Reserves and resources

DeGolyer & MacNaughton SPE Reserves Report as of December 31, 2006 (Rosneft_Reserves_SPE.pdf, 3.72Mb)

In 2007, Rosneft remained the global leader among publicly traded oil companies in terms of proved liquid hydrocarbon reserves.

As of December 31, 2007, Rosneft’s proved reserves under the SPE classification audited by DeGolyer & MacNaughton totaled 17,513 mln. barrels of crude oil and 711 bln. cu. m. of gas. Streamlined exploration operations and new acquisitions enabled the Company to increase its total proved hydrocarbon reserves by 8.0% to 21,699 mln. boe. The proved reserve replacement ratio in 2007 was a global industry record of 301% (including acquisitions), while the organic reserve replacement ratio reached 111%.

Following the acquisition of Tomskneft, Samaraneftegaz, and East Siberian Oil and Gas Company in May 2007, Rosneft significantly expanded its reserve base in West and East Siberia and in the Samara region. According to DeGolyer & MacNaughton, as of December 31, 2007, Tomskneft had proved reserves of 0.97 bln. barrels of crude oil and 14.5 bln. cu. m. of gas (including Rosneft’s share of 0.49 bln. barrels of crude oil and 7.3 bln. cu. m. of gas). Samaraneftegaz had proved reserves of 0.94 bln. barrels of crude oil and 5.2 bln. cu. m. of gas. Proved reserves of East Siberian Oil and Gas Company stood at 0.03 bln. barrels of crude oil.

Rosneft currently operates an extensive hydrocarbon reserve base in the traditional oil and gas provinces of Southern Russia, West Siberia, and Central Russia, as well as in the new and highly promising regions of East Siberia, the Far East, and Timan-Pechora. More than three quarters (77%) of Rosneft’s proved crude oil reserves are located in West Siberia, mainly in the Khanty-Mansiysk Autonomous District. East Siberia accounts for another 10% of the Company’s proved crude oil reserves. In total, 90% of Rosneft’s proved gas reserves are located in West Siberia, primarily in the Yamal-Nenets Autonomous District. The major part of the Company’s reserves is conventional. In 2007, the average life of Rosneft’s proved hydrocarbon reserves (reserve-to-production ratio) was 27 years: 25 years for proved crude oil reserves and 47 years for proved gas reserves.

In addition, Rosneft has a significant portfolio of probable and possible reserves, which ensures continued growth in proved hydrocarbons. In 2007, the Company’s probable reserves under the SPE classification stood at 10,446 mln. barrels of crude oil and 470 bln. cu. m. of gas, while its possible reserves totaled 10,232 mln. barrels of crude oil and 638 bln. cu. m. of gas.

Rosneft also performs reserve audits under the SEC life-of-field classification. In 2007, the Company’s proved SEC reserves were estimated by DeGolyer & MacNaughton at 13,365 mln. barrels of crude oil and 192 bln. cu. m. of gas.

Rosneft actively participates in various exploration projects both in Russia and abroad. This enables the Company to efficiently replace extracted reserves and continuously expand its reserve base, which ensures sustainable growth in production. Rosneft performs regular audits of its prospective resources.

Prospective resources are defined as potential recoverable or undiscovered deposits on a particular date, and as such are highly conditional in nature. According to DeGolyer & MacNaughton report, as of December 31, 2007, the best estimate of gross prospective resources within exploration projects involving Rosneft in Russia and Kazakhstan was 47,401 mln. barrels of oil and 4,781 bln. cu. m. of gas (SPE classification).

Rosneft’s hydrocarbon reserves and resources audited by DeGolyer & MacNaughton (SPE classification), as of December 31