State Commission of Ukraine on Mineral Resources

Transcription

1 State Commission of Ukraine on Mineral Resources Application of the UNFC to Mineral Resources in Ukraine G.I. Rudko, V.I. Lovyniukov LOGO

2 Introduction LOGO 2

3 for technical and economic assessment of suitability to start the exploration at the recognized potential field; for technical and economic assessment of suitability to start the commercial development of a proven and thoroughly evaluated field; for technical and economic assessment of suitability to continue the commercial development of a producing field. 3

4 State expert examination LOGO According to the legislation of Ukraine, the materials of economic-geological evaluation of mineral resources of all the explored and thoroughly evaluated fields, as well as the deposits that are additionally explored in the course of the field s development and the reserves, which remain in the subsoil in case of mining enterprise liquidation, are subject to a compulsory state expert examination. 4

5 Characteristics of the geological aspects of mineral products fields, their technological properties, mining and geological conditions as well as other relations necessary for making design solutions in relation to production techniques and production systems as well as the schemes for processing of mineral products; technical and economic assessment of conditions for reserves calculation, providing the most complete extraction of mineral products from the subsoil with the help of modern commercial production and processing technologies under condition of observing the requirements of mineral products conservation and environmental protection; 5

6 characteristics of methods and results of mineral products testing and calculation of the reserves; technical-and-economic evaluation of the total effect from field s exploitation after one or several variants with determining the predictive results of the entrepreneurial activities of a mining enterprise necessary for making an investment solution. 6

7 Decision procedure LOGO 7

8 Board of the State Commission of Ukraine on Mineral Reserves decrees: To set the following conditions for calculation of hydrocarbon in a field: lower limit of the collector s open porosity 6,5%; lower limit of the collector s gas saturation 65%; lower limit of the collector s permeability m 2. 8

9 field gas extraction condensate factor extraction factor В-16б 2, В В-16в 3+4 ; В-17а+б В-17в; В Approve the proven and prospected hydrocarbon in a field (excluding production as of ), which can be used for projection of commercial production: 9

10 Free gas in-places according to Table 1. 10

11 Condensate in-places according to Table 2. 11

12 Reserves of concomitant useful components in free gas in-places according to Table 3.

13 13

14 Approve: Current (as of ) prospected reserves of free gas and condensate at a field, which can be used for projecting the further exploration and research and commercial production according to Table 4. 14

15 Summation LOGO Based on the abovementioned tables we can see, that the estimation of hydrocarbon reserves according to New Classification during the calculations and re-calculations of the hydrocarbon reserves provided by the legislation of Ukraine in the process of their geological analysis and commercial production does not cause significant complications and allows to define the reserves of any field not only by sufficiency of geological information, but also by the level of readiness for commercial development. Reporting on the changes of reserves condition during their use will also be simplified, since the information on the level of preparedness for commercial development will be determined by the reserves class code. 15

16 Activities on re-evaluation of hydrocarbon fields reserves being on balance of the state enterprises (SE) were started in 1999 by groups of experts of the state geological survey enterprises (SGSE) (Poltava, Simferopol, Chernigiv, Lviv) specializing in calculation of hydrocarbon reserves together with the scientists of the Ukrainian State Geological Survey Institute The same activities are performed by production organizations and enterprises: Ukrnafta LLC, SC Ukrgazvydobuvannia, SPE Chornomornaftogaz and others. 16

17 1. Main contours of hydrocarbon saturation, positions of the gas-water contact, the oil-water contact, the gas-oil contact, the values of the oil recovery ratio, the condensate recovery ratio are not considered. 2. The calculation parameters previously accepted for the evaluation objects (fields) are not considered. 3. Previously approved estimations of reserves (figures) are not rounded off and are not defined without absolute necessity, in case the calculation parameters do not change. 4. The total oil-bearing capacity of the re-evaluation object does not change. The sum of reserves and resources or the fields area in ordinary cases should remain constant. 17

18 1. Categories of the extent of exploration and reliability of reserves and resources. 2. Position of limits between the categories. 3. The number of reserves and resources of different categories. 4. New category reserves and resources will be assigned the codes of the International codification. 5. Free gas extraction coefficients are not used. 18

