“A Safe, Resilient, Low Cost and Low Carbon EP Business”
While the Upstream Business acts as our map on this journey together, the Strategic Compass is what helps us to stay focused as we traverse the challenging terrains of the market.
The Strategic Compass contains three main Strategic Elements with Malaysia remaining as is and International being streamlined to Differentiated Oil and Integrated Gas.
As PETRONAS’ major cash generator, Core Business must remain strong for as long as possible to fiAs PETRONAS’ major cash generator, Core Business must remain strong for as long as possible to finance our future growth and decarbonisation efforts, while maintaining our focus and targets to achieve NZCE 2050.
We are committed to our role as a national oil company (NOC) to support demand for energy security and maintain the vibrancy of Malaysia's domestic oil and gas value chain which serves as a backbone for the country's economy.
Core business is divided into four main focus areas - Upstream Malaysia, Upstream International, LNG
and
Downstream. Each with their unique set of value propositions.
*Continue to be the key contributor towards society and shareholders in countries where we
operate
Guided by Edges of Growth, 9 New Businesses have been identified and pursued to strengthen the robustness of our portfolio. Given time, all New Businesses will progressively move Group Portfolio Objective (GPO) in a positive direction.
We apply discipline and rigour in pursuing all New Businesses through clear boundaries where internally ready skillsets can be deployable and applied. Our immediate focus is to purposefully grow needle moving businesses for scale and strategic positioning encompassing Specialty Chemicals, Bio-based Value Chain, Carbon Capture and Storage, Renewable Energy, Hydrogen and Green Mobility.
Each business above is expected to move at its own pace and trajectory depending on technological advancement and market demand.
Abatement levers identified considering our affordability level, technology readiness and other business rationales to decarbonise PETRONAS Scope 1 and Scope 2 emissions to achieve NZCE 2050.
Natural gas value chain definition is aligned with the Oil and Gas Climate Initiative (OGCI)'s reporting parameters, which includes production processing and storage, transportation, distribution and end-use of natural gas.
Targets are for Scope 1 and Scope 2. PETRONAS recognises the importance of Scope 3 emissions and is taking a progressive approach to measure, report and understand our impact prior to establishing our position and strategy.
A proven Asset Management Strategy Framework used by all PACs to create and execute a fit-for-purpose Operating & Maintenance Strategy.
Challenging Exploration and Production (E&P) Operations: The combination of low reserves, aging assets, and declining production value makes E&P operations more complex and less attractive to investors.
1. Low Remaining Reserves: Many fields have low remaining reserves, making them difficult to sustain production levels and maintain economic viability.
2. Aging Assets: The infrastructure and equipment in these fields are aging, leading to increased maintenance costs and potential operational risks.
3. Declining Production Value: As fields mature, the production value declines, impacting the overall profitability of the assets.
4. Volatile Oil Prices: Fluctuations in oil prices add uncertainty to the economic outlook of these fields, making it challenging to plan and execute long-term strategies.
The AMS framework aims to ensure that each asset remains valuable and competitive throughout its life cycle by providing PACs with the right focus for the right assets.
The AMS Framework is designed to generate value-based solutions that provide the right focus for the right asset, aiming to maximize cash generation and prevent value leakage. It consists of three main components:
1. Standardized Assessment: Evaluating asset performance using a standardized asset grading methodology in AMS Process 2. This ensures a consistent and objective assessment of each asset's current performance.
2. Value-Based Decision-Making: The outcome of AMS Process 2 leads to decisions based on business value, aiming to maximize cash generation. This is carried out in AMS Process 3 – Generating Options, where various strategies are considered and selected based on their potential to create value.
Flexibility & Empowerment to PACs: The framework allows PACs to tailor strategies to their specific assets. PACs are encouraged to approach MPM at any existing avenue for deliberation and approval in AMS Process 4. This flexibility ensures that PACs can leverage their expertise and knowledge to optimize asset performance and value.
Throughout 2023, 3 PACs have identified strategies for implementation:
1. JX Nippon: 3% OPEX improvement of SK10 PSC.
2.Hibiscus: Operation and Maintenance philosophy and logistic optimization of Barton.
1. PACs viewed AMS as an additional work process, contributing to their reluctance in adopting it.
2. Lack of specific templates, guideline, timeline, and dedicated platform for AMS discussions had diminished PACs' motivation to implement AMS tools.
3. Benefits and advantages of AMS were not clearly communicated and advocated by MPM Asset Managers.
1. Organized AMS Health Check Day, including AMS Clinic, Gallery Walk, Quiz, and Q&A, to promote broader advocation of AMS among MPM colleagues.
2. Introduced the AMS Commendation Wall to engage MPM Asset Managers in the AMS journey.
3. Incorporated AMS strategy discussions in AMiR meetings.
4. Included AMS Asset Grading and identified strategies as part of the enhanced WPB Executive Summary in WPB-Go!
5. Strengthened AMS submissions through embedment of AMS requirement in Governing Standards.
1. the sharing of successful implementation of AMS framework. Current success stories are disseminated in infographics to all MPM fraternity for their awareness.
2. Ensure AMS strategy discussions are not limited to AMiR meetings, but are also included in any interface or engagement with PACs to maintain continuous focus and alignment.
3. Showcase AMS and PACs which have implemented AMS in MPM-organized events to encourage replication.
PETRONAS has strengthened its commitment to human capital development by awarding RM71 million in research grants to academic institutions through the PETRONAS-Academia Collaboration Dialogue (PACD).
Challenging Exploration and Production (E&P) Operations: The combination of low reserves, aging assets, and declining production value makes E&P operations more complex and less attractive to investors.
