EX-15.3 25 d77520dex153.htm EX-15.3 EX-15.3

Exhibit 15.3

 

LOGO      

 

TBPE REGISTERED ENGINEERING FIRM F-1580

      FAX (713) 651-0849

1100 LOUISIANA                 SUITE 4600

   HOUSTON, TEXAS 77002-5294    TELEPHONE (713) 651-9191

Consent of Independent Petroleum Engineers and Geologists

We consent to the references to our firm in the form and content in which they appear in this Annual Report on Form 20-F, and the inclusion of our report herein for PetroChina Company Limited, filed with the Securities and Exchange Commission.

 

/s/ Ryder Scott Company, L.P.

RYDER SCOTT COMPANY, L.P.

TBPE Registration No. F-1580

Houston, Texas

March 11, 2021

 

SUITE 2800, 350 7TH AVENUE, S.W.

   CALGARY, ALBERTA T2P 3N9   TEL (403) 262-2799

633 17TH STREET, SUITE 1700

   DENVER, COLORADO 80202   TEL (303) 339-8110

THIRD PARTY REPORT

RESERVES ESTIMATION AND EVALUATION

OF

CHAD, WEST QURNA AND PERU (PEP) ASSETS

AS OF DECEMBER 31, 2020

Prepared for

PETROCHINA COMPANY LIMITED

MARCH 12, 2021

CONFIDENTIAL

This document is confidential and has been prepared for the exclusive use of CNODCI/PetroChina or parties named herein. It may not be distributed or made available, in whole or in part, to any other company or person without the prior knowledge and written consent of Ryder Scott. No person or company other than those for whom it is intended may directly or indirectly rely upon its contents. Ryder Scott is acting in an advisory capacity only and, to the fullest extent permitted by law, disclaims all liability for actions or losses derived from any actual or purported reliance on this document (or any other statements or opinions of Ryder Scott) by CNODCI/PetroChina or by any other person or entity.

 

 

/s/ Timour Baichev, P.Eng.

  
  Timour Baichev, P.Eng.  
  APEGA License No. 87454  
  Vice President  
  RYDER SCOTT COMPANY, L.P.  
  TBPE Firm Registration No. F-1580  

RYDER SCOTT COMPANY    PETROLEUM CONSULTANTS

LOGO

     
  TBPE REGISTERED ENGINEERING FIRM F-1580   CALGARY, ALBERTA T2P 3N9   
 

SUITE 2800, 350 - 7TH AVENUE, S.W.

    TEL (403) 262-2799

March 12, 2021

PetroChina Company Limited

9 Dongzhimen North Street

Dongcheng District

Beijing 100007

China

THIRD PARTY REPORT

RESERVES ESTIMATION AND VALUATION OF

CHAD, WEST QURNA AND PERU (PEP) ASSETS

AS OF DECEMBER 31, 2020

Ladies and Gentlemen:

Ryder Scott Company, L.P. (Ryder Scott) was requested by China National Oil and Gas Exploration and Development Corporation International Holding Ltd. (“CNODCI”), to conduct reserves estimations and evaluations (as of December 31, 2020) for selected petroleum assets in Chad, West Qurna (Iraq) and Peru (PEP), in which CNODCI has current interests. Ryder Scott has completed these evaluations and submitted our results of the reserves and corresponding Net Present Value (NPV) estimates to CNODCI in separate reports dated January 6, 2021 and January 8, 2021 (Chad), February 5, 2021 (Peru) and January 29, 2021 (Iraq). These reserves were prepared in accordance with U.S. Securities and Exchange Commission (SEC) regulations. Those reports are the definitive documents concerning the reserves and related net present values estimated by Ryder Scott and presented herein.

Recently, CNODCI requested that Ryder Scott prepare this Third Party Report concerning the above reserves work, which is intended to be submitted to PetroChina Company Limited (“PetroChina”). This report is presented to PetroChina to summarize the results of the reserves estimations and evaluations as of December 31, 2020 for the selected petroleum assets. This summary report is subject to, and includes by reference, all of the discussion elements contained in the Ryder Scott report letters contained in the aforementioned reserve reports as of December 31, 2020.

