Microsoft PowerPoint - 14 RudkoUkraine UNFC ConfLondon Feb
2011.pptApplication of the UNFC to Mineral Resources in
Ukraine
G.I. Rudko, V.I. Lovyniukov
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Introduction
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• for technical and economic assessment of suitability to start the
exploration at the recognized potential field;
• for technical and economic assessment of suitability to start the
commercial development of a proven and thoroughly evaluated
field;
• for technical and economic assessment of suitability to continue
the commercial development of a producing field.
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According to the legislation of Ukraine, the materials of
economic-geological evaluation of mineral resources of all the
explored and thoroughly evaluated fields, as well as the deposits
that are additionally explored in the course of the field’s
development and the reserves, which remain in the subsoil in case
of mining enterprise liquidation, are subject to a compulsory state
expert examination.
State expert examination
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• Characteristics of the geological aspects of mineral products’
fields, their technological properties, mining and geological
conditions as well as other relations necessary for making design
solutions in relation to production techniques and production
systems as well as the schemes for processing of mineral products;
• technical and economic assessment of conditions for reserves
calculation, providing the most complete extraction of mineral
products from the subsoil with the help of modern commercial
production and processing technologies under condition of observing
the requirements of mineral products conservation and environmental
protection;
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• characteristics of methods and results of mineral products
testing and calculation of the reserves;
• technical-and-economic evaluation of the total effect from
field’s exploitation after one or several variants with determining
the predictive results of the entrepreneurial activities of a
mining enterprise necessary for making an investment
solution.
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Board of the State Commission of Ukraine on Mineral Reserves
decrees:
To set the following conditions for calculation of hydrocarbon in a
field:
•lower limit of the collector’s open porosity – 6,5%; •lower limit
of the collector’s gas saturation – 65%; •lower limit of the
collector’s permeability – 0.7⋅10-15m2.
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-17; -18 0.598 0.487
Approve the proven and prospected hydrocarbon in a field (excluding
production as of 01.01.01), which can be used for projection of
commercial production:
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Condensate in-places according to Table 2.
Reserves of concomitant useful components in free gas in-places
according to Table 3.
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Approve: Current (as of 01.01.01) prospected reserves of free gas and condensate at a field, which can be
used for projecting the further exploration and research and commercial production according to Table 4.
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Based on the abovementioned tables we can see, that the estimation
of hydrocarbon reserves according to New Classification during the
calculations and re-calculations of the hydrocarbon reserves
provided by the legislation of Ukraine in the process of their
geological analysis and commercial production does not cause
significant complications and allows to define the reserves of any
field not only by sufficiency of geological information, but also
by the level of readiness for commercial development.
Reporting on the changes of reserves condition during their use
will also be simplified, since the information on the level of
preparedness for commercial development will be determined by the
reserves class code.
Summation
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Activities on re-evaluation of hydrocarbon fields reserves being on
balance of the state enterprises (SE) were started in 1999 by
groups of experts of the state geological survey enterprises (SGSE)
(Poltava, Simferopol, Chernigiv, Lviv) specializing in calculation
of hydrocarbon reserves together with the scientists of the
Ukrainian State Geological Survey Institute
The same activities are performed by production organizations and
enterprises: ‘Ukrnafta’ LLC, SC ‘Ukrgazvydobuvannia’, SPE
‘Chornomornaftogaz’ and others.
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1. Main contours of hydrocarbon saturation, positions of the
gas-water contact, the oil-water contact, the gas-oil contact, the
values of the oil recovery ratio, the condensate recovery ratio are
not considered.
2. The calculation parameters previously accepted for the
evaluation objects (fields) are not considered.
3. Previously approved estimations of reserves (figures) are not
rounded off and are not defined without absolute necessity, in case
the calculation parameters do not change.
4. The total oil-bearing capacity of the re-evaluation object does
not change. The sum of reserves and resources or the fields’ area
in ordinary cases should remain constant.
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1. Categories of the extent of exploration and reliability of
reserves and resources.
