LUKOIL Group has proved hydrocarbon reserves in six countries. The majority of the proved reserves is conventional, providing the Company a significant competitive advantage that ensures lower development and production costs per barrel.
As of the end of 2020, the Company’s reserves life was 20 years in comparison with the average of 11 years among the world’s largest international oil companies. LUKOIL is one of the leading international and Russian companies in terms of proved reserves life.
Concentrated mainly in West Siberia, 89% of the Group's proved hydrocarbon reserves are located in Russia. 40 percent of LUKOIL's proved reserves outside Russia are located in Uzbekistan, where the Company is developing major gas projects.
60% of the Company's proved hydrocarbon reserves have been classified as developed, in that they can be extracted from existing wells using currently available technologies and equipment.
At the end of 2020, the Group held 563 licenses in Russia, with 90% of them granting hydrocarbon exploration and production rights. The average remaining validity of these licenses was 30 years.
The remaining 10% of the Company's licenses grant the right to prospect, explore, and appraise hydrocarbon deposits, with an average remaining validity of about three years.