MK-TRMB11 Resource - Reserve

TEKNIK RESERVOIR MINYAK & GAS-BUMI

Lesson 11

Resource & Reserve

Hadi Nugroho

Geological Department

Diponegoro University

2010

Modified by EBS 2014

Reading Materials

Rukmana, D., 2009,”Pandangan BP Migas: Definisi

dan Metode Estimasi Cadangan Minyak Dan gas

Bumi Nasional”, Presentasi pada Forum IATMI dan

K3S

Satter, A., et al, 2008, “Practical Enhanced Reservoir

Engineering”, Chapter 9

SPE/AAPG/WPC/SPEE/SEG, 2011, “Guidelines for

Application of the Petroleum Resources

Management System”

Stages of HC Fields

Exploration Discovery Production Abandonment

Appraisal

Economics

Plan of Development

Play

Lead

Prospect

Monitoring

Infill

Secondary Recovery

Plug Back

Clearing

Restoration

Play – Prospect – Lead

Prospect – a geological

feature that might contain

HC, mapped in detail and

ready for drilling

Lead – identified geological feature that might contain

HC; not yet ready for drilling

Play - a group of oil fields

or prospects in the same

region that are controlled

by the same set of

geological circumstances

Volumetric Calculation

Calculating Original HC In Place

Oil:

Gas:

OOIP/OGIP – Original Oil / Gas In Place

Constants converting acre-ft to barrel / cubic-ft

Vb - Rock Volume in acre-ft

- Porosity in fraction

(1-Sw) - HC Saturation

Boi / Bgi - Oil / Gas Formation Volume Factor

How Much Can We Recover?

Oil: OOIP * RF (in bbl)

Gas: OGIP * RF (in cu ft)

OOIP or OGIP – Original Oil or Gas In Place (bbl

or cu ft)

RF – Recovery Factor (in fraction)

Oil Reservoirs Recovery Factors

Drive Mechanism

Oil Recovery Factors

% OOIP

Range Average

Solution Gas Drive 5 - 30 15

Gas Cap Drive 15 - 50 30

Water Drive 30 - 60 40

Gravity Drainage Drive 16 - 85 50

Gas Reservoirs

Drive

Gas Recovery

factors (% of OGIP)

Range Average

Gas Expansion Drive 70 - 90 80

Water Drive 35 - 65 50

Other Reserve Calculation Approach

Volumetric Calculation:

Deterministic

Probabilistic / Stochastic

Decline Curve Analysis

Material Balance

Reservoir Simulation

Probabilistic Assessment

Probabilistic volume calculation result is always lognormal

The Importance of Reporting

As a Company / Country – there is regular reporting requirement

This makes it necessary for a regulation / rule that standardizes the calculation and reporting methods

Last decade SPE/AAPG/WPC/SPEE/SEG collaborating to generate the system called PRMS

Petroleum Resources Management System

Securities and Exchange Commission (SEC) adopts PRMS

On the News

The Importance of Reporting

Project and

Portfolio

Management

system

to make

investment

decisions and

allocate

resources

Internal Business

Management

External

Business

Management

Regulatory

Commissions (required

by law)

Government – Tax

Investment Community

Financial Transactions

Resource

Inventory

Probable

Proved

Production

Possible

Undiscovered Potential

Discovered Not Yet Commercial

Reserv

es

R

eso

urc

es

Resource Classification

PRMS

follows the

line of

thought

Encompasses all quantities of petroleum naturally occurring

on or within the earth’s crust, discovered and undiscovered,

(recoverable or in-place). Further, it includes all types of

petroleum whether currently considered “conventional” or

“unconventional”

Reserves are a subset of Resources!