1. To have consolidation of research collaboration efforts between universities and PETRONAS under one roof.
2. Ensure academia are up to date with PETRONAS businesses pain points and technology research focus area.
3. Aligning academia research with emerging global trend and sustainability goals, to ensure our institutions remain relevant and impactful.
1. Foster collaboration and networking opportunities between Upstream stakeholders & academic/research institutions...
2. Provide funding to catalyse academia-industry upskilling opportunities...
PACD (PETRONAS Academia Collaboration Dialogue) stewarded by Malaysia Petroleum Management (MPM)...
A total of 32 universities participated, with 580+ proposals submitted for evaluation...
The outcome of AMS Process 2 leads to decisions based on business value...
Ultimately, technology is the key differentiator to achieve the production goal...
Effort to identify business pain points, collaboration, and availability of funding are the key factors that contributed to the success of the initiative.
Outline the potential mature R&D for application & commercialisation. A new launch of the 3rd R&D Big Round for technology solutions in 2025.
With determination and persistency since 2022, a significant milestone was achieved with the successful signing of the Memorandum of Understanding (MoU) between PETRONAS and Jabatan Perikanan Sabah on the Sabah Reefing Plan. This momentous event took place on 10 September 2024 at the Marriott Hotel in Kota Kinabalu, Sabah.
The 10-years Sabah Reefing Plan MoU signifies a collaborative effort to enhance sustainable livelihood for fishermen in Sabah by repurposing disused petroleum facilities into artificial reefs. This MoU will be part of the catalyst in supporting the Malaysia Master Reefing Plan (MMRP) for Rigs-to-Reef (R2R) program between PETRONAS and the Departments of Fisheries (DOFs).
1. The number of aging facilities and due for decommissioning is increasing year-by-year. Team saw the opportunity to extend the life of the structures for other use which can benefit the nation.
2. With the emphasis placed on Sustainable Development Goals (SDGs) across all business entities, the team foresees an opportunity to contribute to SDG 13 (Climate Action) and SDG 14 (Life Below Water) by maximizing the Rigs-to-Reefs (R2R) agenda.
1. To advocate, increase awareness and acquire acceptance on the proven benefits of R2R programme (from R2R programme in Terengganu and Sarawak) which can also be replicated to Sabah.
2. To formally record an agreement for 10-years Sabah Reefing Plan in MoU.
3. To mutually agree on the candidates and location identified for Sabah Reefing Plan.
PETRONAS’ R2R projects extends the useful life and value from the decommissioned oil and gas structures.
Based on diving survey by Jabatan Perikanan Malaysia in 2021 at Pulau Kapas, it was recorded: (1) 30% of fish species growth, (2) ~10% growth of food for fishes, (3) almost 3,000kg of additional fish population within the area after more than 3 years of R2R deployment. Same results are expected to be enjoyed in Sabah in future.
Alternative sustainable decommissioning method other than conventional total disposal at yard methodology.
Efforts are persistently in place with continuous follow-up with Jabatan Perikanan Sabah coupled with efficient stakeholder management towards achieving the objectives.
Sustainable decom will contribute to support circular economy, SDG13-Climate Action and SDG 14-Life Below Water.
Jabatan Perikanan Sabah, Kementerian Pertanian, Perikanan dan Industri Makanan Sabah.
Persistence efforts since 2022 in managing stakeholders (all related government agencies in Sabah) coupled with right tactical strategy eluding to the approval of Sabah Reefing Plan in Sabah Cabinet on 14 December 2023.
Efficient stakeholder management.
To execute the R2R programme per agreed MoU. The MoU will be a pillar for the establishment of the MMRP where all the R2R plan in Malaysia will be centralised as a single document.
Persistency coupled with right tactical plan and effective communication will spur collaborations.
3 key stakeholders from SSB, PMA and SKA, all agreed on the guiding principles of spare engine sharing for LM2500.
Key principles agreed, MOU agreed between all parties on the conditions and arrangement required to operationalise the agreement.
1. Early 2024 was a challenging period for Sarawak. A crisis of LM2500 General Electric – whereby there was no spare available to replace the current running engines.
2. The running engines have major defects that could lead to catastrophic consequences.
3. LM2500 in Sarawak is being used by both Shell Sarawak and PCSB SKA. PCSB PMA is also a user of the specific model.
4. AIM POM MPM sees an opportunity of collaboration between all parties, whereby the spare engines for every PAC could be used as a common spare in a similar circumstance.
1. Establish Key principles for spare engine sharing, this includes replacement engines, overhaul and repair responsibilities.
2. Sharing of LM2500 engine units between 3 parties.
Improved uptime of LM2500 in critical Sarawak waters. Shell Sarawak originally planned to purchase a new unit to address the sparing issue. That effort is halted due to the arrangement made with PCSB.
Improved PAC performance through improved rotating machinery uptime.
Harmonised effort from Shell Sarawak, PCSB SKA, and PCSB PMA to achieve a common target and address a similar issue with regards to LM2500. Both parties are very transparent and willing to share critical information for the arrangement to work.
Shell Sarawak, PCSB SKA and PMA, Group Procurement Team, Materials Governance Team – were all supportive of the effort and they channeled the effort towards the right path and governance.
Information sharing between PACs tends to be sensitive. But once everyone is aligned and understands the intent, all are willing to share critical information for the arrangement to work.
Collaboration and the support of all PACs and support teams of MPM.
To explore the possibility of having a similar arrangement with other engine models, or even other types of equipment.
This can be replicated industry-wide. The most extreme would be to have a centralized warehouse, which serves all PACs in Malaysian waters.