19 6. Commercial significance of total hydrocarbon reserves does not change. In case they were not related to as economic, it is necessary to consider them as such. At the same time it is necessary to consider only those balance reserves, that are being extracted (extractive). 7. According to the new Instruction, the hydrocarbon resources are considered as such resources, the commercial significance of which has not been defined since the reliability of their definition does not allow making a more precise economicgeological evaluation. Accordingly, the prospected in-places cannot undergo a detailed technical and economic assessment. 8. In case the graphic data (area, capacity etc.) as of does not coincide with the table data, preference will be given to the table data. 19

20 9. In case the research and commercial production of the field has been performed, first it is necessary to contour the В or С1 category reserves (according to the Instruction) and the extractive reserves will be related to class In case the research and commercial production of the field has not been performed, all the С1 category reserves will be transferred to the С2 category and contoured according to the Instruction. The remainder of the reserves area of the old С1 category can also be included into the new С2 category, in case it is small. Significant remainder of the reserves area of the С1 category relates to the prospective resources. 11. The calculation block of the old С2 category can be partially or fully transferred to the new С2 category in case they meet the new requirements, otherwise they will be transferred to the prospective resources. 20

21 12. Prospective resources previously related to С 1 or С 2 or С 3 categories, but transferred to the resources category in the result of the re-evaluation will all be related to the class under the code The class 332 reserves can be distinguished at the fields where no preliminary assessment has been performed and class 111 or 121 or 122 reserves are absent. 14. The residual reserves equal to the difference between the total and extractive reserves will be related to the out-of-balance reserves. In this case the residual reserves of the С 1 category block will be related to the code 221 class, and the residual in-places of the С 2 category will be related to the code 222 class. 21

22 15. Research and commercial development will be considered and performed in the case more than 5% of field s extractive reserves are extracted, or in case the formation pressure decrease of more than 5-10% is determined at the field. 16. Collector efficiency level may be determined according to the formation testing data so according to the bore geophysical survey data. According to the reserves quantity the total and balance (extractive) reserves have insignificant discrepancies according to the Classifications of 1983 and

23 Reserves and resources registered at by the Classification of 1983 Economic value Balance Outbalan ce Geological (X) Category Extractive (Y) А, В А, В С 1 С 1 С 1 С 2 С 2 X Y X Y X Y X Y X Y X Y X Y X X С 3 X Determining factors taken into account during reserves revaluation Reserves approved by SCR of USSR, CCR of Ministries of USSR, SCR of Ukraine Reserves not approved by established procedure Reserves approved by established procedure. Pilot Development (PD) is completed Reserves not approved by established procedure, PD is completed PD is not completed. Regardless of reserves being approved or not, they are moved to C 2 Category (1997) Exploration degree meets the features of previously explored reserves of C 2 Category 1997 (Deposit or it s part is located higher than established efficiency level) Exploration degree doesn t meet the features of previously explored reserves of C 2 Category 1997 (Deposit lays completely lower the efficiency level) Feasibility analysis of development unexpediency is done on the basis of PD or industrial operation There was no industrial operation, nor Pilot Development. According to a new classification (y) is not registered and not encoded. Reserves and resources harmonized with Classification 1997 as at Category А, В А, В С 1 С 1 С 2 С 2 Clas Balance s General (Extractive code ) Conditionall y balance and out-ofbalance X 111 У 221 Х-У X 121 У 221 Х-У X 111 У 221 Х-У X 121 У 221 Х-У X 122 У 222 Х-У X 122 У 222 Х-У Economic value is not defined С X - - Х С X - Х - С X - Х - С X - - Х

24 SN Indices Total OGBA Eastern Western Southern 1 Data according to the Classification of Fields with oil in-places Number of evaluation objects Re-evaluation data (Classification of 1997) 2.1 Fields at which the oil in-places reevaluation has been performed Number of objects, the in-places of which have been re-evaluated

25 Indices Total OGBA Eastern Western Southern State Reserve Register data according to the Classification of 1983 Fields with condensate in-places Number of evaluation objects Re-evaluation data (Classification of 1997) Fields at which condensate in-places reevaluation has been performed Number of objects, the in-places of which have been re-evaluated

