United Nations Framework Classification (UNFC-2009) Harmonisation without Homogenisation

Transcription

1 United Nations Framework Classification (UNFC-2009) Harmonisation without Homogenisation Presented on behalf of the EGRC By Jim Ross, Ross Petroleum Ltd Reserves & Resources Reporting Continuing Education Seminar (Co-sponsored by SPE London Section and SPEE European Chapter) London 13 June

2 UNFC What is it? 2. How it works 3. Specifications 4. Summary 2

3 UNFC-2009 United Nations Framework Classification for Energy and Mineral Reserves and Resources Generic, principles-based system Applicable to both solid minerals and fluids in fact to most commodities Based on three criteria Economic and social viability Feasibility and project status Geological knowledge and potential recoverability 3

4 Why three criteria? Proved reserves must be Economic to extract (commercially feasible) Geologically well defined (with high confidence) Technically feasible to extract 4

5 UNFC What is it? 2. How it works 3. Specifications 4. Summary 5

6 UNFC How it works Numerical coding system based on three criteria: Economic and social viability Feasibility and project status Geological knowledge and potential recoverability E1 E2 E3 F1 F2 F3 F4 G1 G2 G3 G4 6

7 E axis categories UNFC How it works 7 F axis categories G axis categories

8 E axis category definitions Category E1 Definition Extraction and sale has been confirmed to be economically viable. E2 E3 Extraction and sale is expected to become economically viable in the foreseeable future. Extraction and sale is not expected to become economically viable in the foreseeable future or evaluation is at too early a stage to determine economic viability. 8

9 UNFC How it works The category definitions are the building blocks of the system These are combined (E, F, G) in the form of classes Class 111 means that the reported quantities have satisfied the definitions for: E1, F1 and G1 There are no constraints on combinations, but not all will be meaningful 9

10 UNFC How it works UNFC Class: 111 Proved Reserves are those quantities of petroleum, which by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under defined economic conditions, operating methods, and 10 government regulations. Category E1 Category F1 Category G1 Definition Extraction and sale has been confirmed to be economically viable. Definition Feasibility of extraction by a defined development project or mining operation has been confirmed. Definition Quantities associated with a known deposit that can be estimated with a high level of confidence.

11 11 UNFC Examples of classes

12 Total commodity initially in place UNFC 2D representation Extracted Sales Production Future recovery by commercial development projects or mining operations Potential future recovery by contingent development projects or mining operations Class Commercial Projects Potentially Commercial Projects Non-Commercial Projects Non-sales Production Minimum Categories E F G 1 1 1, 2, , 2, , 2, 3 Additional quantities in place associated with known deposits 3 4 1, 2, 3 Potential future recovery by successful exploration activities Exploration Projects Additional quantities in place associated with potential deposits Each class is uniquely defined by its code

13 UNFC What is it? 2. How it works 3. Specifications 4. Summary 13

14 What are specifications? Definitions Specifications Guidelines Classification Framework Application Rules Non- Mandatory Guidance 14

15 Generic specifications 20 generic specifications, covering: Mandatory disclosure issues Project maturity Distinction between categories Aggregation General obligations Optional additional sub-categories and labels Extracted quantities that may be saleable in the future 15

16 Total commodity initially in place Alignment of systems (schematic) UNFC-2009 PRMS CRIRSCO Sales Production Non-sales Production Production Extracted Class Class Class Commercial Projects Potentially Commercial Projects Non-Commercial Projects Additional quantities in place Exploration Projects Additional quantities in place Reserves Contingent Resources Unrecoverable Prospective Resources Unrecoverable Mineral Reserves Mineral Resources Not reported Not reported Exploration Results Not reported 16

17 UNECE & SPE Partnership Memorandum of Understanding The UNECE and SPE are working in partnership on the development of the UNFC and the PRMS. The SPE gains significant value from its work with the UNECE, including country access, introduction to new experts and access to ideas from other commodity groups applying the UNFC. 17

18 UNFC Classification Framework and Category Definitions Generic Specifications Bridging Document Petroleum Specifications PRMS Bridging Document Solid Mineral Specifications CRIRSCO Bridging Document 18 Other Aligned Systems

19 UNFC Classification Framework and Category Definitions Generic Specifications Bridging Document Petroleum Specifications PRMS Generic Renewable Energy Specifications Commodity-specific Specifications: Geothermal Bioenergy Wind/solar/hydro 19

20 UNFC What is it? 2. How it works 3. Specifications 4. Summary 20

21 In summary UNFC-2009 is a generic, principles-based system Applicable to both solid minerals and fluids Uses a numerical coding system Based on three criteria Economic and social viability Feasibility and project status Geological knowledge and potential recoverability Direct linkage to PRMS, CRIRSCO Template and NEA/IAEA Red Book Quantities can be estimated using these systems and reported using the UNFC numerical codes Bridging documents under development for Russian Federation and Chinese classification systems 21

22 In summary Key goal is to provide a tool to facilitate global communications Generic specifications for renewable energy sources and injection projects ready for final endorsement Specifications for geothermal energy almost completed, bioenergy underway, wind/solar/hydro to follow UNFC-2009 has been formally selected as the resource classification system of the System of Environmental-Economic Accounting 2012 Central Framework (SEEA-12), which has been adopted as an international standard by the United Nations Statistical Commission The Organisation for Economic Co-operation and Development (OECD) is currently implementing SEEA-12 22

23 For more information on UNFC and the Expert Group Eighth EGRC Meeting, Geneva, April 2017 UNFC Workshop on 25 April