Malaysia's first flexible pipeline subsea clamps installation in a horizontal orientation, successfully restored the pipeline’s integrity through ALARP (As Low As Reasonably Practicable) management.
Installed subsea clamps in a horizontally oriented flexible static pipeline and safely completed 4 days ahead of schedule.
1. 10” Flexible Static Pipeline Outer sheath’s breach causing bubble to release at two locations.
2. No prior history of flexible pipeline subsea clamps installation in a horizontal orientation in Malaysia. Short-duration underwater campaign preparation to meet integrated shutdown window.
3. The pipeline outer sheath breach caused seawater ingress, prolonging exposure that could compromise pressure armor and lead to loss of containment.
4. Complex activity planning to align with the integrated shutdown window, minimizing production deferment and optimizing resource allocation.
1. To restore pipeline integrity by preventing further ingress of seawater.
2. To demonstrate ALARP management.
Restore asset integrity and minimise production impact deferment, Cost optimising via vessel sharing.
Subsea Clamp design to encapsulate pipeline outer sheath layer, installation methodology (installation tool, SAT, etc.)
Underwater installation during Sabah Integrated Shutdown Window to minimise production deferment, Optimise cost via vessel sharing with other PAC.
ALARP Management, Life Cycle Management.
Collaborating with PETRONAS MPM POM, SMEs (ConocoPhillips and Petronas), KPOC Shareholders, DOSH, Asset Integrity, Production, HSE, Contracts and Purchasing, Process and Facilities, Project Services, Underwater Contractor (ROVR), Clamp manufacturer (National Oil/4Subsea), etc.
Repair Strategy, installation methodology, limited readiness window, new contractors, complexity of activity planning to meet integrated shutdown window and align with vessel sharing schedule, bad weather.
Strategic Focus, Operation Management, Resources.
Develop Asset Life Cycle Management.
Management of Novelty such as stakeholder management, engagement with SMEs pool, etc.
Malaysia Petroleum Management (MPM) being the custodian for oil and gas reserved in Malaysia envision to make Malaysia as the attractive destination for investors. One of the key ecosystem that very close related to oil and gas is the fabricators for offshore structures i.e. yards. In Malaysia, MPM has identified 5 major yards through a specific contract called Fabricator Frame Agreement (FFA). Hence, MPM is obliged to ensure that these yards are attractive in terms of quality, productivity and safety. MPM has developed a target for all yards to be committed to ensure that the aspiration are met. All yards have developed their own transformation roadmap towards achieving the set target. By striving to meet this target, PETRONAS not only aims to develop local capabilities but also to create a strong and independent ecosystem which making Malaysia attractive for investment destination.
1. Frequent project schedule delay & cost overrun.
2.Addressing PAC’s immediate concerns on local fabricator performance to
undertake upcoming mega projects.
1. Position Malaysia, supported by its strong and resilient OGSE ecosystem, as a
preferred capital project investment destination.
2. Capable local ecosystem that can compete globally.
Changing the yard approach of executing the projects towards regional best
practices:
1. Yard Assessment, Benchmarking and Establishment of Malaysia Productivity
Target
2. Individual Yard Transformation Roadmap
3. Continuous Roadmap Monitoring
4. Innovative Contracting Strategy for Fabrication Contract
5. Maximising investor profit
6. Develop local capabilities
Collaborate between PETRONAS, PACs, Contractors and Industry association (i.e.
MOCA and MOGSC,) to realize Malaysia Yard Productivity target by 2030.
1. Sanctioning of new development project to ensure sustainable growth of the
developed fabricators.
2. High CAPEX require for investment in advanced machineries/ automation.
3. Upskilling & Sustaining talent with right competency and capability.
Synergised stakeholder key success factor in ensuring the realisation transformation plan towards achieving Malaysia Yard Productivity Target.
1. Overall roadmap and integration with new fabrication contract. 2. Monitoring the implementation transformation plan with target local yards to be competitive regionally by 2030.
Overview: Production enhancement and idle well reactivation (PE WR) activities have been proven to be most economically attractive and quick win enabler to revitalize Malaysia oil production landscape as compared to other workstreams such as deferment management, well integrity healthiness, new hydrocarbon delivery and prudent reservoir management plan.
1. Most of the left PE IWR opportunities involved complex doability & soaring
cost.
2. No standardized WPB budget approval mechanism/tool for yearly PE IWR and
subsurface data acquisition implementation across regions.
3. The average success rate for non-routine (PE IWR jobs (high-cost activities)
around 50-70%; contribute to high value leakages.
4. Intensification focus on Idle String Restoration (~40% of total string) to
unlock potential > 5kbopd inst.gain and substantial reserves.
1. Seamless and agile PE IWR maturation & execution strategies across PETRONAS.
2. Standardized and transparent PE IWR WPB Budget Approval Decision Making.
3. Comprehensive analysis on success and fail historical stimulation and
perforation from year 2019 - 2023.
4. Strengthen TWM KPI compliance by operators.
1. Establish attractive contracting synergy (COMSTEC, IWCS includes deepwater
interventions), efficient resource planning (shared resources & campaign basis)
and effective technology & knowledge transfer (various platform organized by MPM
such as WINTEC, TAR Workshop, IOREX, MTEX, UAMS and Deepwater Summit).
2. Developed Innovative PE/IWR Matrix Qualifier Benchmarking as transparent
budget approval tool & basis and currently appears online in AMIR Web
application.
3. Completed Look Back analysis for Stimulation and Perforation activities for
last 5 years, compilation of failure causes, best practices and learnings from 4
major operators (PCSB, PTTEP, EnQuest and Hibiscus).
