PETRONAS
Exploration & Production
CONTENTS ABOUT PETRONAS
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INTEGRATED VALUE CHAIN
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PETRONAS E&P (EP) GLOBAL PRESENCE
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PETRONAS EP MALAYSIA OPERATIONS
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INVESTMENT & PARTNERSHIP OPPORTUNITIES
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EXPLORATION
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DEVELOPMENT
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PRODUCTION
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UNCONVENTIONAL
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MAKING IT POSSIBLE
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ADVANCING TECHNOLOGY & ENGINEERING
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PEOPLE DEVELOPMENT
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HEALTH, SAFETY & ENVIRONMENT
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COMMUNITIES
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CONTACT US
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ABOUT PETRONAS Petroliam Nasional Berhad is Malaysia’s fully integrated oil and gas multinational with proven capabilities in a broad spectrum of the petroleum value chain. Building on the success of managing Malaysia’s oil and gas field resources, PETRONAS has grown into a major global oil and gas company. PETRONAS strives to contribute to the well-being of the people and nations wherever it operates by developing and adding value to oil and gas resources in a manner that carefully balances commercial, environmental and social considerations.
Fortune
Global 500 2
®
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PETRONAS ANNUAL REPORT PE 2011
INTEGRATED VALUE CHAIN
Fully Integrated Value Chain for the Oil and Gas Industry A Exploration, Development and Production
Crude Oil
Natural Gas
“ Our capabilities spread across a broad portfolio, across every stage of the oil and gas development and across the total value chain ”
Dato’ Wee Yiaw Hin Executive Vice President Exploration & Production, PETRONAS
B Refining
D Liquefaction
C Processing
E Liquefied Natural Gas (LNG)
F Petroleum Products • Transportation Sector - Diesel, Gasoline, Jet Fuel and Lubricants
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G Petrochemical Plant H Liquefied Petroleum Gas (LPG) • Industrial Sector Ethylene, Methanol, • Residential and MTBE, Polyethylene, Commercial Sectors Propylene and Urea
I Processed Gas/ Peninsular Gas Utilisation (PGU) System • Power Sector • Industrial Sector
As one of the world’s leading oil and gas producers, our global operations include exploration, development and production of crude oil and natural gas in Malaysia and abroad; liquefaction, sale and transportation of LNG; processing and transmission of natural gas and the sale of natural gas products; refining and marketing of petroleum products; manufacture and sale of petrochemical products; trading of crude oil, petroleum products and petrochemical products; and shipping and logistics relating to LNG, crude oil and petroleum products.
This deep experience which spans the entire value chain of the oil and gas industry has allowed us to work alongside various host governments to develop their national Gas Masterplan, replicating the success we have in Malaysia, to many countries abroad. Consistently, we have demonstrated that we are good partners with host governments and other oil companies in monetising oil and gas resources.
J Regasification Terminal • Export Sector
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Canada
Uzbekistan Turkmenistan Iraq Algeria Egypt Cuba
Oman Mauritania Venezuela
Chad
Sierra Leone
Myanmar
Sudan
Cameroon
Vietnam South Sudan
Thailand* Malaysia
Brunei
Indonesia
Australia Mozambique *MalaysiaThailand Joint Development Area
PETRONAS EP Global Presence
PETRONAS’ Exploration & Production (EP) business carries out exploration, development and production of oil and natural gas resources across five continents. On the global front, we are a renowned exploration and production operator – known for our resilience and distinctive capabilities in the upstream sector. PETRONAS EP’s capabilities and track record of successful onshore and offshore developments in the oil and gas industry have earned us reputable operatorship in many ventures across the world.
