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Financials / Supplementary Information on Oil and Gas Activities (Unaudited) / Supplementary Information on Oil and Gas Activities (Unaudited) for the year ended December 31, 2012

The accompanying consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”). In the absence of specific IFRS guidance, the Group has reverted to other relevant disclosure standards, mainly US GAAP, that are consistent with norms established for the oil and gas industry. While not required under IFRS, this section provides unaudited supplemental information on oil and gas exploration and production activities.

The Group makes certain supplemental disclosures about its oil and gas exploration and production operations. While this information was developed with reasonable care and disclosed in good faith, it is emphasized that some of the data is necessarily imprecise and represents only approximate amounts because of the subjective judgments involved in developing such information. Accordingly, this information may not necessarily represent the current financial condition of the Group or its expected future results.

The proved oil and gas reserve quantities and related information regarding standardized measure of discounted future net cash flows do not include reserve quantities or standardised measure information related to the Group’s Serbian subsidiary, NIS, as disclosure of such information is prohibited by the Government of the Republic of Serbia. The disclosures regarding capitalised costs relating to and results of operations from oil and gas activities do not include the relevant information related to NIS.

Presented below are capitalised costs relating to oil and gas producing activities

For the period ended December 31:

December 31, 2012

December 31, 2011

Consolidated subsidiaries

Unproved oil and gas properties

12,312

3,108

Proved oil and gas properties

511,740

440,864

Less: Accumulated depreciation, depletion and amortization

(152,232)

(114,842)

Net capitalized costs of oil and gas properties

371,820

329,130

Group’s share of equity method investees

Proved oil and gas properties

256,495

212,276

Less: Accumulated depreciation, depletion and amortization

(112,255)

(82,867)

Net capitalized costs of oil and gas properties

144,240

129,409

Total capitalized costs consolidated and equity interests

516,060

458,539

Presented below are cost incurred in acquisition, exploration and development of oil and gas reserves

For the year ended December 31:

December 31, 2012

December 31, 2011

Consolidated subsidiaries

Exploration costs

2,914

2,153

Development costs

86,556

65,306

Costs incurred

89,470

67,459

Group’s share of equity method investees

Exploration costs

1,039

1,140

Development costs

28,958

25,829

Total costs incurred consolidated and equity interests

119,467

94,428

Results of operations from oil and gas producing activities

For the period ended December 31:

December 31, 2012

December 31, 2011

Consolidated subsidiaries

Revenues:

Sales

106,817

101,038

Transfers

254,894

208,758

Total revenues

361,711

309,796

Production costs

(50,519)

(43,299)

Exploration expenses

(3,263)

(2,165)

Depreciation, depletion and amortization

(42,397)

(44,346)

Taxes other than income tax

(163,156)

(140,146)

Pretax income from producing activities

102,376

79,840

Income tax expenses

(19,191)

(18,155)

Results of oil and gas producing activities

83,185

61,685

Group’s share of equity method investees

Total revenues

181,061

152,508

Production costs

(24,045)

(27,606)

Exploration expenses

(1,039)

(621)

Depreciation, depletion and amortization

(22,971)

(26,309)

Taxes other than income tax

(93,102)

(86,124)

Pretax income from producing activities

39,904

11,848

Income tax expenses

(7,569)

(1,774)

Results of oil and gas producing activities

32,335

10,074

Total consolidated and equity interests in results of oil and gas producing activities

115,520

71,759

Proved oil and gas reserve quantities

Proved reserves are defined as the estimated quantities of oil and gas, which geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. In some cases, substantial new investment in additional wells and related support facilities and equipment will be required to recover such proved reserves. Due to the inherent uncertainties and the limited nature of reservoir data, estimates of underground reserves are subject to change over time as additional information becomes available.

Proved developed reserves are those reserves, which are expected to be recovered through existing wells with existing equipment and operating methods. Proved undeveloped reserves are those reserves which are expected to be recovered as a result of future investments to drill new wells, to recomplete existing wells and/or install facilities to collect and deliver the production from existing and future wells.

As determined by the Group’s independent reservoir engineers, DeGolyer and MacNaughton, the following information presents the balances of proved oil and gas reserve quantities (in millions of barrels and billions of cubic feet respectively):

Proved Oil Reserves Quantities – in MMBbl

December 31, 2012

December 31, 2011

Consolidated subsidiaries

Beginning of year

4,038

3,599

Production

(233)

(224)

Purchases of minerals in place

1

263

Revision of previous estimates

311

400

End of year

4,117

4,038

Minority’s share included in the above proved reserves

(115)

(90)

Proved reserves, adjusted for minority interest

4,002

3,948

Proved developed reserves

2,214

2,237

Proved undeveloped reserves

1,903

1,801

Group’s share of equity method investees

Beginning of year

1,717

1,663

Production

(132)

