The Ministry of Natural Resources and Ecology (MNRE) issued Order No. 477 “On approval of the classification of reserves and resources of oil and flammable gases” (Order), which defines the new principles for the calculation and state recording of reserves, oil resources, flammable gases and gas condensate.
The new classification will be effective starting from 1 January 2016. Before this date the temporary classification of the reserves, perspective and forecast for oil resources and flammable gases will continue to be in force (as approved by Order of MNRE No. 126 dated 7 February 2001).
Pursuant to the Order the categories of oil and gas reserves and resources have got new definitions. The most important novel of the new classification is that it will take into consideration not only the geological characteristics of the deposits, but also the economic parameters of the development of such deposits.
In accordance with the Order, the oil and gas reserves will be divided into сategories A, B1, B2, C1 and C2. In comparison to the current classification such category of oil and gas reserves as C3 will not be stipulated by the new classification.
The Order provides that the resources of oil, gas, and gas condensate on the basis of the level of geological study will be divided into categories D0, Dl, D1 and D2. It should be noted that D0 is the new category introduced by the Order, which covers the most studied oil, gas and gas condensate resources.
The Order determines new gradation of oil and gas subsoil deposits depending on the quantity of the recoverable reserves: unique, huge, middle, small, and very small. The latter is a new category introduced by the Order with less than 1 million tons of oil or less than 1 billion m3 of gas.