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332 offshore platforms
162
ventures in 23 countries
2012 Achievements:
Global Business Dimensions:
• • • • • • •
• • • • • • •
Overall Resource Replenishment Ratio (ORRR) of 2.0x 2,010 kboed of total E&P production 32 first oil and gas production : 11 greenfields and 21 brownfields 546 mmboe of reserves developed 24 new discoveries 2,077 mmboe of resource addition Total Capital Expenditure (CAPEX) of USD9.1 billion with exploration expenditure of USD1.8 billion
64 partners 10,500 employees, over 50 nationalities More than 50 development projects 204 producing oil and gas fields Over 300 drilled exploration and development wells 67 rigs onshore and offshore 19 FPSO / FSO
Our Experience in Resource Playtypes: • Heavy oil • Deepwater • Basement oil • Tight gas
• Onshore • HPHT • EOR
• High CO2 Gas • Coal bed methane • Shale gas 7
This map representing oil and gas activities in Malaysia is for illustrative purposes only
Gas Fields
PETRONAS EP Malaysia Operations
Dual Role: Resource Owner / Host Authority and Operator As a resource owner and host authority in Malaysia, we are responsible for the effective management and sustainable development of the country’s oil and gas resource base. As an operator, we aim to maximise upstream value, sustain production and enhance prospectivity of the nation’s acreages.
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7787
km
pipeline
Oil Fields
22.2
bboe discovered resources
Malaysia Business Dimensions and 2012 Achievements: • • • • • • • •
95 PSCs and 4 RSCs 77 producing oil fields 55 producing gas fields 586 kboed liquid production 6,006 mmscfd natural gas production 22 discoveries 320 platforms 27 rigs
Representation of upstream facilities in Sarawak. This schematic map is for illustration purposes only and is not drawn to scale.
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INVESTMENT & PARTNERSHIP OPPORTUNITIES
Growth Opportunities For The Future, Together Since our inception, we have attracted large foreign investments into Malaysia, and built strategic partnerships with leading oil and gas contractors, domestically and internationally. In Malaysia, we have been successfully developing the nation’s oil and gas resources for over three decades. Despite maturing basins and fields, we have enhanced production, whilst increasing the prospectivity of Malaysia acreages through various de-risking efforts. Indicative of abundant upstream opportunities, the number of oil and gas fields under exploration, development, and in production in the country has also risen over the years. In an effort to continuously attract investments, we form various partnerships through innovative Production Sharing Contracts (PSCs) and Risk Service Contracts (RSCs).
100%
growth in number of PSCs in the last 8 years
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4
RSCs
Through PSCs, our partners bear all exploration, development, and production costs in return for an agreed share of production. A variety of PSC terms are designed to encourage an optimal level of investment based on the complexity of petroleum resources. RSCs were introduced in 2011 as a new solution to attract niche partners with the desired capability and technology to grow our resources. In RSCs, PETRONAS assumes the role of project owner whilst contractors are service providers with equity share in the RSC. Upfront capital investment by the contractors will be recovered upon production, together with a fixed fee for services rendered, based on their performance, relevant to the development execution and subsequent production. Malaysia presents a host of investment opportunities as it offers a strategic location, modern infrastructure, reliable transport networks, political and fiscal stabilities, among others.
95
PSCs
320 platforms
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EXPLORATION
Maximising Resources For Growth
We are exploring 35 basins in over 18 countries worldwide, across various operating environments including shallow water, deepwater, deserts, swamps and lightly inhabited areas. On the domestic front, the deep basin knowledge gathered over the years, coupled with innovative technology applications have made Malaysia a top country in the region in terms of exploration success. These include opportunities in new basins and countries which provide materiality, through the application of new technologies. • World’s first 3D Broadband Circular Shooting Survey • World’s first 3D Constant Gradient Slant Streamer Survey • Joint development of the first High Power Shallow Water surface towed CSEM source • First Airborne Full Tensor Gradiometry Survey • 3D Full Wave Seismic for imaging through gas cloud In the international arena, we continue to high grade the quality of our exploration assets. In countries that we are already producing, we focus on organic and value growth through both near fields and new plays exploration.