4. a) Quarterly TWM performance review via –i-SWAP workshop, AVF workshop, MORE
workshop IOM and AMIR submission and conversation with PACs
b) Carry out comprehensive TWM and Subsurface Well Abandonment Plan (SWAP)
Analysis to identify leading and lagging PACs in meeting TWM KPI compliance and
closely work with PACs on lining up necessary actions to achieve aspirational
target, 80% active string.
1. Generates cumulative of RM26.3Billion cash value with expenditure of
RM7.1Billion (gain realization since 2019 till YEP 2024).
2. PE IWR Matrix Qualifier has been officially used as WPB 2025 Budget Approval
tool and appears in AMIR Web. RM90million value leakage avoided from scrutiny of
non-promising & less attractive activities.
3. PE IWR Success rate improvement from 50-60% to 65% (YEP 2024). Expected 36%
higher gain to be realized (24kbopd vs. 18kbopd).
4. Active string % improvement from 67% to 70% (YEP) ~3kbopd inst.gain to be
realized.
Prudent MSS data acquisition proves as key success criteria enabling higher success rate for Production Enhancement activities.
High Impact Solution: Maximizing Project Value with Slim Conductors.
Driving radical change in development well design through the application of slim conductors, unlocking substantial value creation and enhancing economics to facilitate project sanction.
Most development projects require substantial cost optimization to meet the economic thresholds for sanction. Achieving these savings calls for bold and innovative approaches. In 2024, DWD is introducing a high-impact solution designed to significantly optimize capital expenditure, positioning it as a key differentiator for project sanction. This involves a transformative shift in well design, replacing conventional large-diameter conductors with slimmer 13-3/8" casings. This change in design philosophy drives significant cost reductions in conductor piling and materials, revolutionizing traditional methods and accelerating top-hole execution. These savings will play a pivotal role in improving project economics and securing sanction. For example, the Sepat Integrated Redevelopment project (WHP B) is projected to save approximately USD 21 million through this approach.
Throughout the first three quarters of 2024, the DWD WTAS Well Engineering team undertook rigorous technical efforts to acquire critical expertise, conduct detailed analyses, and collaborate with vendors to develop and test new equipment solutions. Extensive internal, multidisciplinary collaboration addressed key interface areas to ensure the successful deployment of these innovations. This solution will be further expanded to upcoming upstream projects.
Achieved significant CAPEX reduction through innovative well design and construction methodologies, optimizing capital expenditure and facilitating project sanctioning.
1. Conducted a thorough technical study and comprehensive documentation of
industry best practices
on the subject.
2. Demonstrated the technical feasibility of slim conductor applications in
Malaysian waters using
the Sepat field as a case study.
3. Co-developed a 'slim wellhead' design with a local vendor, including design
and prototype
testing, with completion targeted for October 2024.
4. Revamped top-hole construction steps by maximizing batch and offline
activities to accelerate
execution.
5. Facilitated multidisciplinary collaboration between Wells and Facilities
teams to establish the
necessary interfaces for these solutions.
1. Projected saving of USD 1.3Mil for 1 well/slot on wellhead platform.
2. Case Study savings: USD 21Mil for 16 well slots on Sepat B WHP.
Exploration 2.0: Standardising Wells for Malaysia’s Future.
Well Design Standardization for Exploration Well is one of the continuous effort in complementing dynamic exploration wells sequence by ensuring LLI delivery reliability on time and to reduce surplus through equipment sharing between projects. The standardization of LLI covers specifications for OCTG, wellhead design and liner hangers.
Managing Exploration Well Sequence Dynamics & Reduce Project Delivery Risk due to the dynamics of the Exploration Well Sequence and Well Objectives, often result in frequent expedited exploration and appraisal wells, leading to sub-optimal well design. Projects at the risk of not being delivered on time, on budget and on scope.
1. Standardised Exploration Well Archetype: Implement standardised well
archetype for NPNT, HPHT and deepwater exploration well, incorporating drilling
liners as an optimization measure.
2. Streamlined OCTG Menu: Consolidate from multiple OCTG menu selections to one
connection for each size and specification. Contract Management and Equipment.
3. Standardisation for Wellheads and Liner Hanger: Wellhead under rental basis
and liner hanger under consignment and VMI basis to reduce inventories if
project dropped/deferred.
4. Surplus Equipment Utilisation: Continuously repurpose and utilise surplus
equipment in Exploration wells campaign, when feasible. Ensure preservation of
usable surplus and dispose of unusable surplus through the disposal process.
1. Successful Exploration Well Campaign: Drilled 13 Exploration Wells, achieving
5 discovery wells and adding 1092 MBOE resource. The campaign avoided delays and
downtime, with no rig standby due to equipment shortages, and successfully
fast-tracked wells, resulting in significant cost savings. Enhance the
efficiency and effectiveness of the Exploration Well Sequence process to design
a competent fit-for-purpose well.
2. Operational Excellence: Achieved operational efficiency by standardising OCTG
connection, Wellheads and Liner Hanger, reducing inventory risks and costs,
ensuring flexibility for dropped or deferred projects.
3. Surplus Reduction Achievement: Reduced surplus by sharing and transferring
equipment between projects and contingency equipment. Achieved a total OCTG
Surplus usage & reduction of MYR 82.5 million in 2023 and projected MYR 85M in
2024.
The UPMS Standard's Commitment to Upstream’ Excellence.
The UPMS Standard's agility in adapting to change ensures its ongoing relevance and effectiveness in aligning with PETRONAS' strategic objectives.
