Application of United Nations Framework Classification for Hydrocarbon Reserves and Resources Volumes for a Mature Oil Reservoir in Kuwait

Abstract

Abstract United Nations Framework Classification (UNFC) for Energy and Mineral Resources is a unique instrument for harmonizing industry business processes, efficient capital allocation with policy framework and government oversights. The core competency of UNFC is focusing on objectives of Sustainable Development Goals (SDGs) while managing the natural resources required for the present and future needs of society. The company manages the upstream oil and gas sector, with significant expertise in managing exploration and production of hydrocarbon resources in diverse geological, engineering, and commercial environment. Present day activities span a large spectrum from pure reconnaissance for resources to producing from very mature fields with increased geologic, engineering, and commercial complexities. KOC uses Resource and Reserves Management System (KOC-RMS) for accounting and reporting of reserves and resources, which is based on principles of Petroleum Resources Management System (PRMS). PRMS [AZ1]is a framework for classifying and categorizing estimates of petroleum reserves and resources and it is used by most of the upstream oil and gas companies worldwide. UNFC provides common language for classification and reporting of solid mineral and petroleum resources, with main emphasis on socio-economic viability, technical feasibility, and maturity of a project. There have been continued efforts for bridging the gap between PRMS and UNFC systems, including the mapping of PRMS guideline updated in 2007 being to the UNFC system updated in 2009. This effort produced clearly marked similarities between the two systems and there is an effort currently underway to map the PRMS guidelines updated in in 2018 to the recently updated UNFC. This integration will help in comparing renewable energy resources with non-renewable energy. The objective of the present case study is to assess the applicability of UNFC for Energy and Mineral Resources management system for a mature oil reservoir. The results of this UNFC case study identified producing, justified for development, and contingent projects with limited social or environment impediments to development. The novelty of this study is the first known application of the UNFC approach to a petroleum reservoir of the Middle East and shows applicability to similar oil fields around the world. This approach can assist in the identification of all technical and non-technical aspects, such as social and environmental issues associated with development, and may be used to reflect the hydrocarbon resource maturation and reserves progression framework of a reservoir.