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Standout performer Malaysia contributed 72% of total upstream exploration discoveries with 1.4 billion boe in Southeast Asia in 2012
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discoveries in 2012: 22 in Malaysia, 2 Internationally
• HPHT vertical wells in Malaysia - 4,830 metres depth with 12 gas bearing reservoirs • Basement oil play – Vietnam, Malaysia • Deepwater exploration – Mozambique, Egypt, Cuba, Mauritania, Brunei, Malaysia 14
• • • •
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tscf of hydrocarbon resource in Kasawari field, largest non-associated gas discovery in Malaysia
HPHT exploration – Egypt, Malaysia, Turkmenistan Tight gas – Oman Carbonates exploration – Malaysia, Indonesia Precarbonates – Malaysia
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DEVELOPMENT Delivering Excellence
Superior Project Management PETRONAS EP’s Project Management System is a structured approach to; ensuring project delivery is safe, cost effective and competitive. Regardless of project complexities, we comply with stringent Health, Safety and Environment (HSE) standards, PETRONAS technical standards and global best practices.
Innovative Project Delivery PETRONAS EP employs innovative workflow and processes for effective development design and planning. These efforts have earned us significant cost savings, enabled projects to be delivered ahead of time, while providing a greater return on investment.
World record
Sepat oil Phase 1 achieved 1st hydrocarbon within 12 months. Substantially faster than industry average of 28 months. IPA Benchmark
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World’s first
Pilot implementation of a refurbished wellhead platform concept at D21, a marginal field in Malaysia
World’s heaviest External turret – Floating Production Storage Offloading (FPSO) First Deepwater field employing the first Truss Spar Floating Production Unit outside the Gulf of Mexico
Platform construction at Gumusut Kakap, Sabah, Malaysia
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First
91%
quartile performance for project development schedule, IPA Benchmark in 2012
Projects delivered within budget in 2012
• World’s first use of composite bridge plug system for production testing purposes in Kuang North field, Malaysia • Borneo’s longest: Sabah-Sarawak Gas Pipeline (SSGP) of more than 500 km to transport offshore natural gas to processing terminals 18
• Kanowit: Malaysia’s first subsea well with a potential of producing 100 mmscfd from each well
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PRODUCTION Optimising Growth
Converting Maturing Brownfields PETRONAS EP has implemented various brownfield rejuvenation efforts, effectively extending the production life of oil and gas fields with Improved Oil Recovery (IOR), Improved Gas Recovery (IGR) and Infill Drilling technologies. Through innovative strategic alliances with international contractors, we have repeatedly improved a reservoir’s recovery factor and asset integrity, whilst arresting declining production in domestic and international fields.
EOR
83 mmstb of oil identified as additional reserves in Malaysia through EOR activities
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IOR/EOR/ IGR production enhancement projects underway
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first oil and gas production in 2012 from Malaysia and international operations
Overall
Equipment Excellence (OEE) of platform performance in Malaysia for Oil 92.6% and Gas 96.1% in 2012
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Enhancing Yields with Innovative Technologies New developments in deepwater exploration and production, Carbon Dioxide (CO2) management technologies and High Pressure High Temperature (HPHT) technologies have opened up new opportunities for growth and monetisation.
E&P Total Production in ‘000 boe per day
Baram Delta Production Levels: Enhancing Yields
3.5%
A matured oil field considered commercially non-viable was revived in 1971 through vigorous production enhancement activities. Today, after 40 years, the oil field is still producing at its optimum rate.
1971
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
The outlook for PETRONAS’ production and resource addition is a healthy 3.5% Compound Annual Growth Rate (CAGR) over a period of ten years
2011 • Turkmenistan - fully operational to support future gas production increase at the capacity of 500 mmscfd • Mauritania Chinguetti field - one of the producing assets in Mauritania with a reserve volume of 11,652 kbbl
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2017
• Higher yields: 440 mmscfd of raw high CO2 gas at Tangga Barat cluster fields, first application of membrane type CO2 removal technology
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UNCONVENTIONAL
Venturing Into New Frontiers PETRONAS accelerates upstream growth by venturing into new frontiers with unconventional gas through strategic acquisitions and partnerships with leading oil and gas operators. A joint venture between PETRONAS and Santos in Australia allows us to develop one of the world’s first Coal Bed Methane (CBM) into an LNG processing facility with a 450 km pipeline.
