Lukoil's consolidated reserves amount to 19.7 billion barrels of oil equivalent as a result of an acquisition of controlling stakes in a number of companies in the Republic of Komi (namely OAO TEBUKneft, OAO Ukhtaneft, ZAO RKM-oil, OAO YaNTK) early in 2003 and following a reclassification of interests in some affiliates after post-report acquisitions. Lukoil continues to be the world's second largest private company (with ExxonMobil being #1) in terms of proved oil and gas reserves.
The evaluation of the reserves was performed in accordance with the US 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 Company resource base increased by 5% for crude oil and 82% for gas over the year.
The main factors behind the growth of the reserves are:
Exploration remains a top priority in the Company's development. Exploration drilling amounted to 181,000 meters (which accounts for 22% of the overall figure in Russia); construction of 68 exploratory wells was completed; 16 hydrocarbon fields and 15 reservoirs of oil, gas and gas condensate were discovered at the existing properties. The Company's hydrocarbon production has been fully replaced for the last 3 years. In 2000-2002 the replacement ratio reached 170%.
The Company's development guidelines in the area of exploration and management of reserves till 2013 are as follows:
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