2. Position of limits between the categories.
3. The number of reserves and resources of different
categories.
4. New category reserves and resources will be assigned the codes
of the International codification.
5. Free gas extraction coefficients are not used.
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6. Commercial significance of total hydrocarbon reserves does not
change. In case they were not related to as economic, it is
necessary to consider them as such. At the same time it is
necessary to consider only those balance reserves, that are being
extracted (extractive).
7. According to the new Instruction, the hydrocarbon resources are
considered as such resources, the commercial significance of which
has not been defined since the reliability of their definition does
not allow making a more precise economic- geological evaluation.
Accordingly, the prospected in-places cannot undergo a detailed
technical and economic assessment.
8. In case the graphic data (area, capacity etc.) as of 01.01.1999
does not coincide with the table data, preference will be given to
the table data.
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9. In case the research and commercial production of the field has
been performed, first it is necessary to contour the or 1 category
reserves (according to the Instruction) and the extractive reserves
will be related to class 111.
10. In case the research and commercial production of the field has
not been performed, all the 1 category reserves will be transferred
to the 2 category and contoured according to the Instruction. The
‘remainder’ of the reserves area of the ‘old’ 1 category can also
be included into the new 2 category, in case it is small.
Significant ‘remainder’ of the reserves area of the 1 category
relates to the prospective resources.
11. The calculation block of the ‘old’ 2 category can be partially
or fully transferred to the new 2 category in case they meet the
new requirements, otherwise they will be transferred to the
prospective resources.
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12. Prospective resources previously related to 1 or 2 or 3
categories, but transferred to the resources category in the result
of the re-evaluation will all be related to the class under the
code 333.
13. The class 332 reserves can be distinguished at the fields where
no preliminary assessment has been performed and class 111 or 121
or 122 reserves are absent.
14. The residual reserves equal to the difference between the total
and extractive reserves will be related to the out-of-balance
reserves. In this case the residual reserves of the 1 category
block will be related to the code 221 class, and the residual
in-places of the 2 category will be related to the code 222
class.
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15. Research and commercial development will be considered and
performed in the case more than 5% of field’s extractive reserves
are extracted, or in case the formation pressure decrease of more
than 5-10% is determined at the field.
16. Collector efficiency level may be determined according to the
formation testing data so according to the bore geophysical survey
data.
According to the reserves quantity the total and balance
(extractive) reserves have insignificant discrepancies according to
the Classifications of 1983 and 1997.
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Reserves and resources registered at 01.01.2000
by the Classification of 1983 Determining factors taken into
account during reserves revaluation
Reserves and resources harmonized with Classification 1997 as at
01.01.2000
Economic value Category
Geological (X) Category
balance
, X Y
Reserves approved by SCR of USSR, CCR of Ministries of USSR, SCR of
Ukraine ,
X -111
221 -
, X Y Reserves not approved by established procedure ,
X -121
Reserves approved by established procedure. Pilot Development (PD)
is completed 1
X -111
Reserves not approved by established procedure, PD is completed
1
X -121
1 X Y
PD is not completed. Regardless of reserves being approved or not,
they are moved to C2
Category (1997) 2
X -122
2 X Y
Exploration degree meets the features of previously explored
reserves of C2 Category 1997
(Deposit or it’s part is located higher than established efficiency
level)
2
X
2 X Y
Exploration degree doesn’t meet the features of previously explored
reserves of C2 Category 1997 (Deposit lays completely lower the
efficiency level)
3 333 X - -
Outbalan ce
– X Feasibility analysis of development unexpediency is done on the
basis of PD or industrial operation 1 221 X - -
– X There was no industrial operation, nor Pilot Development. 2 222
X - -
3 X According to a new classification (y) is not registered and not
encoded. 3 333 X - -
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SN Indices Total OGBA
Eastern Western Southern 1 Data according to the Classification of
1983 1
1.1 Fields with oil in-places 26 10 9 7 1.2 Number of evaluation
objects 45 17 13 15 2 Re-evaluation data (Classification of
1997)
2.1 Fields at which the oil in-places re- evaluation has been
performed 24 8 9 7
2.2 Number of objects, the in-places of which have been
re-evaluated 42 14 13 15
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State Reserve Register data according to the Classification of
1983
Fields with condensate in-places 27 23 1 3 Number of evaluation
objects 81 76 1 4
Re-evaluation data (Classification of 1997)
Fields at which condensate in-places re- evaluation has been
performed 23 19 1 3
Number of objects, the in-places of which have been re-evaluated 59
54 1 4
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State Reserve Register data according to the Classification of
1983
Fields with gas in-places 66 33 18 15 Number of evaluation objects
195 132 43 20
Re-evaluation data (Classification of 1997) Fields at which the gas
in-places re-
evaluation has been performed 62 29 18 15
Number of objects, the in-places of which have been re-evaluated
162 99 43 20
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On the whole the results of the resources re-evaluation show the
insignificant changes:
If total oil reserves according to the Classification of 1983
amounted to 100%, after the re-evaluation they made up 99%, gas
reserves - 100% and 104%, condensate reserves – 100% and 104%
correspondingly.