In 2012, Progress Energy Canada Ltd (PECL) was acquired by PETRONAS, bringing in over 1,100,000 acres of Montney rights in Alberta and British Columbia, with over 200 tcf of gas in place. With this, our Overall Resource Replenishment (ORRR) increased to 3.5x with an improved resource addition of 5,621 mmboe.
Coal bed methane GLNG PETRONAS embarks on one of the world’s first CBM to LNG projects with 7.8 MTPA (onstream target 2015) at Queensland, Australia
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Shale gas 200 tcf gas in place at Montney Shale, Canada
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PETRONAS’ facilities & hydrocarbon plays
Shallow water
Coalbed methane Conventional non-associated gas
Tight sand gas
Sandstone
Deepwater
Ultra-Deepwater
Conventional associated gas
Oil
Gas-rich shale
MAKING IT POSSIBLE
PETRONAS EP’s Strength And Capabilities
We have explored some of the world’s most challenging terrains to secure new reserves. Additionally, we conduct deepwater exploration, entering also into highly complex HPHT reservoirs and wells with high CO2 content to enhance our yields. Our growth portfolio includes unconventional oil and gas - which include shale gas and coal bed methane.
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Today, we are amongst the world’s first in maximising recovery of discovered fields with Enhanced Oil Recovery (EOR) efforts. Cutting-edge technologies are applied alongside new strategies to rejuvenate brownfields, extracting maximum value from existing reservoirs. In consistently delivering some of the world’s first - pipelines, platforms and projects, we have brought oil and gas onstream ahead of schedule - providing rapid return on investment for our partners, stakeholders and investors.
Our Experience in Resource Playtypes • Heavy oil • Deepwater • Basement oil • Tight gas
• Onshore • HPHT • EOR
• High CO2 Gas • Coal bed methane • Shale gas
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ADVANCING TECHNOLOGY & ENGINEERING
Development And Deployment Of Technologies PETRONAS E&P Technology Division Within the PETRONAS E&P Technology Division is the E&P Technology Centre which seamlessly integrates Research and Development (R&D), Field Development Plan (FDP) and technology deployment to accelerate the development and production of EOR and high CO2 gas fields.
Patented Technologies PETRONAS has commercialised some of its patented technologies to improve production yields, enhance operational efficiency and deliver exacting results. From CO2 removal membranes to solids removal and Water Alternate Gas (WAG) oil recovery methods, we continue to make breakthroughs in technology and engineering.
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PETRONAS’ Patented Technologies
SolidClenz™ A custom-formulation to remove organic and inorganic solid deposits in production well tubings and well bores for improved Return On Investment (ROI) on chemical treatment.
iCON® A steady-state and dynamic process simulaton software for the enhancement of operational performance, design and process optimisation. PN-1™ Multi-Layer Membrane PN-1™ membrane improves separation efficiency by using properties of multiple membrane fiber.
PIPEASSURE™ A pre-impregnated composite resin system for onshore and offshore pipeline repairs. A cost-effective corrosion protection technology that requires little or no operation shutdown. A JEC Asia Innovation 2012 award winner.
SmartCen™ An online real-time metering supervisory system designed for all metering operations which support centralised data for remote monitoring, diagnostics and analysis.
273
patents filed by PETRONAS
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40%
reduction in CAPEX for development of high CO2 content gas fields
CO2
removal technology Reduced CO2 blend to 8 mol% compared to initial blend of 37 mol%
440
mmscfd of raw high CO2 gas at Tangga Barat cluster fields, Malaysia, first application of membrane type CO2 removal technology
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PEOPLE DEVELOPMENT Ensuring A Sustainable And Skilled Talent Stream People are the driving force of our business. For every hour we put out in the field, we spend hundreds more in training and development. We provide structured capability development programmes to upskill our diverse talent stream across geographical boundaries.
