Status of the resource and raw materials base
The cumulative initial hydrocarbons reserves of the А+В1+C1 and B2+C2 categories of Zarubezhneft Group of Companies as of January 1, 2019 amount to 1,302.22 MM TOE, and the cumulative initial recoverable hydrocarbons reserves to 477.1 MM TOE. The amount of the cumulative recoverable hydrocarbons reserves with account of the Company’s share as of early 2019 belonging to the AB1+C1 (2P category is accounted for the SRV fields) amount to 100,193 thousand TOE.
Geologic exploration works
In 2018, geologic exploration works were performed on sites in the Socialist Republic of Vietnam and the Russian Federation. The exploration drilling volume in 2018 amounted to 35.7 thousand meters. The main task was clarification of structures containing undrilled reserves at the active fields and confirmation of the possible reserves at the new blocks. In the reporting year, the construction of seven exploration wells offshore of the Socialist Republic of Vietnam, two wells in NAA and one well in the Orenburg Region was completed.
In 2018, the Company continued focusing on the maintenance of production stabilization through the implementation of geological and technical measures and organizational and technical measures as per the production program. Two fields belonging to LLC JC RUSVIETPETRO–Urernyrdskoye and South Syurkharatinskoye were put into all-year exploitation. In general, 29 new wells were put into exploitation and a number of well works were successfully performed at the fields of the Russian segment. With account of Zarubezhneft’s share, the 2018 hydrocarbon production was 5,149 thousand TOE, which was 3.6% lower than in the last year. At this, the planned figure (5,054 thousand TOE) has been over-performed by 1.9%. The production decrease was due to the entry of the major fields of JV “Vietsovpetro” White Tiger and Dragon into the complex final development stage.
As per the results of the segment’s operations in 2018, the revenue of the segment increased by 17% compared to that of the previous year owing to the growth of the average oil products sale price amid the rising global oil price. The growth of the investment program in 2018 amounted to 33% compared to 2017 due to the implementation of the priority project of Modriča Motor Oil Plant for the replacement of the dewaxing unit filters. The consolidated indicator of the segment’s operational efficiency under the results of the reporting period amounted to +4.6 MM EUR. The positive value of the indicator has been achieved for the past three consecutive years.