At the same time the correlation between the proven and prospected
reserves has changed.
As for oil the prospected extractive reserves after the
Classification of 1983 amounted to 100%, after the re-evaluation
they made up 23%, 100% and 26% correspondingly as for gas, and 100%
and 22% as for condensate. The greater part of the reserves was
moved to the prospected category and cannot be considered as ready
for production.
The results of the resources re-evaluation
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The above-mentioned data shows that the application of the
UNFC-adapted mineral products reserves and resources classification
in Ukraine will not cause any complications. At the same time, the
simultaneous introduction of the gas extraction factors, defined in
the result of technological and economic surveys together with the
new classification, will lead to noticeable decrease of the gas and
condensate extractive reserves of the 111 and 122 classes.
Just as introduction of the requirement in the new classification,
according to which the prospected reserves should be proven by
their research and commercial production data, will lead to
decrease of the prospected reserves of classes 111 and 121.
The results of the resources re-evaluation
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As a result of transferring the hydrocarbon reserves on the balance
of the State Reserve Register into the taxons of the new
classification, significant adjustment of the information on the
quantity of the 111 class reserves, which is ready for commercial
development, was performed and, correspondingly, the information on
the possibility of oil and gas production increasing at the
enterprises, which reserves have been re-evaluated.
The results of the resources re-evaluation
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1. This order defines the main principles and sequence of
operations needed to converse solid fossil fuel reserves and their
concomitant components, registered in State Balance as at
01.91.2003, into taxons of Mineral resources and reserves
Classification of State Subsoil Fund.
2. Deposit and field reserves, which are registered by State
Commission of Ukraine on Mineral reserves (SCR) of USSR or by SCR
of Ukraine, belong to State Subsoil Fund and were referred by
exploration degree to such groups: – productive mines and
opencasts; – mines and opencasts under construction; – “A” group
reserve fields for mines and opencasts; – “B” group reserve fields
for mines and opencasts.
3. State Subsoil Fund contains deposit and field reserves, which
are registered by SCR of USSR or by SCR of Ukraine, as well as
reserves approved by SCR of USSR or by SCR of Ukraine and referred
by their exploration degree to such groups: – explorative fields; –
fields perspective for exploration; – free fields close to
operating mines; – closed mines and opencasts.
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4. Outline sketches of computative blocks and figures, quantity and
qualification of calculated reserves by categories, computative
parameters and qualitative coal ratio are not reconsidered during
the conversion, but are admitted as registered in the
Balance.
5. Economic value (balance inventory) of accounted reserves is not
to be reconsidered. Accounted balance reserves by Classification of
1983 refer to balance, and outbalance reserves – to outbalance.
Nominally balance reserves and reserves of not defined economic
value are not pointed out like not distinguished during the
approval and not accounted.
The exception are balance and outbalance free fields reserves,
which are defined as unfeasible for development, and closed mines
reserves, which are referred to reserves with non defined economic
values by the new Classification.