26 Indices Total OGBA Eastern Western Southern State Reserve Register data according to the Classification of 1983 Fields with gas in-places Number of evaluation objects Re-evaluation data (Classification of 1997) Fields at which the gas in-places reevaluation has been performed Number of objects, the in-places of which have been re-evaluated

27 The results of the resources re-evaluation LOGO On the whole the results of the resources re-evaluation show the insignificant changes: If total oil reserves according to the Classification of 1983 amounted to 100%, after the re-evaluation they made up 99%, gas reserves - 100% and 104%, condensate reserves 100% and 104% correspondingly. At the same time the correlation between the proven and prospected reserves has changed. As for oil the prospected extractive reserves after the Classification of 1983 amounted to 100%, after the re-evaluation they made up 23%, 100% and 26% correspondingly as for gas, and 100% and 22% as for condensate. The greater part of the reserves was moved to the prospected category and cannot be considered as ready for production. 27

28 The results of the resources re-evaluation LOGO The above-mentioned data shows that the application of the UNFC-adapted mineral products reserves and resources classification in Ukraine will not cause any complications. At the same time, the simultaneous introduction of the gas extraction factors, defined in the result of technological and economic surveys together with the new classification, will lead to noticeable decrease of the gas and condensate extractive reserves of the 111 and 122 classes. Just as introduction of the requirement in the new classification, according to which the prospected reserves should be proven by their research and commercial production data, will lead to decrease of the prospected reserves of classes 111 and

29 The results of the resources re-evaluation LOGO As a result of transferring the hydrocarbon reserves on the balance of the State Reserve Register into the taxons of the new classification, significant adjustment of the information on the quantity of the 111 class reserves, which is ready for commercial development, was performed and, correspondingly, the information on the possibility of oil and gas production increasing at the enterprises, which reserves have been re-evaluated. 29

30 30

31 31

32 1. This order defines the main principles and sequence of operations needed to converse solid fossil fuel reserves and their concomitant components, registered in State Balance as at , into taxons of Mineral resources and reserves Classification of State Subsoil Fund. 2. Deposit and field reserves, which are registered by State Commission of Ukraine on Mineral reserves (SCR) of USSR or by SCR of Ukraine, belong to State Subsoil Fund and were referred by exploration degree to such groups: productive mines and opencasts; mines and opencasts under construction; A group reserve fields for mines and opencasts; B group reserve fields for mines and opencasts. 3. State Subsoil Fund contains deposit and field reserves, which are registered by SCR of USSR or by SCR of Ukraine, as well as reserves approved by SCR of USSR or by SCR of Ukraine and referred by their exploration degree to such groups: explorative fields; fields perspective for exploration; free fields close to operating mines; closed mines and opencasts. 32

33 4. Outline sketches of computative blocks and figures, quantity and qualification of calculated reserves by categories, computative parameters and qualitative coal ratio are not reconsidered during the conversion, but are admitted as registered in the Balance. 5. Economic value (balance inventory) of accounted reserves is not to be reconsidered. Accounted balance reserves by Classification of 1983 refer to balance, and outbalance reserves to outbalance. Nominally balance reserves and reserves of not defined economic value are not pointed out like not distinguished during the approval and not accounted. The exception are balance and outbalance free fields reserves, which are defined as unfeasible for development, and closed mines reserves, which are referred to reserves with non defined economic values by the new Classification. 33

34 Categories and classes of Reserves categories the reserves by estimated for Defining factors, which are considered to Classification of Ukraine by Classification 1981 define the international reserves code 1997 Economic value Category Category Class code А Deposits and fields reserves approved by А 111 Balance В State Commission of Ukraine on Mineral В 111 С 1 Resources (SCR) of USSR or by SCR of С С 2 Ukraine and defined as prepared for С А, В, С 1 industrial development by operating mining А, В, С Outbalance С 2 companies (mines, opencasts) and as being under construction ( a group С reserve and b group reserve) А Deposits and fields reserves which haven t А 121 Balance В been approved by SCR of USSR or by В 121 С 1 SCR of Ukraine, as well as reserves С С 2 approved by SCR but defined as not С А, В, С 1 prepared for industrial development А, В, С Outbalance (explorative areas, perspective for С 2 exploration) С Balance and outbalance А, В, С 1 Free fields reserves defined as unfeasible А, В, С С 2 for development and also closed mines reserves, regardless of instance, which has approved them С 2 332

