Application of UN Framework Classification to Petroleum. Per Blystad Coordinator UN Sub-group on Petroleum

Transcription

1 Application of UN Framework Classification to Petroleum Per Blystad Coordinator UN Sub-group on Petroleum

2 Mandate and activities Plan of Action Decided at the Ad Hoc Meeting 20-21June 2002: To prepare a Proposal on how to converge the SPE/WPC/AAPG Classification and the UN Framework Classification, by Developing clear Descriptions of the Classes of the UN Framework Classification Refine Project Status Categories Make attempt to merge the SPE/WPC/AAPG Classification with the UN Framework Classification along the Feasibility Axis Proposal developed and discussed in work shop September in Stavanger Telephone conferences Presented, discussed and approved for a one-year trial period in UNECE, November 2002

3 Petroleum Task Force Members Per Blystad Atmane Dahmani Aníbal Martinez Sigurd Heiberg Tatiana Krassilnikova Thomas Ahlbrandt Elliott Young Marek Hoffmann Norwegian Petroleum Directorate OPEC secretariate WPC/SPE Statoil ASA, Norway Ministry of Natural Resources, Russian Federation US Geological Survey, USA Exxon-Mobil, USA Polish National Oil Company Slav Slavov Dietmar Kelter Andrej Subelj UNECE WEC IRGO

4 Products United Nations Framework Classification (UNFC) applied to Petroleum Note prepared by the Task Force on Petroleum th For the Ad Hoc Group Meeting 14 November 2002, Geneva Stavanger

5 UNFC and the SPE/WPC/AAPG (Norwegian scheme) UNITED NATIONS ECONOMIC COMMISSION FOR EUROPE TOTAL PETROLEUM-INITIALLY-IN-PLACE DISCOVERED PETROLEUM-INITIALLY-IN-PLACE COMMERCIAL SUB-COMMERCIAL UNDISCOVERED PETROLEUM-INITIALLY-IN-PLACE RESOURCE CLASS RESERVES CONTINGENT RESOURCES UNRECOVERABLE PROSPECTIVE RESOURCES UNRECOVERABLE PROJECT STATUS CATEGORY Sold and delivered petroleum 0 Sold and delivered 1 2A/F 3A/F 4A/F 5A/F In Production Approved Development Plan Decided recovery In planning Unclarified 6 Not very likely 7A/F 8 9 Not evaluated Prospect Lead PROJECT MATURITY LOWER RISK HIGHER RISK GUIDELINES for practical application of UNITED NATIONS INTERNATIONAL FRAMEWORK CLASSIFICATION FOR RESERVES/RESOURCES - Solid Fuels and Mineral Commodities - Economic Axis E ECONOMIC E 1 POTENTIALLY ECONOMIC E 2 INTRINSICALLY ECONOMIC E 3 FEASIBILITY STUDY/ MINING REPORT 111 F 1 PREFEASIBILITY STUDY F 2 GEOLOGICAL STUDY F G 1 Feasibility Axis F G 2 DETAILED EXPLORATION G 4 G 3 PROSPECTING GENERA L EXPLORATION PUBLICATION IN: ENGLISH FRANÇAIS??????? Geological Axis G RECONNAISSANCE RANGE OF UNCERTAINTY UNITED NATIONS

6 Petroleum quantities In-place and produced quantities Classified and kept outside the cube Recoverable quantities Reserves Contingent resources Prospective resources

7 Main Divisions the EFG system UNFC Economic Axis (E) Feasibility Axis (F) Geological Axis (G) UNITED NATIONS ECONOMIC COMMISSION FOR EUROPE GUIDELINES for practical application of UNITED NATIONS INTERNATIONAL FRAMEWORK CLASSIFICATION FOR RESERVES/RESOURCES - Solid Fuels and Mineral Commodities - UNFC for Petroleum Economic Axis (E) Field Project (Feasibility) Axis (F) Geological Axis (G) Economic Axis E ECON OMIC E 1 POTENTIALLY ECONOMIC E 2 INTRI NSI CALLY ECONOMIC E 3 FEASIBILITY STUDY/ MI NI NG REPORT 111 F 1 PREFEASIBILITY STUDY F 2 GEOLOGICAL STUD Y F G 1 Feasibility Axis F G 2 DETA ILED EXPLOR ATION G 4 G 3 PROSPECTING GENERAL EXPLORATION PUBLICATION IN: ENGLISH FRANÇAIS??????? Geological Axis G RECONNAISSANCE UNITED NATIONS