1. Alignment with Latest Standards: The UPMS Standard Rev. 1 aligns
with the enhanced PETRONAS Group Project Management System Standard (PG PMS)
introduced in November 2022. This refresh ensures UPMS Standard reflects the
latest industry best practices.
2. Adapting to Structural Changes: Project Sunrise introduced
significant structural changes, including the Development Project Directorate
(DPD) and Development Facilities Engineering (DFE). An updated UPMS Standard is
essential to support these changes and ensure clarity across all projects.
3. Incorporating Stakeholder Feedback: Feedback from annual PE Risk
Compliance Assessment exercise was collected and analysed to understand
recurring challenges, inefficiencies, and bottlenecks in the governance process.
This feedback was instrumental in identifying areas where improvement is needed.
1. The introduction of Project Excellence Enablers within the updated Upstream
Project Management Guideline (UPMG) addresses the need for alignment with enhanced
standards (like PG PMS). This not only keeps project management practices current
with industry best practices but also fosters agility.
2. The structural changes from Project Sunrise require an updated framework to
support new roles and processes. The refined project roadmaps provide clarity and
tailored strategies, ensuring alignment with the new governance structure.
3. The review and refinement of project roadmaps were informed by stakeholder
feedback from the PE Risk Compliance Assessment. This ensures that the updated UPMG
addresses recurring challenges and inefficiencies identified in the governance
process, making the framework more effective and user-centric.
1. Improved Decision-Making: The refined governance framework and
stakeholder feedback ensure that decision-making processes are clearer and more
informed, enhancing the quality and speed of project approvals.
2. Risk Mitigation: The comprehensive review of governance processes
helps identify and address potential risks early on, reducing the likelihood of
project delays and failures.
3. Long-Term Strategic Alignment: The enhancements support PETRONAS'
strategic goals by ensuring that project management practices are not only current
but also aligned with the organization’s long-term vision, contributing to
sustainable growth.
Flow Assurance Center (FAC) is a collaboration platform for Upstream Business to strengthen Flow Assurance solutioning. Since 2020, FAC has worked with key stakeholders to deliver integrated & fit for purpose solutions in shaping, developing and operating Flow Assurance challenging assets.
1. Various Flow Assurance studies (including Deepwater, E&A) with cost saving up to
RM434 Mil/RM 0.74 Mil and cash generation up to RM4.3 Bil.
2. Successful Gumusut Kakap Oil Pipeline Pour point Depressant Field trial with cost
saving of RM2.9 Mil.
3. MPM SOGT FA SBA DeWax Joint Study with cost avoidance of RM18.177 Mill from
uninterrupted flow.
1. SigmaFluid Solutions for Fluid Data Visibility and Tracking with improvement of
efficiency of 34.1% of lead-time reduction.
2. Upstream Model Management to centralise FA simulation models.
3. Online Wax Smart Meter Technology Deployment with realised VC of RM 2.1 Mil.
4. Task specific solvent (TSS) improved demulsifier for Dulang crude.
1. Collaborative taskforce with Center of Flow Assurance (CFA) Universiti Teknologi
Petronas and PETRONAS.
2. Establishment of Flow Assurance Center Community of Practice.
3. Organised SPE Workshop: Flow Assurance with 75 registrants from 33 organisations
& 13 countries.
4. 10 PGMF Compliance Guidelines.
5. Organised FA Trainings for SKG 10 & SKG 16.5 Engineers.
6. Quarterly Flow Assurance Bulletin.
7. FA Helpdesk via fac@petronas.com.
Deployment of First in the World Offshore Geopolymer Cementing In Seluang 1RDR1e.
Geopolymer cement is an innovative waste derived technology converting waste industrial product to address PETRONAS MFT 50.30.0 (ZERO) carbon footprint aspiration while designing cost effective solution for high CO2 wells in Malaysia.
This technology is a collaborative effort between Wells, PRSB,
and SLB, over a
5-years project duration, from 2017 – 2022.
The AI-Driven Hydrocarbon Revolution.
ERMAI is an AI-driven petrophysics digital platform that transforms input logs into rapid insights on reservoir characteristics and hydrocarbon opportunities, offering autonomous analysis throughout the E&P field life cycle.
1. Provide rapid automation, identify new hydrocarbon opportunities, deliver
real-time insights reservoir characterization, and accelerate decision-making to
enhance operational efficiency in operations and reservoir development through
modern methodology and workflow.
2. Current practices require interpretation time and inconsistency due to multiple
interpreter. ERMAI to eliminate conventional methodology and software.
1. To reduce interpretation time from 5 days to just 5 minutes.
2. To identify 100% of behind-casing opportunities for each well and average 5%
additional upside in new hydrocarbons.
3. To achieve 100% Real Time Petrophysics (RTP) log interpretation for all new drill
wells.
1. Value Realisation:
a. Additional reserves of 2 MMBoe.
b. Instantaneous production gain of 2 kboed.
c. Total RM 5 mill manhour cost saving (cost avoidance).
d. > 40 wells real time petrophysics log evaluation.
e. > 600 wells BCO, > 100 k ft BCO, > 10 K ft upside net pay (minor reservoir and missed
hydrocarbon).
2. Qualitative results: Voice of Customer: CSat 4.3, NPS 8.7.
3. Innovations: World first PETRONAS Petrophysical automated analysis system.
4. Collaboration: DPE, MPM, UDTI, PDSB, GR&T, UTP.
5. Enterprise Mindset: Commercialisation in 2025.
6. Sustainability: ERMAI for CCS projects.
10 years of approved modular development from ERMAI from automated well log interpretation until generative AI in Petrophysics.
10 years of approved modular development from ERMAI from automated well log interpretation until generative AI in Petrophysics.
