The Petroleum Resources Management System (PRMS 2018): Application, implementation and practical use in the Oil and Gas industry

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Disciplines: Management | Reservoir

Course Description

Day 1 and 2 (Interactive with questions from audience addressed as they come up):

• Introductions, course layout
• PRMS 2018 key principles and how it works. PRMS matrix, risk and uncertainty, Why are reserves important?
• PRMS key definitions and issues, Project definition, Project maturity, classification of projects into Prospective resources, Contingent resources and Reserves, Categorization of resources (into low, best and high technical in place and recoverable volumes), Industry nomenclature, Differences between reserves , EUR and TRR, Project Life Cycle and Hydrocarbon Maturation, Estimation Methods (probabilistic/deterministic/integrated, Volumetric, Use of Analogs, Material balance, Decline Curve Analysis (DCA) and common practices and use, Simulation, Multiple Realizations approach, Experimental Design, etc.). Developed and undeveloped reserves. Proved developed producing (PDP), proved developed non producing (PDNP), Split conditions, Key issues and common mistakes. Exercises/examples
• PRMS Determination of project commerciality and how they can significantly impact reserves (contractual and fiscal issues, PSCs terms and conditions, project economics, costs models and how costs and other assumptions (e.g. exchange rates, inflation) can significantly impact reserves, Operating Cost models (Variable/Fixed elements and how to build these costs models impacting on reserves and economic limit), Entitlement and Working Interest. Reference Point, Wet or Dry natural gas and reserves reporting, Impact of non-hydrocarbons, License Expiry Date, CAPEX estimates (wells and facilities), Abandonment costs, Sunk costs/remaining costs role in the determination of the reserves economic limit, Oil and gas prices and their use in reserves estimation. Company track record and the role of reasonable expectation of commerciality in the classification of reserves and subclasses. Projects sub classes in reserves and contingent resources, economic evaluations. Country and company track record and impact on reported reserves, Business Plan and company planning. Partners/government issues and linkage to reserves. Changes in annual reserves (waterfall diagrams) and understanding the reasons for changes (surface/subsurface). Exercises/examples
• Key differences between approved for development projects and justified for development projects in reserves
• Contingent Resources sub-classes and application
• Gas conversion factor and choices that can be made affecting amount of reported reserves and gas consumed in operations
• Integration of technical and commercial aspects in reserves evaluation, multidisciplinary team work
• 2011 guidelines and present status of update
• Key differences between the PRMS 2007 and the PRMS 2018
• Ongoing SPE initiatives related to the PRMS
• PRMS Lessons learnt and common pitfalls/misunderstandings in the oil and gas industry
• International reserves practices and how some of the assumptions going into reserves estimation can significantly impact the amount of reported reserves

Day 3 to cover:

• Relevant Bibliography/References
• Any issues that may require further discussion/clarification based on questions/concerns from attendants
• Specific discussions/advise (one on one or with ARA staff groups) of actual ARA projects/fields/wells reserves or resources issues, specific reserves/contingent resources cases, problems or challenges that ARA may have

 

Learning Level

Intermediate

Course Length

3 Days

Why Attend

Staff attending the first two days will acquire insight and understanding of the key aspects in the estimation, categorization and classification of reserves, contingent resources and prospective resources. Staff will strengthen their skills and knowledge in:

• Understanding and application of the 2018 PRMS
• Understanding on the wider role of reserves
• Integration of static and dynamic aspects in the estimation of reserves
• Understanding of subsurface uncertainties
• Role of commercial considerations in reserves estimation and reporting
• Integration of technical and commercial aspects playing a role in reserves estimation
• Discuss challenges, problems and any other issues related to reserves and Contingent Resources with the instructor thereby resolving problems they may have or expending their knowledge and skills in specific areas of interest

Who Attends

Reservoir Engineers, Geoscientists, Asset managers, team leaders, economists, finance staff using reserves estimations, finance staff dealing with country fiscal regime, Staff preparing projects/fields budgets, Operations staff and other staff dealing with estimation of budgets and Costs, commercial staff dealing with reserves and resources contracts, staff dealing with PSCs, Planning staff dealing with corporate planning, project engineers, facilities engineers, development and commercial managers.

(Note that the course will be scheduled/organized in such a way that some modules will mainly benefit staff from the technical disciplines, some modules will mainly benefit staff from commercial disciplines and some modules will benefit staff in management jobs and all disciplines)

CEUs

3.2 CEUs (Continuing Education Units) are awarded for this 3-day course.

Cancellation Policy

All cancellations must be received no later than 14 days prior to the course start date. Cancellations made after the 14-day window will not be refunded. Refunds will not be given due to no show situations.

Training sessions attached to SPE conferences and workshops follow the cancellation policies stated on the event information page. Please check that page for specific cancellation information.

SPE reserves the right to cancel or re-schedule courses at will. Notification of changes will be made as quickly as possible; please keep this in mind when arranging travel, as SPE is not responsible for any fees charged for cancelling or changing travel arrangements.

We reserve the right to substitute course instructors as necessary.

Instructor