Novatek Boosts Reserves in 2019
Novatek increased its proven reserves by 3% in 2019, the Russian LNG producer said on January 22, despite selling a 40% stake in its Arctic LNG-2 project during the year to foreign partners.
The company’s proven hydrocarbon reserves stood at 16.27bn barrels of oil equivalent at the end of December, up from 15.79bn boe a year earlier, according to an appraisal by DeGolyer & MacNaughton. This represented a reserve replacement rate of 181%, it said in a statement. Proven gas increased to 2.234 trillion m3, up from 2.177 trillion m³.
Novatek attributed the growth in reserves to exploration success, mostly on the Gydan Peninsula, as well as results from production drilling further south. The company also acquired new licences on Gydan, where it plans to launch the 19.8mn mt/yr Arctic LNG-2 project in 2023. It sold stakes in the venture last year to France’s Total, China’s CNPC and Cnooc and Japan’s Mitsui and Jogmec.
Novatek’s proven and probable (2P) reserves were assessed at 28.73bn boe at the end of last year, down 3%, including 3.901 trillion m3 of gas. Excluding the Arctic LNG-2 sales and other acquisitions and disposals, however, Novatek managed a 200% replacement rate for its 2P reserves.