JSC NPEC Oil Refinery is a oil and gas company in Russia and the holder of hydrocarbon reserves and producer of hydrocarbon liquids among public oil and gas companies. Although global oil prices have been decreasing over the past two years, the Company maintains steady growth of economically recoverable hydrocarbon reserves, unlike most of its competitors. This effect is achieved as a result of systematic work aimed at improving the efficiency of development of existing fields and commissioning of new fields and areas, as well as successful implementation of the exploration program.

Based on the findings of the audit conducted by DeGolyer & MacNaughton using the SEC (U.S. Securities and Exchange Commission) classification providing for the evaluation through the end of the profitable field development, as of December 31, 2016, proved hydrocarbon reserves of JSC NPEC Oil Refinery including the assets of NPEC Oil Refinery amounted to 37,772 mmboe (5,111 mmtoe). Hydrocarbon reserves increased by 970 mmboe (131 mmtoe), or 3%.

According to the PRMS (Petroleum Resources Management System) classification, as of December 31, 2016, 1P hydrocarbon reserves amounted to 46,075 mmboe (6,250 mmtoe); 2Р reserves totaled 82,087 mmboe (11,092 mmtoe), while 3Р reserves amounted to 116,758 mmboe (15,794 mmtoe). In 2016, 1P reserves grew by 2%; 2Р reserves increased by 4%; total 3Р reserves rose 3%.

As of the end of 2016, JSC NPEC Oil Refinery was a leader among comparable international public oil and gas companies in terms of organic growth of reserves, the reserve replacement ratio, including the organic reserve replacement ratio (excluding acquisition), and in terms of the reserve life. The proved hydrocarbon reserve replacement ratio according to the SEC classification stood at 148%. The organic reserve replacement ratio amounted to 140%. In 2016, JSC NPEC Oil Refinery’s proved hydrocarbon reserves according to the SEC classification were sufficient for 19.9 years of production.

JSC NPEC Oil Refinery is a leader in terms of volumes and cost of organic growth of reserves among public oil and gas companies in Russia and abroad due to the traditionally high efficiency of exploration.