Lukoil sees shortage of new geological exploration projects
MOSCOW. June 28 (Interfax) - Lukoil is experiencing a serious shortage of new geological exploration projects, the company said in materials.
Lukoil's active fields were 69% depleted as of January 1, 2013. Reserves were sufficient to sustain current production for 21 years. The share of ABC1 reserves classified as difficult to recover was 63%.
The shortage of geological exploration projects resulted in a 50% decline in the reserve increase in 2012, although Lukoil expects to improve on last year's figure by 30% in 2013. But it will invest more in geological exploration this year: 23.1 billion rubles this year, up from 20.2 billion rubles in 2012. Exploration drilling will decline to 150,000 meters from 173,000 meters, owing to the more challenging exploration situation.
According to Lukoil's investment plans, it will invest 102.3 billion rubles in geological exploration in 2013-2018, up from 76.5 billion rubles in 2007-2012. Exploration drilling will rise to 714,000 meters from 669,000 meters in 2007-2012. The company forecasts that additions to reserves over the six-year period will total 403 million tonnes of oil equivalent (including 240.8 million tonnes of liquid hydrocarbons), compared with 644 million tonnes (410.6 million tonnes) in the previous six-year period. The reserve replacement ratio is projected at 62% (43% for liquid hydrocarbons). The marginal cost of exploration is projected to double, to 254 rubles/tonne of oil equivalent.
