SPE WORKSHOP:

Resource Estimation, Definition and Production Forecasting

Petroleum resources and reserves are key to the petroleum industry in a number of areas, including field development, financing, asset management and more. It is important for everyone involved to understand resources and reserves classification and estimation methods. Since the issuance of the 2007 Petroleum Resources Management System (PRMS) and 2011 Guidelines for Application of the PRMS, the understanding of resources estimation and classification has materially improved. However, this understanding is mostly restricted to those involved directly in the technical aspects of booking. The wider technical and commercial community has a much lower level of awareness of the practicalities of these guidelines.The modern organisation needs its technical and commercial practitioners to be much more cognisant of these rules. Alongside the improvement of the general understanding, experienced resources assessors have a number of issues with the practical interpretation of the guidelines in the real world. In parallel is the interaction of the technical impact of production forecasting with the classification aspects of reserves and resources definitions.

This workshop will address the current issues that are being actively discussed, and misunderstood, in companies around reserves classification and definitions, and the associated forecasting aspects to better align with the needs and requirements of host governments and markets. Discussions on the upcoming revised PRMS will also be included, if available. The workshop will use a mixture of actively facilitated technical discussions around presentations by subject-matter experts, panel sessions and poster presentations.

17 – 18 APRIL 2018KUALA LUMPUR, MALAYSIA

Technical Programme Committee

Rafa’ie KipliSenior Manager, Resource Management, MPMPETRONAS

David Gurney Advisor Business Development Unit Kuwait Foreign Petroleum Exploration Company

CHAIRPERSONS

Azlan MajidPrincipal AdvisorGa�ney, Cline & Associates

Ikram Iskandar Abdul RahimSubsurface Team LeadHess Inc.

Amy Y Md YusufFormer Planning & Economics Advisor Hess Exploration & Production Malaysia B.V.

Michael ReederDirector of Commercial Services Lloyd's Register

Domenice DuncanManager - Subsurface Sarawak Gas Murphy Sarawak Oil Company Ltd.

Lim Hue Teng, Adeline Manager - Reservoir Engineering PETRONAS

COMMITTEE MEMBERS

Mohamad Kamal HamdanSenior Reservoir EngineerPTT Exploration and Production Public Company Limited Member, SPE Asia Pacific Regional Technical Advisory Committee

WORKSHOP ADVISOR

Muhammad Aiman JamaludinSenior Executive - Reserves & Resources PETRONAS

Zarita ZahurManager - Reservoir GeosciencePETRONAS

Pichit VardcharragosadTeam Lead - Resources Maturation, Reservoir Engineering PTT Exploration and Production Public Company Limited

Steve MajorPrincipal Petroleum AdvisorREM Advisory

Antony Corrie-Keilig Principal Reservoir EngineerRISC Advisory

Mojtaba MoradiReservoir EngineerTendeka

Who Should AttendProfessionals involved in: • Asset Management• Commercial• Drilling Engineering• Field Development Plan (FDP) • Finance• Geological and Geophysical (G&G) • Petroleum Engineering• Portfolio Management

GROUP REGISTRATIONS AVAILABLE!Contact us at spekl@spe.org to arrange your group.

www.spe.org/go/19WM01

SIGN UP BEFORE 16 February 2018FOR SUPER EARLY BIRD DISCOUNT!

• Reserve Management • Reservoir Engineering• Resource Analysis and

Evaluation

Session HighlightsReserves Definition/Re-clarification - Back to Basics

Implementation and Interpretation of PRMS Challenges – Case Studies

Translating/Adopting Reserves Guidelines and its Impacts to Business Values – Case Studies

Reservoir Simulation Forecasting Robustness and Reserves Estimates

Commerciality and Reserves under a Challenging Economic Environment

The Holistic Approaches of Unconventional Resources Forecasting Experiences

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LEAGUE OF VOLUNTEERS

All participants are encouraged to prepare a poster for the Workshop. Presentations on both research and field experience are welcomed. Posters, including unconfirmed / partial results, are to be presented at an assigned time and are open for discussion. Posters will be on display for the entire Workshop period.

