Competent Persons Report – The Importance of Reliable Data in Energy and Investment Decisions

In the energy sector, particularly in oil, gas, and mining, accurate data and independent assessment are essential for making informed decisions. A Competent Persons Report (CPR) is a key tool used by companies, investors, and regulators to provide a clear, reliable evaluation of reserves, resources, and project potential. The report not only underpins financial and operational decisions but also ensures transparency, accountability, and compliance with industry standards.

What is a Competent Persons Report?

A Competent Persons Report is an independent technical assessment prepared by a qualified professional, often referred to as the “competent person.” The report reviews geological, engineering, and commercial data to verify the quantity, quality, and recoverability of resources such as oil, gas, or minerals. It provides an objective view of a project’s potential, identifying risks, opportunities, and uncertainties.

Key Components of a CPR

1. Resource and Reserve Estimates – A detailed analysis of proven, probable, and possible resources, supported by geological and engineering data.
2. Technical Assessment – Evaluation of project design, extraction methods, infrastructure, and operational feasibility.
3. Economic Analysis – Financial modelling, cost projections, and revenue forecasts to assess the project’s commercial viability.
4. Risk Assessment – Identification of operational, geological, regulatory, and environmental risks that could affect project outcomes.
5. Compliance and Standards – Ensuring that reporting meets industry codes, such as the Petroleum Resources Management System (PRMS) for oil and gas or the JORC Code for minerals.

Why CPRs Are Crucial

1. Investor Confidence – Investors rely on CPRs to make informed decisions, as the report provides a trusted, independent verification of a project’s potential.
2. Regulatory Compliance – Many jurisdictions require CPRs for public reporting, licensing, or approval of major projects, ensuring transparency and adherence to industry standards.
3. Financial Planning – Banks and financial institutions often require a CPR before approving funding, as it quantifies reserves and associated risks.
4. Operational Decision-Making – Management teams use CPR data to plan development strategies, allocate resources, and optimise production.
5. Mitigating Risk – Independent assessment highlights uncertainties and potential pitfalls, helping stakeholders make safer, more informed decisions.

The Role of the Competent Person

A competent person is an experienced professional with recognised expertise in the relevant field. They must be independent, impartial, and capable of interpreting complex technical data to provide a clear, objective report. Their credibility ensures that the CPR is trusted by investors, regulators, and management teams alike.

Applications Across Energy Sectors

In oil and gas, CPRs verify hydrocarbon reserves and production forecasts. In mining, they confirm mineral resources and project viability. Increasingly, similar principles are applied to renewable energy projects, such as geothermal or large-scale wind developments, to evaluate technical and financial feasibility.

Conclusion

A Competent Persons Report is far more than a technical document – it is a cornerstone of transparency, trust, and informed decision-making in the energy and resource sectors. By providing independent verification of reserves, operational feasibility, and economic potential, CPRs enable companies, investors, and regulators to act with confidence. For anyone involved in project development or investment, the value of accurate, reliable data cannot be overstated, making the CPR an indispensable part of the modern energy industry.

If you like, I can also create a version focusing on CPRs for renewable energy projects, highlighting how they are increasingly used outside oil, gas, and mining.