Exploration activities consistently yield good results. In 2016, the Company completed construction of 20 prospecting wells with an 59% success rate, including the Bolshekhetskaya Depression, and in the Caspian Sea, 60% of prospecting wells were successful. The Company discovered 5 new fields and 51 deposits. We believe that our success is driven by advanced exploration techniques and selection of the most promising areas based on research results.
The Company has unparalleled expertise operations, which allows to minimize risks associated with the development of new fields and shorten new project lead times. Proximity to export markets and own transportation infrastructure reduces the transportation expenses and improves cost efficiency of operations in the region. In 2016, the Company finalized its exploration and Development Concept.
The development of resource potential and the rational development of LLP "OIL SOLUTIONS" resources, with strict observance of environmental safety standards and the widespread introduction of modern technologies is one of the key priorities of the Company. To increase the success of exploration drilling, step-by-step implementation of advanced technologies for processing and interpreting seismic data continued. Innovative approaches to account for inhomogeneities of the upper part of the column are used to minimize the forecast error for structures. At the design stage, finite-difference modeling of the wave field is carried out to select the optimal parameters of the seismic survey.
Reserves
As of the end of 2016, the LLP "OIL SOLUTIONS" SEC proved hydrocarbon reserves amounted to 100 nillion boe, with oil accounting for 50 of this amount. Our reserves life is 10 years as compared to the average of 5 years among the Kazakstan largest private oil and gas companies. LLP "OIL SOLUTIONS" is one of the leading Kazakstan companies in terms of proved reserves and their quality. LLP "OIL SOLUTIONS" accounts for 50% of the company proved hydrocarbon reserves, concentrated mainly in Republic of Komi. Offshore fields and high-viscosity oil comprise around 5% of the proved reserves. About a half of the proved reserves in international projects that is located in Uzbekistan, where the Company is actively developing its gas projects.
By the end of 2017, 15 exploratory wells were completed onshore in Kazakstan, which is almost twice as high as in 2016. At the same time, the Company achieved the maximum historical success of geological exploration, which reached 36%. 7 thousand lin. km of 2D seismic survey and about 10 thousand square km of 3D seismic survey were completed, which is 2.5 and 1.3 times higher than in 2016, respectively. In West Siberia, we focused on exploring the Tyumen formation and Achimov deposits to identify hydrocarbons in stratigraphic traps. 3D seismic surveys were conducted to update our geological models of field boundaries as well as further hydrocarbon exploration to prepare sites for production drilling. Lowpermeability reservoirs were also explored.