When preparing your poster:• Avoid commercialism. No mention of trademarks / product name• Poster size should be approximately 0.8m x 1.2m (W x H) or size A0 in

portrait layout• Identify topic by title, a�liation, address, and phone number• Include a brief abstract that summarises the technology to be addressed• Make the display as self-explanatory as possible• Place the information in sequence: beginning with the main idea or problem,

method used, results, etc. (Draw a plan keeping the size and number of illustrations in mind)

• Keep illustrations simple by using charts, graphs, drawings, and pictures to create interest and visually explain a point

• Use contrasting colours• Use large print for narrative materials. (We suggest a minimum of 24 points or

3” high letters for the title)

*Note that the Workshop Programme Committee will review all poster abstracts / materials prior to display, and reserves the right to refuse permission to display any poster considered to be commercial in nature. If you are interested to participate, please email your proposed topic with a short abstract (between 200-300 words) to Renee Wong at rwong@spe.org by 28 February 2018.

POSTER SOLICITATION & INFORMATION

WorkshopObjectives• Better understand resources classification and

its challenges • Discuss production forecast methods –

empirical and analytical methods comparison• Understand resources and reserves estimation

based on di�erent reservoir recovery mechanism • Develop understanding of the PRMS guidelines • Share experiences on application of PRMS

through case studies

expert-led technical discussion topics

30

hours of peer-to-peer networking opportunities

10+

hours of knowledge sharing and technical discussion

30+

Non-member full workshop attendees can join SPE at no additional cost. Look for your exclusive o�er by email shortly after the event.

0800 - 0850 Arrival of Delegates and Registration0850 - 0900 Safety Announcement by Hotel0900 - 1000 Session 1: Welcome and Introduction

Co-Chairpersons: Rafa’ie Kipli, PETRONAS; David Gurney, Kuwait Foreign Petroleum Exploration Company

1000 - 1030 Group Photo / Co�ee and Tea Break1030 - 1230 Session 2: Panel Discussion:

Reserves Definition/Re-clarification - Back to BasicsSession Managers: Lim Hue Teng, Adeline, PETRONAS; Zarita Zahur, PETRONAS

The low oil price and limited resources are some of the main challenges for protecting current and developing new reserves. There is a need to review existing guidelines/methods for reserves bookings and, if warranted, revise the existing booked resources.

It is essential to integrate information from all available tools, and to adopt a proper de-risking and surveillance plan – be more cautious when booking costly reserves and EOR projects. Overbooking reserves is common and should be avoided. There should be more stringent internal processes for mature reserves quantification – including improved calibration of modelling results through lab experiments, data gathering and pilot test.

This session will focus on di�erent analysis methods that are used for reserves estimation and how to address requirements to classify and estimate reserves.

1230 - 1330 Networking Luncheon1330 - 1530 Session 3: Implementation and Interpretation of PRMS Challenges –

Case StudiesSession Managers: Domenice Duncan, Murphy Sarawak Oil Company Ltd.; Pichit Vardcharragosad, PTT Exploration and Production Public Company Limited

Since its issuance in 2007, the industry cited the PRMS guideline as one of the key reference for reserves and resources classification and definition. Through the years, there have been many case studies on issues, challenges and experiences of using this important document.

This session will look at those topics using various real-life examples. Volatile oil and gas price, project definition, advancement in technology and scarcity, all linked to financial guideline are among key subjects to those challenges.

TUESDAY, 17 APRIL 2018 1530 - 1545 Co�ee and Tea Break1545 - 1745 Session 4: Translating/Adopting Reserves Guidelines and its

Impacts to Business Values – Case StudiesSession Managers: Ikram Iskandar Abdul Rahim, Hess Inc.

New definitions in reporting (operational, financial or reserves) will inevitably result in changes in business practices and processes. Organisations require training to adapt, and company resources need to be committed to ensure the necessary level of understanding and compliance to set standards. This session will focus on the business value and issues that the new standards will invariably bring to reserves professionals (trainers, practitioners, auditors etc.) and senior executives driving decision-making exercises that are dependent on reserves reporting.

1745 - 1845 Session 5: Breakout/Poster Session1845 onwards Welcome Dinner

Preliminary Workshop Schedule

The Society of Petroleum Engineers (SPE) is a not-for-profit organisation. Income from this event will be invested back into SPE to support many other Society programmes. When you attend an SPE event, you help provide even more opportunities for industry professionals to enhance their technical and professional competence. Scholarships, certification,

the Distinguished Lecturer programmes, and SPE’s energy education programmes Energy4me are just a few examples of programmes that are supported by SPE.

Sponsorship support of the event helps o�set the cost of producing workshops and allows SPE to keep the attendance price within reach of operation-level individuals, those who benefit most from these technical workshops.

