Chinese Solid Mineral & Petroleum Classification and UNFC -2009 Bridging Documents The 8 th EGRC Session Geneva, 26-28 April 2017 YANG Hua, LI Jian, WANG Yongxiang The Ministry of Land and Resources of the People’s Republic of China 27 April, 2017
Chinese Solid Mineral & Petroleum Classification and UNFC -2009 Bridging Documents
The 8th EGRC Session
Geneva, 26-28 April 2017
YANG Hua, LI Jian, WANG Yongxiang
The Ministry of Land and Resources of the People’s
Republic of China
27 April, 2017
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2. Ukraine-China
Workshop on
classification.
3-6 June
1. Requested by
the 6th EGRC
Meeting, Jointed
Taskforce
established.28 April –1 May
4. Chinese-TAG Jointed
Taskforce Work
Sessions before the 7th
EGRC meeting.
27-29 April
5. Technical sessions
on BDs during the
China Mining 2016
21-25 Sep.
3. Technical Exchange
with TAG representative
at RIPED in Beijing.
3February
6. Draft bridging
documents provided
by China Taskforce
4February
7. Unofficial BDs in
Russian and French
versions drafted.
10 April
8. Ukraine-China
Workshop on
classification
22-23 April
9. Work Sessions
with TAG before the
8th EGRC meeting.
25 April
201720162015Annual
Session of
CSE in 2017
Joint Research Team
1. Requested by 6th EGRC Meeting, a Jointed Taskforce established in Geneva.
The China-Ukraine Workshop on Resources Classification: Status, Mapping
and Application was held successfully in Beijing in June 3-6,2015.
During the Workshop, major international classification systems (UNFC,
PRMS, CRIRSCO) and their mapping, application and practice experience
were discussed in depth.
2. China-Ukraine Workshop on has been held successfully in Beijing
3. Technical Session with TAG representative in 2-3 February 2016, at RIPED, Beijing
Dominique Salacz meeting the RIPED group to discuss the Petroleum bridging document.
April 25-26, 2016 TAG and China Taskforce
have held work sessions on the update of
Chinese resources classification systems
mapping to UNFC 2009.
Main highlights include:
China delegation introduced the active
Chinese classification systems and their
related specifications, and reported the
update on mapping approaches, and
preliminary results achieved;
TAG members shared their studies and
opinions, and generally agree the
preliminary mapping schemes for the
bridging documents put forward by China
taskforce;
4. China-TAG Jointed Taskforce Work Sessions before the 7th EGRC meeting, Geneva
5. Discussion Sessions on 21-25 September 2016, during China Mining 2016
Dominique Salacz meeting the RIPED group toexchange the way forward for the Petroleumbridging document.
Meeting with CRIRSCO experts to exchangethe way forward for the solid mineralbridging document.
6. Ukraine- China Workshop on Classification, 22-23 April 2017, Kyiv
6. Chinese bridging documents have gained much attention and strong supports
from the high level officials of both UNECE and MLR.
On April 25, 2017, TAG and China
Taskforce have held work sessions on the
bridging documents between the Chinese
resources classification systems and UNFC
2009.
Main highlights include:
China delegation introduced the update
on solid mineral and petroleum bridging
documents, provided related materials
with TAG members, and replied TAG’s
questions ;
TAG representatives have reviewed and
discussed the documents, and generally
agreed to promote the issuing of the
documents;
7. China-TAG Jointed Taskforce Work Sessions before the 8th EGRC meeting, Geneva
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Table 1 Chinese Classification for Mineral Resources and Reserves(CCMR-1999)
CCMR-1999 is not a isolated national standard
CCMR-1999 is not a isolated national standard but the key ofa classification system for exploration and mining stages.
High level
Middle
level
low level
Fig.1 Structure of the system of CCMR
Chinese Classification for Mineral Resources and Reserves
MineralExploration
StagesAim
application of industry index
Classification
Pre-Prospecting
find an area with greater potential for mineralization
General industrialindex
(334)?
Prospecting find a depositGeneral industrialindex
(333) and (334)?
