Exploration and Production of Crude Oil and Gas

In line with the Company’s strategy for the development of exploration and production by 2025, Gazprom Neft plans to increase hydrocarbon production volumes to 100 million TOE per year. Reserve life (the ratio of reserves to annual production) will be maintained at the level of at least 20 years, while the share of production outside the Russian Federation will be more than 10%. The target level will be achieved on the basis of current assets, through projects in which Gazprom Neft has a participating interest, and on the basis of oil fields transferred from Gazprom. Gazprom Neft also plans to expand its asset portfolio through the acquisition of open acreage, the purchase of assets on the Russian market, and the development of projects abroad. The implementation of the Company’s long-term plan is based both on achieving its medium-term goals and focusing on existing priorities.


The in-house production of crude oil and liquid hydrocarbons can be converted to barrels by using factors which characterise the density of hydrocarbons, depending on the field where they were produced, as well as the actual density of products developed by the Group’s gas processing plants.

The volumes of purchased crude oil, as well as other indicators expressed in tonnes, can be converted to barrels using an average rate of 7.33 barrels per tonne.

The conversion of cubic feet to cubic metres is calculated using a ratio of 35.31 cubic feet per cubic metre3.

One barrel of crude oil is equivalent to 1 BOE, and the conversion of a BOE to cubic feet is calculated using a ratio of 6,000 cubic feet per BOE3.


1 Excluding NIS a.d. Novy Sad reserves and production.
2 Proven reserves.

Source: Company data

For over 15 years, the Company’s reserves have been audited in accordance with PRMS-SPE standards and the even more conservative standards of the US International classification and estimate of hydrocarbon reserves by the standards of the Petroleum Resources Management System (PRMS) and US Securities and Exchange Committee (SEC). These standards include not only the estimate of hydrocarbon reserves, but also provide the estimate of the commercial practicability of extraction and the justifiability of its availability. The period of economically viable reserve development (period of validity of the development licence) is also taken into accountSEC (the US Securities and Exchange Commission). The audits, which were carried out at all Gazprom Neft fields, covered 99% of reserves at the Company’s fields in the Russian ABC1 category.

As reported by the independent petroleum appraisers DeGolyer & MacNaughton (in 2006 and 2007, the Company’s reserves were appraised by Miller and Lents, Ltd), Gazprom Neft’s total reserves in proven and probable hydrocarbons categories as per the PRMS international standards (including the Company’s share in reserves of its subsidiaries, calculated as a proportion of its equity share holding) were 2,291 million tonnes of oil equivalent as of 31 December 2013 (1,708 million tonnes of oil, 726 billion cubic metres of gas), excluding NIS.

The current reserves-to-production ratio, for proven hydrocarbon reserves as per the PRMS standards, is in excess of 20 years.

Gazprom Neft’s increase in proven and probable hydrocarbon reserves as per the PRMS standards, based on reviewing existing reserves, initial evaluations and new acquisitions (Yuzhno-Kinyaminskoye, Vakunaiskoye, Ignyalinskoye and Tympuchikanskoye fields), and including Gazprom Neft’s increase in its shareholding of SeverEnergia, was 163 million tonnes of oil equivalent in 2013.

Given the 2013 production volumes, the Reserves Gross increment of proven reserves, divided by total production in the periodReplacement Ratio for Gazprom Neft’s reserves in proven and probable hydrocarbons, including the acquired share of SeverEnergia, amounted to 367%.