Classification of world petroleum

resources by use of the United Nations

Framework Classification
T.S. Ahlbrandt1, P. Blystad2*, S. Heiberg3,
S. Slavov4, E. D. Young5
1: US Geological Survey, 2: The Norwegian Petroleum Directorate,
3: STATOIL ASA, 4: UN Economic Commission for Europe,
5: ExxonMobil Production Co.
 United Nations Framework Classification for
Reserves/Resources – Solid fuel and Mineral
Commodities
UNITED NATIONS ECONOMIC COMMISSION FOR EUROPE

GUIDELINES
for
practical application
w UNFC was endorsed by
of
UNITED NATIONS INTERNATIONAL FRAMEWORK ECOSOC for world wide
CLASSIFICATION FOR RESERVES/RESOURCES
- Solid Fuels and Mineral Commodities - application in 1997.
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UNITED NATIONS accounting and reporting)
6/10/2003
65th EAGE Conference and Exhibition, Stavanger, 2 - 5 June 2003
 Basic principles of the United Nations
Framework Classification

6/10/2003
65th EAGE Conference and Exhibition, Stavanger, 2 - 5 June 2003
 of
UNITED NATIONS INTERNATIONAL FRAMEWORK
CLASSIFICATION FOR RESERVES/RESOURCES
- Solid Fuels and Mineral Commodities -

PUBLICATION IN:
ENGLISH
FRANÇAIS
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6/10/2003
65th EAGE Conference and Exhibition, Stavanger, 2 - 5 June 2003
The SPE/WPC/AAPG classification system
as applied by the Norwegian Petroleum Directorate

w Comprises the total petroleum

RESOURCE CLASS PROJECT STATUS
CATEGORY
resources – discovered and
Sold and delivered petroleum 0 Sold and delivered
undiscovered.

LOWER RISK
DISCOVERED PETROLEUM-INITIALLY-IN-PLACE

1 In Production
w
COMMERCIAL

Reserves
Approved
RESERVES 2A/F
Development Plan w Contingent Resources
3A/F Decided recovery w Prospective Resources
4A/F In planning
w Project status categories
TOTAL PETROLEUM-INITIALLY-IN-PLACE

CONTINGENT

PROJECT MATURITY
SUB-COMMERCIAL

5A/F Unclarified
RESOURCES Not very likely
w Classification of the reserves and resources
6
by the status of the projects aiming to
7A/F Not evaluated
produce them
UNRECOVERABLE
w Improves the basis for international,
national, industrial and financial decision
PETROLEUM-INITIALLY-IN-PLACE

8 Prospect
support.
PROSPECTIVE
UNDISCOVERED

RESOURCES HIGHER RISK

9
Lead

UNRECOVERABLE

RANGE OF UNCERTAINTY

6/10/2003
65th EAGE Conference and Exhibition, Stavanger, 2 - 5 June 2003
 Harmonization of UNFC to Coal,
Petroleum and Uranium
w United nations Economic Commission for Europe
decided in November 2001 to harmonise the
reserve/resources classification and terminology for
Coal, Petroleum and Uranium
w In June 2002 an Ad hoc group of experts led by Mr.
Sigurd Heiberg, Statoil, convened, and established
w Task force for Coal (Mr. Andrej Subelj)
w Task force for Petroleum (Mr. Per Blystad)
w Task Force for Uranium (Mr. Jean Rene Blaise)

6/10/2003
65th EAGE Conference and Exhibition, Stavanger, 2 - 5 June 2003
 Petroleum Task Force Members
w Per Blystad Norwegian Petroleum Directorate
w Atmane Dahmani OPEC secretariate
w Aníbal Martinez WPC/SPE
w Sigurd Heiberg Statoil ASA, Norway
w Tatiana Krassilnikova Ministry of Natural Resources, Russian
Federation
w Thomas Ahlbrandt US Geological Survey, USA
w Elliott Young Exxon-Mobil, USA
w Marek Hoffmann Polish National Oil Company

w Slav Slavov UNECE

w Dietmar Kelter WEC
w Andrej Subelj IRGO
6/10/2003
65th EAGE Conference and Exhibition, Stavanger, 2 - 5 June 2003
 UNFC and the SPE/WPC/AAPG
(Norwegian scheme)
UNITED NATIONS ECONOMIC COMMISSION FOR EUROPE

