Outcome of the Seminar on the application of the UNFC Outcome of the Seminar on the application of the UNFC October 30-31, 2003, UNECE, Geneva By Dr Atmane Dahmani DSD, OPEC Secretariat

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Outcome of the Seminar on the application of the UNFC

October 30-31, 2003, UNECE, Geneva

By

Dr Atmane DahmaniDSD, OPEC Secretariat

Outcome of the Seminar on the Outcome of the Seminar on the application of the UNFCapplication of the UNFC

October 30October 30--31, 2003, UNECE, Geneva31, 2003, UNECE, Geneva

ByBy

Dr Atmane DahmaniDr Atmane DahmaniDSD, OPEC SecretariatDSD, OPEC Secretariat

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Current OPEC System classification of Reserves (SPE/WPC)

Need to update system of Classification

The UNFC as alternative

OPEC Support to the initiative

Current OPEC System classification of Current OPEC System classification of Reserves (SPE/WPC)Reserves (SPE/WPC)

Need to update system of ClassificationNeed to update system of Classification

The UNFC as alternativeThe UNFC as alternative

OPEC Support to the initiativeOPEC Support to the initiative

Introduction: OPEC ViewsIntroduction: OPEC Views

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1. First Session – Introduction to the UNFC– Status of the initiative, – Principles of the UNFC (with to the application to coal)– Proposal of UNFC for petroleum: as incorporation of the

SPE/WPC/AAPG classification – Application of the UNFC to Uranium was also given.

2. Second Session– UNFC for strategic resource management (governments), and

business process management (companies)– UNFC as financial reporting (owners/ investors). – Reconciliation of the UNFC and WEC terminology.

1.1. First Session First Session –– Introduction to the UNFCIntroduction to the UNFC–– Status of the initiative, Status of the initiative, –– Principles of the UNFC (with to the application to coal)Principles of the UNFC (with to the application to coal)–– Proposal of UNFC for petroleum: as incorporation of the Proposal of UNFC for petroleum: as incorporation of the

SPE/WPC/AAPG classification SPE/WPC/AAPG classification –– Application of the UNFC to Uranium was also given.Application of the UNFC to Uranium was also given.

2. Second Session2. Second Session–– UNFC for UNFC for strategic resource managementstrategic resource management (governments), and (governments), and

business process managementbusiness process management (companies)(companies)–– UNFC as UNFC as financial reportingfinancial reporting (owners/ investors). (owners/ investors). –– Reconciliation of the UNFC and WEC terminology. Reconciliation of the UNFC and WEC terminology.

Program of the SeminarProgram of the Seminar

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Introduction to the UNFCIntroduction to the UNFCIntroduction to the UNFC

United Nations Framework Classification –Need for classification–Benefits of the UNFC–Process of implementation: Recommendation

To create National experts groupsTo set up a Program: Organization of national seminars to apply the UNFC to selected country depositsTo Provide an extensive program of training

United Nations Framework Classification United Nations Framework Classification ––Need for classificationNeed for classification––Benefits of the UNFCBenefits of the UNFC––Process of implementation: RecommendationProcess of implementation: Recommendation

To create National experts groupsTo create National experts groupsTo set up a Program: Organization of national seminars to To set up a Program: Organization of national seminars to apply the UNFC to selected country depositsapply the UNFC to selected country depositsTo Provide an extensive program of trainingTo Provide an extensive program of training

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Introduction to the UNFCIntroduction to the UNFCIntroduction to the UNFC

United Nations Framework Classification

–Need for classification–Benefits of the UNFC–Process of implementation: Recommendation

To create National experts groupsTo set up a Program: Organization of national seminars to apply the UNFC to selected country depositsTo Provide an extensive program of training

United Nations Framework Classification United Nations Framework Classification

––Need for classificationNeed for classification––Benefits of the UNFCBenefits of the UNFC––Process of implementation: RecommendationProcess of implementation: Recommendation

To create National experts groupsTo create National experts groupsTo set up a Program: Organization of national seminars to apply To set up a Program: Organization of national seminars to apply the the UNFC to selected country depositsUNFC to selected country depositsTo Provide an extensive program of trainingTo Provide an extensive program of training

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Status of the initiative Status of the initiative Status of the initiative

• Creation of the Ad Hoc group in Nov. 2001 by the UNECE Committee of Sustainable Energy

• Objectives: to translate the existing systems of classification to the UNFC• 12-13 June meeting of the Ad Hoc group, its bureau was elected and

creation of three sub-groups for: Petroleum, Coal and Uranium • Missions of sub-groups were established • Organization of workshops:

Workshop in Tyumen, Siberia on September 9-10 for possible reformation of the Russian petroleum classification. The Petroleum Group met in Stavanger, Norway on September 23-24 to incorporate the SPE/WPC/AAPG system to UNFC.The Uranium Group met in Beijing, China on of September 24-25 As the Task Force coal had completed the work of the coal group prior to the establishment of the Ad-Hoc Group. The role of the coal group has been to monitor the activities