Kasawari Green Field Development Project aim to achieve 1st HC in 2024 and successfully delivered 3 wells.
In August 2024, Kasawari GFD set out to achieve its 1ST HC project and accomplished after eight months of offshore hook-up and commissioning, involving over 1,200 personnel from the Project Team, Operations, and Contractors. The project was ready for start up in May 2024. Initially six (6) wells were planned for completion in a single campaign during FID. However, due to unforeseen geological and operational challenges, only three (3) wells were completed in 2022. The remaining three (3) wells are planned to be completed this year.
Kasawari GFD aimed to achieve 1st HC in August 2024.
1st Successful Hydrocarbon to Pipeline – In 2024, the project persevered to obtain a success rate on achieving gas delivery. The entire campaign was recorded with more than 2.5 million man-hour with collaborative efforts between Malaysia Assets, Development, Group Project Delivery and Contractors.
Kasawari Introduction of 1st Hydrocarbon – Kasawari CPP has safely exported its First Gas into pipeline to E11RAA via GTC2 at flow rate at 100MMSCFD on 11th August 2024.
Nation’s Biggest and Heaviest – The project boast the largest offshore gas capacity with 900MMSCFD and its topside alone weigh more than 28,000 MT, making it a remarkable feat.
Strategically optimized drilling operation – Agile and skilled team that moved with precision in delivering the well which subsequently contributing to ahead of schedule via excellent operational execution and logistic planning.
Reduction of Belud South GFD project cost to achieve PETRONAS’ MFT 50:30:0 aspiration via numerous design and operation optimisation via integrated team solution.
1. Annexation of Belud PSC into KNDE PSC with improved fiscal terms and gas
price,
to be finalized in UGSA.
2. Formation of Integrated Project Team (IPT) enabling faster solutioning:
a. Optimized the overall field development plan from monetization of
oil
and gas to phased gas development only, focusing on designing Belud South as fit
for
purpose facilities powered by renewable energy, which is to be economical on its
own
and become the main hub for future cluster’s fields tie-ins.
b. Integrated approach to de-risk well design via Collaborative Well Planning
(CWP)
and identifying the potential value creation and effort optimization to manage
cost
increment from rig services, tangibles, vessel, and 3rd party services.
c. Collaborative effort between wells and facilities team led to the hybrid
conductor installation, resulted in potential reduction in overall costs.
d. Significant topside design and layout optimization including high strength
steel
utilization, to minimize offshore installation duration, reduce overall topside
and
jacket tonnage and enabling longest jacket installation strategy through
lifting.
3. Subsurface de-risking through seismic reprocessing and interpretation exercise which resulted in minimum changes in Gas Initially In Place, validating the static and dynamic modeling completed earlier.
1. Improvement in PCSB project value from IRR of 2.7% to 13.6% through:
a. Improvementin gas price.
b. Overall project cost reduction of RM 1,297 Million from facilities and wells:
2. Potential cost optimisation:
a. Opportunity to save RM 27 Million via design optimization by
reduction 1 hole section (24” hole section) , saving the tangibles, and rig
days.
b. Value creation of RM 33 Million by collaboration between Wells and Facilities
to
reduce conductor installation cost.
Integrated Sloanea Gas Development will position PETRONAS as an international FLNG operator and to realise Suriname as PETRONAS new heartland for international asset.
To monetize Sloanea Gas Field, fundamental changes in existing PSC Term is required to be more supportive of gas development couple with innovative technical solutioning that will deliver viable development plan for Sloanea Gas. Sloanea will be the first gas development in Suriname.
The new PSC term to support gas development has been negotiated and agree between PETRONAS and Staatsolie (Host Authority) with Head of Agreement signed in Q1, 2024 with the project is in ongoing FEL 1 technical maturity with FDP submission targeted in Q2, 2026 and FID in Q1, 2027.
1. PETRONAS next generation of FLNG with expected capacity of 2.7 MTPA operating at
deepwater offshore Suriname.
2. PETRONAS’ first international operatorship of a fully integrated value chain from
upstream to FLNG including LNG marketing.
3. Developed a robust Integrated Project Structure (IPT) and Governance Model that
effectively demonstrates the synergy between Upstream and Gas & Maritime sectors,
fostering collaboration and enhancing operational efficiency.
4. Exploration – Development Handshake Governance Model to support fast track
monetisation.
1. Value to PETRONAS amounting NPV8 of USD 1,288 Million through sales of LNG cargo
at targeted European market and generated the 1st cash flow for Suriname Country.
2. Contribute to PETRONAS Upstream Blueprint under International Asset production
target up to 400 MMSCFPD and PETRONAS Gas Blueprint under LNG Sales up to 2.7 MMTPA.
3. Established new heartland for PETRONAS for international operation and 1st
Deepwater Gas Hub in offshore Suriname that with unlocked gas monetization path for
nearby hydrocarbon (oil and gas) discovery.
LEGENDARY SEPAT– From Negative Economics to a Flagship Project.
Unlocking 90.2 MMstb undeveloped resources of Sepat Oil and Prolong Sepat production life beyond PSC expiry, with additional contribution of around 13% on yearly average of total oil production in Peninsular Malaysia (avg. 2024-2050) through First greenfield development with major brownfield work .
1. In Dec 2022, Full Field Development of 42OP, 8GI & 2GP (CPP & 3 WHP)
costing CAPEX RM14Bil was not approved due to negative economics. A
paradigm shift is essential.
2. Sepat Oil PSC ends October 2029 and current assets (Sepat FSO & EPS)
life ends in 2026. Project sanction is critical to support production
beyond 2026 and continuation of PCSB operatorship at Sepat field beyond
current PSC.
