Rosneft oil giant reports 8% growth in SEC reserves

Rosneft oil giant reports 8% growth in SEC reserves

PanARMENIAN.Net - Russia’s largest crude producer Rosneft, which finalized deals late last year to acquire the country’s third largest oil firm TNK-BP, said its hydrocarbon reserves grew in 2012 by 8 percent under the SEC classification and by 3 percent under the PRMS estimate, RIA Novosti said.

“According to the results of an audit performed by DeGolyer & MacNaughton under the SEC life-of-field classification, as of December 31, 2012 Rosneft proven hydrocarbon reserves stood at 19,026 million BOE. That includes oil reserves of 14,592 million bbl (1,999 million tons) and gas reserves at 26,599 billion cubic feet (753 billion cubic meters),” the company said in a statement.

These figures put Rosneft's reserve replacement ratio at 131 percent. Compared to the level registered at the end of 2011, the company's oil reserves grew by 2 percent and gas reserves increased by 33 percent.

Rosneft boosted oil output by 2.7 percent to 125.8 million tons (922 million barrels) and oil refining by 7 percent to 61.7 million tons (452 million barrels) in 2012, Rosneft CEO Igor Sechin said at a meeting with Russian President Vladimir Putin on Tuesday.

Rosneft supplied 24.3 million tons of oil products to the domestic market or about 26 percent of the total, Sechin said.

Rosneft’s current market capitalization stands at $92 billion but $120 billion could be a fair value given favorable market conditions and the efficient operation of the company, Sechin said.

Rosneft paid 1.7 trillion rubles ($56 billion) in taxes to the federal budget in 2012, contributing 12 percent of all tax revenues and making the company the largest taxpayer in Russia, Sechin said.

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