Circular No. 24/2020/TT-BCT stipulates on the分级和编制石油资源和储量报告的规定

This article provides detailed guidance on how to prepare reports for evaluating oil and gas resources and reserves for new fields or discoveries. It includes main sections such as a summary of geological-geophysical studies and mining technology; reservoir parameters; methods for calculating initial in-place oil and gas and reserves; calculation results; assessment of the reliability of calculated figures; and finally conclusions and recommendations. The article also includes an appendix with tables, diagrams, and data necessary to illustrate the main report.

Số hiệu24/2020/TT-BCT
Loại văn bảnCircular
Cơ quan ban hànhMinistry of Industry and Trade
Người kýĐặng Hoàng An — Thứ trưởng
Cập nhật14/06/2026
Lĩnh vựcUncategorized
Ngày ban hành18/09/2020
Ngày áp dụng06/11/2020
Ngày hết hiệu lực01/10/2024
Tình trạngExpired
✦ Tóm lược thông minh

This article provides detailed guidance on how to prepare reports for evaluating oil and gas resources and reserves for new fields or discoveries. It includes main sections such as a summary of geological-geophysical studies and mining technology; reservoir parameters; methods for calculating initial in-place oil and gas and reserves; calculation results; assessment of the reliability of calculated figures; and finally conclusions and recommendations. The article also includes an appendix with tables, diagrams, and data necessary to illustrate the main report.

Đối tượng áp dụng

Geologists, petroleum engineers, and mineral resource analysts

Các điểm cốt lõi

  • Part 1: Introduction to the oil field or discovery to be evaluated
  • Part 2: Summary of geological-geophysical studies and mining technology
  • Part 3: Reservoir parameters
  • Part 4: Methods for calculating initial in-place oil and gas and reserves
  • Part 5: Calculation results
  • Part 6: Assessment of the reliability of calculated figures
  • Part 7: Conclusions and recommendations

🌐 Tác động xã hội từ văn bản này

  • Provide accurate information about oil resources for investment and development decisions
  • Help manage and exploit resources efficiently and sustainably
  • Establish a legal basis for recording oil reserves of the field

❓ Câu hỏi thường gặp

What contents should be included in the report on evaluating oil and gas resources and reserves?

The report should include a summary of geological-geophysical studies, reservoir parameters, methods for calculating initial in-place oil and gas and reserves, calculation results, and an assessment of the reliability of calculated figures.

What does the appendix in the report contain?

The appendix contains statistical tables, calculation results, maps, cross-sections, and diagrams to illustrate the explanatory part of the report.

Who needs to prepare the report on evaluating oil and gas resources and reserves?

Geologists, petroleum engineers, and mineral resource analysts need to prepare this report when studying a new field or discovery.

Toàn văn

 

 

MINISTRY OF INDUSTRY AND TRADE
-------

SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
---------------

Number: 24/2020/No.-BCT

Hanoi, September 18, 2020

CIRCULAR

REGULATIONS ON GRADING AND REPORTING OIL AND GAS RESOURCES AND RESERVES

Pursuant to the Oil Law dated July 6, 1993; the Law Amending and Supplementing Certain Provisions of the Oil Law No. 19/2000/QH10 dated June 9, 2000; the Law Amending and Supplementing Certain Provisions of the Oil Law No. 10/2008/QH12 dated June 3, 2008;

Pursuant to Decree No. 98/2017/NĐ-CP dated August 18, 2017, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Pursuant to Decree No. 95/2015/NĐ-CP dated October 16, 2015 of the Government detailing certain provisions of the Oil Law;

Pursuant to Decree No. 33/2013/NĐ-CP dated April 22, 2013 of the Government promulgating the Model Contract for the Division of Oil and Gas Products;

At the proposal of the Director of the Department of Oil and Gas and Coal,

The Minister of Industry and Trade issues this Circular on regulations for grading and compiling reports on petroleum resources and reserves.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular stipulates the grading and reporting of oil and gas resources and reserves.

Article 2. Applicability

1. The Operator or organization or individual (hereinafter collectively referred to as the Operator) shall prepare reports on oil and gas resources and reserves when conducting exploration, development, and exploitation activities of oil and gas within the territory of Vietnam, including land, internal waters, islands and archipelagos, territorial sea, contiguous zone, exclusive economic zone, and continental shelf under the sovereignty, sovereign rights, and jurisdiction of Vietnam as defined by Vietnamese law and international treaties to which Vietnam is a party.

2. State management agencies and organizations and individuals related to the grading and reporting of oil and gas resources and reserves in oil and gas activities.

Article 3. Explanation of Terms

In this Circular, the following terms shall be understood as follows:

1. Exploited oil and gas (cumulative production) is the total amount of oil and gas extracted from the reservoir or oil and gas field updated to the time of preparing the report on oil and gas resources and reserves (hereinafter referred to as the Report), which is a portion already recovered from the oil and gas reserves.

2. Initial Oil and Gas in Place (Petroleum Initial In Place or Hydrocarbon Initial In Place) is the quantity of oil and gas initially existing in natural accumulations that have been or have not yet been discovered by drilling wells, calculated or forecasted for each specific object.