Supporters benefit both directly and indirectly by having their names associated with a specific workshop. While SPE prohibits any type of commercialism within the workshop room itself, the Society recognises that supporting companies o�er valuable information to attendees outside the technical sessions.

SPONSORSHIP CATEGORIESSponsorship categories are o�ered on a first-come basis. Please contact SPE to enquire and verify the availability of categories. Existing supporters have the opportunity to renew the same level of support for annual workshops.

SPONSORSHIP BENEFITSIn addition to onsite recognition, SPE will recognise sponsors on the SPE website and in all printed materials for the workshop. Based on the category selected, supporting companies also receive logo visibility on promotional workshop items.

FOR MORE INFORMATIONFor a detailed list of available sponsorship opportunities, including benefits and pricing, contact Renee Wong at rwong@spe.org

SPONSORSHIP SUPPORT INFORMATION

DOCUMENTATION• Proceedings will not be published; therefore,

formal papers and handouts are not expected from speakers.

• Work-in-progress, new ideas, and interesting projects are sought.

• Note-taking by attendees is encouraged. However, to ensure free and open discussions, no formal records will be kept.

WORKSHOP DELIVERABLES• The committee will prepare a full report containing

highlights of the Workshop and the report will be circulated to all attendees.

• Powerpoint presentations will be posted online and provided to attendees after the Workshop. Provision of the materials by Discussion Leaders will signify their permission for SPE to do so.

COMMERCIALISMIn keeping with the Workshop objectives and the SPE mission, excessive commercialism in posters or presentations is not permitted. Company logos must be limited to the title slide and used only to indicate the a�liation of the presenter.ATTENDANCE CERTIFICATEAll attendees will receive a Workshop attendance certificate. This certificate will be provided in exchange for a complete Attendee Survey Form.

GENERAL INFORMATION

CONTINUING EDUCATION UNITSThis Workshop qualifies for SPE Continuing Education Units (CEU) at the rate of 0.1 CEU per hour of the Workshop.TRAVEL/VISAAttendees are advised to book their airline tickets early. All travellers must be in possession of passports valid for at least six (6) months with proof of onward passage. Contact your local travel agent for information on visa requirements.DRESS CODEBusiness casual clothing is recommended. The Workshop atmosphere is informal.REGISTRATION FEE• Registration fee ONLY includes all workshop

sessions, co�ee breaks and luncheons for the registrant.

• Accommodation is NOT included. SPE will provide details of recommended hotels upon receipt of your registration.

REGISTRATION POLICY• Registration fee MUST be paid in advance for

attending the Workshop.• Full fixed fee is charged regardless of the length

of time the registrant attends the Workshop, and cannot be prorated or reduced for anyone.

0800 - 0850 Arrival of Delegates and Registration0850 - 0900 Safety Announcement by Hotel0900 - 1000 Session 1: Welcome and Introduction Co-Chairpersons: Rafa’ie Kipli, PETRONAS; David Gurney,

Kuwait Foreign Petroleum Exploration Company1000 - 1030 Group Photo / Co�ee and Tea Break1030 - 1230 Session 2: Panel Discussion:

Reserves Definition/Re-clarification - Back to BasicsSession Managers: Lim Hue Teng, Adeline, PETRONAS; Zarita Zahur, PETRONAS

The low oil price and limited resources are some of the main challenges for protecting current and developing new reserves. There is a need to review existing guidelines/methods for reserves bookings and, if warranted, revise the existing booked resources.

It is essential to integrate information from all available tools, and to adopt a proper de-risking and surveillance plan – be more cautious when booking costly reserves and EOR projects. Overbooking reserves is common and should be avoided. There should be more stringent internal processes for mature reserves quantification – including improved calibration of modelling results through lab experiments, data gathering and pilot test.

This session will focus on di�erent analysis methods that are used for reserves estimation and how to address requirements to classify and estimate reserves.

1230 - 1330 Networking Luncheon1330 - 1530 Session 3: Implementation and Interpretation of PRMS Challenges –

Case StudiesSession Managers: Domenice Duncan, Murphy Sarawak Oil Company

Ltd.; Pichit Vardcharragosad, PTT Exploration and Production Public Company Limited

Since its issuance in 2007, the industry cited the PRMS guideline as one of the key reference for reserves and resources classification and definition. Through the years, there have been many case studies on issues, challenges and experiences of using this important document.

This session will look at those topics using various real-life examples. Volatile oil and gas price, project definition, advancement in technology and scarcity, all linked to financial guideline are among key subjects to those challenges.