35 Basin. Administrative region. Geologicalindustrial area. Deposit. department identity(ministry, association, venture). Extent of exploration. Mine. Field. Open-cast. Layers designation. Construction/putting into operation year. Reserves/operation calculation depth. License. a)mine b)(open-cast) c)capacity b) mine (open-cast) reserves provision by years c) Working levels reserves provision by years Coal grade а) Crozzle A d % b) Sulphur S td, %; c) Humidity W tr % г) Specific heat Q ir, МJ/kg Reserves on of previous year Balance Conditionally balance and outbalance With nonidentified industrial meaning Extra ction Balance reserves movement class code for as result of: Losses during extraction Exploration Revaluation (+ or -) (+ or -) Reserves amortization without confirmation State Deposits Fund (SDF) Change of technical margin and other reasons 2. Reserve of State Deposits Fund (RSDF) 35

36 Reserves for January 01 of current year 111 Balance Conditionally balance and outbalance With nonidentified industrial meaning Approved balance reserves а) in total b) date of approvement and of report c) complication group Remainder of balance reserves approved by SCR Expected losses during extraction Balance reserves provision approved by SCR State Deposits Fund (SDF) 2. Reserve of State Deposits Fund (RSDF) 36

37 37

38 Reserves state est. January 01 of the current year Balance reserves approved by SCR Balance For the date of approvement Class code 111 Class code Class code Conditionally balance and outbalance (codes of classes ) With nonidentified industrial meaning (codes of classes ) Class code 111 Codes of classes of report Remainder of Reserves balance reserves approvement year, for Current group by deposit year. Codes of geological complexity classes aspect A+B A+B+C 1 A+B+C 1 C 1 A+B+C State Deposits Fund (SDF) 2. Reserve of State Deposits Fund (RSDF) 38

39 1. Defined order determines the maim principles and sequence of operations on metal (uranium) reserves conversion, registered in the State balance as at into taxons of mineral reserves and resources of State subsoil fund classification, approved in Metal reserves of natrium-metasomatic and arenated geological and industrial types refer to the State mineral resources deposits fund and were approved by State Commission of Ukraine on Mineral reserves (SCR) of USSR or SCR of Ukraine and were recognized as prepared for industrial exploration. 3. Deposit reserves of all geological and industrial types, registered in State balance of mineral resources, refer to the Reserve of State mineral resources deposits fund. 4. All reserves registered in the State balance as at are the subject to conversion into taxons of mineral reserves and resources of State subsoil Fund Classification. 39

40 5. The main principles of reserves conversion, registered in the State balance, into taxons of mineral reserves and resources of State subsoil Fund Classification are the following: 5.1. Balance reserves of natrium-metasomatic geological and industrial type by the content are divided into 2 sorts: І with metal extraction prime cost less than 40 USD./kg according to marginal content, established for every single deposit; ІІ with metal extraction prime cost more than 80 USD/kg according to marginal content, established for every single deposit 5.2. Metalliferous deposits of natrium-metasomatic geological and industrial type with metal extraction prime cost more than 80 USD/kg refer to out-of-balance reserves Balance deposit reserves of arenated geological and industrial type are referred to those, which extraction and reworking prime cost is less than 40 USD/kg Outbalance deposit reserves of arenated geological and industrial type are referred to those, which extraction and reworking prime cost more than 40 USD/kg. 40

41 5.5. Reserves division of natruim-metasomatic and arenated geological and industrial types into balance and out-of-balance, as well as reserves division into 1st and 2nd sorts are conducted according to marginal metal content in balance block, determined in reserves calculation materials by virtue of which reserves are registered in the State balance for every single deposit Extracted balance reserves are determined by multiplying of total reserves in balance block in situ by full-depth extraction ratio, which is defined for every single deposit Deposits reserves, which do not belong to natrium-metasomatic geological and industrial types, refer to those, which economic value is not defined Extracted reserves are not defined for outbalance minerals and for those, which economic value is not defined Balance blocks outline sketches of deposit reserves, quantity and calculated total reserves identification by categories, designed parameters and qualitative minerals factors in balance blocks during the conversion into taxons of mineral reserves and resources of State subsoil Fund Classification are not revised, but are accepted as those, registered in the State balance or approved in reserves calculation materials. 41

