chinese solid mineral & petroleum classification and unfc ...€¦ · sessions before the 7th...

Chinese Solid Mineral & Petroleum Classification and UNFC -2009 Bridging Documents

The 8th EGRC Session

Geneva, 26-28 April 2017

YANG Hua, LI Jian, WANG Yongxiang

The Ministry of Land and Resources of the People’s

Republic of China

27 April, 2017

3

2. Ukraine-China

Workshop on

classification.

3-6 June

1. Requested by

the 6th EGRC

Meeting, Jointed

Taskforce

established.28 April –1 May

4. Chinese-TAG Jointed

Taskforce Work

Sessions before the 7th

EGRC meeting.

27-29 April

5. Technical sessions

on BDs during the

China Mining 2016

21-25 Sep.

3. Technical Exchange

with TAG representative

at RIPED in Beijing.

3February

6. Draft bridging

documents provided

by China Taskforce

4February

7. Unofficial BDs in

Russian and French

versions drafted.

10 April

8. Ukraine-China

Workshop on

classification

22-23 April

9. Work Sessions

with TAG before the

8th EGRC meeting.

25 April

201720162015Annual

Session of

CSE in 2017

Joint Research Team

1. Requested by 6th EGRC Meeting, a Jointed Taskforce established in Geneva.

The China-Ukraine Workshop on Resources Classification: Status, Mapping

and Application was held successfully in Beijing in June 3-6,2015.

During the Workshop, major international classification systems (UNFC,

PRMS, CRIRSCO) and their mapping, application and practice experience

were discussed in depth.

2. China-Ukraine Workshop on has been held successfully in Beijing

3. Technical Session with TAG representative in 2-3 February 2016, at RIPED, Beijing

Dominique Salacz meeting the RIPED group to discuss the Petroleum bridging document.

April 25-26, 2016 TAG and China Taskforce

have held work sessions on the update of

Chinese resources classification systems

mapping to UNFC 2009.

Main highlights include:

China delegation introduced the active

Chinese classification systems and their

related specifications, and reported the

update on mapping approaches, and

preliminary results achieved;

TAG members shared their studies and

opinions, and generally agree the

preliminary mapping schemes for the

bridging documents put forward by China

taskforce;

4. China-TAG Jointed Taskforce Work Sessions before the 7th EGRC meeting, Geneva

5. Discussion Sessions on 21-25 September 2016, during China Mining 2016

Dominique Salacz meeting the RIPED group toexchange the way forward for the Petroleumbridging document.

Meeting with CRIRSCO experts to exchangethe way forward for the solid mineralbridging document.

6. Ukraine- China Workshop on Classification, 22-23 April 2017, Kyiv

6. Chinese bridging documents have gained much attention and strong supports

from the high level officials of both UNECE and MLR.

On April 25, 2017, TAG and China

Taskforce have held work sessions on the

bridging documents between the Chinese

resources classification systems and UNFC

2009.

Main highlights include:

China delegation introduced the update

on solid mineral and petroleum bridging

documents, provided related materials

with TAG members, and replied TAG’s

questions ;

TAG representatives have reviewed and

discussed the documents, and generally

agreed to promote the issuing of the

documents;

7. China-TAG Jointed Taskforce Work Sessions before the 8th EGRC meeting, Geneva

13

Table 1 Chinese Classification for Mineral Resources and Reserves(CCMR-1999)

CCMR-1999 is not a isolated national standard

CCMR-1999 is not a isolated national standard but the key ofa classification system for exploration and mining stages.

High level

Middle

level

low level

Fig.1 Structure of the system of CCMR

Chinese Classification for Mineral Resources and Reserves

MineralExploration

StagesAim

application of industry index

Classification

Pre-Prospecting

find an area with greater potential for mineralization

General industrialindex

(334)?

Prospecting find a depositGeneral industrialindex

(333) and (334)?

General Exploration

make a judgement whether the project has any commercial value or not

confirmed industrial index

if it has commercial value ,(332),(333) and less (334)?If it has not, the explorationproject are finished, but noresources to be registeredinto national resources andreserve base.