3. Changes to policies/governance: PETRONAS Carbon Commitment, DDE
pre-FID.
To meet stakeholders and management aspiration for FID by 2025 and First Oil Date (FOD) by 2028 for PSC Extension with an Economically viable (for EP and PCSB ) development.
Upstream Portfolio-Based Scoping (PBS) : Towards World Class Project Delivery Excellence.
Strategy aims to enhance Upstream Project Delivery by replicating existing long-term contracts, aligning project scopes with upcoming strategies and improving terms and conditions to address market uncertainties via Portfolio-Based Scoping which emphasizes a holistic and strategic approach to effectively manage project resources.
1. Market uncertainties remain high, with drilling rigs, offshore support
vessels and manpower rates/prices are forecasted to increase based on
IHS Markit Report.
2. In response to 2022/2023 unsatisfactory project delivery performance,
PCSB board has endorsed proposal in September 2023 for “Project
Planning, Contracting and Execution Strategy” through resource &
contracting strategies way forward with “Enhance, Replicate, Right
Scope, Develop, Improvise” as guiding principle for Portfolio-Based
Scoping.
To develop Portfolio-based scope for PCSB to be used for project resources (rigs, yard, Transportation & Installation (T&I) vessels, etc.) and competitive project contracting strategy.
1. Outline the resource demand and capacity for the COB MA project over the next 10 years. 2. Focused/customized solutioning for the right Contracting Strategy for identified project resources. 3. Improve forecast and accuracy in formulating manpower strategy, and project manpower planning and optimization for the next decade.
PETRONAS is leading the way in global Zero Flaring Operations with a unique achievement as the first in Asia Pacific to utilize Intelligent Wireline Formation Testing and Deep Transient Testing (DTT). By adopting these advanced technologies, PETRONAS has not only set a new industry standard but has also established a world record for pump-out volume, showcasing our commitment to innovation and sustainability in the energy sector.
1. Problem Statement: Limited conventional methods for reservoir characterization,
with significant carbon footprint.
2. Possible Solutions: Deep Transient Testing (DTT), Closed Chamber Testing and
Injectivity Testing.
3. Applying the Best Solution: Implemented Deep Transient Testing (DTT) in targeted
oil and gas Exploration wells: Mirdanga-1, Gedombak-1, Nafiri-1 and Bekok
Deep-1.
4. Outcome: DTT helped to enhance reservoir characterization, enable faster
decision-making, and significantly reduce CO2 emissions.
1. Achieved RM 66 Million in Total Value Creation from Cost Avoidance (CA) through
the implementation of DTT as alternative to DST in four Exploration wells.
2. Reduced CO2 emission by 3,161 metric tonnes across four DTT jobs in four wells -
equivalent to taking 685 cars off the road for one year.
3. Enhanced fluid typing, improved the quality of fluid samples collection, and
achieved conclusive reservoir characterisation with lower cost.
4. Set a new industry benchmark with a world record pump-out volume of 8,460 liters
at Gedombak-1, all while maintaining exceptional well control and operational
standards.
Upstream Portfolio-Based Scoping (PBS) : Towards World Class Project Delivery Excellence.
Mola-1 showcased how PETRONAS successfully drilled its first well offshore Brazil, reaching water depths beyond 3,000 meters, and achieving the deepest TD in a carbonate pre-salt reservoir in the company’s history, Applying new technologies to deliver this complex well OTOBOS with zero major HSE incidents.
1. Riserless & Post-Salt Section:
2. Salt Section:
2. Pre-Salt Section:
1. Cost Savings: USD 8.9M from faster drilling and reduced operational risks.
2. Time Reduction: Drilled 9 days faster than planned.
3. Operational Records:
4. HSE Performance: Zero major incident and a significant progress in rig HSE performance with improvement of Culture Maturity Survey through a transformation program
A Game Changer for Holistic Well Life Cycle Digital Ecosystem.
WIO: A Game Changer for Holistic Well Life Cycle Digital Ecosystem. Transformative approach to managing the entire well lifecycle through a digital ecosystem. This project integrates segmented processes across well planning and operations into a single digital platform, enhancing data-driven decision-making and operational efficiency.
1. WIO consists of Front-End Engineering Nexus (FENEX) and Drilling
Execution Nexus (DRINEX) as the holistic elements of digital twin to well
construction process.
2. FENEX is a comprehensive project management workflow, seamless well
design and enhanced technical assurance process for optimal well program.
3. Deployment of DRINEX promotes system integration enrichment between planning,
advanced module adoption and machine learning enhancement.
4. Data plays a pivotal role in WIO Operationalisation. Through WellSCAPE, single
central cloud database:
a. Combining well actual records & design into one central database.
b. Enhancement of data management & regulations for design level &
operational
records.
5.WIO Platform also established a seamless end to end solution by providing a
continuation tracking of Risk Management from registration until closure.
Additionally, WIO create a fast pace of learning lesson learnt from project to
project which provide a better line of sights in planning purposes and project
execution.
1. Total 36K manhours reduction/saving Manhour with calculated 9,000 hours per
development well campaign.
2. PCE improvement of 37.9%; from 42.2% to 58.2%.
3. Facilitate application rationalization with estimated savings of USD 1 Mil per
year.
4. Faster and informed decision through real-time data integration, advanced
modelling and automated risk profiling; creating full-fledged digital twin.
5. Improve progress visibility and insights; easily accessible through centralized
platform.
6. Strengthening well design and planning via a single platform, automated insights,
comprehensive technical assurance and built-in orchestrator to stimulates reliable,
accurate and cost effective well program.