3. Economic and Technical Conditions are economic and technical criteria argued to be applied at the time of preparing the Report.

4. Oil and Gas Recovery Factor is the ratio between the amount of oil and gas that can be extracted compared to the initial oil and gas in place of the reservoir or formation under certain economic and technical conditions.

5. Undeveloped Commercial Group (hereinafter referred to as the Undeveloped Group) is oil and gas resources that have been discovered but evaluated as not meeting economic and technical conditions for development, which may include fields in a suspended or delayed state due to changes in economic and technical factors.

6. Developed Commercial Group (hereinafter referred to as the Developed Group) is oil and gas resources that have been discovered and evaluated as meeting economic and technical conditions for development, including: fields that have been and are being exploited; fields undergoing development activities; oil and gas discoveries argued to meet economic and technical conditions for preparing to develop the field according to the Operator's viewpoint.

7. Oil and Gas Resources (Petroleum Resources) is the total amount of oil and gas in place initially existing in natural accumulations.

8. Undiscovered Oil and Gas Resources (Undiscovered Petroleum Resources) is the initial oil and gas in place existing in natural accumulations but not yet discovered by drilling wells.

9. Discovered Petroleum Resources is the amount of oil and gas in place initially existing in natural accumulations that have been discovered through drilling.

10. Product Zone is a set of reservoirs or producing formations within a geological stratigraphic unit of a structural formation.

11. Play is a group of prospective oil and gas objects within a defined geological and geographical limit, with similar reservoir characteristics and properties.

12. Oil and Gas Reservoir, Producing Formation is a geological body containing natural oil and gas located within an oil field, separated from other reservoirs or producing formations by barriers.

13. Flow Test is the process of surveying exploration, appraisal, and production wells to collect parameters such as oil, gas, and water flow rates, pressure, temperature, and other necessary data.

14. Formation Testing is the hydrodynamic study conducted to determine comprehensive hydrodynamic parameters and assess the potential for exploitation of a part or all of the reservoir.

15. Potentially Recoverable is the estimated amount of recoverable oil and gas from the initial oil and gas in place of undeveloped or undiscovered discoveries.

16. Oil and Gas Reserves (Petroleum Reserves) is the estimated amount of commercially recoverable oil and gas from the initial oil and gas in place of the field under economic and technical conditions at a specific point in time.

Chapter II

GRADING OF PETROLEUM RESOURCES AND RESERVES

Article 4. Basis for Classification

1. The classification of oil and gas resources and reserves shall be based on the combination of evaluating the reliability of geological and geophysical information, the technical and technological feasibility, and the economic efficiency at the time of preparing the Report.

2. The classification of oil and gas resources and reserves shall be carried out in accordance with Article 5 and Appendix IA issued together with this Circular.

Article 5. Classification of Oil and Gas Resources and Reserves

Oil and gas resources are divided into two groups: discovered oil and gas resources (by drilling) and undiscovered oil and gas resources.

1. Discovered oil and gas resources: Depending on the technical and technological feasibility and economic efficiency according to the assessment viewpoint of the Operator at the time of preparing the Report, discovered oil and gas resources are classified into developed and undeveloped groups.

a) Developed group: The oil and gas resources and reserves of the developed group are classified into verification level (P1), potential level (P2), possible level (P3).

(a1) Verification level (P1): Level P1 corresponds to the highest degree of reliability in the classification of oil and gas resources and reserves. Level P1 must satisfy the following conditions:

- The oil and gas reservoir boundaries are determined with high reliability based on geological, geophysical, drilling, well testing, and production data.

- The permeability, storage capacity, and saturation of the oil and gas reservoir are confirmed by geophysical well logging and/or core samples.

- Well testing results and fluid sample analysis allow determining the commercial flow of oil and gas from at least one well according to the Operator's viewpoint.

(a2) Potential level (P2): Level P2 corresponds to a lower degree of reliability than level P1 in the classification of oil and gas resources and reserves. Level P2 is determined to have the potential to exist in reservoirs based on geological and geophysical data but not verified by well testing and/or fluid sample results.

(a3) Possible level (P3): Level P3 corresponds to a lower degree of reliability than level P2 in the classification of oil and gas resources and reserves. Level P3 is determined when there may be oil and gas present in reservoirs based on geological and geophysical data but not sufficiently reliable to be classified as level P2.

b) Undeveloped group: The oil and gas resources of the undeveloped (potential) group are classified into verification level (C1), potential level (C2), possible level (C3). Technical criteria for classifying C1, C2, C3 are similar to P1, P2, P3.

2. Undiscovered oil and gas resources include estimated undiscovered oil and gas resources (R1) and theoretical undiscovered oil and gas resources (R2).

a) Estimated undiscovered oil and gas resources (R1) are the quantities of oil and gas estimated at a certain point in time for prospects that have been mapped but not yet confirmed by drilling results or productive formations of operating fields under favorable geological conditions for oil and gas accumulation but not yet drilled.

b) Theoretical undiscovered oil and gas resources (R2) are the quantities of oil and gas estimated at a certain point in time for accumulations expected to exist theoretically within a set of prospects under favorable geological conditions for oil and gas accumulation but not yet mapped.