Reserves categories estimated for 01.01.2003
by Classification 1981 Defining factors, which are considered
to
define the international reserves code
Categories and classes of the reserves by
Classification of Ukraine 1997
Balance
Deposits and fields reserves approved by State Commission of
Ukraine on Mineral Resources (SCR) of USSR or by SCR of Ukraine and
defined as prepared for industrial development by operating mining
companies (mines, opencasts) and as being under construction (“a”
group reserve and “b” group reserve)
111 111 1 1 111 2 2 122
Outbalance
2 2 222
Balance
Deposits and fields reserves which haven’t been approved by SCR of
USSR or by SCR of Ukraine, as well as reserves approved by SCR but
defined as not prepared for industrial development (explorative
areas, perspective for exploration)
121 121 1 1 121 2 2 122
Outbalance , , 1 , , 1 221
2 2 222
Balance and outbalance
, , 1 Free fields reserves defined as unfeasible for development
and also closed mines reserves, regardless of instance, which has
approved them
, , 1 331
Layers designation. Construction/putting into operation year.
Reserves/operation calculation depth.
License.
c) Working levels
b) Sulphur St d, %;
c) Humidity Wt r %
) Specific heat Qi
r, J/kg
Reserves on 01.01 of previous year Balance reserves movement class
code 111+121+122 for … as result of:
Balance
+222 331
+332
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1. State Deposits Fund
(SDF)
2. Reserve of State Deposits Fund (RSDF)
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Approved balance reserves ) in total
b) date of approvement and of report
c) complication group
Remainder of balance
Balance Conditionally
+ 222 331+332
1. State Deposits Fund (SDF)
2. Reserve of State Deposits Fund (RSDF)
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Reserves state est. January 01 of the current year Balance reserves
approved by SCR
Balance
With nonidentified
industrial meaning
of report Reserves
geological complexity aspect
year. Codes of classes
111+121+122
Class code 111 Class code 121 Class code 122 Class code 111
Codes of classes
121+122
A+B A+B+C1 A+B+C1 C1 A+B+C1
15 16 17 18 19 20 21 22 23 24
1. State Deposits Fund (SDF)
2. Reserve of State Deposits Fund (RSDF)
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1. Defined order determines the maim principles and sequence of
operations on metal (uranium) reserves conversion, registered in
the State balance as at 01.01.2003 into taxons of mineral reserves
and resources of State subsoil fund classification, approved in
1997.
2. Metal reserves of natrium-metasomatic and arenated geological
and industrial types refer to the State mineral resources deposits
fund and were approved by State Commission of Ukraine on Mineral
reserves (SCR) of USSR or SCR of Ukraine and were recognized as
prepared for industrial exploration.
3. Deposit reserves of all geological and industrial types,
registered in State balance of mineral resources, refer to the
Reserve of State mineral resources deposits fund.
4. All reserves registered in the State balance as at 01.01.2003
are the subject to conversion into taxons of mineral reserves and
resources of State subsoil Fund Classification.
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5. The main principles of reserves conversion, registered in the
State balance, into taxons of mineral reserves and resources of
State subsoil Fund Classification are the following:
5.1. Balance reserves of natrium-metasomatic geological and
industrial type by the content are divided into 2 sorts:
– with metal extraction prime cost less than 40 USD./kg according
to marginal content, established for every single deposit;
– with metal extraction prime cost more than 80 USD/kg according to
marginal content, established for every single deposit
5.2. Metalliferous deposits of natrium-metasomatic geological and
industrial type with metal extraction prime cost more than 80
USD/kg refer to out-of-balance reserves.
5.3. Balance deposit reserves of arenated geological and industrial
type are referred to those, which extraction and reworking prime
cost is less than 40 USD/kg.
5.4. Outbalance deposit reserves of arenated geological and
industrial type are referred to those, which extraction and
reworking prime cost more than 40 USD/kg.
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5.5. Reserves division of natruim-metasomatic and arenated
geological and industrial types into balance and out-of-balance, as
well as reserves division into 1st and 2nd sorts are conducted
according to marginal metal content in balance block, determined in
reserves calculation materials by virtue of which reserves are
registered in the State balance for every single deposit .
