Reserves and resources

In 2009, Rosneft confirmed its status as the largest publicly traded oil company in the world by volume of liquid hydrocarbon reserves. The Company increased its proved reserves under PRMS and SEC international classifications.

According to an audit by DeGolyer & MacNaughton, Rosneft’s proved reserves by PRMS classification as of December 31, 2009 were 18,058 mln barrels (2,483 mln tonnes) of oil and 816 bln cubic meters of gas. The Company’s proved hydrocarbon reserves increased to 22,858 mln barrels (3,139 mln tonnes) of oil equivalent, mainly thanks to large-scale and highly efficient geological exploration work. The proved hydrocarbon reserve replacement ratio in 2009 was 163%, including 146% for oil reserves.

Company reserves are located both in traditional oil & gas producing regions (southern part of European Russia, Western Siberia, Central Russia) and in promising new regions (Eastern Siberia, the Far East, Timan-Pechora). About 76% of the Company’s proved oil reserves are concentrated in Western Siberia, mainly in Khanty-Mansiysk Autonomous District, and about 10% are in Eastern Siberia. Western Siberia also contains about 80% of the Company’s proved gas reserves, which are concentrated mainly in the Yamal-Nenets Autonomous District. Most of Rosneft’s hydrocarbon reserves are conventional. As of the end of 2009 Rosneft had reserve life of 26 years, including 23 years for oil and 66 years for gas.

The Company also has large probable and possible reserves, which provide an excellent foundation for further growth of proved reserves. Probable reserves of Rosneft by PRMS classification at the end of 2009 were 11,013 mln barrels (1,516 mln tonnes) of oil and 518 bln cubic meters of gas, while possible reserves were 8,420 mln barrels (1,149 mln tonnes) of oil and 450 bln cubic meters of gas.

DeGolyer & MacNaughton also carried out their regular SEC ‘life-of-field’ audit and found that proved SEC reserves were 13,931 mln barrels (1,915 mln tonnes) of oil and 207 bln cubic meters 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.According to the mean estimate by DeGolyer & MacNaughton, prospective recoverable resources in upstream projects with Rosneft involvement were over 47 bln barrels (6.5 mln tonnes) of oil equivalent as of the end of 2009.

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