Article 6. Boundaries of classification of oil and gas resources and reserves

1. The classification boundaries of oil and gas resources and reserves are determined for each oil and gas reservoir according to the principle of extrapolation suitable for specific geological conditions as stipulated in Appendix II issued together with this Circular.

2. The determination of classification boundaries and the distribution of oil and gas reservoirs are based on specific documents and grounds. In cases where similar methods are applied, the Operator must have original data and explain the applicability of these data to the field or reservoir being calculated to confirm the correctness of the method selection and calculation parameters.

Chapter III

EVALUATION OF OIL AND GAS RESOURCES AND RESERVES

Article 7. Methods for evaluating oil and gas resources and reserves

1. The objects of evaluation of oil and gas resources and reserves are oil and gas reservoirs and formations.

2. Oil and gas resources and reserves are calculated using volume methods (typically, geological 3D modeling, reservoir density, analogues), dynamic behavior of the reservoir (material balance and production simulation), and other methods depending on the available data. Among them:

a) Methods applied include: Volume method for all cases; Geological 3D modeling for developed fields; Material balance for producing fields;

b) Other methods depending on specific conditions but must be accompanied by reasoning when applied.

3. Results calculated by various methods must be analyzed, compared, and cross-checked.

4. For cases updating oil and gas resources and reserves, calculation results must be compared with previous results and reasons for changes analyzed.

5. Oil and gas resources and their components must be calculated separately for each product type for each reservoir and formation, and evaluated for the potential to bring the calculated objects into production.

6. Calculation parameters for oil and gas resources and reserves must follow a unified system of units. Resource and reserve figures must be presented in international measurement units as prescribed by the Law on Measurement and industry practices.

Article 8. Calculation of Oil and Gas Resources and Reserves

Based on the classification defined in Article 5 of this Circular, oil and gas resources and reserves are calculated as follows:

1. Discovered oil and gas resources

a) Initial in-place oil and gas and reserves are calculated by the Operator for corresponding levels (P1, P2, P3). The calculation methods for initial in-place oil and gas and reserves are specified in Appendix II issued together with this Circular;

b) Potential oil and gas are also calculated by the Operator for corresponding levels (C1, C2, C3) with corresponding initial in-place values and recovery potentials;

c) Reserves of the field are updated in the General Development Plan (GDP) report, Field Development Plan (FDP) report, and adjusted Field Development Plan (AFP) report;

d) Reserves of the field are updated during the decline phase of the field life cycle with secondary and tertiary recovery schemes such as infill drilling, additional formation exploitation, and other measures to enhance oil recovery (EOR).

2. Undiscovered petroleum resources shall be calculated or forecasted for initial oil-in-place and corresponding recovery potential (R1, R2), wherein the recovery factor shall be taken on the basis of similar principles based on the values of adjacent reservoirs, fields, areas, and basins.

Chapter IV

ESTABLISHING, APPROVING, REGISTERING AND UPDATING PETROLEUM RESOURCES AND RESERVES REPORTS

Article 9. Requirements for Establishing and Updating Reports

1. For the development group, the Operator shall establish and update the Report to submit to the Vietnam Oil and Gas Group for approval, then submit to the Ministry of Industry and Trade and the Appraisal Council for appraisal of the Report, and subsequently submit to the Prime Minister for consideration and approval. The approval content includes the initial oil-in-place level 2P (consisting of P1 and P2) with a 50% probability and recording the corresponding reserves as the basis for developing and updating field development plans.

2. For the undeveloped group and undiscovered petroleum resources, the Vietnam Oil and Gas Group shall review, record, assess, and annually report to the Ministry of Industry and Trade to serve resource management and future exploration and appraisal strategies and plans.

3. Details regarding the approval, recording of petroleum resources and reserves are stipulated in Appendix IB issued together with this Circular.

Article 10. Content of the Report

1. The Operator must submit a full Report and a summary Report.

2. The content of the full Report is specified in Appendix III issued together with this Circular.

Article 11. Procedures for Submitting, Appraising and Approving the Report

The procedures for submitting, appraising and approving the Report shall comply with the provisions set forth in Article 64 of Decree No. 95/2015/NĐ-CP dated October 16, 2015 of the Government detailing certain provisions of the Petroleum Law.

Article 12. Registration and Updating of Petroleum Resources and Reserves

1. For Reports of fields that have been approved by the Prime Minister, the Vietnam Oil and Gas Group shall be responsible for monitoring, compiling petroleum resources and reserves, and registering updates annually.

2. The Operator shall be responsible for updating and accurately reflecting:

a) Petroleum resources and reserves during additional exploration, appraisal, and production;

b) Reserves during the preparation of the Field Development Plan (FDP), the Detailed Field Development Plan (DFDP), and the Revised Detailed Field Development Plan (RFDP).

3. The Report update period is three (3) years from the first commercial oil production and thereafter every five (5) years. In case of necessity, the Operator shall update and submit to the competent authority for review and approval.

