Implementation of Petroleum Resources Management System (PRMS) in Kazakhstan

The Petroleum Reserve and Resource Management System (PRMS) serves as a fundamental framework for assessing and categorizing petroleum reserves and resources, and it plays a critical role in directing management and decision-making procedures within the worldwide oil and gas industry. The Society of Petroleum Engineers (SPE) developed and maintains the PRMS, which offers a standardized approach and set of terminology to enable consistent and transparent reporting of petroleum reserves and resources across a variety of geological and geographic contexts. The PRMS's primary function is to assess the commercial potential of hydrocarbon accumulations, a crucial factor in determining the profitability of exploration and production activities. The PRMS improves the accuracy and reliability of data exchanged among industry stakeholders, investors, regulators, and the general public by providing a systematic way to categorizing reserves and resources. A variety of reserves and resources are covered by the PRMS classification scheme, from unexplored accumulations with exploration potential to proved deposits prepared for commercial extraction. It aids experts in classifying these assets according to the geological, engineering, and economic criteria that affect their ability to be recovered. Additionally, PRMS provides a platform for businesses to consistently declare their petroleum holdings, increasing transparency and enabling worldwide comparisons. In PRMS hydrocarbons are classified as reserves, contingent resources, prospective resources, and unrecoverable resources based on applied project. Within these classifications hydrocarbons are categorized as low, best and high estimate based on geological uncertainty. In contrast, Kazakhstan uses a specific reserve estimating approach known as the "GKZ System" to categorize and examine the country's hydrocarbon reserves. This system is monitored by the State Commission on Mineral Reserves (GKZ), which is responsible for overseeing and administering the classification, reporting, and assessment of oil and gas reserves in accordance with national legislation. Overall, Kazakhstan's GKZ reserve assessment system presents a unique approach that takes into account the country's geological, technological, and economic considerations. While its aim is to optimize recoverable reserves, ongoing discussions highlight the importance of aligning the system with global standards, enhancing transparency, and fostering sustainable resource management practices. The objective of this study is to conduct a comprehensive comparison between two distinct reserves estimation methods, specifically the GKZ and PRMS systems. By analyzing the variations and commonalities between these approaches, the research seeks to provide valuable insights into the potential challenges and opportunities associated with transitioning from the GKZ to the PRMS system. Drawing on examples and experiences from other countries, the study aims to offer valuable guidance and lessons for making informed decisions regarding reserve estimation methodologies. This investigation holds significance in shedding light on the implications and considerations that arise during the adoption or adaptation of reserve estimation systems, particularly in the context of Kazakhstan's resource management.