5.6. Extracted balance reserves are determined by multiplying of
total reserves in balance block in situ by full-depth extraction
ratio, which is defined for every single deposit.
5.7. Deposits reserves, which do not belong to natrium-metasomatic
geological and industrial types, refer to those, which economic
value is not defined.
5.8. Extracted reserves are not defined for outbalance minerals and
for those, which economic value is not defined.
5.9. Balance blocks outline sketches of deposit reserves, quantity
and calculated total reserves identification by categories,
designed parameters and qualitative minerals factors in balance
blocks during the conversion into taxons of mineral reserves and
resources of State subsoil Fund Classification are not revised ,
but are accepted as those, registered in the State balance or
approved in reserves calculation materials .
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classification of , 1981
Categories and resources harmonized with Classification
1997
1 Balance blocks deposit reserves of natrium-metasomatic geological
and industrial type where the content is more than marginal 1 111
121
1 Balance blocks deposit reserves of natrium-metasomatic geological
and industrial type where the content is less than marginal 1 221
221
1 Deposit reserves of arenated geological and industrial type 1 111
121
Balance
2 Balance blocks deposit reserves of natrium-metasomatic geological
and industrial type where the content is more than marginal 2 122
122
2 Balance blocks deposit reserves of natrium-metasomatic geological
and industrial type where the content is less than marginal 2 222
222
2 Deposit reserves of arenated geological and industrial type 2 122
122
Out- balance
1 Balance blocks deposit reserves of natrium-metasomatic geological
and industrial type 1 221 221
1 Deposit reserves of arenated geological and industrial type 1 221
221
2 Balance blocks deposit reserves of natrium-metasomatic geological
and industrial type 2 222 222
2 Deposit reserves of arenated geological and industrial type 2 222
222
Balance 1 Deposit reserves of other geological and industrial types
1 – 331 2 Deposit reserves of other geological and industrial types
2 – 332
Out- balance
1 Deposit reserves of other geological and industrial types 1 – 331
2 Deposit reserves of other geological and industrial types 2 –
332
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account for international reserves code formulation
Reserves categories and classes under
Classification of Ukraine 1997
State Deposits Fund
Balance
Deposits and fields reserves approves by … or by SCR of USSR or by
SCR of Ukraine and recognized as ready for commercial
development
111 111 1 1 111 2 2 122
Outbalance , , 1 , , 1 221
2 2 222 Reserve of State Deposits Fund
Balance
Deposits and fields reserves which had not been approved by … or by
SCR of USSR or by SCR of Ukraine
; 121 121 1 1 121 2 2 122
Outbalance , , 1 , , 1 221
2 2 222
Approved balance reserves ) in total
b) date of approvement and of report
c) complication group
(SCR)
Balance Conditionally
16 17 13 19 20 21 22 23 24
1. State Deposits Fund (SDF)
2. Reserve of State Deposits Fund (RSDF)
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deposit, field. Putting into operation
year, number of license, date of license issue and
validity of license
Class code 111 in years
) Type of mineral
resource b) Content of
efficient components
and contaminations
c) Humidity
Reserves on 01.01 of previous year Change of balance reserves codes
of classes
111+121+122 for year as a result of:
Extract ion
211+221+22 2)
331+332)
121+122
1 2 3 4 5 6 7 8 9 10 11 12 13 14
1. State Deposits Fund (SDF)
2. Reserve of State Deposits Fund (RSDF)
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Reserves state est. January 01 of the current year Balance reserves
approved by SCR
Balance
211+221+ 222)
331+332)
of report Reserves
Remainder of balance reserves
Class code 111 Class code 121 Class code 122 Class code 111
Codes of classes 121+122A+B A+B+C1 A+B+C1 C1 A+B+C1
15 16 17 8 19 20 21 22 23 24
1. State Deposits Fund (SDF)
2. Reserve of State Deposits Fund (RSDF)