Reserve and Resources

Petroleum Geoscience
Outline
• Assessment of basin and global reserve
• SKK migas rule in determining Resource and
reserves
• Exercises
Petroleum Resources & Reserves
• Estimated volumes of oil & gas in an area of investigation.
• Determined indirectly from many different methods of investigation
• Inherent uncertainty in the relationship between the measurement
– volumes of oil & gas exists
• The determined volumes and their value are of strategic
importance in company – national and global economics
• Are treated as “Assets” in the company books
• Determines the valuation of the company and assets of nations.
Petroleum resource - types
• Petroleum resources are volumes of oil & gas that occur as deposits in
the layers of earth
• In principle these are similar to the other mineral deposits
• Rocks in the crust of earth have pore-space that is filled with
• – i) Water ii) Gases and iii) Petroleum
Petroleum occurs in 2 primary phases : i) Oil and ii) Gas

• Significant quantities (that can be discovered and produced) occur in 2 types of

deposits : Conventional : discrete accumulations – with map boundaries & distinct
hydrodynamic realms
• Unconventional : continuous accumulations in a wide area & not affected by or
separated by distinct hydrodynamic realm
Types of Petroleum Resources
• Conventional
Confined to clear areas of Petroleum
Types of Petroleum Resources
 Volumes of Petroleum
Resources
• The amount of Oil & Gas that
occurs in the subsurface
Yet to be discovered =
Prospective (opportunity)
• Volumes are in the conditions of
the deposit (Reservoir)
• Discovered (Known) Undeveloped – Value yet to
be realized
• Developed – Value is realized and mechanism to
produce and sell are in-place.
• Produced - Volumes produced and sold
(monetized)
Reserves
• The Amount of Oil & Gas that is
or can be produced and sold at
given time.
• Discovered + Developed
• Engineering and processing
facilities are built
• Operational aspects of the
reservoir and its facilities are
known (in-place)
• Volumes are in the surface
conditions of extraction,
processing, transportation and
sale. (Reserves)
 Equation for Resources in-place

http://www.epgeology.com/general-discussion-f29/hciip-formula-t5776.html
 Reservoir Volumes - HCIIP
In-Place Hydrocarbons Computing methods
• HCIIP = Volume of Petroleum in-place
within the reservoir
• Volume of Reservoir Rock (Gross-Rock Volume 1. GRV
GRV) • Area of the Closure
• Part of GRV that is made of Pore-Space (Pore- • Average Thickness
Rock Volume PRV)
• Part of PRV that is filled with Petroleum • 3D Volume above FWL
(Hydrocarbon Pore Volume HCPV)
• • Reservoir are made of 3D of space
• GRV = Volume of Space
2. PRV
• PRV = GRV * Average Porosity • Porosity samples (Core/ well log)
• HCPV= PRV * Average Saturation Shc
• All these parameters are estimated from 3. HCPV
samples taken from 1 or more wells • Saturation measurements (well log)
drilled in the reservoir
• Geophysical methods like seismic support the • Saturation Height function (Reservoir
estimates Rock types)
• Techniques like Well-Logs, Well-Tests, PVT
analysis etc. support
 Uncertainty in Volumes and Potential :
Resources & Reserves
• Parameters
a. Spatial variables
b. Sampled mostly by wells
c. Estimated indirectly from physical measurements
d. Change in different directions -- Anisotropy
e. Influenced by trends and other causes -- Non- Stationary
f. Difficult to determine {Measure & bind
Nature of Uncertainty
1. Sample distribution of the parameters (GRV, NTG,Ø, Sg, FVF)
Minimum
Maximum
Most-Likely
2. Reservoir Average of the Parameters (Population)
3. Methods of assessment of Ranges
4. Assessment of Quantification of Uncertainty
5. Impact on Resource in-place
6. Impact on Reserves
Resource Estimation
Volumetric 3D Model
Map Based
Equation Based
X,Y,p data X,Y,Z,p data

Average & Ranges Map Framework Model Framework

Distribution & Interpolation Parameter

Estimation Method Interpolation

Monte Carlo Geostatistics Simulation

Towards Reserves
Geology: Faults &
Formation Volume Development Scheme,
Facies, Stratigraphy.
Factor (FVF) Production, Operations
Rock-Fluid interactions

Wells &
Connectivity Spacing

HCIIP Rate of Flow

Ease of Flow
(Permeability) Fluid Phases
 Methods of Estimation
Deterministic Parameters & Results are Determined Deterministic as most-likely
•A single value for each sample in the parameter
•Single value of HCIIP or Reserves estimated
•Classified as “Proved – Probable – Possible” or “1P – 2P – 3P”

Scenario Realizations Method. 3 or more deterministic estimates

•Using Deterministic Method as foundation
•Ranges of Parameters and Results are created as Scenarios
•Assigned Low-Medium-High case of likelihood

Probabilistic Statistical uncertainty of Samples, Parameters and Results

•Sample data for each Parameter is assessed for their Probability and Distributions
•Results are derived by random sampling of the parameters (Monte Carlo) or by Other statistical simulation
•Large number of realizations are created and ranked (P10-P50-P90)
Indonesia?
 Exercise time (30’)
Where is the area of Proven/P1*, Probable/P2* and
Possible/P3*? (*if any)
Give the explanation!