Review of Current Status of Reserves Estimation Standardization in LatinAmerica; A Third-Party Auditor Opinion

摘要

In recent years,internationally recognized reserves estimation and reporting standards have been adopted inLatin America by government regulators and national operators.This paper describes the current regionalsituation from the perspective of a third-party auditor.Potential investors need a clear understanding of how a country and its oil and gas sector companiesevaluate their petroleum resources to optimize asset portfolio management and value.To this end,the currentreserves estimation and reporting practices of several major Latin American oil and gas producers wereinvestigated to identify the level of standardization by country.This review includes the application of themain resource classification standards used by the government regulators in the region and how they haveinfluenced the estimation of reserves in recent years.The role of the third-party reserve auditor is discussed,including the importance of intangible influences which must be taken into consideration.The process ofreserve estimation is complex and involves multiple skills,knowledge and judgement while applying avariety of international reserves standards to provide a reliable independent audit for operators or regulatorsalike.Documented examples of inadequate reserves audit are presented.The SPE PRMS is the reserve reporting standard used by most of the regulators and operators,but thosecompanies that are listed on the USA or Canadian stock exchanges use SEC and COGEH,respectively.Annual independent reserves estimation from third-party auditors is mandatory for most of the LatinAmerican countries reviewed,although some continue to use in-house reserves estimations.Examplesare given to illustrate how some government regulators use their own internal guidelines with additionalconsiderations for reserves estimation and reporting.The paper shows that those countries where reservesestimation and reporting have been standardized,and which are audited by third-parties,have given moreconfidence to the global investment community.Standardization has been fundamental in helping to attract development funding for the oil and gassector in Latin America,as it brings clarity to decision making based on reliable estimates of recoverablepetroleum volumes.This paper provides a review of information regarding the status of standardization ofreserve estimation and reporting in Latin America.Best practices are shared,and some necessary areas of improvement are proposed.Getting it right can result in improved transparency and increased internationalinvestment.