General Exploration
make a judgement whether the project has any commercial value or not
confirmed industrial index
if it has commercial value ,(332),(333) and less (334)?If it has not, the explorationproject are finished, but noresources to be registeredinto national resources andreserve base.
Detailed Exploration
do detail exploration toprovide grounds for aFeasibility Study or minedevelopment and design
confirmedindustrial index
(331),(332) and (333)
How does it work
Economic Basic Reserves
Marginal economic Basic Reserves
Identified mineral resources
Confirmed through Prefeasibility study or Feasibility study
Sub-Marginal Economic Resources
Reserves
Confirmed through Scoping study
At the same time we get
Intrinsic economic Resources
With “b”
beginning with “2M”
beginning with “2S”
Break even point
Industry rate of return
How does it work
Basic Reserves with “b” is one of the Characteristics of CCMR-1999. Reserves are converted from them.
Difference of Basic Reserves with “b” and Reserves in CCMR-1999 is that the former does not deduct design or mininglosses, they are both confirmed to be extracted economicallythrough a commercial project. when we get 111b, we also getwhat is design or mining losses at the same time.
Intrinsic economic which is a range of degree of economicviability from sub-marginal economic to economic is possible.At the practice, only the project with reasonable prospects foreventual economic extraction can be classified into intrinsiceconomic.
Marginal Economic Basic Reserves and Sub-Marginal EconomicResources have not been permitted to use at practice since2007.
Axis
correspondence of
CCMR-1999 and
UNFC-2009
CategorySub-
Category
E1.1
E1.2
2M
2S
3
E3.1
3 E3.2
E3.3
1
2
F2
F3
F4
1 G1
2 G2
3 G3
4 G4
Degrees of
Geological
Assurance
Geological
Knowledge
F1/F2
1/2M E1
E2
E3
3
CCMR-1999
UNFC-2009
Economic
Viability
Economic and
Social
Viability
Stage of
Fesibility
Study
Field Project
Status and
FeasibilityObvious difference
Mapping of the E-F matrix in classes and categories with a color
coded and numeric key
UNFC-2009 Sub-Class
1 On production
2 Approved for Develepment
3 Justified for Development
Marginal
Economic
Basic
Reserves4 Development Pending
Sub-
Marginal5 Development On hold
4 Development Pending
5 Development On hold
6 Development Unclarified
7 Development Not Viable
11 Additional Quantities in Place
Economic-
Interest
Undefined
Resources 8 Exploration Project
Resources
Not defined in CCMR-1999
Intrinsic
Economic
Economic Reserves
UNFC-2009Class
(111)
(121) (122)
(111b)
(121b) (122b)
(2M11)
(2M21) (2M22)
(2S11)
(2S21) (2S22)
Intrinsic
Economic(331) (332) (333)
Economic
-Interest
Undefined
Resources (334)?Exploration
projectsE3 F3 G4
Marginal
EconomicPotentially
commercial
projects
E2 F2 G1,G2,G3
Economic
Reservescommercial
projects
CCMR-1999Class UNFC-2009"minimum"CategoriesCCMR-1999Categories
Sub-
Marginal
Economic Resources
F1E1
Not defined in UNFC-2009
G1,G2
Basic
Reserves
F1.1 F1.2 F1.3 F2.1 F2.2 F2.3 F3 F4
E1.1 1 2 3 4
E1.2 1 2 3
E2 4 4 5
E3.1 12 12 12 12 12 12
E3.2 6 6 6 8
E3.3 7 7 7 7 11
The E axis and the F axis of CCMR-1999 and UNFC-2009 do not
correspond each other very well, but they correspond from classes or sub-
classes.
Reserves in CCMR-1999 correspond to “Commercial Projects” in UNFC-
2009.
Marginal Economic Basic Reserves and Sub-Marginal Economic Resources
in CCMR-1999 have not been permitted to use at practice. From the view
of definition mapping, generally, they correspond with Potentially
Commercial Project in UNFC-2009.
“Intrinsic Economic Resources” obtained in general exploration and
detailed exploration stages in CCMR-1999 correspond to “Potentially
Commercial Projects” class in UNFC-2009. “Intrinsic Economic
Resources” (333) obtained in the prospecting stage should not directly
correspond to “Potentially Commercial Projects” in UNFC-2009.
