Vedomosti said Timan Oil & Gas estimates the recoverable reserves of the Nizhnechutinskoye field, in the north of European Russia, at 100.1 million metric tons (734 million bbl), and in-place reserves at 272.9 million tons (2 billion bbl), according to the Russian classification system.
However, under Russian law, fields containing more than 70 million tons (513 million bbl) in reserves are classified as strategic, which means the government could revoke the British company's license. If this happens, the authorities must provide the foreign company with compensation for the funds invested in the project.
International oil and gas consultant Miller & Lents previously assessed the field, located in the Timan-Pechora basin of the Komi Republic, at 191.3 million bbl in proved and probable reserves.
The paper said a state commission for mineral reserves had approved the revised reserves on July 18.
Timan Oil & Gas holds a prospecting and development license for the field through its subsidiary, Neftegazpromtech, until 2024.
Troika Dialog analyst Valery Nesterov said, however, the company is unlikely to have its license withdrawn as Nizhnechutinskoye is a complicated site, shallow and extensive, which means costly production.
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