Detailed Exploration

do detail exploration toprovide grounds for aFeasibility Study or minedevelopment and design

confirmedindustrial index

(331),(332) and (333)

How does it work

Economic Basic Reserves

Marginal economic Basic Reserves

Identified mineral resources

Confirmed through Prefeasibility study or Feasibility study

Sub-Marginal Economic Resources

Reserves

Confirmed through Scoping study

At the same time we get

Intrinsic economic Resources

With “b”

beginning with “2M”

beginning with “2S”

Break even point

Industry rate of return

How does it work

Basic Reserves with “b” is one of the Characteristics of CCMR-1999. Reserves are converted from them.

Difference of Basic Reserves with “b” and Reserves in CCMR-1999 is that the former does not deduct design or mininglosses, they are both confirmed to be extracted economicallythrough a commercial project. when we get 111b, we also getwhat is design or mining losses at the same time.

Intrinsic economic which is a range of degree of economicviability from sub-marginal economic to economic is possible.At the practice, only the project with reasonable prospects foreventual economic extraction can be classified into intrinsiceconomic.

Marginal Economic Basic Reserves and Sub-Marginal EconomicResources have not been permitted to use at practice since2007.

Axis

correspondence of

CCMR-1999 and

UNFC-2009

CategorySub-

Category

E1.1

E1.2

2M

2S

3

E3.1

3 E3.2

E3.3

1

2

F2

F3

F4

1 G1

2 G2

3 G3

4 G4

Degrees of

Geological

Assurance

Geological

Knowledge

F1/F2

1/2M E1

E2

E3

3

CCMR-1999

UNFC-2009

Economic

Viability

Economic and

Social

Viability

Stage of

Fesibility

Study

Field Project

Status and

FeasibilityObvious difference

Mapping of the E-F matrix in classes and categories with a color

coded and numeric key

UNFC-2009 Sub-Class

1 On production

2 Approved for Develepment

3 Justified for Development

Marginal

Economic

Basic

Reserves4 Development Pending

Sub-

Marginal5 Development On hold

4 Development Pending

5 Development On hold

6 Development Unclarified

7 Development Not Viable

11 Additional Quantities in Place

Economic-

Interest

Undefined

Resources 8 Exploration Project

Resources

Not defined in CCMR-1999

Intrinsic

Economic

Economic Reserves

UNFC-2009Class

(111)

(121) (122)

(111b)

(121b) (122b)

(2M11)

(2M21) (2M22)

(2S11)

(2S21) (2S22)

Intrinsic

Economic(331) (332) (333)

Economic

-Interest

Undefined

Resources (334)?Exploration

projectsE3 F3 G4

Marginal

EconomicPotentially

commercial

projects

E2 F2 G1,G2,G3

Economic

Reservescommercial

projects

CCMR-1999Class UNFC-2009"minimum"CategoriesCCMR-1999Categories

Sub-

Marginal

Economic Resources

F1E1

Not defined in UNFC-2009

G1,G2

Basic

Reserves

F1.1 F1.2 F1.3 F2.1 F2.2 F2.3 F3 F4

E1.1 1 2 3 4

E1.2 1 2 3

E2 4 4 5

E3.1 12 12 12 12 12 12

E3.2 6 6 6 8

E3.3 7 7 7 7 11

The E axis and the F axis of CCMR-1999 and UNFC-2009 do not

correspond each other very well, but they correspond from classes or sub-

classes.

Reserves in CCMR-1999 correspond to “Commercial Projects” in UNFC-

2009.

Marginal Economic Basic Reserves and Sub-Marginal Economic Resources

in CCMR-1999 have not been permitted to use at practice. From the view

of definition mapping, generally, they correspond with Potentially

Commercial Project in UNFC-2009.

“Intrinsic Economic Resources” obtained in general exploration and

detailed exploration stages in CCMR-1999 correspond to “Potentially

Commercial Projects” class in UNFC-2009. “Intrinsic Economic

Resources” (333) obtained in the prospecting stage should not directly

correspond to “Potentially Commercial Projects” in UNFC-2009.

