Astana, Kazakhstan, June 2
By Daniar Mukhtarov - Trend:
КаzМunaiGas Exploration Production JSC (КМG EP) has announced the result of the verification of reserves for December 31, 2011 and 2012 at the Ozenmunaigas, Embamunaigas and Ural Oil and Gas fields, according to a message from the company.
Given significant differences in KMG EP reserves estimations made by Miller and Lents Ltd. (M&L) and Gaffney, Cline and Associates Limited (GCA), the Board of Directors of KMG EP resolved to work with a third party reserves consultant to provide an independent estimation of reserves for the years ended December 31, 2011 and 2012.
DeGolyer and MacNaughton Corporation (D&M) was appointed to that role, according to the message.
The material differences in reserve assessments by D&M, compared to the assessments by GCA were as follows:
- 1Р reserves were 112.2 million tonnes (812.8 million barrels) which was 47 percent higher (or 35.9 million tonnes). Here D&M's estimation includes reserves up to the end of the cost-effective field life (2012 - 2063, 52 years) whereas GCA's estimation is up to the end of the contract term (2012 - 2021, 10 years max);
- 2Р reserves were 145.7 million tonnes (1.05 billion barrels) which was 35 percent lower (or 80.1 million tonnes);
- 3Р reserves were estimated at 199.1 million tonnes (1.4 billion barrels) which was 25 percent lower (or 67.7 million tonnes).
The material differences in estimations identified by D&M, compared to the assessment by M&L, were as follows:
- 1Р reserves were 112.2 million tonnes (818.7 million barrels) which is 3.9 percent lower (or 4.5 million tonnes);
- 2Р reserves were 146.7 million tonnes (1.07 billion barrels) which is 0.8 percent lower (or 1.2 million tonnes);
- 3Р reserves were 201.1 million tonnes (1.4 billion barrels) which is 9.6 percent higher (or 17.6 million tonnes).
KMG EP will continue using the reserves assessment made by Miller and Lents Ltd. (M&L) as of December 31, 2012 and the reserves assessment made by Gaffney, Cline & Associates (GCA) as of December 31, 2011 as final assessments.
The estimation of the company's reserves at December 31, 2013, announced on April 11, 2014, is unaffected by this review, according to the company's message.
