MOSCOW, March 5 (RIA Novosti) - LUKoil [RTS: LKOH], Russia's largest independent crude producer, said on Wednesday its proven oil reserves dropped 1.3% year-on-year in 2007 to 15.715 billion barrels.

According to data audited by the U.S.-based Miller&Lents, LUKoil's proven reserves as of January 1, 2008 stood at 20.4 billion barrels of oil equivalent, comprising 15.7 billion barrels of oil and 27.9 trillion cubic feet of gas, the company said.

"In 2007, the company saw 4% growth in proven reserves taking into account production. Therefore, in the past eight years, the company has completely compensated for hydrocarbon production with expanded reserves," LUKoil said in a statement.