4. In the updated Report, if the total initial oil-in-place level 2P of the field changes by less than fifteen percent (15%) compared to the most recent approval, the Vietnam Oil and Gas Group shall record and report to the Ministry of Industry and Trade and the Prime Minister. If the total initial oil-in-place level 2P of the field changes by more than fifteen percent (15%) compared to the most recent approval, the Operator must resubmit and seek reapproval of the Report in accordance with Article 10 of this Circular.

5. For discovered petroleum resources belonging to the undeveloped group and undiscovered petroleum resources, the Vietnam Oil and Gas Group shall be responsible for compiling, updating, and recording for the purpose of serving management work and guiding future exploration activities.

Chapter V

IMPLEMENTING PROVISIONS

Article 13. Special Cases

During the implementation of oil and gas activities, if the application of classification levels and the preparation of Reports differs from the provisions of this Circular, the Operator shall be responsible for providing the bases, files, and documents to the Vietnam Oil and Gas Group for submission to the Ministry of Industry and Trade and the Appraisal Council for examination and decision-making within their authority.

Article 14. Transitional Provisions

1. For Reports that have been approved before this Circular takes effect, the Operator and state management agencies shall continue to implement according to the Report that has been approved.

2. Reports submitted to the competent authority before this Circular takes effect shall not need to be resubmitted and shall be appraised according to the regulations at the time before this Circular takes effect.

Article 15. Effectiveness and Implementation Organization

1. This Circular shall take effect from November 6, 2020, and Decision No. 38/2005/QĐ-BCN dated December 6, 2005, issued by the Minister of Industry regarding the classification of oil and gas resources and the preparation of oil and gas resource reports shall cease to be effective from the date this Circular takes effect.

2. In cases where legal normative documents cited in this Circular are amended, supplemented, or replaced, they shall be implemented according to the new documents.

3. During the implementation of this Circular, if there are difficulties or obstacles, the Operator and the Vietnam Oil and Gas Group shall report to the Ministry of Industry and Trade for examination and resolution within their authority.

 


Place of Receipt:
- Prime Minister, Deputy Prime Ministers;
- General Secretary's Office;
- President's Office;
-
The Government Office;
Ministry of Science and Technology: The Minister and Deputy Ministers, agencies and units under the Ministry;
June 2024;c B|||, co parallel ministries, agencies under|||c Government;
- Supreme People's Court;
- State Audit Agency;
People's Supreme Procuracy;
- People's Committees of provinces and cities directly under the Central Government - Government Portal; Official Gazette;
Ministry of Science and Technology: The Minister and Deputy Ministers, agencies and units under the Ministry;
ục Businessdevelopment- Legal Drafting Department - Ministry of Justice;y session numberhperiod- State Control Inspectorate - Ministry of Finance;
- Administrative Procedure Supervision Agency - Ministry of Justice;
development- Official Portal: GovernmentDeputy ministers of ministerial-level agencies, website||| structure 1. State management in the field of lawyers and legal advice;
- Ministers, Deputy Ministers, B||| C- Agencies under the Ministry of Industry and Trade; THEAt the proposal of the Director of the Department of Planning and Finance
SCHEME OF CLASSIFICATION OF OIL AND GAS RESOURCES AND RESERVES IN 2020inenergy;
(Annexed to Circular No. 24/2020/TT-BCT dated September 18, 2020, issued by the Minister of Industry and Trade)oA. SCHEME OF CLASSIFICATION OF OIL AND GAS RESOURCES AND RESERVESB. LEVELS OF APPROVAL/RECORDING OF REPORTS ON OIL AND GAS RESOURCES AND RESERVES
- Vietnam Electricity Corporation Group;
- Official Gazette;
- To be filed: VT, PC, DKT.

DEPUTY MINISTER
DEPUTY MINISTER




Dang Hoang An

 

ANNEX I

Discovered oil and gas resources in development group


P1

P2

 

 

P3

 

Initial oil and gas in place

Reserves

Level of approval/recording

Recording

Approval/recording level

Prime Minister

Approval/recording level

Prime Minister

Approval/recording level

Prime Minister

Discovered oil and gas resources in undeveloped group

Approve

C1

Approve

C1

C1

C2

C3

Vietnam Electricity Corporation Group

 

Potential recovery

Undiscovered oil and gas resources

R1

R2

Approval/recording level

DETERMINATION OF THE BOUNDARIES OF CLASSIFICATION, ANALYSIS OF CALCULATION FACTORS FOR OIL AND GAS RESOURCES AND RECOVERY FACTOR

Approval/recording level

DETERMINATION OF THE BOUNDARIES OF CLASSIFICATION, ANALYSIS OF CALCULATION FACTORS FOR OIL AND GAS RESOURCES AND RECOVERY FACTOR

Approval/recording level

DETERMINATION OF THE BOUNDARIES OF CLASSIFICATION, ANALYSIS OF CALCULATION FACTORS FOR OIL AND GAS RESOURCES AND RECOVERY FACTOR

Discovered oil and gas resources in undeveloped group

C1

C1

C1

C2

Vietnam Electricity Corporation Group

Vietnam Electricity Corporation Group

 

A. DETERMINATION OF THE BOUNDARIES OF CLASSIFICATION OF OIL AND GAS RESOURCES AND RESERVES

I. Oil and gas reservoirs

An oil and gas reservoir (reservoir) is a geological body containing oil and gas defined by hydrodynamic boundaries. In a discovery, field, or production zone, it may include one or more reservoirs characterized by permeability properties, fluid type, and formation pressure.

