583 (95) 71 564 2,123
Source: company data

In 2020, the company acquired licences for 18 new blocks in the Yamalo-Nenets Autonomous Okrug, Khanty-Mansi Autonomous Okrug–Yugra, and other regions, including 14 new exploration licences for deeper-pool and extension testing at producing fields in the Yamalo-Nenets Autonomous Okrug and the Khanty-Mansi Autonomous Okrug–Yugra. The total number of company licences in Russia is up to 233 (including seven licences for shelf blocks).

In 2020, Gazprom Neft discovered three fields in the Khanty-Mansi Autonomous Okrug–Yugra and the Orenburg Oblast, and made 26 new deposit discoveries across its footprint. As to operations at licence blocks on the shelf, the company is reviewing its geological model and seismic data for the Ayashsky block in the Sea of Okhotsk, and continues negotiations with prospective Russian and international partners. Gazprom Neft is also assessing the resource potential of the Kara Sea and the Sea of Okhotsk.

Licence acquired in 2020
Region Number of licences Licence blocks
Yamalo-Nenets Autonomous Okrug 12 Khambateysky, Severo-Yamburgsky, Sredne-Itursky, Sugmutsky, Severo-Yangtinsky, Vyngapurovsky, Zhigulevsky, Privolny, Zapadno-Etypurovsky, Zapadno-Yarainersky, Novogodny-2, Yaro-Yakhinsky 2
Khanty-Mansi Autonomous Okrug–Yugra 5 Karabashsky 84, Ledovy, Kholodny, Snezhny, southern part of the Priobskoye field
Orenburg Oblast 1 Roshchinsky
Source: company data

Partnerships

Opening a new chapter in our partnership with Royal Dutch Shell

In March 2020, Gazprom Neft and Royal Dutch Shell closed a deal targeting the reserves at the Salym group of fields. Salym Petroleum Development N.V. joint venture's asset portfolio includes a new licence for the exploration and production of conventional reserves at the Salymsky-2 block in the Khanty-Mansi Autonomous Okrug–Yugra. This block borders on the Zapadno-Salymskoye, Vadelypskoye, and Verkhnesalymskoye fields, which are being developed by the joint venture. 

Furthermore, Gazprom Neft and Royal Dutch Shell closed a deal in November 2020 establishing a joint venture to explore and develop the Leskinsky and Pukhutsyayakhsky licence blocks on the Gydan Peninsula. Under the terms of the deal, each partner holds 50% equity and management control in the joint venture. Gazpromneft-GEO is acting as the exploration operator for the initial exploration of the Leskinsky and Pukhutsyayakhsky licences.

Developing hard-to-recover reserves

In June 2020, Gazprom Neft, LUKOIL and TATNEFT closed a deal establishing a joint venture to explore and produce hard-to-recover hydrocarbon reserves in the Orenburg Oblast. The joint venture’s asset portfolio includes the Savitsky and Zhuravlevsky licence blocks. Each party has been allocated an equal, one-third interest.

The partners will be pooling their operational and technological capabilities to maximise value from conventional oil reservoirs, as well as to develop viable technologies to bring hard-to-recover reserves on stream.

In addition to this, in August 2020, Gazprom Neft and Zarubezhneft signed off on the establishment of Gazpromneft-Salym, a joint venture to develop Salym projects in the Khanty-Mansi Autonomous Okrug–Yugra. This joint venture will be a proving ground where technologies targeting hard-to-recover oil can be developed and tested. Its portfolio includes the Salymsky-3 and Salymsky-5 licence blocks in the Khanty-Mansiysky District of the Khanty-Mansi Autonomous Okrug–Yugra. Gazprom Neft and Zarubezhneft hold 51% and 49% interest, respectively. In 2020, Gazpromneft-Salym discovered a new field, Solkham, in the Khanty-Mansi Autonomous Okrug–Yugra. Oil-in-place is estimated at 7.5 mt, with initial recoverable reserves of more than 350,000 tonnes.

Development of digital solutions for the oil and gas industry

In April 2020, Gazprom Neft and X-Holding closed a deal establishing a joint venture to develop digital solutions for the oil and gas industry, and roll them out across the domestic and global markets. This joint venture is striving to drive the Industry 4.0 digital transformation of the oil and gas industry. Some of its promising projects include an investment decision support system for oil and gas fields, computer vision solutions to enhance workplace safety, and a tool to automate integrated asset modelling in production forecasting.