METHODOLOGY

In carrying out our reserves and NPV evaluations, Ryder Scott relied upon information and data provided by CNODCI, which comprised basic engineering data; geosciences information and engineering interpretation associated with such data; other technical reports, costs and commercial data, and development plans. The available data and interpretations were reviewed for reasonableness and the latter adjusted where appropriate.

The results presented in this report are based upon information and data made available to Ryder Scott through December 2020. The reserves estimates, future production and Net Present Value (NPV) computations as presented herein are based upon these data and represent Ryder Scott’s opinion as of December 31, 2020, as presented in the individual Ryder Scott reports for those assets.

 

1100 LOUISIANA STREET, SUITE 4600

   HOUSTON, TEXAS 77002-5294   TEL (713) 651-9191   FAX (713) 651-0849

633 17TH STREET, SUITE 1700

   DENVER, COLORADO 80202   TEL (303) 339-8110  

PetroChina Company Limited

March 12, 2021

Page 2

   

 

Economic models were constructed based on terms of the applicable petroleum contracts as provided by CNODCI, in order to calculate CNODCI’s net revenue interest in the proved reserves. As of December 31, 2020, all proved SEC reserves were estimated up to the end of the license contract period only.

As per SEC guidelines, the oil prices which were used in the evaluation are the un-weighted 12-month arithmetic averages of the first-day-of-the month price for each month within the 12-month period prior to the end of the reporting period, unless prescribed by contract. Those prices were held constant throughout the evaluation period except where alternate prices are prescribed by contract. The historical 12-month oil prices or contract prices, with supporting differentials, were supplied by CNODCI.

Future capital costs were derived from development program forecasts prepared by CNODCI for each production unit and corresponding to recent historical development cost data. The recent historical cost data for each relevant production unit were utilized to determine current operating cost conditions. These costs were not escalated throughout the evaluation period.

CNODCI’s net reserve volumes are derived by converting calculated net revenues accruing to CNODCI under the terms of the relevant petroleum contract into equivalent barrels of oil utilizing the average 2020 oil pricing explained above. The CNODCI net revenue interest volumes reported in this document represent those amounts that are determined to be attributable to CNODCI’s net economic interest after the deduction of amounts attributable to third parties (government and other working interest partners).

The NPV computations were also undertaken and derived using cost and production profiles input to the various economic models established for the selected assets in each country. These NPVs represent future net revenue before taxes, attributable to the interests of CNODCI, discounted over the economic life of the project at the SEC specified discount rate of ten percent per year to a present value as of December 31, 2020.

 

1.

RESULTS SUMMARY

 

1.1

Net Reserves

The following table presents the net entitlement for Total Proved reserves attributable to CNODCI’s working interests (WI) estimated in accordance with SEC guidelines. They were prepared using the methodology described above.

NET ENTITLEMENT PROVED RESERVES

AS OF DECEMBER 31, 2020

 

Country

    Total Proved  
     Oil      Sales Gas      Condensate  
     (Mbbl)      (MMcf)      (Mbbl)  

Chad – Block H

      84,704        0        0  

Chad – PSA Area

      10,900        0        0  

Iraq – West Qurna

      46,220        0        0  

Peru – Block X

      13,379        14,989        0  

Peru – Block 57

      0        351,649        21,000  
  

 

 

     

 

 

     

 

 

  

TOTAL CNODCI

      155,203        366,638        21,000  
  

 

 

     

 

 

     

 

 

  

 

RYDER SCOTT COMPANY    PETROLEUM CONSULTANTS

PetroChina Company Limited

March 12, 2021

Page 3

   

 

Notes:

1.

CNODCI holds a 90% WI in Chad – Block H, 75% WI in Chad – PSA Area, a 34.413 % WI plus Carry in West Qurna, a 100% WI in Block X (Peru) and a 46.16 % WI in Block 57 (Peru) assets. A royalty of 12 1⁄2% in Block H (Chad) is paid in kind; therefore, it is deducted from the Gross Reserves volumes. PSA Area in Chad has a 14.25% mineral resources compensation fee (royalty) and is paid in kind; therefore, it is also deducted from the Gross Reserves volumes. Net reserves are WI volumes less royalty volumes and less shared profit oil for Chad – PSA Area. Royalty volumes are zero for both Peru Block X and Block 57 due to the fact that government takes a production tax instead. This leads to the fact that net and gross sales gas volumes are equal once adjusted for WI.