 

Approval/recording level

DETERMINATION OF THE BOUNDARIES OF CLASSIFICATION, ANALYSIS OF CALCULATION FACTORS FOR OIL AND GAS RESOURCES AND RECOVERY FACTOR

Approval/recording level

DETERMINATION OF THE BOUNDARIES OF CLASSIFICATION, ANALYSIS OF CALCULATION FACTORS FOR OIL AND GAS RESOURCES AND RECOVERY FACTOR

Discovered oil and gas resources in undeveloped group

C1

C1

C2

Vietnam Electricity Corporation Group

 

 

ANNEX II

A reservoir layer is defined by the top and bottom of the layer, fault barriers, structural closure, facies boundaries, stratigraphic pinchouts, or other separating boundaries.


P1

A reservoir block is defined by its top, fault barriers, structural closure, non-permeable boundaries, or other separating boundaries.

The determination of reservoirs is based on structure maps, conventional seismic data, special seismic data, hydrodynamic data, well test information, production data, and other relevant materials.

Classification of oil and gas resources and reserves must be conducted for each reservoir.

II. Vertical Classification

The boundaries of the classification levels of oil and gas resources and reserves are determined using the half-way method or other methods utilizing geological, geophysical, and mining technology data with clear theoretical foundations and analysis.

1. Verification Level - P1

The verification level P1 is determined as follows (Figure 1):

a) For oil or gas reservoirs: From the top of the oil or gas reservoir to the oil-water contact (OWC) or gas-water contact (GWC) or to the deepest point where oil or gas flow was observed during well testing and logging, if the OWC or GWC is not determined.

b) For oil reservoirs with a gas cap:

- For oil: From the oil-gas contact or the highest point where oil was encountered if the oil-gas contact is not determined, to the OWC or the lowest point where oil flow was observed during well testing and logging, if the OWC is not determined.

- For gas: From the top of the reservoir to the gas-oil contact or to the lowest point where gas flow was observed if the gas-oil contact is not determined.

2. Probable Level - P2

The probable level P2 is determined according to the half-way method as follows:

a) For oil or gas reservoirs: From the oil-down-to (ODT) or gas-down-to (GDT) point to the midpoint of the ODT or GDT-water-up-to (WUT) interval or the spill-point (SP).

b) For oil reservoirs with a gas cap:

- For gas: From the GDT point to the midpoint of the GDT-out-to (OUT) interval.

- For oil: From the OUT point to the midpoint of the GDT-OUT interval.

- From the OpT point to the midpoint of the ODT-WUT interval or the spill-point (SP) if the WUT point is not determined.

For highly heterogeneous reservoir blocks, the P2 level is determined from the ODT or GDT point to the deepest point showing oil or gas indications during drilling. If the deepest point showing oil or gas indications cannot be determined, the half-way method is applied up to the spill-point.

3. Possible Level - P3

The possible level P3 is determined according to the half-way method as follows (Figure 1):

From the midpoint of the ODT or GDT-WUT interval or the midpoint of the ODT or GDT-spill-point (SP) interval if the WUT point is not determined to the SP; or simply from the lower boundary of the P2 level to the SP.

For highly heterogeneous reservoir blocks, the P3 level is determined from the P2 level boundary to the spill-point.

III. Area Classification

Within a reservoir, the area of the P1 and P2 levels is determined according to the radius principle or the half-way method (in cases with multiple wells) measured from the drilling well combined with the vertical classification line of oil and gas resources and reserves.

From the midpoint of the interval ODT or GDT - WUT or from the midpoint of the interval ODT or GDT - the spill point (SP) if the WUT has not been determined to the spill point (SP); or simply from the lower boundary of P2 to the spill point (SP).

For oil and gas reservoirs with high heterogeneity, the P3 level is determined from the boundary of P2 to the spill point (SP).

III. Classification by area

In a reservoir, the areas of P1 and P2 levels are determined according to the principle of radius or dividing the distance (in cases with multiple wells) measured from the drilling well in conjunction with the resource and reserve boundaries of oil and gas vertically.

The radius value is argued based on geological and geophysical data, wells, formation tests, production, or similar methods. The P3 category is applied to the remaining part of the reservoir body up to the structural closure, spill point, or the highest statistically recorded oil column height.

For reservoir bodies in block form, the radius principle applies along the well trajectory (Figure 2).

IV. Some other cases for resource classification

1. Verification Level P1

a) Reservoirs that, after applying formation stimulation measures, achieve commercial flow rates of oil and gas, even though previous tests did not result in natural flow or weak flows insufficient for verification level classification;

b) Reservoirs where cable testing confirms the presence of oil and gas, with collected materials allowing for a high degree of confidence in the existence and distribution of oil and gas, and co-name reservoirs at other wells have been verified through DST results;

c) Reservoirs that have not yet been tested but, according to well geophysical data, have lithological characteristics and reservoir parameters similar to those of other wells that have achieved commercial flow rates or are currently being produced from the same reservoir.

