Reserves of LUKOIL has decreased due to the fall in oil prices

LUKOIL proven reserves, by the end of 2015 decreased by 1 billion barrels., to 16.6 billion of oil equivalent (5.6%), reported the press service of the company after the audit of reserves conducted by Miller and Lents. This includes an amount of 12.6 billion barrels. oil and 23.8 trillion cubic feet of gas.

Evaluation of reserves was performed in accordance with the standards of the Commission on securities and stock exchanges of the USA (hereinafter SEC) before reaching the economic limit of profitable mining, is spoken in the message of LUKOIL. The restatement of proved reserves is primarily due to the decrease in the cost of oil Urals in 1.9 times, which is reflected in the economic feasibility of development of a part of reserves. The average price for Urals crude fell from $100,1/bbl. in 2014, to $52,8 per barrel. in 2015 (Tuesday Brent, whose derivative is the Urals, was trading at $33,22 per barrel.).

“The evaluation was conducted in the context of dramatic downturn on global commodities markets. According to the standards of the company’s inventories were valued using the averages for the 12 months 2015 quotations of oil taken on the 1st of each month. Due to the decline in oil prices proved reserves in the amount of 644 million barrels. of oil equivalent were moved to lower categories of reserves”, — stated in the message of LUKOIL. While improving economic conditions the company expects the return of these volumes of oil and gas in the proven category.

Increase the company’s reserves in traditional regions of activity in Russia and abroad amounted to 548 million barrels. of oil equivalent.

Shares of LUKOIL on the London stock exchange fell almost 4%, the capitalization of the company amounted to $26,23 billion (at 15:20 GMT).