Chinese Petroleum Resource Classification System and mapping to UNFC

Transcription

1 China National Petroleum Corporation EGRC Third Session Geneva, 2-4 May 2012 Chinese Petroleum Resource Classification System and mapping to UNFC Yang Hua May 2012

2 OUTLINE Background Chinese Petroleum Resource Classification System (CPRCS) Mapping to UNFC 2009 Discussion 2

3 Background 200BC 1950 s Petroleum (gas) was discovered in China 2000 years ago China started the development of modern oil and gas industry. Ministry of Petroleum issued a geologic reserve estimation guideline. Research Institute of Petroleum E&D set up criteria for oil and gas reserves estimation. China National Mineral Reserves Committee was formed and devoted to the promotion of integrated study and setting of mandatory criteria for oil and gas reserves estimation. China National Standard Bureau issued the Committee s criteria. Ministry of Land and Resources (MLR) was set up. MLR has organized the amendment of the standardand criteria considering UNFC/SPEdefinitions. The newlyamended systemwas approved and issued by the General Administration of Quality Supervision, Inspection and Quarantineof P.R.China, and effective in

4 Background Reserves Activity Organization Oil Companies Government Registration and Booking Ministry of Land and Resources Senior Management Corp. Upstream Local Reserve Management Regional E&P Company P1 Government Audit Petroleum Reserves Office (PRO) Ministry of Land and Resources Reserves Estimation Reserve Project Teams Regional E&P Research Institute Reporting route Management route 4

5 Chinese Petroleum Resource Classification System Basic Features Geological knowledge based three-class system Classification is based on the phases or the maturity of E&D, according to geology knowledge gained. Different data requirements are assigned to different classes of reserves to ensure the E&D phases and certainties required The classes of recoverable reserves are related to the geologic reserves Thresholds of industrial flow are used to be commercial criteria

6 Amendment of CPRCS Principals and Highlights Consist with international standards, UNFC, PRMS, SEC, etc. Keeping continuity on basic major features of the system by taking the history and reality of standards in China into account; such as three-class-framework, categorizing principals, etc. aligns the SPE/SEC definitions of Proved reserves and parts of those considerations of Probable and Possible reserves of SPE; Adopts international comparable terminology of reserves (3P system) for the use of international cooperation, evaluation and study; 6

7 Modified Classification Framework Geology-knowledge-based three-class system Total Oil & Gas Resources Discovered Geologic Reserves OOIP/OGIP Undiscovered Resources Measured Indicated Inferred Proved EUR or GUR Probable Reserves Possible Reserves Residual Residual Residual 7

8 Modified Classification Framework P1 aligns with the PRMS/ SEC Proved EUR or GUR Economic Sub-economic Proved Developed Proved Undeveloped Production Proved Developed Remaining Reserves 8

9 Modified Classification Framework Comparison with PRMS Source from: Comparison of Selected Reserves and Resource Classifications and Associated Definitions, OGRC, Dec

10 Mapping to UNFC 2009 Total Petroleum Resources Initially-in-place Discovered (Geological Reserves) Undiscovered Resources (Initially-in-place) Measured Geological Reserves Indicated Geological Reserves Inferred Geological Reserves Recoverable Residual Proved EUR Residual 341 Probable EUR Residual 342 Possible EUR 223,323 Residual Economic Economic Subeconomic Subeconomic 221, , Proved Developed Proved Undeveloped 111, UNFC 2009 code Production Sale & Non-sale Remaining Economically Recoverable Reserves

11 Mapping to UNFC 2009 Sales Production Production E1 E1 E2 E2 Non-sales Production E3 E3 UNFC 2009 CPRCS 2005

12 Discussion Challenges for National Oil Companies Challenges for current standards to manage unconventional resources Application promotion of UNFC

13 Challenges for National Oil Companies Obligations Sustainable energy supply, effective resources management, business processes and financial reports. Challenges to meet multi-goal requirements, face various standards, huge workload every year, great amount of data Solution? clarify ideas in targeting, planning, organizing to find more effective way or tool to establish/construct consistent resources-database system

14 Challenges for Unconventional Resource Characteristics distribute extensively without apparent WOC, no clear phases of exploration and Development, easy to discovery but difficult to recovery, high heterogeneity in qualities, more complex storage processes, in a word, less certainty with more risk. Sketch map of conventional and unconventional resources distribution, Zou Caineng,2010

15 Challenges for Unconventional Resource Challenges Based on current standards, no big changes in categories, but major ones are just P1 and resource How to manage effectively? Strategy policies in upgrading? P1 Development tendency? Resources more and further works may needed in exploration categories corresponding relations among E,F,G categories increase

16 Application Promotion of UNFC 2009 Advantages Universally acceptable and internationally applicable, powerful (strong code) Challenges Aims to overlap most requirements and systems, and work more instructively and effectively Suggestion? Let more people know, understand, and adopt training, work shop, free assistance, joint-study, etc. Strong technical supports for development

17 Thanks to UNECE and EGRC Thanks to Everybody Comments are welcome and should be forwarded to: Att: Yang Hua Tel & Fax: +(86-10)