Lukoil announced the results of the reserves assessment and independent audit as of December 31, 2018.

According to the SEC classification, the company’s proven hydrocarbon reserves totaled 15.9 billion barrels of oil equivalent, 76 percent of which stood for liquids. The proven reserves replacement ratio for liquids totaled 101 percent. In Russia, the main region of Lukoil’s operations, the replacement ratio reached 127 percent. The company’s proven hydrocarbon reserves life is 19 years.

As a result of geological exploration and production drilling conducted in 2018, Lukoil added 576 million barrels of oil equivalent to proven reserves with the largest contribution from production drilling in West Siberia and Timan-Pechora.

A positive revision of the proven reserves in the aggregate of 297 million barrels of oil equivalent was driven by a higher average oil price, the optimization of development systems and wellwork programs at existing fields, as well as the conversion of contingent resources to reserves. The latter development was a result of the company’s final investment decision on the Rakushechnoye field in the Caspian Sea, as well as the introduction of the profit-based tax for a number of fields. The reserves dynamics were negatively affected by reserves revision for the international projects based on production sharing agreements and service contracts due to average oil price growth and changes in the West Qurna-2 project development plan.

The independent audit of proven reserves was performed by Miller and Lents based on the commercial life-of-field approach.

Lukoil is one of the largest oil and gas vertically-integrated companies in the world, accounting for over two percent of crude production and one percent of proven hydrocarbon reserves globally. Lukoil enjoys a full production cycle to control the entire value chain from upstream to downstream. Lukoil employs over 110 thousand people.