WEDNESDAY, 18 APRIL 2018

1530 - 1545 Co�ee and Tea Break1545 - 1745 Session 4: Translating/Adopting Reserves Guidelines and its

Impacts to Business Values – Case StudiesSession Managers: Ikram Iskandar Abdul Rahim, Hess Inc.

New definitions in reporting (operational, financial or reserves) will inevitably result in changes in business practices and processes. Organisations require training to adapt, and company resources need to be committed to ensure the necessary level of understanding and compliance to set standards. This session will focus on the business value and issues that the new standards will invariably bring to reserves professionals (trainers, practitioners, auditors etc.) and senior executives driving decision-making exercises that are dependent on reserves reporting.

1745 - 1845 Session 5: Breakout/Poster Session1845 onwards Welcome Dinner

0900 – 1100 Session 6: Reservoir Simulation Forecasting Robustness and Reserves EstimatesSession Managers: Antony Corrie-Keilig, RISC Advisory; Steve Major, REM AdvisoryThis session will examine the various techniques, both stochastic and deterministic, used in reservoir simulation to generate reserves forecasts. The challenge in using simulation to derive reserves forecasts is to ensure the simulation models have captured the range of uncertainty commensurate with 1P, 2P and 3P definitions and have been built to in accordance with the desired reserves standards. Case histories will examine these challenges, in particular the robustness of methodologies used and how analytical techniques may be used to verify and cross check the sensitivity of forecasts for the purpose that they will be used for.

1100 – 1115 Co�ee and Tea Break1115 – 1315 Session 7: Commerciality and Reserves under a Challenging

Economic EnvironmentSession Managers: Azlan Majid, Gaffney, Cline & Associates; Michael Reeder, Lloyd's Register; Amy Y Md Yusuf, (Former) Hess Exploration & Production Malaysia B.V.Determining commerciality is a key component in the classification of volumes within the SPE-PRMS framework. The test of the commerciality of a project is defined by a set of assumptions on financial conditions (costs, prices, fiscal terms and taxes),

marketing, contractual, environmental, regulatory, and other issues related to the project. This session will examine some of these assumptions and their associated challenges, especially in the current low hydrocarbon price environment. The situation is often complicated further by the role that national oil companies have to play in securing energy supply.

1315 – 1415 Networking Luncheon1415 – 1615 Session 8: The Holistic Approaches of Unconventional

Resources Forecasting ExperiencesSession Managers: Muhammad Aiman Jamaludin, PETRONAS; Mojtaba Moradi, Tendeka

As we deplete conventional oil and gas reserves,“unconventional” energy resources are increasingly important to the U.S. and international energy supplies. Today, shale gas and oil projects are amongst the most active hydrocarbon plays in North America. While unconventional hydrocarbon resources are very large, economically recoverable volumes are much smaller and more uncertain. Some of these are due to the greater costs and the additional technology required for economic production from wells, along with the uncertainty of continuous drilling programmes over many years. Optimal development of unconventional reservoirs requires knowledge of optimal drilling, completion and stimulation methods for low-permeability gas reservoirs and extraction of heavy crude. This session will discuss: (i) Risk, uncertainties and accuracy in forecasting unconventional resources (ii) Applicability of the use of conventional methods for unconventional reservoirs (iii) Improvement of available techniques using type curve

method, modelling of fluid flow in nano-porous media and fluid and rock properties characterisation techniques

1615 – 1630 Co�ee and Tea Break1630 – 1730 Session 9: Open Discussion Forum of Workshop Topics

Co-Chairpersons: Rafa’ie Kipli, PETRONAS; David Gurney, Kuwait Foreign Petroleum Exploration Company

This is an open session that will address any questions from participants and learning outcomes from the 2-day workshop.

1730 – 1800 Session 10: Workshop Summary and Closing RemarksCo-Chairpersons: Rafa’ie Kipli, PETRONAS; David Gurney, Kuwait Foreign Petroleum Exploration Company

Course DescriptionThis course will provide an overview of the classification, estimation and reporting of reserves and resources. The focus of the course is on the SPE-PRMS, but other systems such as SEC and COGEH will also be mentioned.

The course will outline the key definitions of each of the main classes and categories of reserves and resources. Estimation methods that can be used, together with how and when each should be used will also covered.