2. Potential Level P2

a) Reservoirs that have the potential for oil and gas flow based on well geophysical data, lithological features, and reservoir parameters, but with unclear formation test results;

b) Reservoirs where cable testing confirms the presence of oil and gas;

c) Reservoirs that show potential for oil and gas flow based on well geophysical characteristics but lack core samples or clear formation test results and do not have similar characteristics to producing or verified reservoirs within the same area;

d) Reservoirs with similar permeability properties, adjacent under pressure, separated by faults or geological barriers, and located structurally higher than verified reservoirs;

đ) Reservoirs adjacent to producing oil and gas reservoirs, but formation tests only yield small flow rates of oil;

e) Blocks that have not been drilled but are adjacent to blocks with verified oil and gas reserves in divided fields;

g) Portions of reservoirs if densely drilled or otherwise increased would meet the conditions for verification level classification, but at the time of resource calculation, such drilling has not been carried out;

h) Reservoirs expected to be classified as verification level if expanded drilling is conducted, but at the time of resource calculation, they have not been drilled and the structure map data is insufficient to classify them at that level;

i) Due to the completion and commercialization of enhanced recovery methods when the project or experimental program has been established and installed but not yet operated, and the rock properties, fluid characteristics, and reservoir parameters ensure favorable conditions for the commercial application of these methods;

k) Obtained through successful repair, treatment, reprocessing, replacement of well equipment, or other technical processes, but these processes were previously not recognized as successfully applied in wells with similar conditions and in similar reservoirs;

l) Increased from producing or verified reservoirs but not yet developed due to reanalysis or reinterpretation of reservoir dynamics or volumetric parameters;

3. Potential Level P3

a) Reservoirs with the potential to accumulate oil and gas located in blocks adjacent to verified or potential blocks;

b) Reservoirs extrapolated within a cluster of structures with geological conditions similar to those already verified;

c) Reservoirs extrapolated based on structure and/or stratigraphic analysis and interpretation of geological and geophysical data outside areas classified as potential;

d) Reservoirs showing oil and gas content based on well geophysical data or core samples but potentially not yielding commercial flow rates;

đ) Due to the application of enhanced recovery methods according to new experimental programs or projects that have only been established but not yet operated, and rock properties, reservoir fluid characteristics, and parameters still raise objective doubts about the commerciality of the project;

e) Reservoirs with similar permeability properties, adjacent under pressure, separated by faults or geological barriers, and located structurally lower than verified reservoirs;

g) Increased due to reanalysis or reinterpretation of reservoir dynamics or volumetric parameters, such as oil and gas volume parameters at the reservoir and/or recovery factors, indicating significant additional quantities of oil and gas beyond those classified at verification and potential levels;

h) Large-volume oil and gas reservoir portions but with high risk:

- Areas with low seismic coverage data.

- Reservoirs with unclear continuity and quality.

- Additional recovery through the application of enhanced recovery processes.

- Better average reservoir parameters.

V. Classification Levels C1, C2, and C3

For discoveries and undeveloped reservoirs, levels C1, C2, and C3 are determined based on criteria similar to levels P1, P2, and P3 respectively.

Figure 1. Schematic diagram of resource and reserve classification for reservoirs in layer form

Figure 2. Schematic diagram of resource and reserve classification for reservoirs in block form

B. ARGUMENTATION OF OIL AND GAS RESERVE PARAMETERS

When calculating initial in-place oil and gas volumes using conventional volume methods, the parameters to be argued and selected include: reservoir area, reservoir volume; effective thickness for oil and gas storage; porosity and oil saturation; volume conversion factor; oil density; gas-oil ratio (GOR), condensate-gas ratio (CGR). These parameters must be argued based on the level of reliability derived from the statistical probability distribution of values determined from geological and geophysical data and mining technology. Calculation results must be presented at minimum (P90), expected (P50), and maximum (P10) levels corresponding to the probabilities of input parameters.

1. Reservoir area and volume are determined separately for each reservoir and by category based on calculation maps prepared based on top and bottom structure maps.

2. The effective thickness and the effective porosity coefficient (NTG) are determined separately for each reservoir layer and at each level based on well logging physical geological data or weighted average according to the volume of each reservoir layer.

3. Porosity is determined separately for each reservoir layer and at each level based on well logging physical geological data and core samples.

4. Hydrocarbon saturation is determined separately for each reservoir layer and at each level. Hydrocarbon saturation is determined based on the combination of laboratory core sample analysis results and well logging physical geological data.

5. The conversion factor for oil or gas is determined in the laboratory using oil and gas seam samples obtained from wells.

6. The gas-oil ratio (GOR) or gas content in oil seam, condensate-gas ratio (CGR) or condensate content in free gas is determined based on the research results of oil and free gas in the laboratory.

