According to the data audited by Miller and Lents (USA), LUKOIL's proved reserves as at January 1, 2005 are estimated at 20.07 billion barrels of oil equivalent (boe), including 15.97 billion barrels of oil and 24.60 trillion cubic feet of gas.
For five years on end the Company has completely compensated the hydrocarbons production with the reserves additions. LUKOIL had 3.5% growth of the proved reserves in 2004 taking into account the hydrocarbons production. Discounting the production, the annual Company's proved reserves growth was 0.1%
The evaluation of the reserves of OAO LUKOIL was performed in compliance with the US Society of Petroleum Engineers (SPE) requirements. The proved reserves included those volumes which are recoverable up to and past license expiry dates.
The Company's total reserves in all categories constitute 100% net reserves owned by the consolidated subsidiaries and net share in appropriate reserves of affiliates.
The main factors behind the growth of the reserves are:
Exploration remains a top priority in the Company's development. The approved Strategic development program of LUKOIL Group for 2005-2014 provides for complete compensation of the hydrocarbons production with the reserves additions at the competitive cost level.
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