Objectives• Provides an overview of international industry practices• Ensures a thorough understanding of key definitions

and guidelines and the relationship between Reservesand Resources

• Discusses the handling of risk and uncertainty, includingdeterministic and probabilistic methodologies

Your Instructor

Douglas Peacock is currently the Technical Director – Geoscience with Ga�ney, Cline & Associates, based in Singapore. He has over 30 years of experience in the oil industry covering a variety of geoscience positions, during employment with service companies, operators and consultancies. He has been involved in exploration, development and reserves estimation throughout his career. He is a recent (2013-16) member of the SPE Oil and Gas Reserves Committee (OGRC). Doug was serving as a SPE Distinguished Lecturer during 2010-11. He also has numerous publications and technical papers published from 1989 – 2016. He has given numerous training courses, mainly on reserves and resources, both for SPE and GCA. Doug holds a B.Sc. in Geology from Leeds University and a M.Sc. in Petroleum Geology from Imperial College, London.

Pre-Workshop Training Course

SIGN UP BEFORE 16 FEBRUARY 2018 FOR SUPER EARLY BIRD DISCOUNT!

16 April 2018 | Kuala Lumpur, Malaysia

Estimation, Classification and Reporting of Reserves and Resources

Daily Technical Agenda

MONDAY, 16 APRIL 2018

0900 - 1030 Introduction and Overview• Definitions of reserves and resources• Why estimate reserves?• Regulatory requirements• Concept of a project• Boundaries between major classes

1030 - 1045 Morning Co�ee / Tea Break

1045 - 1200 Risk and Uncertainty• Di�erence between risk and uncertainty• Assessment of risk• Assessment of uncertainty• Heuristics and bias

1200 - 1330 Group Lunch

1330 – 1515 Estimation Methods• Deterministic and probabilistic methods• Use of analogues• Project lifecycle• Use of seismic• Volumetric methods, in-place estimation• Decline curves, reservoir simulation, material balance

1515 - 1530 Afternoon Co�ee / Tea Break

1530 - 1700 Economics and Reporting• Contract types• Cash flow modelling• Working interest vs entitlement• Relationship between oil price and reserves• Other issues

SPE Member Yes No

Membership No.

First/Forename Middle Last/Family Name

Position

Company

Address

Town/City Zip/Postal Code Country

Tel Fax Email

Would you be willing to give a brief (10-15minutes) presentation? Yes NoIf yes, please attach the topic with a short abstract of your proposed presentation. One of the Programme Committee members will contact you to discuss your presentation.*IMPORTANT: REGISTRANTS FOR SPE WORKSHOPS ARE ACCEPTED ON THE BASIS OF INFORMATION SUBMITTED BY EACH REGISTRANT.

Drilling Completions Management and Information

Health, Safety, Security, Enviroment, and Social Responsibility Production and Operations

Reservoir Description and Dynamics Projects, Facilities and Construction

Technical Disciplines (Check One)

Listing background and experience. (Use additional paper if required)

Primary Responsibility (Check One) Drilling Operation

Economics Production

Geology Reservoir

Geophysics Surveillance

Management Other

SPE WORKSHOP:Resource Estimation, Definition, and Production Forecasting 17 – 18 April 2018 | Kuala Lumpur, Malaysia

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Cancellation Policy• A processing fee of USD150.00 will be charged for cancellation

received thirty (30) days prior to the first day of the workshop.

• 25% refund will be made for cancellation received between twenty nine (29) - fifteen (15) days prior to the first day of the workshop.

• No refund on cancellation received fourteen (14) days prior to the first day of the workshop.

• No refund will be issued if a registrant fails to show up on-site.

This form may be used as a company invoice.Mail completed registration form with remittance and any supporting material to:

Society of Petroleum EngineersSuite 12.01, Level 12, Menara IGB, Mid Valley CityLingkaran Syed Putra, 59200 Kuala Lumpur, Malaysia

T 60.3.2182.3000 F 60.3.2182.3030 E spekl@spe.org

BASED ON THE MERITOF EACH APPLICANT

List your expectation for the Workshop, so that the committee can tailor a portion of the Workshop to answering attendees’ concerns.(Use additional paper if required)

Note: Fee includes workshop sessions, workbook, certificate, daily luncheons and co�ee breaks. Registration fees do not include accommodation. If attendance is not su�cient for training course by 16 March 2018, SPE reserves the right to cancel the course.

REGISTRATION FORM

SUPER EARLY BIRD REGISTRATIONBY 16 FEBRUARY 2018Registration Fees

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Workshop & Training Course16 - 18 April 2018

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