In terms of proved hydrocarbon reserves LUKOIL is one of the leaders among the Russian and international companies. The Company has proved hydrocarbon reserves sufficient for 19 years of current production operations.
The LUKOIL Group possesses a well diversified asset portfolio located both in Russia and abroad. West Siberia and the Bolshekhetskaya Depression account for more than a half of the proved hydrocarbon reserves; international projects account for 120/o. 590/o of all the Group's proved reserves are classified as "drilled out" (of which 660/о are oil reserves and 340/o are gas reserves).
Proved reserves are shown according to the data audited by Miller and Lents in compliance with SEC standards.
Most of the Group's proved reserves are conventional. High-viscosity oil accounts for as few as 4.7% of the Group's proved hydrocarbon reserves (3.4% of 3P reserves), while offshore reserves represent 5.5% of the proved reserves (7.5% of 3P reserves).
This structure enables the Group to efficiently control its development costs and promptly commission new fields.
Being in possession of a huge resource potential, LUKOIL makes every effort to capture it and convert it into proved reserves for further development. Exploration operations and related discoveries, as well as production drilling increased the Company's proved reserves to 546 million boe. This compensated 620/о of commercial hydrocarbon production.
During 2015 the Company was active in acquiring new subsoil use areas from the undistributed subsoil fund, registering its subsoil use rights, monitoring acquisition of new areas, re-registering its licensing documents, introducing amendments to the existing license agreements, and optimizing licenses of the LUKOIL Group's entities aiming to improve quality of its mineral resources.
In the reporting period the Group's entities joined 12 biddings and 2 contests for subsoil use rights to win 4 of them. The Company won the contest for acquisition of the subsoil use rights for the Eastern-Taimyr block in Krasnoyarsk Krai.
A total of 25 new subsoil use licenses were obtained in 2015, 11 licenses were re-registered, 15 license amendments were recorded that helped to obtain license extensions, 50 supplements to existing license agreements were executed.