Rosneft’s Reserve Base
Russian Onshore Exploration Activities
Strategic goals of the company’s exploration program
- Provision of 100% liquid hydrocarbon reserve replacement ratio
- Increase of exploration drilling success rate to 95% by 2022 through technological advancements and innovations
New exploration technologies
Rosneft together with ВР and WG is developing a unique system of seismic data recording unrivalled in the world. Russia was the first in the world to conduct winter 3D tests in Western Siberia, the Ai-Yaunsky licence area. The survey was in parallel with standard production operations. Now the obtained data has been fully processed. The results exceeded the expectations: geological informativeness and productive capacity were significantly improved; the possibility of working in extreme areas was proved.
The Company has continued its phased deployment of advanced seismic data processing and interpretation technologies to improve its exploration drilling success rate. In particular, the Company deployed advanced near-surface anomaly detection practices in an effort to minimize errors during structural modelling. Finite difference wave field simulations are used to identify optimum parameters for seismic surveys during the design stage.
The Company’s top priorities are the development of the resource potential, sustainable use of mineral resources, and an extensive application of advanced technologies while exercising strict compliance with environmental safety standards.
In 2018, 142 onshore exploration wells in Russia were completed and tested with a high level of success rate – 84%. 2D seismic surveys totaled about 5 thousand linear km, while 3D seismic surveys totaled 10 thousand sq. km.
Successful exploration led to the discovery of 23 fields and 230 deposits with a total reserves of 250 mmtoe.
A complex of research and development activities has been developed in the Company, which is still being implemented. Also, measures have been launched to set up an in-house geophysical service. The field seismic surveys simulation methods were employed to obtain optimum observations systems for a number of Group Subsidiaries.
Independent International Audit of Reserves
Proved hydrocarbon reserves of Rosneft under SEC standards amounted to 41,431 mmboe (5,597 mmtoe) as of 31 December 2018. Hydrocarbon reserves grew by 1,524 mmboe (202 mmtoe), or 4%, year-on-year. DeGolyer & MacNaughton conducted an audit with the assessment of reserves till the end of the field producing life.
In 2018, Rosneft’s SEC-proven hydrocarbon reserve life amounted to more than 20 years, and organic SEC-proven hydrocarbon reserve replacement ratio stood at 173%Reserve replacement ratio is calculated in tonnes of oil equivalent. Rosneft’s reserve replacement ratio in barrels of oil equivalent was estimated at 175%.
For several years, Rosneft has been a prominent leader among the major public international oil companies in terms of SEC proved reserve life and SEC proved reserve replacement ratio. At the same time, the Company has the lowest exploration and development costs for hydrocarbon reserves compared to other international energy companies.
According to Petroleum Resources Management System classification (PRMS), DeGolyer & MacNaughton estimated the hydrocarbon reserves of 1Р category as 47,045 mmboe (6,368 mmtoe), 2Р category – 84,094 mmboe (11,388 mmtoe), and 3Р category – 121,165 mmboe (16,426 mmtoe) as at 31 December 2018.
Reserve Replacement by Regions
In 2018, at the new Erginsky oil and gas cluster launched in 2017 in the Western Siberia on the results of re-testing of Novo-Endyrskaya appraisal well No.16, which after hydraulic fracturing showed oil inflow of 26.9 cub. m / day, the Irtishskoye field was discovered with crude oil and associated gas reserves of 22.5 mmtoe (С1+С2 initial recoverable reserves).
RN-Uvatneftegaz successively implements the strategy of the Uvat project development, including the target annual increase in the recoverable reserve replacement ratio. As can be seen from the outcomes of 2018, the geologists still discover more crude oil reserves than can be recovered. Thus, in 2018, RN-Uvatneftegaz had 238% excess of АВ1С1 reserves expansion (25.2 mmt) over the production volumes (10.6 mmt oil output).
The key achievement of the RN-Uvatneftegaz exploration program is the discovery of two fields at the territory of the Khanty-Mansi Autonomous Area, the license areas Yuganskiy-11 and Yuganskiy-12, following the drilling results of the first appraisal wells.
The Company actively developes its gas business. Rosneft carried out 3D seismic surveys of 280 sq. km and completed and tested two wells. In 2018, Rosneft’s gas reserves in the Western Siberia grew by 107.7 bcm. The Company continued to explore the Berezovskaya suite non-conventional gas-saturated reservoir in the Western Siberia. In the reporting year, after wells testing in an interval of the Berezovskaya suite at the Kharampur field, new gas reservoirs were discovered in VB1 and NB1 formations.