Basic Reserves with “b” is not defined in UNFC-2009.

“Non-commercial projects” and “Additional quantities in place” in UNFC-

2009 are not defined in CCMR-1999.

2222

III-1 Framework of CCPR-2004

Proved DevelopedEUR

Proved UndevelopedEUR

Total Petroleum Initially In Place

Discovered PIIP Undiscovered PIIP

Prospective PIIP Unmapped PIIP

Cumulative Production

Proved Developed Reserves

ProvedTEUR

UQ

Measured PIIP Indicated PIIP Inferred PIIP

ProspectiveRRUQ

Proved

EUR

ProbableTEUR

UQ

Probable

EUR

PossibleTEUR

UnmappedRR

UQ UQ

Proved

SER

Probable

SER

PIIP : Petroleum Initially In Place

TEUR: Technically Estimated Ultimate Recovery

UQ: Unrecoverable Quantities

RR: Recoverable Resources

EUR : Estimated Ultimate Recovery

SER: Sub-Economic Recovery

China Classification for Petroleum Reserves and Resources (CCPR-2004)

Horizontal – major classes and categories: two major classes: reserves and resources. By the geological reliability,

reserves are divided into three categories, i.e. Measured, Indicated, and Inferred; Resources two categories, i.e.

Prospective and Unmapped.

Vertical – classes or types: four hierarchies according to resource attributes (PIIP, TEUR, EUR, development

status).

23

Unmapped Prospective IndicatedMeasured

(developed)

Measured

(undeveloped)Inferred

Regional

reconnaissance

phase

Risk exploration

projects

General

exploration

phase

General exploration

projects

Reservoir

appraisal phase

Appraisal

projects

Development

construction phase

Development

construction

projects

Production

operation phase

Enhanced

recovery

projects

Assessment

Plan

Preliminary

Development

Plan

Development PlanExploration

Design

Exploration

Deployment

Reserves

Reevaluation

Reserves

Verification

Reserves

Finalization

Exploration

Projects

Play Lead Prospect

Non-commercial

Projects

Development Unclarified

or Not Viable

Potentially

Commercial

Projects

Development

Pending or On

Hold

Justified

for

Developm

ent

Commercial

Projects

Approved for

Development

On Production

Classification and categorization correspond to E&D phases and decision process

III-1 Framework of CCPR-2004

In CCPR, five categories correspond to five E&D phases (or five types of projects)．

The project maturity is controlled by “decision gate, development feasibility. It is comparable with

the classification of projects（classes) /sub-projects (sub-classes) under UNFC-2009.

China petroleum reserves decision process indicates that there is a sound basis for the bridging

between CCPR-2004 and UNFC-2009.

24

A. Comparison of CCPR-2004 and UNFC-2009 in geological knowledge

III-2 Mapping of Categories and Sub-categories

CCPR-2004 Categories / Classes UNFC-2009 Category

Dis

cove

red

Measured PIIPTEUR

EURPv. Dev. Reserves

G1Pv.Und. Reserves

SER

UQ

Indicated PIIPTEUR

EUR

G2SER

UQ

Inferred PIIPTEUR

G3UQ

Un

dis

cove

red

Prospective PIIPRR

G4UQ

Unmapped PIIPRR

UQ

The Measured category includes Measured PIIP, Proved TEUR/EUR /SER, all of which have a

high level of confidence (G1).

The Indicated category includes Indicated PIIP, Probable TEUR/EUR /SER, moderate level of

confidence (G2).

The Inferred category includes Inferred PIIP and Possible TEUR, low level of confidence (G3).

Both prospective and unmapped category, classified into Exploration Projects, refer to G4.