7. The threshold values of calculated parameters are determined separately for each reservoir layer or taken similarly from seams that have been analyzed with core samples in the same field or adjacent fields.

- Permeability: The threshold permeability value of each producing layer/reservoir is determined based on laboratory analysis results using core samples from that specific producing layer.

- Porosity: The threshold porosity value of each producing seam is the corresponding porosity value at the threshold permeability for that specific producing seam.

- The threshold water saturation of each producing seam is the water saturation value determined based on the analysis of core samples from the corresponding producing seam at its threshold permeability.

For fields and reservoirs belonging to the development category, the initial in-place hydrocarbons, hydrocarbon reserves must be calculated using 3D geological modeling methods, 3D production simulation, and material balance, depending on the available data.

C. ARGUMENTATION OF OIL AND GAS RECOVERY FACTOR

The recovery factor (RF) for oil and gas is argued separately for each reservoir layer and averaged for the entire field based on the application and potential application of new achievements in oil and gas extraction technology to achieve the maximum possible oil and gas recovery from underground.

RF is argued based on the hydrodynamic model of the reservoir layer according to different production design options or referencing the RF of reservoir layers from nearby fields with similar structural, geological characteristics, and hydrodynamic features when a hydrodynamic model has not been established. The hydrodynamic model of the reservoir layer is built based on practical data such as laboratory research results, well logging physical geological surveys, and hydrodynamic surveys of exploration, appraisal, and production wells (if applicable). The RF of the reservoir layer is selected based on the optimal production plan such as the density of production wells, injection, secondary and tertiary recovery methods (for example: pressure maintenance methods, drilling progress, drilling rate, and bringing wells into production...).

RF for potentially recoverable reserves and resources is referenced based on similar RF as higher-grade reserves of the same field.

For initial discovery reports of oil and gas, the RF for oil and gas is determined based on: (i) hydrodynamic models; (ii) or preliminary hydrodynamic models; (iii) or referencing the RF of reservoir layers from nearby fields with similar geological structures and hydrodynamic features; (iv) or statistics of RF from reservoir layers with similar geological characteristics in the same sedimentary basin, in the same area; (v) or statistics of RF from reservoir layers with similar geological characteristics from other regions around the world; (vi) or other methods accepted in international oil industry practices.

 

ANNEX III

P1

REPORT ON RESOURCES AND RESERVES OF THE OIL/GAS FIELD/DISCOVERY...

BLOCK......, BASIN......

(documents up to month____ year______)

PART I. INTRODUCTION OF THE REPORT

1. Introduction

2. History of Exploration, Surveying, Evaluation, Development, and Exploitation of the Mine

3. Database

Statistical Methods, Volume, and Quality Assessment of Materials:

3.1. Seismic Survey Materials and Other Geophysical Exploration Methods (Electrical, Magnetic, Gravity...Survey Networks, Field Data, Processing Data)

3.2. Drilling Materials: Overview of Wells (Within the Mine and Adjacent Areas), Well Logging Geophysical Data, Core Samples, Cuttings, Reservoir Testing Results, Analysis of Various Types of Samples, Hydrodynamic Research, Production/Trial Production (if applicable)

3.3. Other Survey and Research Materials (Paleontology, Sedimentary Petrology, Geochemistry...)

4. Geology

4.1 Regional Geology

4.2 Mine Geology

4.2.1 Interpretation of Geophysical Materials:

- Determining Seismic Layer Characteristics, Correlation with Drilling Wells, Construction of Time-Equivalent Maps, Time-Depth Conversion, Depth-Equivalent Maps, Time-Slice Maps, and Thickness-Equivalent Maps of Corresponding Seismic Layers.

- Seismic Attributes and Special Seismic Research Results.

- Results of Other Geophysical Exploration Methods (Electrical, Magnetic, Gravity...).

- Existing Issues and Proposed Solutions.

4.2.2 Geological Structure of the Mine

- Sedimentary Strata

- Tectonics: Fault Systems, Folding, and Impact of Tectonic Activities on the Formation of Oil and Gas Structural Traps.

- Oil and Gas Indicators.

- Identification and Correlation of Oil and Gas Reservoirs.

- Petrological and Depositional Environment Characteristics of Oil and Gas Reservoirs.

5. Reservoir Parameters

5.1 Geological Structure of Oil and Gas Reservoirs (Structural Maps, Thickness-Equivalent Maps, Effective Rock Volume Coefficient NTG, Fluid Flow Boundaries...).

5.2 Well Logging Geophysics:

- Methodology for Quantifying and Qualifying Survey Data

- Methodology and Interpretation Results of Reservoir Parameters: Porosity, Permeability, Oil and Gas Saturation, Effective Thickness... Based on Well Logging Geophysical Data, Core Samples, and Their Threshold Values.

- Existing Issues and Proposed Solutions.

5.3 Mine Technology:

- Properties and Behavior of Reservoir Water;

- Properties of Oil and Gas Under Reservoir Conditions and Standard Conditions;

- Reservoir Temperature and Pressure...

