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Petroleum Reserves and Resources Estimation—Petroleum Resources Management System (PRMS) Applications Guidelines Document and Case Studies

19 – 20 March 2014

London, United Kingdom | Park Plaza Victoria Hotel

Technical Agenda

Wednesday, 19 March, 0900–0930

Keynote Session: Oil and Gas in the International Energy Agency (IEA) World Energy Outlook 2013

Speaker: Christian Besson, International Energy Agency

0930–1100

Session 1: PRMS Application Guidelines: Overview

Session Managers: John Etherington, Manuela Feudaroli, and Satinder Purewal

Current and past representatives of the SPE Oil and Gas Reserves Committee (OGRC) describe PRMS, discuss the major changes to prior guidance and provide insight into on-going activities to assist in implementation of the application guidelines document published in November 2011.

1130–1300

Session 2: Seismic Applications

Session Managers: Naomi Boness and Manuela Feudaroli

An overview will be presented of the guidance provided in the PRMS application guidelines on the role of geophysical technology in reserves estimation and classification. This will be illustrated with some integrated case studies, focusing on the use of seismic for structural definition, fault analysis, fluid contacts, reservoir development and flow surveillance purposes, and its implications on reserves and resources estimates.

1400–1530

Session 3: Deterministic/Probabilistic Method and Aggregation
of Resources

Session Manager: John Lee and Enrique Morales

Deterministic and probabilistic methods are commonly used in estimating, classifying and reporting reserves and resources. In many cases, reduction of uncertainties is a key factor in maturing contingent resources into reserves with the use of probabilistic or deterministic methods depending on project maturity and other issues. Hybrid approaches are also being utilised and can be very useful. When estimating reserves and resources, aggregation methods are vital to properly represent the low and the high estimates of recoverable hydrocarbons, with arithmetic and probabilistic approaches being used. Gas commercial agreements between buyers and sellers will, in some cases, require a realistic assessment of proved reserves. The PRMS links an investment decision to a "project" and clarifies the aggregation approach that can be used to estimate reserves. This session will focus on: deterministic assessment methods, probabilistic assessment methods, hybrid methods, aggregation issues, and commercial opportunities.

1600–1730

Session 4: Commercial Consideration in Evaluation of Reserves
and Resources

Session Managers: David MacDonald and Aquiles Rattia

The commercial evaluation of petroleum reserves and resources is a process by which the value of investing in existing and planned petroleum recovery projects is determined. In addition to the inherent uncertainties in physically recoverable petroleum volumes, each scenario requires assumptions and/or "givens" regarding costs, prices, taxes, and fiscal terms. Apart from these factors, there may be marketing, legal, environmental, social or governmental contingencies that must be addressed prior to deeming any discovered resource a "reserve" versus a "contingent resource". This session will focus on addressing these key commercial considerations in the evaluation of reserves and resources.

Thursday, 20 March, 0900–1030

Session 5: Unconventional Resources

Session Managers: John Etherington and John Lee

Unconventional resources exist in petroleum accumulations that are pervasive throughout a large area and that are not significantly affected by hydrodynamic influences. Examples include natural bitumen, coal bed methane, and gas/oil associated with “shale” and other tight formations. While the assessment techniques and extraction programmes may differ dramatically from those applied in conventional reservoirs, the end result of the assessment is an uncertainty distribution of marketable petroleum products and the classification and categorisation principles of PRMS still apply.

1100–1230

Session 6: Guidance for Improved Oil Recovery (IOR) and Enhanced Oil Recovery (EOR)

Session Managers: Carolina Coll and Bernard Seiller

IOR/EOR processes (recovery methods) attempt to recover oil beyond primary recovery methods. Generally, the recovery from primary recovery methods accounts for less than a third of the oil initially in place, implying that the target for IOR/EOR is significant. EOR projects, however, are generally complex and implementation is tied to the price of oil and overall economics. But with current higher oil prices, there is renewed interest in EOR and a number of projects/pilots are being implemented across the regions. This session will focus on different approaches for resource volume estimation and classification of IOR/EOR recovery processes, as per the PRMS applications guidelines document, with its associated challenges.

1330–1530

Session 7: Application Examples and Case Studies

Session Managers: David MacDonald and Bernard Seiller

Reserves and resource volumes are only comparable if there is a common classification system and consistent use of a common set of application guidance. This session will address some of the issues associated with applying the PRMS using examples and case studies.

1545-1645

Panel Session and Conclusion

A panel of experts will be asked to share their thoughts and experiences in answering a series of questions raised by attendees. A drop box will be available throughout the workshop to gather questions. We would like to encourage attendees to participate in this session. If you are interested in presenting, please email details of your case study or example/s to formslondon@spe.org.