Resources

Those quantities of petroleum anticipated to be commercially

recoverable by application of development projects to known

accumulations from a given date forward under defined

conditions

Reserves

Resource Definition

PRMS Internal Reporting

Less Certain More Certain

Naming Conventions

Best Estimate Low Estimate High Estimate

Proved

High

Confidence

Moderate

Confidence

Low

Confidence

Probable Possible

1P 2P 3P

1C 2C 3C

Reserves

Contingent

Resources

Prospective

Resources

(C1)* (C2)* (C3)*

(P1)* (P2)* (P3)*

* widely used but not official PRMS terms

Lowest Known Oil (LKO)

LKO

Wells:

Proved Developed

Cross Section View

Seismic Structureon top of Sand "A"

Sand "A"

Sand "A"

Pool 1 Pool 2

Fault

Fault

1

1

Drilled Well

Proved UndevelopedProved Undeveloped

Reserve Categorization Example-1

Proved Developed

Cross Section View


Sand "A"

Sand "A"

Pool 1 Pool 2

2

Fault

Fault

1

1

Lowest Known Oil (LKO)Lowest Known Oil (LKO)

3

3

3

3

LKO

Wells: 2Wells: 2

Proved UndevelopedProved Undeveloped

Drilled Well


Wells:

Proved Developed

Proved Undeveloped

Cross Section View


Sand "A"

Pool 1 Pool 2

2

Fault

Fault

1 3

312

Dry Hole

4

P90

P90 O/W contact

4


LKO

OWC


OWC

Wells:

Proved Developed

Proved Undeveloped

Cross Section View


Sand "A"

Pool 1 Pool 2

2

Fault

Fault

1 3

3124

P90

P50

Probable

LKO

P90 & P50 O/W contact

4



OWC

Wells:

Proved Developed

Proved Undeveloped

Cross Section View


Sand "A"

Sand "A"

Pool 1 Pool 2

Fault

Fault

13

312

Probable

Additional locations

required to deplete

Proved Undeveloped

2

Pool 1

Pressure communication

measured across each of the

wells4

4



29

Economic Modifiers

Economic Status

Projects may be further characterized by economics and

commercial modifiers into:

Economic (Reserves)

Marginal Economic (Contingent Resources)

those quantities associated with technically feasible projects that are either

currently economic or projected to be economic under reasonably forecasted

improvements in commercial conditions but are not committed for development

because of one or more contingencies.

Sub-Marginal Economic (Contingent Resources)

those quantities associated with discoveries for which analysis indicates that

technically feasible development projects would not be economic and/or other

contingencies would not be satisfied under current or reasonably forecasted

improvements in commercial conditions. These projects nonetheless should be

retained in the inventory of discovered resources pending unforeseen major changes

in commercial conditions.

Reserves

“in waiting”

“cats &

dogs”

Reserves Status

Additional Classification Modifiers

Developed (Producing or Non-Producing)

Undeveloped

However, ………

Reserves status may be applied to Proved, Probable, and Possible

Recoverable quantities may be subdivided based on the funding and

operational status of wells and associated facilities into:

There is no change in the definitions/criteria associated with Reserves Status

(Even Developed Producing Reserves have a range of ultimate recovery)

Reserves status is not really a subclass.

Reserves are allocated to status based on operations & funding.

It’s a “money thing” .. and it is important for project management!

3. DEFINISI & KLASIFIKASI CADANGAN

(dari BPMIGAS)

Klasifikasi Cadangan yang digunakan oleh BPMIGAS dan

Ditjen Migas mengacu SPE 2001 yang telah dimodifikasi

berdasarkan karakter reservoar di Indonesia.

Hasil Forum di Bali 10-11 Agustus 2009 (“Penyamaan Persepsi Kategori & Perhitungan cadangan “) telah

disepakati BPMIGAS-Ditjen Migas – Pertamina bahwa klasifikasi cadangan dari PRMS 2007 (SPE 2007)

sampai saat ini belum bisa dipakai dalam POD atau dalam pelaporan cadangan tahunan (Annual Reserves

Report).

Reserves

Probable

Estimate

Ekonomis

Proved

Estimate

Developed Undeveloped

Possible

Estimate

90%P1 + 50%P2 Or 90% P1

Tidak Ekonomis

An

nu

al

Reserv

es R

ep

ort

P

OD

Reserve Audit

To increase reliability of the reserve report an audit

by independent auditor is recommended – called

“Reserve Certification”

Below are names of well known auditors:

DeGolyer and MacNaughton (D&M)

Gaffney & Cline Associates (GCA)

Sproule

Ryder Scott

Netherland and Sewell Associates (NSA)

And many others

MK-TRMB11 Resource - Reserve

Documents

Transcript of MK-TRMB11 Resource - Reserve