8 Economic Axis (E) New New New UNFC UNFC Class Prospective Resources Contingent Resources Reserves Key number Project Status Category (SPE guide) Key number Economic (E) Code Economic viability 10 Reserves E10 Commercial E1 Economic 20 Contingent resources E20 Contingent commerciality 30 E30 Not commercial E3 40 E2 Potentially Economic Intrincically Economic UNITED NATIONS ECONOMIC COMMISSION FOR EUROPE GUIDELINES for practical application of UNITED NATIONS INTERNATIONAL FRAMEWORK CLASSIFICATION FOR RESERVES/RESOURCES - Solid Fuels and Mineral Commodities - Economic Axis E ECON OMIC E 1 POTENTIALLY ECONOMIC E 2 INTRI NSI CALLY ECONOMIC E 3 FEASIBILITY STUDY/ MI NI NG REPORT 111 F 1 PREFEASIBILITY STUDY F 2 GEOLOGICAL STUD Y F G 1 Feasibility Axis F G 2 UNITED NATIONS DETA ILED EXPLOR ATION G 4 G 3 PROSPECTING GENERAL EXPLORATION PUBLICATION IN: ENGLISH FRANÇAIS??????? Geological Axis G RECONNAISSANCE

9 Economic subdivision UNFC UNFC for Petroleum Economic Potentially economic Intrinsically Economic Commercial Contingent commerciallity Not commercial

10 Commercial Suitable, adequate, or prepared for the exchange or buying and selling of commodities on a large scale involving transportation from place to place The use of the word commercial on the economic axis is used to reflect commercial on economic grounds in a broad context. In addition to income exceeding cost, it implies that the fiscal, regulatory and commercial arrangements and agreements and other economic conditions are such that they do not prevent the resource to be produced.

11 Contingent Commerciality / Not Commercial Commerciality contingent on unresolved economic conditions fiscal, regulatory and commercial arrangements and agreements and other economic conditions Not Commercial (on economic grounds)

12 Field Project (Feasibility) Axis (F) New New New UNFC Class Key number Project Status Category (SPE guide) Key number Sold -10 Production F-10 Produced Field Project (F) Code Feasibility UNITED NATIONS ECONOMIC COMMISSION FOR EUROPE GUIDELINES for practical application of UNITED NATIONS INTERNATIONAL FRAMEWORK CLASSIFICATION FOR RESERVES/RESOURCES - Solid Fuels and Mineral Commodities - Prospective Resources Contingent Resources Reserves 10 Reserves F10 Committed F1 20 Contingent resources Mining Report / Feasibility Study F20 Contingent Project F2 Prefeasibility Study 30 F30 Exploration Project F3 Geological Study 40 Economic Axis E ECON OMIC E 1 POTENTIALLY ECONOMIC E 2 INTRI NSI CALLY ECONOMIC E 3 FEASIBILITY STUDY/ MI NI NG REPORT 111 F 1 PREFEASIBILITY STUDY F 2 GEOLOGICAL STUD Y F G 1 Feasibility Axis F G 2 UNITED NATIONS DETA ILED EXPLOR ATION G 4 G 3 PROSPECTING GENERAL EXPLORATION PUBLICATION IN: ENGLISH FRANÇAIS??????? Geological Axis G RECONNAISSANCE

13 Field Project (Feasibility) Subdivisions UNFC Mining report/- Feasibility study Prefeasibility study Geological study UNFC for Petroleum Produced petroleum Committed projects Contingent projects Exploration projects

14 Produced petroleum Petroleum removed from its natural state in the subsoil, properly processed and measured at its reference point. Not a class in strict terms. Treated outside the Cube.

15 Committed Projects A project where the parties who have the rights to undertake it have done so. These may be subdivided to agree with the SPE/WPC/AAPG reserve status categories of Producing and Developed reserves. In addition, it may be valuable to distinguish projects in development from projects where development has not yet started. Example on subdivision of Committed Projects: 1. Developed 2. In development 3. Not developed

16 Contingent projects Project dependent upon conditions that may or may not be fulfilled. There may be a general need to subdivide contingent projects in order to allow the continuation of an older industry practise of quoting as probable and possible reserves also part of the more mature contingent resources. Examples: In planning Unclarified Undefined Not very likely

17 Exploration Projects Exploration (prospecting) of undiscovered quantities of petroleum that are estimated, on a give date, to be potentially recoverable. Examples of subdivision: Exploration of project matured for drilling Exploration of project not matured for drilling Lead/play under exploration Unexplored lead or play under reconnaissance, or without exploration effort