Basic Reserves with “b” is not defined in UNFC-2009.
“Non-commercial projects” and “Additional quantities in place” in UNFC-
2009 are not defined in CCMR-1999.
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2222
III-1 Framework of CCPR-2004
Proved DevelopedEUR
Proved UndevelopedEUR
Total Petroleum Initially In Place
Discovered PIIP Undiscovered PIIP
Prospective PIIP Unmapped PIIP
Cumulative Production
Proved Developed Reserves
ProvedTEUR
UQ
Measured PIIP Indicated PIIP Inferred PIIP
ProspectiveRRUQ
Proved
EUR
ProbableTEUR
UQ
Probable
EUR
PossibleTEUR
UnmappedRR
UQ UQ
Proved
SER
Probable
SER
PIIP : Petroleum Initially In Place
TEUR: Technically Estimated Ultimate Recovery
UQ: Unrecoverable Quantities
RR: Recoverable Resources
EUR : Estimated Ultimate Recovery
SER: Sub-Economic Recovery
China Classification for Petroleum Reserves and Resources (CCPR-2004)
Horizontal – major classes and categories: two major classes: reserves and resources. By the geological reliability,
reserves are divided into three categories, i.e. Measured, Indicated, and Inferred; Resources two categories, i.e.
Prospective and Unmapped.
Vertical – classes or types: four hierarchies according to resource attributes (PIIP, TEUR, EUR, development
status).
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Unmapped Prospective IndicatedMeasured
(developed)
Measured
(undeveloped)Inferred
Regional
reconnaissance
phase
Risk exploration
projects
General
exploration
phase
General exploration
projects
Reservoir
appraisal phase
Appraisal
projects
Development
construction phase
Development
construction
projects
Production
operation phase
Enhanced
recovery
projects
Assessment
Plan
Preliminary
Development
Plan
Development PlanExploration
Design
Exploration
Deployment
Reserves
Reevaluation
Reserves
Verification
Reserves
Finalization
Exploration
Projects
Play Lead Prospect
Non-commercial
Projects
Development Unclarified
or Not Viable
Potentially
Commercial
Projects
Development
Pending or On
Hold
Justified
for
Developm
ent
Commercial
Projects
Approved for
Development
On Production
Classification and categorization correspond to E&D phases and decision process
III-1 Framework of CCPR-2004
In CCPR, five categories correspond to five E&D phases (or five types of projects).
The project maturity is controlled by “decision gate, development feasibility. It is comparable with
the classification of projects(classes) /sub-projects (sub-classes) under UNFC-2009.
China petroleum reserves decision process indicates that there is a sound basis for the bridging
between CCPR-2004 and UNFC-2009.
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A. Comparison of CCPR-2004 and UNFC-2009 in geological knowledge
III-2 Mapping of Categories and Sub-categories
CCPR-2004 Categories / Classes UNFC-2009 Category
Dis
cove
red
Measured PIIPTEUR
EURPv. Dev. Reserves
G1Pv.Und. Reserves
SER
UQ
Indicated PIIPTEUR
EUR
G2SER
UQ
Inferred PIIPTEUR
G3UQ
Un
dis
cove
red
Prospective PIIPRR
G4UQ
Unmapped PIIPRR
UQ
The Measured category includes Measured PIIP, Proved TEUR/EUR /SER, all of which have a
high level of confidence (G1).
The Indicated category includes Indicated PIIP, Probable TEUR/EUR /SER, moderate level of
confidence (G2).
The Inferred category includes Inferred PIIP and Possible TEUR, low level of confidence (G3).
Both prospective and unmapped category, classified into Exploration Projects, refer to G4.
