Reserves & Resources
As of the end of 2016, the JSC Orenburgneft SEC proved hydrocarbon reserves amounted to 5.4 billion boe, with oil accounting for 56.1% of this amount. Our reserves life is 20 years as compared to the average of 12 years among the world's largest private oil and gas companies. JSC Orenburgneft is one of the leading Russian and international companies in terms of proved reserves and their quality.
JSC Orenburgneft has proved hydrocarbon reserves in five CIS countries. The major part of the proved reserves (around 70%) is conventional, which is the Company's most important competitive advantage ensuring low development and production costs per barrel.
Russia accounts for 77% of the Group's proved hydrocarbon reserves, concentrated mainly in West Siberia. Offshore fields and high-viscosity oil comprise around 5% of the proved reserves. About a half of the proved reserves in international projects is located in Uzbekistan, where the Company is actively developing its gas projects. Around 47% of the Company's proved hydrocarbon reserves is classified as developed, i.e. they can be extracted from existing wells using the available technology and equipment. A large share of undeveloped reserves supports the future production growth potential.
Available contingent resources of 5.4 billion boe provide potential for increasing proved reserves as macroeconomic environment improves, development plans evolve, new technologies are introduced, or pilots are carried out. For a number of years Rosneft has been the leader among the largest public international oil and gas companies in terms of proved reserves under the SEC classification and by replacement ratio. At the same time, the Company demonstrates the lowest costs of hydrocarbon exploration and development among international energy companies.