The difference of oil production on the project and in fact reached 140 million tons per year

Moscow. On 26 November. The discrepancy of plans for the extraction of oil specified in the design documentation companies to develop fields in Russia, and actual production is 140 million tons per year, said the head of Ministry of natural resources Sergey Donskoy at the conference “on the Eve of the new Russian classification of reserves” on Thursday.

He explained that with current reserves and current practice of development of deposits of the company included in the project to develop the oil reserves, which for objective reasons cannot be developed at the moment.

“In effect, the government creates a misleading picture as to how much oil can be extracted. If you look at the dynamics of the ratio of actual oil production and the volume envisaged in the project documentation, we see that there is a significant difference. Since 2005 it has increased steadily, and currently reaches more than 140 million tons”, – said the Minister.

“This means that the project document today does not match the actual investment plans of the company, and on its basis it is impossible to predict anything. The inclusion of uneconomic reserves in the project document leads to the fact that the subsoil user in a short period of time, usually three years, forced him to reconsider, to avoid claims from regulatory authorities. Of course, this situation is abnormal and needs to be fixed,” said don.

“Today under the current classification the volume of oil reserves in category ABC1 26% greater than the estimate of proven reserves, according to BP. On gas this difference reaches 33%”, – he added.

“Overstating reserves on the balance, we create the illusion that companies are provided with them for many years ahead, while annual growth in reserves through exploration compensates for prey. The state needs to bring its reserve estimates to the economic realities, this will allow to better estimate the IRT for long-term maintenance and growth of production”, – concluded the Minister.