42 Reserves category, registered in State balance as at by classification of, 1981 Balance Balance Balance Outbalance Outbalance С 1 С 1 Determining conditions taken into account for international reserves code Balance blocks deposit reserves of natrium-metasomatic geological and industrial type where the content is more than marginal Balance blocks deposit reserves of natrium-metasomatic geological and industrial type where the content is less than marginal Categories and resources harmonized with Classification 1997 Approved by SCR Not approved by SCR С С С 1 Deposit reserves of arenated geological and industrial type С С 2 С 2 Balance blocks deposit reserves of natrium-metasomatic geological and industrial type where the content is more than marginal Balance blocks deposit reserves of natrium-metasomatic geological and industrial type where the content is less than marginal С С С 2 Deposit reserves of arenated geological and industrial type С С 1 Balance blocks deposit reserves of natrium-metasomatic geological and industrial type С С 1 Deposit reserves of arenated geological and industrial type С С 2 Balance blocks deposit reserves of natrium-metasomatic geological and industrial type С С 2 Deposit reserves of arenated geological and industrial type С С 1 Deposit reserves of other geological and industrial types С С 2 Deposit reserves of other geological and industrial types С С 1 Deposit reserves of other geological and industrial types С С 2 Deposit reserves of other geological and industrial types С

43 Reserves categories, accounted as at by the Classification 1981 Defining factors, taken into account for international reserves code formulation Economic value Category Category Balance Outbalance Balance Outbalance Reserves categories and classes under Classification of Ukraine 1997 Class code State Deposits Fund А А 111 В Deposits and fields reserves В 111 С approves by or by SCR of 1 С USSR or by SCR of Ukraine and С 2 С recognized as ready for А, В, С 1 commercial development А, В, С С 2 С Reserve of State Deposits Fund А А; 121 В Deposits and fields reserves В 121 С 1 which had not been approved by С С 2 or by SCR of USSR or by SCR С А, В, С 1 of Ukraine А, В, С С 2 С

44 44

45 Reserves for January 01 of current year Balance Conditionally balance and outbalance With non-identified industrial meaning Approved balance reserves а) in total b) date of approvement and of report c) complication group Remainder of balance reserves approved by State Commission of Ukraine on Mineral Resources (SCR) Expected losses during extraction Balance reserves provision approved by State Commissiona of Ukraine on Mineral Resources (SCR) State Deposits Fund (SDF) 2. Reserve of State Deposits Fund (RSDF) 45

46 Reserves on of previous year Change of balance reserves codes of classes for year as a result of: of state cadastre passport Region, Autonomous Republic, the extent of exploration, department identity, deposit, field. Putting into operation year, number of license, date of license issue and validity of license Annual estimated venture capacity Balance reserves Class code 111 in years а) Type of mineral resource b) Content of efficient components and contaminations c) Humidity Class code 111 Balance Codes of classes Conditionally balance and outbalance (codes of classes ) With nonidentified industrial meaning (codes of classes ) Extract ion Losses during extracti on Explor ation Revalu ation Reserv es amortiz ation Chang e of technic al margin and other reason s State Deposits Fund (SDF) 2. Reserve of State Deposits Fund (RSDF) 46

47 Reserves state est. January 01 of the current year Balance reserves approved by SCR Balance Class code 111 Class code 121 Class code 122 Class code 111 A+B A+B+C 1 A+B+C 1 C 1 Conditionally balance and outbalance (codes of classes ) With nonidentified industrial meaning (codes of classes ) A+B+C 1 For the date of approvement Codes of classes of report Reserves approvement year, group by deposit geological complexity aspect Remainder of balance reserves Ї State Deposits Fund (SDF) 2. Reserve of State Deposits Fund (RSDF) 47