Exploration & Production

In terms of oil production OAO NGK Slavneft holds the seventh place in the Russian Federation. The Company’s share in the total volume of oil produced in the country is above 3.5%. OAO Slavneft-Megionneftegaz is the Holding’s key oil and gas production subsidiary.

OAO Slavneft-Megionneftegazgeologia and OAO Obneftegazgeologia, the Company’s Subsidiaries, carry out exploration and appraisal of OAO NGK Slavneft’s fields in adverse climate conditions of West Siberia. OOO Slavneft-Krasnoyarskneftegaz affiliated to the Holding performs exploration activities in the Krasnoyarsk region.

OAO NGK Slavneft and its Subsidiaries hold licenses for exploration, development and oil and gas production at 31 subsoil areas. 30 of these subsoil areas cover 34 oil and gas fields, including:

in the Khanty-Mansi Autonomous Area – Yugra (KhMAO-Yugra) – the Aganskoye, Vatinskoye, Megionskoye, Mykhpayskoye, Severo-Pokurskoye, Yuzhno-Aganskoye, Ketovskoye, Pokamasovskoye, Yuzhno-Pokamasovskoye, Zapadno-Pokamasovskoye, Severo-Ostrovnoye, Novo-Pokurskoye, Lugovoye, Lokosovskoye, Yuzhno-Ostrovnoye, Taylakovskoye, Achimovskoye, Chistinnoye, Zapadno-Chistinnoye, Severo-Orekhovskoye, Arigloskoye, Maksimkinskoye, Kysomskoye, Ininskoye, Vakhskoye, Vostochno-Okhteurskoye, Malochernogorskoye, Uzunskoye, Zapadno-Ust-Balykskoye, Zapadno-Asomkinskoye, Ostrovnoye and Fainskoye fields;

in the Krasnoyarsk region – the Kuyumbinskoye field situated at 3 license areas (Kuyumbinsky, Kordinsky and Abrakupchinsky), and the northern part of the Yurubcheno-Tokhomskoye field at the Tersko-Kamovsky LA.

There are currently no discovered fields with prospective and estimated oil and gas resources at the Podporozhny LA located in the Krasnoyarsk region.

As of December 31, 2011, the audited proved remaining recoverable oil reserves of OAO NGK Slavneft estimated under SEC LE (U.S. Securities and Exchange Commission), including the licenses validity, made 1,596.9 mln bbl or 218.1 mln t. The Company’s proved reserves increased by 9.97 mln bbl, or 0.6% vs. 2010. As of the beginning of 2012, the Holding’s total gas reserves under SEC LE made 238.8 bln cubic feet (6.8 bln m³) and decreased by 28.3 bln cubic feet, or 10.6% vs. 2010.

As of December 31, 2011, the total proved oil reserves of OAO NGK Slavneft under SEC LOF (excluding the licenses validity) made 1,642.01 mln bbl (224 mln t) that is 6.2 mln bbl, or 0.38% above the 2010 level. The gas reserves under SEC LOF decreased by 10.6% (29.2 bln cubic feet) vs. the previous year and made 245.6 bln cubic feet.

As of December 31, 2011, the proved boe reserves of OAO NGK Slavneft under 3P SPE-PRMS (the oil reserves management system) increased by 179.9 mln bbl, or 2.4% vs. 2010 and achieved 7,564.4 mln bbl (1,012.6 mln t). Within the period specified, the gas reserves under 3P SPE-PRMS decreased by 76.9 bln cubic feet, or 12% and made 563.5 bln cubic feet (15.95 bln m³) vs. 640.4 bln cubic feet (18.1 bln m³) in 2010.

According to the independent audit appraisal, the commercial associated gas reserves decline is caused by decreased gas production at the mature fields and increased associated gas volumes consumed by the Company for own needs.

In 2011, the independent audit of the Company’s hydrocarbon reserves was conducted for 34 fields, 32 of which are located in KhMAO-Yugra, 2 – in the Krasnoyarsk region.

The results of ОАО NGK Slavneft’s oil and gas reserves audit for 2009-2010 are showed based on the opinions of DeGolyer and MacNonghton. During 1997-2009, Miller&Lents.Ltd, an American consulting company, was the continuing auditor of ОАО NGK Slavneft. In 2010, the shareholders recommended that ОАО NGK Slavneft entrusted DeGolyer and MacNaughton, an independent international company, to conduct the audit of hydrocarbon reserves for the corporate reporting convergence.

 
Remaining Recoverable Oil Reserves (mln bbl)