Novatek announced on January 23, 2017, that, excluding the decline in its share of the Yamal LNG joint venture, its proven reserves were 2.8% higher at end-2016 than a year earlier.
Total proven reserves, including Novatek’s share in joint ventures, aggregated 12,7 mln barrels of oil equivalent (boe), including 1,7 bln m3 of gas and 152 mln metric tons of liquids, it said citing a recent audit by DeGolyer & MacNaughton based on US Securities and Exchange Commission methodology.
Net of the decrease in its Yamal LNG stake from 60% at end-2015 to 50.1% at end-2016, as well as the company’s 2016 production, Novatek’s total proven reserves were 0.3% lower – although that still represented a reserve replacement rate of 92% for the year.
Novatek added that, at end-2016, its reserve to production ratio was 24 years.
Novatek, the 2nd largest producer of gas in Russia after state-run Gazprom, sold a 9.9% equity stake in Yamal LNG to China's Silk Road Fund for €1.087 bln in March 2016.
The 1st production train at Yamal LNG is scheduled to start production later this year and the 1st of the project's dedicated giant ice-class LNG carriers Christophe de Margerie reached Europe on January 20 from its South Korean shipyard.