(136)

Purchases of minerals in place

Revision of previous estimates

150

190

End of year

1,735

1,717

Proved developed reserves

917

918

Proved undeveloped reserves

818

799

Total consolidated and equity interests in reserves – end of year

5,852

5,755

Proved Gas Reserves Quantities – in Bcf

December 31, 2012

December 31, 2011

Consolidated subsidiaries

Beginning of year

4,332

2,795

Production

(308)

(258)

Purchases of minerals in place

8

Revision of previous estimates

1,465

1,787

End of year

5,489

4,332

Minority’s share included in the above proved reserves

(396)

(22)

Proved reserves, adjusted for minority interest

5,093

4,310

Proved developed reserves

3,108

2,843

Proved undeveloped reserves

2,381

1,489

Group’s share of equity method investees

Beginning of year

3,753

2,615

Production

(65)

(41)

Purchases of minerals in place

Revision of previous estimates

866

1,179

End of year

4,554

3,753

Proved developed reserves

651

609

Proved undeveloped reserves

3,903

3,144

Total consolidated and equity interests in reserves – end of year

10,043

8,085

Standardized measure of discounted future net cash flows and changes therein relating to proved oil and gas reserves

Estimated future cash inflows from production are computed by applying average first-day-of-the-month price for oil and gas for each month within the 12 month period before the balance sheet date to year-end quantities of estimated proved reserves. Adjustment in this calculation for future price changes is limited to those required by contractual arrangements in existence at the end of each reporting period. Future development and production costs are those estimated future expenditures necessary to develop and produce year-end proved reserves based on year-end cost indices, assuming continuation of year end economic conditions. Estimated future income taxes are calculated by applying appropriate year-end statutory tax rates. These rates reflect allowable deductions and tax credits and are applied to estimated future pre-tax cash flows, less the tax bases of related assets. Discounted future net cash flows have been calculated using a 10% discount factor. Discounting requires a year-by-year estimate of when future expenditures will be incurred and when reserves will be produced.

The information provided in tables set out below does not represent management’s estimate of the Group’s expected future cash flows or of the value Group’s proved oil and gas reserves. Estimates of proved reserves quantities are imprecise and change over time, as new information becomes available. Moreover, probable and possible reserves, which may become proved in the future, are excluded from the calculations. The calculations should not be relied upon as an indication of the Group’s future cash flows or of the value of its oil and gas reserves.

December 31, 2012

December 31, 2011

Consolidated subsidiaries

Future cash inflows

6,545,703

5,680,929

Future production costs

(3,423,510)

(2,837,844)

Future development costs

(500,665)

(386,118)

Future income tax expenses

(402,439)

(415,953)

Future net cash flow

2,219,089

2,041,014

10% annual discount for estimated timing of cash flow

(1,242,245)

(1,084,260)

Standardized measure of discounted future net cash flow

976,844

956,754

Group’s share of equity method investees

Future cash inflows

2,814,679

2,457,252

Future production costs

(1,494,446)

(1,500,043)

Future development costs

(199,415)

(218,240)

Future income tax expenses

(203,379)

(128,435)

Future net cash flow

917,439

610,534

10% annual discount for estimated timing of cash flow

(590,068)

(301,836)

Standardized measure of discounted future net cash flow

327,371

308,698

Total consolidated and equity interests in the standardized measure of discounted future net cash flow

1,304,215

1,265,452

December 31, 2012

December 31, 2011

Consolidated subsidiaries

Discounted present value as of beginning of year

956,754

528,392

Sales and transfers of oil produced, net of production costs and other operating expenses

(149,481)

(127,802)

Net change in prices received per barrel, net of production costs and other operating expenses

(64,829)

375,996

Changes in future development costs

(54,841)

(67,123)

Development costs incurred during the period

89,470

67,460

Revisions of previous quantity estimates and acquisitions

73,614

182,052

Accretion of discount

115,927

112,801

Net change in income taxes

31,140

(88,954)

Other

(20,910)

(26,068)

Discounted present value as of the end of year

976,844

956,754

Company’s share of equity method investees

Discounted present value as of beginning of year

308,699

187,989

Sales and transfers of oil produced, net of production costs and other operating expenses

(63,915)

(97,740)

Net change in prices received per barrel, net of production costs and other operating expenses

68,817

105,394

Changes in future development costs

25,361

(28,286)

Development costs incurred during the period

29,997

28,628

Revisions of previous quantity estimates

2,648

16,111

Accreation of discount

53,088

84,040

Net change in income taxes

(29,356)

(62,772)

Net change due to purchases and sales of minerals in place

Other

(67,968)

75,335

Discounted present value as of the end of year

327,371

308,699

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