Rosneft Adds 8% to Total Reserves in '07

Rosneft said Thursday that its total hydrocarbon reserves rose by 8 percent in 2007, allowing it to keep the top spot for oil reserves among the world's public companies.

State-controlled Rosneft said in a statement that its reserve replacement ratio was 301 percent last year, thanks to the assets it bought from bankrupt former rival Yukos.

Analysts typically expect oil and gas firms to replace at least 100 percent of their annual production as a sign that they are able to maintain growth. Without acquisitions, Rosneft added 111 percent of its output.

Rosneft said it had estimated proven reserves of 21.7 billion barrels of oil equivalent, including 17.51 billion barrels of oil and 25.12 trillion cubic feet of gas under the Society of Petroleum Engineers classification.

Rosneft's proven oil and gas condensate reserves rose by 9.7 percent in 2007, while its gas reserves increased by 1.4 percent. The company said its hydrocarbon reserves' life was 27 to 25 years for oil and 47 years for gas.

Under more stringent U.S. Securities and Exchange Commission classification, which takes into account reserves extractable during the companies' license life, Rosneft's proved reserves stood at 14.5 billion barrels of oil equivalent, including 13.37 billion barrels of oil and 6.78 trillion cubic feet of gas.

The reserves' audit, performed by DeGolyer and MacNaughton, confirmed Rosneft's leadership among public oil companies in terms of oil reserves.

Rosneft's closest domestic rival, privately owned LUKoil, in which U.S. ConocoPhillips holds a 20 percent stake, had total reserves of 20.4 billion barrels of oil equivalent as of the end of 2007 under the SPE classification, including 15.7 billion barrels of oil.

Rosneft became the country's top oil producer and refiner last year after buying most of the assets of Yukos, whichwent bankrupt under a $30 billion back tax claim.