Petroleum Resources Including discovered and undiscovered Petroleum Resources in Vietnam

Petroleum Resources Including discovered and undiscovered Petroleum Resources in Vietnam (Illustrative image)

To be specific, Article 5 Circular 24/2020/TT-BCT regulates that petroleum resources are classified into two groups: discovered petroleum resources (by drilling) and undiscovered petroleum resources in Vietnam.

- Discovered petroleum resources: Depending on the feasibility in terms of technology, and the level of economic efficiency as assessed by the Operator at the time of reporting, discovered petroleum resources are divided into developed and undeveloped groups.

+ Developed group: The developed group's petroleum resources and reserves are categorized into proven (P1), probable (P2), and possible (P3) levels.

(a1) Proven level (P1): The P1 level corresponds to the highest level of confidence in the classification of petroleum resources and reserves. The P1 level must satisfy the following conditions:

- The petroleum reservoir's boundaries are determined with high confidence based on geological, geophysical, drilling, reservoir testing, and production documents.- The permeability, containment, and oil and gas saturation characteristics of the reservoir are confirmed by well log data and/or core samples.- Reservoir test results and fluid samples allow for the identification of commercial oil and gas flow potential according to the Operator's perspective from at least one well.

(a2) Probable level (P2): The P2 level corresponds to a lower level of confidence than P1 in the classification of petroleum resources and reserves. The P2 level is identified as potentially existing within the reservoirs based on geological and geophysical data but has not been verified by reservoir testing and/or fluid samples.

(a3) Possible level (P3): The P3 level corresponds to a lower level of confidence than P2 in the classification of petroleum resources and reserves. The P3 level is identified when the potential quantity of oil and gas could theoretically exist within the reservoirs based on geological and geophysical data but is not reliable enough to be classified into level P2.

+ Undeveloped group: The petroleum resources of the undeveloped (potential) group are classified into proven (C1), probable (C2), and possible (C3) levels. The technical criteria for classifying C1, C2, and C3 are similar to P1, P2, and P3.

- Undiscovered petroleum resources include estimated undiscovered petroleum resources (R1) and theoretical undiscovered petroleum resources (R2).

• - Estimated undiscovered petroleum resources (R1) are the estimated quantity of oil and gas at a specific time for mapped prospective targets but have not been confirmed by drilling results, or including reservoirs in the productive layers of existing fields with favorable geological conditions for oil and gas accumulation but have not been drilled;
• - Theoretical undiscovered petroleum resources (R2) are the estimated quantity of oil and gas at a specific time for projected oil and gas accumulations that could theoretically exist within a set of prospective targets under favorable geological conditions for oil and gas accumulation but have not been mapped.

For details, refer to Circular 24/2020/TT-BCT, which comes into effect in Vietnam from November 06, 2020.

Le Vy

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