An Applied Technology Workshop (ATW) on Petroleum Reserves & Resources Estimation – PRMS Application Guidelines Document was held in Lima, Peru on 23-24 May. Satinder Purewal with EER (AS) and Victor Huerta with Repsol Peru were the co-chairs for this workshop that had 8 Technical Sessions and brought together 98 attendees from 16 countries.
Each session followed a format of “setting the scene” presentation followed by presentations on local/regional examples on reserves evaluations. Discussions were generated by tabling local reserves related issues including challenges to evaluation of reserves and resource volumes. Several authors of the Application Guidelines Document came to present at the workshop.
The workshop had two companion training courses: Managing your Business Using PRMS by John Etherington that had 14 attendees and Forecasting Production and Estimating Reserves in Unconventional Gas Reservoirs by John Lee with 11 attendees. The courses allowed participants to discuss the relevant issues to evaluate, classify, categorize, book and audit technical recoverable volumes of hydrocarbons, including discussion on regional and local case studies.
Some key points of the workshop:
- Promote the adoption of PRMS as a standard to improve technical robustness of reserves evaluation and resources estimation processes.
- PRMS principles, with guidance from AG and SEC regulations will eventually arrive to a unique framework to classify, categorize and report reserves.
- The probabilistic approach has contributed to companies adoption of PRMS standards in their business issues. Categorization of reserves is now better understood and clearly applied by probabilistic definitions.
- Project-based system allows classification of reserves from resources depending on degree of maturity and commerciality criteria; in addition, estimated volumes are categorized based on range of uncertainty.
- Current approach of reserves estimation allows aggregate recoverable volumes depending on defining “project scope”. A mega-project might add “reserves” from contingent resources of projects or sub-projects.
- Even though PRMS was originally created to let companies manage their business, now it has been adopted by many governments as guidelines standard.
- PRMS does not impose “decision gates” for timeline project maturity.
- A good practice may be to create “technical independent assurance” asa dedicated division in companies for internal reserves booking and auditing.