25

CCPR-2004 Categories / Classes UNFC-2009 "minimum" Categories UNFC-2009 Classes

Dis

cove

red

Proved Developed Reserves,

Proved Undeveloped EUR E1 F1 G1 Commercial Projects

Proved SER, Probable EUR,

Probable SER, Possible TEUR E2 F2 G1, G2, G3Potentially Commercial

Projects

Probable SER, Possible TEUR E3 F2 G2, G3 Non-Commercial Projects

UQ (Measured, Indicated and Inferred) E3 F4 G1, G2, G3Additional Quantities

in Place

Un

dis

cove

red Prospective RR, Unmapped RR E3 F3 G4 Exploration Projects

UQ (Prospective, Unmapped) E3 F4 G4Additional Quantities in

Place

B. Mapping of CCPR-2004 and UNFC-2009 classes and categories


The allocation to UNFC-2009 classes is based on a matrix formed from the E and F-axis, here not

including optional sub-classes.

Under CCPR-2004 Probable SER and Possible TEUR are split between two types of projects:

“Potentially Commercial Projects” and “Non-Commercial Projects” on the basis of differences

between categories UNFC-2009 E2 (Extraction and sale is expected to become economically

viable in the foreseeable future) and E3 (Extraction and sale is not expected to become

economically viable in the foreseeable future or evaluation is at too early a stage to determine

economic viability).

26

C. Mapping of the E-F matrix to CCPR-2004 classes and categories with a color coded and

numeric keyF1.1 F1.2 F1.3 F2.1 F2.2 F2.3 F3.1 F3.2 F3.3 F4

E1.1 1 2 3 4

E1.2 1 2 3

E2 4 4 4 4 5

E3.1 12 12 12 12 12 12

E3.2 6 6 6 8 9 10

E3.3 7 7 7 7 11

Class Sub-class Code CCPR-2004 Classes and Categories

Commercial

Projects

On Production 1 Proved Developed Reserves

Approved for Development 2 Proved Undeveloped EUR

Justified for Development 3 Proved Undeveloped EUR

Potentially

Commercial

Projects

Development Pending 4 Proved SER, Probable EUR, Probable SER , Possible TEUR

Development on Hold 5 Proved SER, Probable EUR, Probable SER , Possible TEUR

Non-Commercial

Projects

Development Unclarified 6 Probable SER, Possible TEUR

Development Not Viable 7 Probable SER, Possible TEUR

Additional Quantities in Place 11 Measured, Indicated and Inferred UQs

Exploration Projects

Prospect 8Prospective RR

Lead 9

Play 10 Unmapped RR

Additional Quantities in Place 11 Prospective and Unmapped UQs

Produced Not Sold 12


In some cases, CCPR-2004

categories map to more than one

location in E-F matrix.

Section Ⅳ of Bridging document

describes how the volume of

CCPR-2004 categories should

properly correspond to sub-

categories of UNFC-2009.

27

CCPR-2004 categories and examples of classes in three dimensions

III-3 Conclusion

The common Categories and Classes at the bottom tier demonstrate no changes.

Category 211 is added in the middle tier, which corresponds to additional code “4” in the E-F

Matrix.

Cell 112 and cell 113 are absent in the top tier, because the “Probable” and “Possible” categories

won’t reach “Justified for Development” or above. Category 122 and 123 are added, because the

progressive exploration and development has been implemented around the periphery of the

developed oil/gas fields offshore in China.

CCPR-2004 and UNFC-2009 can be effectively bridged.

1. Official Documents Issuing & Public Comments Solicitation

• TAG issues the official bridging documents by May 2017;

• This final official document will then be forwarded to the full TAG and China

Government (MLR) in early mid-May 2017. (Beijing Workshop)

• Allowing for final edits, TAG should be in a position to issue a recommendation

to the EGRC Bureau by the end of May 2017.

• Assuming full approvals, the bridging document will be available in early June

for a 60 day public comments period.

• China delegation presents the bridging documents to the UNECE Executive

Secretary in an official ceremony and a joint press release in the end of

September 2017.

2. Final Approval

To John Etherington, Roger Dixon, Dominique Salacz, Alistair

Jones and other TAG members for all your devotion and

contribution to the bridging documents

To Charlotte Griffiths, Harikrishnan Tulsidas, and other EGRC

secretaries for your valuable guidance, supports and

coordination

To Christian Friis Bach, Scott Foster and other UNECE

officials for your kind attention and strong support