18 Geological Axis (G) Class New New New UNFC Key number Project Status Category (SPE guide) Geological Study Key (G) Code Geological study number UNITED NATIONS ECONOMIC COMMISSION FOR EUROPE GUIDELINES for practical application of UNITED NATIONS INTERNATIONAL FRAMEWORK CLASSIFICATION FOR RESERVES/RESOURCES - Solid Fuels and Mineral Commodities - Reserves Contingent Resources 10 Reserves G10 Proved G1 Detailed exploration 20 Contingent resources G20 Explored and delineated G2 General Exploration Economic Axis E ECON OMIC E 1 POTENTIALLY ECONOMIC E 2 INTRI NSI CALLY ECONOMIC E 3 FEASIBILITY STUDY/ MI NI NG REPORT 111 F 1 PREFEASIBILITY STUDY F 2 GEOLOGICAL STUD Y F G 1 Feasibility Axis F UNITED NATIONS G 2 DETA ILED EXPLOR ATION G 4 G 3 PROSPECTING GENERAL EXPLORATION PUBLICATION IN: ENGLISH FRANÇAIS??????? Geological Axis G RECONNAISSANCE Prospective Resources 30 G30 Discovered 40 G40 Prospective G3 Prospecting 42 G42 G4 Reconnaissance

19 Geologic subdivisions UNFC UNFC for Petroleum Detailed exploration General exploration Prospecting Reconnaissance Proven geology Explored and delineated geology Discovered resources Prospective resources

20 Proven geology Geology is considered proved when it is known to the extent and detail specified in the definition of proved reserves. It has been avoided to adopt a rigid definition as this will lead to conservative estimates.

21 Explored and delineated geology Discoveries where the geologic conditions, fluid properties and flow characteristics are well enough known to form the basis for a development commitment for the production of reserves.

22 Discovered resources Discoveries where the geologic conditions in which petroleum occurs have been observed directly through drilling, but where they are not known to the extent required for the geology to be considered explored and delineated.

23 Prospective resources Prospective resources are those quantities of petroleum that are postulated from geological information and theory, on a given date, to be potentially recoverable from outside of known oil and gas fields.

24 Key numbers In place quantities: I 0 In-place quantities unclassified I 1 3 Discovered I 1 Proved I 2 Explored and delineated I 3 Discovered I 4 Prospective

25 Key number Recovered and Recoverable Quanitites In place Quantities Key Economic axis Field Project axis Geology Number (E) (F) Axis (G) Key Number -10 Produced 10 Commercial Committed Proven I1 Proven 20 Contingent Commerciality Contingent Project Explored and delineated I2 Explored and delineated 30 Not commercial Undiscovered Discovered I3 Discovered 40 Prospective I4 Prospective Main categories identified by decade Key number, allows further subdivisions

26 Example of detailed F axis classification Key Number Economic axis (E) Field project axis (F) Geology axis (G) -10 Produced petroleum 10 Commercial Committed projects Proved geology 11 Developed 12 In Development 13 Undeveloped 20 Contingent commerciality Contingent projects 21 In planning 22 Unclarified 23 Undefined 24 Not very likely Explored and delineated geology 30 Not commercial Exploration projects Discovered geology 31 Exploration of prospect matured for drilling 32 Exploration of propect not matured for drilling 33 Lead/play under exploration 34 Unexplored lead or play under reconnaissance, or without exploration effort 40 Prospective geology

27 Definitions and references App. A: List of 35 definitions App. B: The SPE/WPC/AAPG resource classification of 2000 App. C: The SPE/WPC Reserves definitions of 1997 App. D: Petroleum Resource Classification of the Norwegian Petroleum Directorate App. E: SPE UNFC Combination Sheet

28 UNFC for petroleum I1 I2 I3 I4 In place quantities G1 G2 G3 G4 E1: Commercial E2: Contingent commercial E3: Not commercial Produced F1 F2 F3 F1: Commited projects F2: Contingent projects F3: Exploration projects G1: Proven geology G2: Explored & deliniated geology G3: Discovered accumulations G4: Prospective accumulations E1 E2 E3

29 UNFC for petroleum in Norway: Value chain management requires a view of the complete resource base Produced quantities 3,517 3 Mill Sm o.e. E1 E2 I1 I2 I3 I4 G1 G2 G3 G4 Reserves 3,776 F1 Committed projects 3 Mill Sm o.e. F2 Contingent projects 3 Mill Sm o.e. E3 E1: Commercial E2: Contingent commerciality E3: Not commercial G1: Proven geology G2: Explored delineated geology G3: Discovered accumulations G4: Prospective accumulations : Invalid combinations : Not normally used F3 Exploration projects 3 Mill Sm o.e. 3,930 : In use