Increases in recoverable В1+В2 gas reserves within the Kharampur license area amounted to 79.9 bcm of gas.
Since 1996, the Company has been operating at the Russko-Rechenskiy license area located in the Tazovsky District of the Yamal-Nenets Autonomous Area bordering the Krasnoyarsk Territory. One of the 2018 exploration achievements was a record-breaking open flow rate of oil with associated gas amounting to 903 cub. m / day while testing the Russko-Rechenskaya well No.749.
Under the scope of the Gydan Peninsula study, in 2018, JSC Rospan International finalized interpretation of 3D seismic surveys of the Minkhovskiy license area, confirmed the field potential, and updated the location of exploration wells.
107.7 bcm gas reserves growth Two new fields and
76 new deposits discovered with a total 193.2 mmtoe in АВ1С1+В2С2 reserves
The Company’s technological development in terms of exploration efficiency improvement covers both the seismic surveys and the methods of their interpretation. On the basis of a comprehensive analysis of geological and geophysical data, a procedure was developed to forecast the areas of improved reservoirs development in the formations associated with basement highs and reef structures in the Osinskiy horizon. Modern hi-tech approaches to the interpretation of geological and geophysical data (seismic inversion, seismic attributes calculation, and complex analysis of the results), as well as the perfection of geologic conception, contributed to highly successful exploration.
In 2018, the geological and geophysical structure models of the Danilovsky and Sanarsky license areas and the Verkhneicherskoye field were updated according to the results of seismic surveys, and the priorities were set in relation to 2019 appraisal and exploration drilling within the areas of conducted 3D-surveys. According to the 2018 seismic data express-interpretation and processing, the potential of the West Chonsky and Sredne-Kochemsky licence areas has been confirmed and the focus sites have been outlined. The appraisal and exploration drilling led to a revision of the structure model of the Verkhnechonskoye, North Danilovskoye, South Danilovskoye, Verkhneicherskoye, and Savostyanov fields at the Mogdinsky license area. The Danilovskaya-82 well of the South Danilovskoye field showed a record-breaking flow rate of oil for B5 – 320 cub. m / day. Increase in В1С1 reserves based on the results of 2018 exploration amounted to 19 mmtoe.
At the Khatangsky cluster of the Company (the Taimyr Peninsula) the major 2D seismic surveys of 4,476 linear km were completed in 2018, including 1,827 linear km in 2018 (Vladimirsky, Kungasalakhsky, and Kupchikhtassky license areas).
Drilling of multilateral wells continued on the projects of the Krasnoyarsk Territory aimed at confirming productivity of the complex fractured carbonate reservoirs and increase the reserves area in 2018. Having complicated the exploration wells design, even in difficult geological conditions the Company managed to reach the targeted reserves growth, update the geological model, and eliminate geological risks of production drilling. It was decided to roll out the technology to the complex carbonate reservoirs in the Eastern Siberia and Timan-Pechora.
34.4 bcm gas increase in reserves in the Eastern Siberia and the Far East Two new deposits discovered with a total
1.1 mmtoe in АВ1С1+В2С2 reserves
4.8 thousand linear km, while 3D seismic surveys totaled 1.7 thousand sq. km
The Company consistently performs its exploration activities in Southern Russia assets to replace reserves in the region. In the reporting year, on the territory of the Republic of Daghestan – the oldest oil and gas region of the Russian Federation – 2D seismic surveys totaled 68 linear km; one well was completed and tested. Modern technologies of 2D surveys and field data processing were applied for searching the advanced sites in conditions of complex geology, large depths, high density of industrial and agricultural infrastructures. The structure on the West Izberbashsky license area was considered as the most promising, therefore it was recommended for well drilling.
The results of West Izberbashskaya well No.1 drilling proved the possibilities of new discoveries in old oil and gas production regions. Today the Company continues exploration on the territory of the Republic of Daghestan within the Karlaniurtovsky, Karatiubinsky, Karabudakhkentsy, and Dimitrovsky license areas, as well as analyses the open acreage for further licensing.
7.9 bcm gas reserves growth in the Volga-Urals region, Timan-Pechora, and Southern Russia 21 fields and 152 deposits discovered with a total 55.4 mmtoe in АВ1С1+В2С2 reserves
4.6 thousand sq. km and 2D surveys totaled
68 thousand linear km