5.4 Reservoir Testing Results (DST), Wireline Testing (MDT, RFT, RCI, Mini-DST,...).

5.5 Production and Injection Testing Results of Oil, Gas, and Water (if applicable).

6. Initial In-Place Oil and Gas Reserves, Proven Reserves

6.1 Methods and Formulas for Calculating Initial In-Place Oil and Gas Reserves, Proven Reserves.

6.2 Determination of Boundaries and Classification of Initial In-Place Oil and Gas Reserves, Proven Reserves.

6.3 Selection of Values for Parameters: Rock Volume, Effective Thickness, Effective Rock Volume Coefficient, Porosity, Oil and Gas Saturation, and Other Fluid Parameters.

6.4 Calculation Results of Initial In-Place Oil and Gas Reserves, Proven Reserves by Type of Fluid, by Reservoir, Block, Area, and for the Entire Mine.

6.5 Discussion on Recovery Factors, Calculation Results of Initial In-Place Oil and Gas Reserves, Proven Oil, Gas, and Condensate Reserves for Each Reservoir, by Block, Area, Entire Mine, and Remaining Reserves.

6.6 Calculation Results of Initial In-Place Oil and Gas Reserves, Proven Reserves Using Other Methods (Geological Models, Production Models, Material Balance...); Comparison and Discussion with Results from Volume-Based Methods.

6.7 Comparison of Calculated Initial In-Place Oil and Gas Reserves, Proven Reserves with Previously Approved Initial In-Place Oil and Gas Reserves, Reasons for Changes.

6.8 Evaluation of Reliability of Calculated Figures at Different Levels.

6.9 Existing Issues and Proposed Solutions.

7. Conclusions and Recommendations

7.1 Evaluation of Geological and Geophysical Research, Mine Technology; Exploration and Exploitation Results, Calculation Results, and Issues to be Addressed.

7.2 Recommendations for Future Exploration, Evaluation, and Research Work.

7.3 Recommendation to the Prime Minister for Approval of Initial In-Place Oil and Gas Reserves and Recognition of Proven Reserves of the Mine, Discovery, as a Basis for Further Work.

PART II. APPENDICES OF TABLES, CHARTS, DRAWINGS AND DATA

The appendices include necessary documents and texts related to exploration, assessment, and reporting on oil and gas reserves of the field, including statistical tables, calculation results, maps, cross-sections, diagrams, etc., to illustrate and supplement the explanatory section of the report and to meet the requirements for reviewing and evaluating the report by competent authorities and organizations.

A. TABLES AND CHARTS

Tables and charts in the appendices must contain original and intermediate data necessary for checking initial oil and gas calculations, reserves, and must include the following tables:

1. Drilling volume for exploration, appraisal, and development: Well name, coordinates, sea depth, well type, drilling rig, drilling time (start and end date), designed or actual depth, bottom formation, well result and current status...

2. Development drilling volume.

3. Core sample, cuttings, fluid, and analysis volumes.

4. Results of reservoir testing and well study.

5. Well logging suites performed.

6. Interpretation results of well logging data.

7. Chemical composition and physical properties of formation water.

8. Petrographic, paleontological, stratigraphic, and sedimentary environment data of hydrocarbon reservoirs or producing zones.

9. Composition and physicochemical properties of fluids: Oil, dissolved gas, free gas, condensate.

10. Average values of permeability, porosity, and hydrocarbon saturation from core samples (if available).

11. Input parameters for initial oil and gas in-place calculation, oil and gas reserves.

12. Comparison of accepted parameters for recalculating initial oil and gas in-place and reserves with previously approved data.

13. Comparison with previously approved data.

14. Production or test production data (if available).

B. DRAWINGS

1. General map of the area and location of the field, discovery.

2. Seismic line network and exploration and appraisal well map.

3. Integrated stratigraphic column of the field.

4. Representative seismic sections (uninterpreted and interpreted).

5. Isochron and isodepth maps of seismic layers.

6. Isopach maps of structural layers of hydrocarbon-bearing units.

7. Geological cross-sections through wells.

8. Geological cross-sections of producing reservoirs through wells.

9. Diagrams and tables of reservoir connection results through wells.

10. Roof and base structure maps of hydrocarbon-bearing intervals or pools.

11. Isopach maps of hydrocarbon-bearing intervals or pools.

12. Vertical and horizontal geological-seismic cross-sections of the field.

13. Geological cross-sections of hydrocarbon-bearing intervals.

14. Hydrocarbon-bearing interval connections through wells.

15. Classification diagrams for hydrocarbon-bearing intervals.

16. Interpretation results of well logging data and reservoir testing of hydrocarbon-bearing intervals or pools of each well - scale 1/500.

17. Well log curves and composite curves - scale 1/500.

18. Analysis and description results of core and cuttings samples.

19. Testing and production flow test data (if available): production volume (oil, gas, water), pressure, temperature, well monitoring and inspection...

20. List of documents used to prepare the report, other relevant documents and reports.

21. Computer-generated prints and software programs applied for calculations.

C. DATA

Data and interpretation, processing, and simulation results of geological and geophysical materials, and mining technology on technical software used in preparing the report.

 

   
 

Hanoi, September 18, 2020

 

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