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Petroleum Resources Management System

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Petroleum Resources Management System

Background:

The Petroleum Resources Management System (PRMS) is an internationally recognized framework used to classify, evaluate, and report petroleum resources and reserves in a consistent and transparent manner. PRMS goes beyond volumetric estimation by integrating technical maturity, commercial viability, risk, and uncertainty into a project-based decision framework.

For professionals outside the subsurface discipline, PRMS provides a common language that bridges geology, engineering, commercial, and management perspectives. A sound understanding of PRMS is essential for supporting field development planning, investment decisions, portfolio management, and communication with internal and external stakeholders throughout the petroleum project lifecycle.

Objectives:

• Understand the philosophy, structure, and key principles of PRMS
• Explain the classification of petroleum resources and reserves in accordance with PRMS
• Recognize the relationship between PRMS classification and project maturity
• Interpret reserves and resources statements from a non-reservoir perspective
• Understand the role of commerciality, risk, and uncertainty in resource classification
• Apply PRMS concepts to support technical, commercial, and management decision making

Course Outline:

Fundamental PRMS & Resource Classification

1. Introduction to PRMS
• History & organizations behind PRMS (SPE, AAPG, WPC, SPEE, SEG)
• Why PRMS matters for industry & business
• PRMS vs “reserves reporting mindset”

2. PRMS Key Principles
• Project-based classification
• Commerciality
• Risk & uncertainty
• Probability concepts (P90, P50, P10)

3. Resource Classification Framework
• Total Petroleum Initially In Place (TPIIP)
• Discovered vs Undiscovered Resources
• Movement of volumes across project maturity

4. Prospective Resources
• Geological chance of success (GCoS)
• Exploration risk elements
• Volumetric uncertainty

Contingent Resources & Reserves

1. Contingent Resources
• Definition & characteristics
• Sub-classes (Development Pending, On Hold, Unclarified, Not Viable)
• Common contingencies:
o Economic
o Regulatory
o Technical
o Infrastructure

2. Reserves Classification
• Proved (1P)
• Probable (2P)
• Possible (3P)
• Development status: Developed vs Undeveloped

3. Commerciality & Economic Evaluation
• Economic cut-off & project sanction
• Role of fiscal terms (PSC, cost recovery, gross split)
• Price, cost, and sensitivity impact

Application, Reporting & Business Perspective

1. PRMS in Project Lifecycle
• Exploration → Appraisal → Development → Production
• Impact of technical maturity on classification
• Role of subsurface & surface integration

2. PRMS Reporting & Governance
• Annual reserves & resources reporting
• Internal vs external reporting
• Reserves audit overview

3. PRMS for Decision Making
• Portfolio management
• Farm-in / farm-out
• M&A and asset valuation
• Risked vs un-risked volumes

4. Integration with Other Frameworks
• PRMS vs SEC
• PRMS vs UNFC
• Alignment with corporate planning & strategy

About The Course Leader

Prof. Dr.-Ing. Bonar Tua Halomoan Marbun

Petroleum Resources Management System

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