Capturing Sustainable Value with UNFC-UNRMSIntegrated (total) Resource Management - IRMSatinder Purewal – Chair of PWGTwitter Facebook YouTube UNECE

Petroleum Work Group (PWG) Vision/Mission

Integrated Resource Management (IRM) IRM Paper

UNFC SWOT

Capturing Value How, when, where and why?

Future Plan Projects 2018-19

Potential Workshops

Closing Remarks

Outline

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Vision PWG vision is to be the premier Petroleum expertise repository for the

Expert Group on Resource Classification with the primary goal of achieving Sustainable Development Goals through implementation of UNFC-UNRMS globally as a total resource classification and management system.

Mission PWG mission is to proactively work with country stake holders,

develop UNFC-UNRMS petroleum specifications and guidelines, conduct pilot studies, hold workshops, promote uptake of UNFC-UNRMS in interested countries, provide advice on the realization ofSustainable Development Goals.

PWG Vision/Mission

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PWG formation: August-October 2017

Paper Published: January 2018

UNFC Workshop: 24 April 2018

Mexico Pilot project start: July 2018

Paper Title:

‘Application of the United Nations Framework Classification for Integrated Resource Management for petroleum and total resources by National Oil Companies and government regulators’

PWG Paper on IRMTimeline

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Integrated Resource Management (IRM) Alignment: Assessment of Total Resources (minerals,

petroleum, renewables, etc.)

Classification: Classify all resources with further actions (such as detailed studies, market analysis, regulatory approvals, securing project finance, etc.) to increase project maturity (E and F axes)

Integration: Total Resource Reporting

Stakeholders: For NOC’s, Resource regulators and other Government agencies

PWG Paper on IRM IRM Objectives - 1

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Increase uptake of UNFC-UNRMS globally Integration, enhancement and optimisation

of total national resource value

Provide clarity

Decision tool for making Energy policy decisions

Pilot Project Initially for Petroleum

Expand to include other Resources

PWG Paper on IRM IRM Objectives – 2

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Adoption of UNFC-UNRMS for IRM will enable:

• Assistance with: • energy policy direction and decision making

• Regulatory policy direction

• Consistency of disparate resource value capture

• Integration of conventional and unconventional resource management

• Incorporation of sustainability considerations (e.g., environmental and social)

• Increased transparency and reliability for resources management.

PWG Paper on IRM Benefits of IRM

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SWOTFor UNFC-UNRMS

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TO

WS

Weaknesses• Too complex due to 3D architecture• Compromises mapping to other systems• Slow uptake globally• Perception (as a threat to other systems

- This is also a S/O/T)

Opportunities• Integrated Resource Management (IRM)• With NOC’s and Government

Regulators • Workshops to promote UNFC globally• Pilot Projects (test UNFC)

Threats• Lack of uptake and support globally• Other classification systems• Potential marginalisation

Strengths• Numeric• Covers all resources• Uniquely captures socio-

Economic issues• Project based• Maps to other systems• ‘Umbrella’ Resource management

System’

How Promote UNFC-UNRMS uptake globally

Targeted countries

When After EGRC 9 Meeting

Q2/Q3 2018+

Where Initial Pilot(s) in two to four countries

Based on outcome, roll out to other countries

Why It’s the correct timed opportunity for UNFC-UNRMS

Right Niche as the IRM tool

2 year window

Capturing ValueHow, When, Where and Why?

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Petroleum Specifications and Applications Initiated May 2018

Pilot Project in Mexico Initiated July 2018

Comparison between PRMS, COGEH and other classification systems Initiated May 2018

Mapping of updated PRMS to UNFC Expected start October 2018

Case Studies RF2013 and UNFC; PRMS and UNFC (expected start January 2019)

Chinese Classification System and UNFC (expected start September 2018)

PWG Projects2018-19

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PWG Project UNFC-UNRMS Specifications and Guidelines for Petroleum

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Definitions

Specifications

Guidelines

Classification Framework

Application Rules

Non-Mandatory Guidelines

Mexico Pilot Project – Capturing Value

E-F Axes: Value Identification E-F Axes: Value Capture

Pilot Project

IntitiatedReview 1

Decision Gate

Review 2

Decision Gate

Workshop

18-21 June 2018Stage 1 Stage 2 Stage 3 Finalisation

Final Report

Lessons Learned

Review 3

Decision Gate

Workshop 18-21 June 201818 June: Meetings to verify information and workshop activity organization19 June: Workshop: Review UNFC, set the scene and decide on what’s important20 June: Meetings to develop approaches to classify a group of fields21 June: Agree a forward action plan for the pilot project

Pilot Project StagesStage 1: Data review and compilation of social and environmental issues

Prepare Risk matrix, look at commercial issuesStage 2: initial categorisation of the fields using UNFCStage 3: Review and revise categorisation based on discussions with UNECE expertsFinalisation: Prepare final reportReviews: Two of the Reviews may be via telecon. One review should be face-to-face.

✔✔ ✔

One or two target countries Based on IRM model

One of projects can be the driver

Mexico Workshop held 18-21 June 2018

Six month Pilot project initiated in July

Africa Based on further discussions (using IRM model)

Others Based on discussions with requirement and requests from other

countries

…….All subject to extra –budgetary funds made available..

Future Plan-1Workshops

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Global Shared Vision

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UNFC Pilot Project

UNFC Potential Pilot Projects

UNFC Workshops Planned

Clearly defined plan for sustainable financial support UNFC Trust Fund

Partnering with training service providers MOU’s

Clearly defined achievable goals

Support for specific projects From NOC’s, Governments, etc.

Need financial disbursement and controls

Support from NGO’s

Future Plan-2Raising Finance

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Deliver ‘fit-for-purpose’ advice from experts Training and guidance on UNFC-UNRMS

Workshops with a defined purpose

Add incremental value to the country resource base

Case studies Moving ‘seamlessly’ from one classification to another

Integrated resource reporting

Value drivers Energy Security

Socio-economic development

Future Plan-3Adding Value

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UNFC-UNRMS is a useful tool for making energy policy decisions by NOC’s, Regulators and Government agencies

Opportunity for NOC’s to use UNFC-UNRMS for national integrated resource management (IRM)

UNFC-UNRMS may assist optimisation of the total resource base of the country via IRM

Pilot project in Mexico started in July 2018

Consider pilot projects in other countries

Financing of these projects is critical for success

3P’s…People, Planet, Profits!....Partnership?

Concluding Remarks

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Thank you!

Name Surname

Position

UNECE

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