•• Creation of the Ad Hoc group in Nov. 2001 by the UNECE CommitteeCreation of the Ad Hoc group in Nov. 2001 by the UNECE Committee of of Sustainable Energy Sustainable Energy

•• Objectives: to translate the existing systems of classification Objectives: to translate the existing systems of classification to the UNFCto the UNFC•• 1212--13 June meeting of the Ad Hoc group, its bureau was elected and 13 June meeting of the Ad Hoc group, its bureau was elected and

creation of three subcreation of three sub--groups for: Petroleum, Coal and Uranium groups for: Petroleum, Coal and Uranium •• Missions of subMissions of sub--groups were established groups were established •• Organization of workshops: Organization of workshops:

Workshop inWorkshop in TyumenTyumen, Siberia on September 9, Siberia on September 9--10 for possible 10 for possible reformation of the Russian petroleum classification. reformation of the Russian petroleum classification. The Petroleum Group met in The Petroleum Group met in StavangerStavanger, Norway on September 23, Norway on September 23--24 24 to incorporate the SPE/WPC/AAPG system to UNFC.to incorporate the SPE/WPC/AAPG system to UNFC.The Uranium Group met in Beijing, China on of September 24The Uranium Group met in Beijing, China on of September 24--25 25 As the Task Force coal had completed the work of the coal group As the Task Force coal had completed the work of the coal group prior prior to the establishment of the Adto the establishment of the Ad--Hoc Group. The role of the coal group Hoc Group. The role of the coal group has been to monitor the activities has been to monitor the activities

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Status of the initiative (Ctd)Status of the initiative (Status of the initiative (CtdCtd))

Decisions of Ad Hoc Group Meeting on November 2003:

–cooperation with WEC,–organization of regional Seminars, –presentations of the UNFC in international events and finally–hold a third Ad-Hoc group meeting on October 30-31, 2003.

Decisions of Ad Hoc Group Meeting Decisions of Ad Hoc Group Meeting on November 2003: on November 2003:

––cooperation with WEC,cooperation with WEC,––organization of regional Seminars, organization of regional Seminars, ––presentations of the UNFC in international presentations of the UNFC in international events and finallyevents and finally––hold a third Adhold a third Ad--Hoc group meeting on October Hoc group meeting on October 3030--31, 2003. 31, 2003.

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UNFC Principles (incl. Coal)UNFC Principles (incl. Coal)UNFC Principles (incl. Coal)

United Nations Framework Classification

is a three-dimensional (or EFG) system that provides information about the stages of

–1. Economic Viability (E), –2. Feasibility Assessment (F), and

–3. Geological Assessment (G).

United Nations Framework Classification United Nations Framework Classification

is a threeis a three--dimensional (or EFG) system that provides dimensional (or EFG) system that provides information about the stages of information about the stages of

––1. Economic Viability (E), 1. Economic Viability (E), ––2. Feasibility Assessment (F), and 2. Feasibility Assessment (F), and

––3. Geological Assessment (G)3. Geological Assessment (G)..

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United Nations Framework ClassificationUnited Nations Framework ClassificationUnited Nations Framework Classification

Economic

Axis E

ECONOMIC E 1

E 2

POTENTIALLY

ECONOMIC

E 3

INTRINSICALLY

ECONOMIC

F 3

F 1

FEASIBILITY STUDY/

MINING REPORT

F 2

PREFEASIBILITY STUDY

GEOLOGICAL STUDYG

1

RECONNAISSANCE

G4

G2

G3 PROSPECTINGGENERAL

EXPLORATIONDETAILED

EXPLORATION

Feasibility

Axis F

Geologica

l

AxisG

111

121

122

222

331

332

333334

Economic

Axis E

ECONOMIC E 1

E 2

POTENTIALLY

ECONOMIC

E 3

INTRINSICALLY

ECONOMIC

F 3

F 1

FEASIBILITY STUDY/

MINING REPORT

F 2

PREFEASIBILITY STUDY

GEOLOGICAL STUDYG

1

RECONNAISSANCE

G4

G2

G3 PROSPECTINGGENERAL

EXPLORATIONDETAILED

EXPLORATION

Feasibility

Axis

LLY

ECONOMIC

E 3

INTRINSICALLY

ECONOMIC

F 3

F 1

FEASIBILITY STUDY/

MINING REPORT

F 2

PREFEASIBILITY STUDY

GEOLOGICAL STUDYG

1

RECONNAISSANCE

G4

G2

G3 PROSPECTINGGENERAL

EXPLORATIONDETAILED

EXPLORATION

Feasibility

Axis F

Geologica

l

AxisG

111

121

122

222

331

332

333334

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UNFC for Petroleum(SPE/WEC/AAPJ system)

UNFC for PetroleumUNFC for Petroleum(SPE/WEC/AAPJ system)(SPE/WEC/AAPJ system)

UNFC for petroleum makes a clear distinction between in-place and produced quantities, and recoverable quantitiesIn adapting the EFG system to petroleum, the E and G axes continue to

stand for economic and geological, respectively. However, for the F axis, the term feasibility is replaced by the term field project. to keep track of quantities that normally are more mature than those addressed in feasibility studies and also that field projects reflects the maturity of the quantities with regard to the process and decisions to develop and produce the quantities. There is a sub-division within each axis as well as definitions for each term. The key numbers for in-place quantities (I1-4), which are located outside the cube, as are produced quantities. 12 combinations as being used in practice, others are invalid or not used in practice.

