Application of the United Nations Framework Classification to assessment of the prospective resources of hydrocarbons in Azerbaijan

Abstract

The oil and gas industry plays an important role in Azerbaijan's economy, contributing significantly to GDP and government revenues. However, the existing classification of hydrocarbon reserves and resources is outdated and does not reflect the economic efficiency of extraction. In this regard, the United Nations Framework Classification for Resources (UNFC) helps to determine the feasibility, technical viability, and maturity of resource development projects. This paper examines the assessment of hydrocarbon resource categories by comparing the current classification system for oil and gas reserves and resources in Azerbaijan with the UNFC. The objective of this work is to conduct a comparative analysis of prospective resource categories and thus provide a basis for the preparation of a bridge document describing the relationship between the United Nations Framework Classification and the existing 1984 classification used in Azerbaijan. To conduct this research, a hypothetical field called «Structure C» was used in which resource assessments were conducted at various times in 1984, 1988, 1993, 2001, and 2011 based on the 1984 classification of the former Soviet Union. Keywords: prospective resources of hydrocarbons; UN framework classification; case study.