RESOURCE CLASS PROJECT STATUS

CATEGORY
GUIDELINES
for
Sold and delivered petroleum 0 Sold and delivered
practical application

LOWER RISK
DISCOVERED PETROLEUM-INITIALLY-IN-PLACE

1
of
In Production
COMMERCIAL

UNITED NATIONS INTERNATIONAL FRAMEWORK

Approved CLASSIFICATION FOR RESERVES/RESOURCES
RESERVES 2A/F
Development Plan - Solid Fuels and Mineral Commodities -
3A/F Decided recovery
PUBLICATION IN:
ENGLISH
4A/F In planning FRANÇAIS
TOTAL PETROLEUM-INITIALLY-IN-PLACE

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PROJECT MATURITY
CONTINGENT
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5A/F Unclarified Ax is 111 122

RESOURCES 6 Not very likely IC

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RANGE OF UNCERTAINTY
UNITED NATIONS

6/10/2003
65th EAGE Conference and Exhibition, Stavanger, 2 - 5 June 2003
 UN Framework Classification
Main Categories - ”the EFG system”
w UNFC w UNFC for Petroleum
w Economic Axis (E) w Economic Axis (E)
w Feasibility Axis (F) w Field Project (Feasibility)
Axis (F)
w Geological Axis (G) w Geological Axis (G)
UNITED NATIONS ECONOMIC COMMISSION FOR EUROPE

GUIDELINES
for
practical application
of
UNITED NATIONS INTERNATIONAL FRAMEWORK
CLASSIFICATION FOR RESERVES/RESOURCES
- Solid Fuels and Mineral Commodities -

PUBLICATION IN:
ENGLISH
FRANÇAIS
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UNITED NATIONS
6/10/2003
65th EAGE Conference and Exhibition, Stavanger, 2 - 5 June 2003
 Petroleum quantities

w Produced quantities and the in place

Unrecoverable quantities
w Classified and kept outside the cube

w Recoverable quantities
w Reserves
w Contingent resources
w Prospective resources

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65th EAGE Conference and Exhibition, Stavanger, 2 - 5 June 2003
UNFC for petroleum –
I1 I2 I3 I4
quantities treated
outside the cube
Unrecoverable quantities
G2 G3 G4
G1

Produced

6/10/2003
65th EAGE Conference and Exhibition, Stavanger, 2 - 5 June 2003
UNFC for petroleum
Economic Axis (E)

E1: Commercial
E2: Contingent commercial
E3: Not commercial

E1

E2

E3
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65th EAGE Conference and Exhibition, Stavanger, 2 - 5 June 2003
UNFC for petroleum
Field Project Axis (F)

- F1
F1
F2
F3
Produced

F1: Commited projects

F2: Contingent projects
F3: Exploration projects

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65th EAGE Conference and Exhibition, Stavanger, 2 - 5 June 2003
 I1 I2 I3 I4
UNFC for petroleum
Geology Axis (G)

G2 G3 G4
G1

G1: Proven geology

G2: Explored & deliniated geology
G3: Discovered accumulations
G4: Prospective accumulations
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65th EAGE Conference and Exhibition, Stavanger, 2 - 5 June 2003
 Category and Key number
Recovered and recoverable quantities Unrecoverable
quantities
Key Economic Field Geology Key
Number axis project axis axis Number
(E) (F) (G)
-10 Produced
10 Commercial Committed Proved I1 Proven

20 Contingent Contingent Explored I2 Explored and

commerciality project and delineated
delineated
30 Not Exploration Discovered I3 Discovered
commercial
40 Prospective I4 Prospective

Main categories are identified by decade Key number to

allow further subdivisions
6/10/2003
65th EAGE Conference and Exhibition, Stavanger, 2 - 5 June 2003
 Example of detailed F axis classification
Key Economic axis Field project axis Geology axis
Number (E) (F) (G)
-10 Produced petroleum
10 Commercial Committed projects Proved geology

