TNK-BP Replaces 137% of Production with New Reserves
TNK-BP released the results of the independent audit of its reserves as at the end of 2005. This represents the third complete audit of the company's reserves since its creation in August 2003.
The independent firm of DeGolyer and MacNaughton conducted the audit to criteria stipulated by both the United States' Securities and Exchange Commission (SEC) and the Society of Petroleum Engineers (SPE).
The audit confirms that as at December 31, 2005, TNK-BP's Total proved Reserves were 8.230 billion barrels (liquids only), applying SEC methodology on a life of field (LOF) basis. Of these, Proved Developed reserves were 6.108 billion barrels. This constitutes a Total Proved SEC (LOF) reserve replacement factor of 137%; exceeding the company's enduring annual objective of at least 100% reserve replacement under these criteria.
These figures are adjusted for the sale of assets in 2005. Before the adjustment the SEC (LOF) reserves replacement factor is 149%. Under SPE criteria, Total Proved reserves were 9.229 billion barrels (liquids only). SPE Proved Developed reserves were 6.108 billion barrels. This represents a 125% Total Proved SPE reserves replacement rate after the adjustment for divestments.
Before the adjustment for assets sold in 2005, the SPE reserves replacement factor is 139%.
The audit results do not include reserves or resources associated with the ownership of 50% of Slavneft by the shareholders of TNK-BP. Nor do they include any figures for gas.
In 2005, TNK-BP grew oil production by 6.4% to 77 million tons (average daily production of 1.58 million barrels of oil per day). This compares with Russian industry average figure of approximately 2.4%.The main drivers behind the strong reserve replacement figures were targeted drilling and well work activity and 2005 exploration success.
President and CEO of TNK-BP, Robert Dudley said: "This is another very pleasing result in a vital area of our business, as well as a positive contribution to Russia's reserves. It is also a clear demonstration of the benefits of investing in new technologies and applying them to our existing asset base."
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