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CCPR-2004 Categories / Classes UNFC-2009 "minimum" Categories UNFC-2009 Classes
Dis
cove
red
Proved Developed Reserves,
Proved Undeveloped EUR E1 F1 G1 Commercial Projects
Proved SER, Probable EUR,
Probable SER, Possible TEUR E2 F2 G1, G2, G3Potentially Commercial
Projects
Probable SER, Possible TEUR E3 F2 G2, G3 Non-Commercial Projects
UQ (Measured, Indicated and Inferred) E3 F4 G1, G2, G3Additional Quantities
in Place
Un
dis
cove
red Prospective RR, Unmapped RR E3 F3 G4 Exploration Projects
UQ (Prospective, Unmapped) E3 F4 G4Additional Quantities in
Place
B. Mapping of CCPR-2004 and UNFC-2009 classes and categories
III-2 Mapping of Categories and Sub-categories
The allocation to UNFC-2009 classes is based on a matrix formed from the E and F-axis, here not
including optional sub-classes.
Under CCPR-2004 Probable SER and Possible TEUR are split between two types of projects:
“Potentially Commercial Projects” and “Non-Commercial Projects” on the basis of differences
between categories UNFC-2009 E2 (Extraction and sale is expected to become economically
viable in the foreseeable future) and E3 (Extraction and sale is not expected to become
economically viable in the foreseeable future or evaluation is at too early a stage to determine
economic viability).
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C. Mapping of the E-F matrix to CCPR-2004 classes and categories with a color coded and
numeric keyF1.1 F1.2 F1.3 F2.1 F2.2 F2.3 F3.1 F3.2 F3.3 F4
E1.1 1 2 3 4
E1.2 1 2 3
E2 4 4 4 4 5
E3.1 12 12 12 12 12 12
E3.2 6 6 6 8 9 10
E3.3 7 7 7 7 11
Class Sub-class Code CCPR-2004 Classes and Categories
Commercial
Projects
On Production 1 Proved Developed Reserves
Approved for Development 2 Proved Undeveloped EUR
Justified for Development 3 Proved Undeveloped EUR
Potentially
Commercial
Projects
Development Pending 4 Proved SER, Probable EUR, Probable SER , Possible TEUR
Development on Hold 5 Proved SER, Probable EUR, Probable SER , Possible TEUR
Non-Commercial
Projects
Development Unclarified 6 Probable SER, Possible TEUR
Development Not Viable 7 Probable SER, Possible TEUR
Additional Quantities in Place 11 Measured, Indicated and Inferred UQs
Exploration Projects
Prospect 8Prospective RR
Lead 9
Play 10 Unmapped RR
Additional Quantities in Place 11 Prospective and Unmapped UQs
Produced Not Sold 12
III-2 Mapping of Categories and Sub-categories
In some cases, CCPR-2004
categories map to more than one
location in E-F matrix.
Section Ⅳ of Bridging document
describes how the volume of
CCPR-2004 categories should
properly correspond to sub-
categories of UNFC-2009.
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CCPR-2004 categories and examples of classes in three dimensions
III-3 Conclusion
The common Categories and Classes at the bottom tier demonstrate no changes.
Category 211 is added in the middle tier, which corresponds to additional code “4” in the E-F
Matrix.
Cell 112 and cell 113 are absent in the top tier, because the “Probable” and “Possible” categories
won’t reach “Justified for Development” or above. Category 122 and 123 are added, because the
progressive exploration and development has been implemented around the periphery of the
developed oil/gas fields offshore in China.
CCPR-2004 and UNFC-2009 can be effectively bridged.
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1. Official Documents Issuing & Public Comments Solicitation
• TAG issues the official bridging documents by May 2017;
• This final official document will then be forwarded to the full TAG and China
Government (MLR) in early mid-May 2017. (Beijing Workshop)
• Allowing for final edits, TAG should be in a position to issue a recommendation
to the EGRC Bureau by the end of May 2017.
• Assuming full approvals, the bridging document will be available in early June
for a 60 day public comments period.
• China delegation presents the bridging documents to the UNECE Executive
Secretary in an official ceremony and a joint press release in the end of
September 2017.
2. Final Approval
To John Etherington, Roger Dixon, Dominique Salacz, Alistair
Jones and other TAG members for all your devotion and
contribution to the bridging documents
To Charlotte Griffiths, Harikrishnan Tulsidas, and other EGRC
secretaries for your valuable guidance, supports and
coordination
To Christian Friis Bach, Scott Foster and other UNECE
officials for your kind attention and strong support