2.

Both Chad and West Qurna assets produce oil only. Block X produces oil and solution gas. Block 57 produces gas and condensate. Gas has been discovered in some structures in Chad, but at this time there is no market available for the gas.

 

1.2

Gross Volumes

Gross production volumes are presented for reference information only. Gross volumes include volumes attributable to third parties, government and other working interest partners.

GROSS PROVED RESERVES

AS OF DECEMBER 31, 2020

 

     Total Proved  
   Oil      Sales Gas      Condensate  

Country

    (Mbbl)      (MMcf)      (Mbbl)  

Chad – Block H

      109,756        0        0  

Chad – PSA Area

      17,295        0        0  

Iraq – West Qurna

      585,712        0        0  

Peru – Block X

      13,379        26,158        0  

Peru – Block 57

      0        761,804        45,494  
  

 

 

     

 

 

     

 

 

  

TOTAL CNODC

      726,142        787,962        45,494  
  

 

 

     

 

 

     

 

 

  

 

1.3

Net Present Values

The NPVs as of December 31, 2020 of estimated before tax cash flows discounted at 10 percent, attributable to CNODCI’s working interest in the projects identified above (excluding any balance sheet adjustments or financing costs), are summarized below.

 

RYDER SCOTT COMPANY    PETROLEUM CONSULTANTS

PetroChina Company Limited

March 12, 2021

Page 4

   

 

NET PRESENT VALUES ATTRIBUTABLE TO CNODCI

AS OF DECEMBER 31, 2020

DISCOUNT RATE 10%

 

     Total Proved  

Country

    (US$M)  

Chad – Block H

      1,704,509  

Chad – PSA Area

      212,141  

Iraq – West Qurna

      263,388  

Peru – Block X

      262,157  

Peru – Block 57

      113,121  
  

 

 

  

TOTAL CNODCI

      2,555,316  
  

 

 

  

Notes:

1.

NPVs in Chad – Block H, Chad – PSA Area, West Qurna, Block X and Block 57 assets represent CNODCI’s 90%, 75%, 34.413%, 100% and 46.16% WI, respectively.

Reserves are those estimated quantities of petroleum that are anticipated to be economically producible by application of development projects to known accumulations from a given date forward under defined conditions. Reserves must further satisfy four criteria: they must be discovered, recoverable, commercial and remaining (as of the evaluation date) based on the development project(s) applied. Reserves are further categorized in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterized by development and production status. All categories of reserve volumes quoted herein have been determined within the context of an economic limit test (pre-tax and exclusive of accumulated depreciation amounts) assessment prior to any NPV analysis.

We are independent petroleum engineers with respect to CNODCI. Neither we nor any of our employees have any financial interest in the subject properties and neither the employment to do this work nor the compensation is contingent on our estimates of reserves for the properties which were reviewed.

The results of these studies, presented herein, are based on technical analysis conducted by teams of geoscientists and engineers from Ryder Scott.

This third party report is provided subject to all the terms, conditions and qualifications set-out in the Ryder Scott reports on these assets that are mentioned at the start of this letter report.

It should be clearly noted that the NPVs contained herein do not represent a Ryder Scott opinion as to the market value of the subject properties.

Liquid hydrocarbons are expressed in standard 42 U.S. gallon barrels and shown herein as thousands of barrels (Mbbl). All gas volumes are expressed in millions of cubic feet (MMcf) at the official temperature and pressure bases of the areas in which the gas volumes are located. All gas reserves volumes are reported on an “as sold” basis.

The results of our third party study, presented in summary form herein, were prepared in accordance with the disclosure requirements set forth in the SEC regulations.

 

RYDER SCOTT COMPANY    PETROLEUM CONSULTANTS

PetroChina Company Limited

March 7, 2016

Page 5

   

 

Please contact us if we can be of further service.

 

            Very truly yours,

RYDER SCOTT COMPANY, L.P.

TBPE Firm Registration No. F-1580

/s/ Timour Baichev, P.Eng.

Timour Baichev, P.Eng.

APEGA License No. 87454

Vice President

TB (HGA)/pl

 

RYDER SCOTT COMPANY    PETROLEUM CONSULTANTS