OREANDA-NEWS. October 26, 2011. JSC NC “KazMunayGas” (hereinafter – NC KMG) has proceeded with an independent oil reserves audit. The audit will be carried out by “Gaffney Kline and Associates” company in accordance with the international standards pursuant to the PRMS method (formerly SPE method) as of December 31, 2011.

To conduct the audit, NC KMG has chosen the PRMS method (Petroleum Resources Management System), based on the dynamics of development parameters and valuation of initial oil in place by categories.

This method provides reasonably accurate reflection of aggregate reserves available for operation during life of the field. Thus, the PRMS system is used by the Society of Petroleum Engineers (SPE), the World Petroleum Congress (WPC), the American Association of Petroleum Geologists (AAPG) and by the Society of Petroleum Evaluation Engineers (SPEE).

Alik Aidarbayev, Managing Director, Exploration and Production (Member of Management Board) JSC NC “KazMunayGas” noticed that the current recoverable resources of JSC NC “KazMunayGas” make about 800 mn tons of recoverable, in accordance with the standards of the Kazakhstani classification. The current level of consolidated production provides JSC NC “KazMunayGas” with the proved oil reserves for more than 35 years.

- We are pleased with the beginning of the reserves and resources audit of NC KMG in accordance with the international standards. The findings will allow us more exact planning our business in oil exploration and production. The oil reserves gas fields audit will boost liquidity of the company’s securities at the market. In this connection the confidence of the potential investors, who come to conclusions based on the findings of western audit companies, in JSC NC “KazMunayGas” oil and gas projects will grow, - said Alik Aidarbayev.

Besides, A. Aidarbayev pointed out, that the oil and gas subsoil use audit is an effective tool of administrative influence on the reproductive process of the mineral resources base of the oil and gas industry, which will allow rationalizing preparation and development of hydrocarbon resources.

- Such subsidiaries as JSC “E&P KazMunayGas”, JSC “Mangistaumunaygas” and others have already audited their upstream operation. However, this valuation of reserves and resources of all the KMG Group’s assets will provide not only a consolidated assessment of our upstream operations but for the first time ever – assessment of the resource potential of KSCS and other exploration assets of the company, - added A. Aidarbayev..

In addition to the foregoing, Chief Geologist of JSC NC “KazMunayGas” Kurmangazy Iskaziyev mentioned, that the current system of the oil and gas reserves and resources classification in the Republic of Kazakhstan needs to be modified, which will approach it to the systems accepted in the international good practice. Implementation of the new international system, which tightens regulations to the raw material base, will raise the reality degree of its assessment.

In future, it is planned to conduct such a reserves audit on a regular basis.