Chapter 12: Resources Entitlement and Recognition

This chapter is about resources entitlement, which refers to the ability of an entity to claim quantities (net to the entity) of reserves and resources in its reports. Entitlement is also referred to as recognition, as the entitled quantities may be recognized in the entity’s reserves and resources reports. The term “recognized quantities” is frequently referred to as the “booked quantities.” This chapter text is an update to Chapter 10 of the Guidelines for Application of the Petroleum Resources Management Systempublished in 2011. Drawing heavily on the prior text, the content has been updated to reflect refinements in generally accepted industry practices commonly used when determining entitlement to production and recognizable quantities of reserves and resources under a range of agreement types and fiscal terms, as well as aligning with the Petroleum Resources Management System (PRMS 2018). It is not the intent of the Society of Petroleum Engineers, or the cosponsors of the PRMS, to comment on the individual disclosure regulations promulgated by specific government agencies regarding entitlement to production or the ability to report reserves. As a consequence, emphasis has been placed on principles for reserves and resources recognition under the PRMS and determination of net quantities, rather than specific government regulations, financial reporting guidelines, or the classification of Reserves, Contingent Resources, and Prospective Resources into the various certainty categories of the PRMS.