Reserves
According to the reserves audit report prepared by the international independent firm DeGolyer and MacNaughton in line with PRMS international standards, KMG’s proved and probable hydrocarbon reserves (2P) were 716 mln toe (5,551 mln boe) as of 31 December 2024. 2Р reserves went down 2.4% year‑on‑year due to the impact of macroeconomic factors on subsoil users and a reduced profitability period of gas production at Karachaganak.
The annual assessment of reserves under the PRMS shows that the planned and actual measures to maintain KMG’s reserve levels are monitored on a continuous basis. The proved reserves (1P) life is 15 years, exceeding the average for global oil majors (about 11 years). The reserves life in the 2P category (proved + probable) is 25 years.
The 2Р reserve replacement ratio is 100 %.
| Reserves | Hydrocarbon reserves, mln boe | Hydrocarbon reserves, mln toe | ||||
|---|---|---|---|---|---|---|
| 2022 | 2023 | 2024 | 2022 | 2023 | 2024 | |
| Proved (1P) | 3,775 | 3,943 | 3,497 | 486 | 507 | 452 |
| Proved plus Probable (2P) | 5,478 | 5,680 | 5,551 | 708 | 733 | 716 |
| Proved plus Probable plus Possible (3P) | 6,294 | 6,502 | 6,111 | 816 | 842 | 794 |
| Reserves | Hydrocarbon reserves, mln boe | Hydrocarbon reserves, mln toe | ||||
|---|---|---|---|---|---|---|
| 2022 | 2023 | 2024 | 2022 | 2023 | 2024 | |
| АВС1 reserves | 8,436 | 8,560 | 8,450 | 1,108 | 1,124 | 1,109 |
The annual evaluation of hydrocarbon (oil and condensate) reserves in accordance with the SPE‑PRMS standards (2P reserves of around 592 mln tonnes) reflects trends and key changes in the Company’s resource base. Actual production for the reporting period was 23.8 mln tonnes, which is key for the reserves sustainability analysis.
Main factors contributing to reserve replacement were as follows. KMG’s share in the Dunga project of 7 mln tonnes was included in the reserves evaluation for the first time. On top of that, changes were made to the initial recoverable reserves along with the development and categorisation plans, which included accounting for interventions in wells in operation and reserve reclassification at Zhetybai, Karamandybas, and other oil companies. Adjustments to the expected Tengiz development figures were another major factor impacting total reserves.
Macroeconomic factors had a negative impact on reserves evaluation. Macro forecasts indicated a rise in the USD/KZT exchange rate from 460 to 470 and a slide in Brent price from USD 80 to 75 per bbl. Certain oil companies saw the share of export sales go down from 50 % to 38 %. Additional pressure came from adjusted forecasts for selling prices as well as higher transportation rates and associated costs.
Hence, despite macroeconomic headwinds and a shrinking exports share, the Company’s resource base remained stable thanks to reserve replenishment supported by greenfield projects and streamlined development plans.