UNFC for petroleum makes a clear distinction between UNFC for petroleum makes a clear distinction between inin--place and place and produced quantitiesproduced quantities, and , and recoverable quantitiesrecoverable quantitiesIn adapting the EFG system to petroleum, the E and G axes contiIn adapting the EFG system to petroleum, the E and G axes continue to nue to

stand for economic and geological, respectively. However, for thstand for economic and geological, respectively. However, for the F axis, e F axis, the term the term feasibility feasibility is replaced by the term is replaced by the term field projectfield project. . to keep track of quantities that normally are more mature than tto keep track of quantities that normally are more mature than those hose addressed in feasibility studies and also that field projects readdressed in feasibility studies and also that field projects reflects the flects the maturity of the quantities with regard to the process and decisimaturity of the quantities with regard to the process and decisions to ons to develop and produce the quantities. develop and produce the quantities. There is a subThere is a sub--division within each axis as well as definitions for each division within each axis as well as definitions for each term. term. The key numbers for The key numbers for inin--place quantitiesplace quantities (I1(I1--4), which are located outside 4), which are located outside the cube, as are the cube, as are produced quantitiesproduced quantities. . 12 combinations as being used in practice, others are invalid or12 combinations as being used in practice, others are invalid or not used not used in practice.in practice.

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UNFC for PetroleumUNFC for PetroleumUNFC for Petroleum

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UNFC for Petroleum(Case study of Norway)

UNFC for PetroleumUNFC for Petroleum(Case study of Norway)(Case study of Norway)

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UNFC for UraniumUNFC for UraniumUNFC for Uranium

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UNECE contribution to WEC Survey of Energy Resources UNECE contribution to WEC UNECE contribution to WEC Survey of Energy Resources Survey of Energy Resources

331,332,333, 334

234,321,322,323,334

331,332,333,334

Prospective quantities in place /intrinsically economic in placequantities

211,221,222,311,321,322

121,122,123,221,222,223

211,222Contingent Resources /Potentially economically extractable quantities

111,121,122111,112,111,121,122Reserves/Economically extractable quantities

UraniumPetroleumCoal

CodesJoint class

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RecommendationsRecommendationsRecommendations

UNFC documents will be circulated by the OPEC Secretariat to all its Member Countries asking their official position, by 15th September next, on the application of UNFC to their countries' oil/natural gas deposits;Feedback from the OPEC Member Countries will be considered by the Economic Commission Board of OPEC at its next meeting end September 2003;The OPEC Secretariat will explore the possibility of organizing a Regional Seminar for the Middle East OPEC Member Countries. This should be a joint OPEC/ECE Seminar. The OPEC Secretariat suggested the partnership of ESCWA, if accepted by them;The ECE, through the OPEC Secretariat, to invite all OPEC MemberCountries willing to take part in the forthcoming ECE Ad-Hoc Expert Group on the UNFC Implementation on Energy Commodities (Geneva, October 30-31, 2003).

UNFC documents will be circulated by the OPEC Secretariat to allUNFC documents will be circulated by the OPEC Secretariat to all its its Member Countries asking their official position, by 15th SeptemMember Countries asking their official position, by 15th September next, on ber next, on the application of UNFC to their countries' oil/natural gas depothe application of UNFC to their countries' oil/natural gas deposits;sits;Feedback from the OPEC Member Countries will be considered by thFeedback from the OPEC Member Countries will be considered by the e Economic Commission Board of OPEC at its next meeting end SeptemEconomic Commission Board of OPEC at its next meeting end September ber 2003;2003;The OPEC Secretariat will explore the possibility of organizing The OPEC Secretariat will explore the possibility of organizing a Regional a Regional Seminar for the Middle East OPEC Member Countries. This should bSeminar for the Middle East OPEC Member Countries. This should be a e a joint OPEC/ECE Seminar. The OPEC Secretariat suggested the partnjoint OPEC/ECE Seminar. The OPEC Secretariat suggested the partnership ership of ESCWA, if accepted by them;of ESCWA, if accepted by them;The ECE, through the OPEC Secretariat, to invite all OPEC MemberThe ECE, through the OPEC Secretariat, to invite all OPEC MemberCountries willing to take part in the forthcoming ECE AdCountries willing to take part in the forthcoming ECE Ad--Hoc Expert Group Hoc Expert Group on the UNFC Implementation on Energy Commodities (Geneva, Octobeon the UNFC Implementation on Energy Commodities (Geneva, October 30r 30--31, 2003).31, 2003).

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Thank youThank youThank you