11 Developed
12 In Development
13 Undeveloped
20 Contingent Contingent projects Explored and
commerciality delineated geology
21 In planning
22 Unclarified
23 Undefined
24 Not very likely
30 Not commercial Exploration projects Discovered
geology
31 Exploration of prospect
matured for drilling
32 Exploration of propect not
matured for drilling
33 Lead/play under exploration
34 Unexplored lead or play
under reconnaissance, or
without exploration effort
40 Prospective
geology

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65th EAGE Conference and Exhibition, Stavanger, 2 - 5 June 2003
 Definitions and terminology
w A set of definitions have been compiled.
w The SPE definitions have been used when available
w When required, new definitions have been proposed

w The proposal including all definitions is available at the

UN-ECE homepage:

w http://www.unece.org/ie/se/pdfs/ENERGY.GE.3.2003.1.pdf

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65th EAGE Conference and Exhibition, Stavanger, 2 - 5 June 2003
 I1 I2 I3 I4
UNFC for petroleum
In place quantities

G2 G3 G4
G1

E1: Commercial F1
E2: Contingent commercial F2
F3
E3: Not commercial
Produced

F1: Commited projects

F2: Contingent projects
F3: Exploration projects
E1

G1: Proven geology

G2: Explored & deliniated geology E2
G3: Discovered accumulations
G4: Prospective accumulations
E3
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65th EAGE Conference and Exhibition, Stavanger, 2 - 5 June 2003
 UNFC for petroleum, expanded view

I1 I2 I3
Produced I4 I Unrecoverable quantities
quantities

G1 G2 G3 G4 F1 Committed projects
F2 Contingent projects
E1 Reserves
E2
Contingent
E3 Prospective
resources
resources

F3 Exploration
projects

Invalid combinations
Not normally used
In use
Normally less than 12 cubes are used
6/10/2003
65th EAGE Conference and Exhibition, Stavanger, 2 - 5 June 2003
 Concluding remarks
w Application of resources classification and definitions for:
w National and international energy resources management.
w Business process management to identify and produce the energy resources
w Financial reporting to facilitate capital allocation and fair investment
opportunities.
w Information on reserves is influenced by the definitions of the
security regulators
w Activities in support of international accounting standards under the
direction of
w International Accounting Standards Board (IASB), and
w Committee of European Securities Regulators (CESR)

6/10/2003
65th EAGE Conference and Exhibition, Stavanger, 2 - 5 June 2003
 Plans and Activities of UN-ECE on the UNFC
1. Continued cooperation with the World Energy Council for the
three-annual Survey of Energy Resources of 2004.
2. Organized regional seminars on the application of the new
framework classification to energy resources.
3. Solicited comments to the new elements in the UNFC from
international institutions concerned (IAEA, WEC, OPEC, WPC,
SPE, AAPG, IASB, CESR) and national institutions (regulators,
geological surveys and industry).
4. Tested the UNFC at national levels and on individual deposits
covering oil, gas, coal and uranium.
5. The Ad Hoc Group of Experts on Harmonization of Energy
Reserves/Resources Terminology will meet in Geneva on the 30th
and 31st of October this year to discuss the experiences gained with
the view of recommending that the UN amends the UNFC to take
fully into account the needs of the extractive energy industries.
6/10/2003
65th EAGE Conference and Exhibition, Stavanger, 2 - 5 June 2003
 Acknowledgement
w The authors express their gratitude to their employers, The United States
Geological Survey, The Norwegian Petroleum Directorate, Exxon Mobil
Production Co., United Nations Economic Commission for Europe and
Statoil, for the opportunity and permission to produce this paper. The paper
does not necessarily reflect the opinions or positions of these institutions and
companies.
w Thanks are also extended to the members of the Ad Hoc Group of Experts
for their many valuable contributions and in particular to Dr. Dietmar Kelter,
representative of the World Energy Council and chairman of the UN Task
Force whose work led to the formation of the Ad Hoc group, to Messrs.
Adrej Subelj and late Oleg V. Zaborin, Vice Chairpersons of the Ad Hoc
Group, Ms. T. Krasilnikova, representative of the Russian Federation and
Atmane Dahmani, representative of the OPEC secretariat.

6/10/2003
65th EAGE Conference and Exhibition, Stavanger, 2 - 5 June 2003
 Thank you
for your
attention!
6/10/2003
65th EAGE Conference and Exhibition, Stavanger, 2 - 5 June 2003