Advancing Technical Capabilities We have developed strong partnerships with our learning partners which include Institut Teknologi Petroleum PETRONAS (INSTEP), PETRONAS Leadership Centre (PLC), Universiti Teknologi PETRONAS (UTP) and Malaysian Maritime Academy (ALAM) to advance our technical capabilities. The PETRONAS upstream live plant located at INSTEP offers our engineers and technicians hands-on experience in a simulated EP environment. Through our collaborations with service companies, contractors and joint venture partners, we provide on-the-job training programmes to heighten our employees’ skills and expertise for superior performance and delivery.
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EP CAPABILITY DEVELOPMENT FRAMEWORK
UN C CA ON PA V BI L
N ARBO ROC ORK D HY MEW AL FRA N . O V TI DE EN ITY Build EP capabilities in unconventional hydrocarbon field development
L E A
TE C 34
HSE
T EN
Develop and sustain EP production operations’ capability in meeting operational excellence targets
S
D
H I P
S ICAL KILL G HN
S’ COMPE UP TE O R E R
V Y DE ELOPM NC
Provide broader knowledge for drilling engineers to understand and better appreciate other disciplines and divisions
Develop competent and capable geoscientists contributing to business targets
Develop wholesome petroleum engineers with better appreciation of EP value chain
Enhance project management capability to improve project performance and delivery
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HEALTH, SAFETY & ENVIRONMENT Committed To HSE Excellence Stringent HSE management practices, in line with international standards and best practices, are applied at every level of our business activities to safeguard our people, environment, assets and reputation. In doing so, we are focused on having the right leadership, commitment, culture, mindset, systems and tools.
6.7
million safe manhours without LTI: Angsi platform, Malaysia
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6.5
million safe manhours without LTI: Miri Crude Oil Terminal, Malaysia
4.5
million safe manhours without LTI: Myanmar
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COMMUNITIES
Socio-Economic Development
Communities and Capability Building We actively undertake community projects in countries where we operate, adding value to the local skills and capabilities of the people towards long term sustainable growth.
We work closely with local governments to provide basic needs such as safe drinking water, shelter and healthcare. Additionally, we embark on social, environment, education and community projects.
• SUDAN: Debate and quiz competition for secondary school and university students • Annual scholarship programme for top 100 achievers • SOUTH SUDAN: Refurbishment of Rejaf educational centre for the blind: 15 Braille machines, 250 slates, stylus and 200 folded cranes
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• MALAYSIA: Refurbishment and upgrade of existing longhouses at Uma Akeh Miri • Supply of building materials for 7 small settlements within Sg Adang Territory, Limbang • Provided 24 water tanks to Ladang Paroh Village, Bintulu to improve water supply
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For further information, please contact:
Corporate Affairs & Administration PETRONAS Exploration & Production Level 24, Tower 1, PETRONAS Twin Towers Kuala Lumpur City Center, 50088 Kuala Lumpur, Malaysia Tel: +603 2051 5000 Fax: +603 2026 5050 www.petronas.com Please visit our Corporate Website for more information on our other businesses and related subsidiaries.
Glossary of Terms boe
– barrels of oil equivalent
CSEM
– Control Source Electro-Magnetic
EOR
– Enhanced Oil Recovery
FDP
– Field Development Plan
FPSO
– Floating Production Storage Offloading
FSO
– Floating Storage Offloading
kbbl
– thousand barrels of oil
kboed
– thousand barrels of oil equivalent per day
km
– kilometres
LTI
– Loss Time Injury
mmboe – million barrels of oil equivalent mmboed – million barrels of oil equivalent per day mmscf
– million standard cubic feet
mmscfd – million standard cubic feet per day mmstb
– million stock tank barrels
MTPA
– Million Tonne Per Annum
OEE
– Overall Equipment Excellence
ORRR
– Overall Resource Replenishment Ratio
tscf
– trillion standard cubic feet
©2013 PETROLIAM NASIONAL BERHAD (PETRONAS) All rights reserved. PETRONAS makes no representation or warranty, whether expressed or implied, as to the accuracy or completeness of the facts presented. PETRONAS disclaims responsibility from any liability arising out of reliance on the contents of this publication. All data represented are as at end December 2012.
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