SY/T 6177-2020 in English

Core changes in the standard revision

Analysis of key technical requirements

1. Full-cycle investment estimation system

According to the classification of development well engineering and surface engineering:

• Construction investment: Development well engineering includes 15 subdivided expenses (4.2.1)
• Abandonment costs: Calculated using the terminal value method, the ecological environment restoration costs must be included
• Working capital: It is clearly stated that it shall not be included in temporary operating funds (Clause 4.4)

2. New cost accounting standards

Implementation suggestions

1. Sensitivity analysis: must include the four factors of investment/price/output/cost (Clause 8.2)
2. Adjustment plan evaluation: give priority to the with-or-without comparison method (Clause 9.1)
3. Reporting system: strictly implement the 26 standard table formats in Appendix A/B

Industry application value

This standard has special guiding significance for the development of unconventional gas fields:

• Specify that the reclamation costs of shale gas well sites should be included in the abandonment costs
• Regulate the method of collecting investments in staged fracturing of horizontal wells
• Require that resource taxes be calculated for tight gas fields according to production tiers