World-First: PETRONAS Leads in Rig Mechanized Automation (RMA).
Integrated Bekok Oil (IBO), Besar and Gansar has put PETRONAS at the forefront of global rig automation, being First in the World to integrate 3 automation systems with different capabilities.
Case for Change: To align with PETRONAS MFT 50.30.0, which is 50% improvement in cash flow from Operation by 2025, by exploring innovative solutions using technology and digital tools.
1. Improve drilling performance by 30% and reduce well delivery time by
10%.
2. Zero human reaction error in managing drilling risk.
3. Avoid downhole incident specific during RMA.
4. Reduce carbon emission.
1. Select the appropriate rig available in the fleet.
2. Applying RMA Level 1 to Level 3.
1. RM 303.69 Mil Total Value Creation from Cost Savings (CS) from drilling time reduction through Rate of Penetration (ROP) optimisation, Auto Downlink and Tripping Speed time saving amounted to RM 45.76 Mil and Cost Avoidance (CA) through protection against pack-off incidents cost equivalent to RM 257.93 Mil.
2. More than 80% of RMA utilisation has led to significant human error reduction and 30% increase in drilling speed.
Diver-less Cofferdam offered significant value creations for in-situ permanent hull repair of Floaters at Malaysia’s upstream with potential replications for execution of UWILD.
The successful completion of D18 GPCU project contributed to PETRONAS’ NZCE targets through reduction of 1.6 MMscfd flaring or 0.04 MtCO2e annual GHG reduction but also yields an additional oil production gain of 1,070 bopd (Technical Potential).
Gas Reinjection strategy was executed to maximise production while containing flaring within limit of 7 MMscfd.
1. Re-develop Dulang West via infill drilling of 5OP and 1WI at DLD platform.
2. Appraise and develop the graben area.
3. Fulfill the Minimum Work Commitment.
1. Marginal project economics at PGR3 (2022).
2. Geologically complex field with faulted, multi-stacked reservoirs.
3 .Multi-disciplinary collaborative effort to optimise cost & minimise
subsurface risks.
Adoption of new Hook-Up strategy to achieve aggressive CAPEX compression through:
1. Develop Dulang Unit area via infill drilling at DL-B platform (3 OP) to recover potential resources of 3.2 MMstb) and DL-A platform (4 OP to recover potential resources of 3.8 MMstb).
An innovative and cost-effective solution in addressing costly underwater anode retrofit ensuring safe
continuous asset integrity with potential cost avoidance of RM 35.9 Mil.
IA is proud to announce the signing of the FID for Block 20/11 in Angola – A result of the
collaborative
efforts of the entire team.
After the announcement of PETRONAS' first venture in Angola, International Assets (IA) has moved
forward
investing significant resources to finalise the Final Investment Decision (FID).
IA celebrated the contributions of various stakeholders who assisted the Angola team with the
FID
and office startup.
“This landmark decision is set to significantly boost the company’s production, enhance financial
returns, and reinforce its commitment to sustainability”, comments Mark Fitzgerald, VPIA, on the
execution of this opportunity to broaden our global reach and resource.
This production will give PETRONAS a competitive advantage in the market as we continue to
work
closer with TotalEnergies and drive IA’s production target for 2030 in support of our Upstream
ambition.
The first hydrocarbon is anticipated in January 2029, with a production target of 28 kbopd (equity)
of differentiated barrels.
The FID will contribute to equity reserves addition of 118 million barrels of oil equivalent (MMboe)
and projections of a healthy internal rate of return for IA.
The project is designed for Floating Production Storage and Offloading (FPSO), which will minimise
greenhouse gas (GHG) emissions and eliminate routine flaring. The FPSO is all-electric, and
associated gas will be fully reinjected into the reservoirs, showcasing IA’s commitment to PETRONAS'
strategy of net-zero emissions by 2050.
The signing of the FID document marks the beginning of a new era of growth, sustainability,
and
excellence for IA, setting a benchmark for responsible energy development and highlighting the
power
of collaboration in achieving significant milestones.
The success of this project is the result of unparalleled teamwork and dedication. IA acknowledges
the contributions of stakeholders from various divisions, including Development, Upstream Risk and
Assurance, HR, S&C, Finance, Legal, and Tax. IA continues to embed collaboration across the
business, promoting inclusivity while delivering sustainable business results.
A Rock Star start for PETRONAS in Angola: Winning the Game Changer Award 2024
IA is proud to announce PETRONAS’s remarkable achievement at the Oil & Gas (AOG) Conference,
where it was honored with the Game Changer Award 2024.
Angola Oli and Gas(AOG) Conference is the 2nd largest energy conference in Africa, this year the
event took place between 2-3 October 2024. This year theme “Driving Exploration and
Development
Towards Increased Production in Angola”, highlighted key milestones and achievements
across the
entire oil and gas value chain in Angola.
PETRONAS partnership with TotalEnergies and Sonangol won the Game Changer of the Year for Kaminho
Deepwater Development, achieving FID in 2024 with an investment of USD 6 Billion mark the 1st large
deepwater development in Kawnza Basin. The project is producing a differentiated barrel low in
emission, the high production will feature FPSO with a capacity to produce 70 kbd, where 1st oil
will come to the stream in 2028.
This award reflects PETRONAS's commitment to innovation, collaboration, and sustainable development,
and IA is proud of this recognition and will continue its commitments towards positioning PETRONAS
as the partner of choice.
PEPASA’s Commitment to Support IA’s desire for Emission Reduction: Achievements and Strategic Outlook.
Over the past four years, PETRONAS Exploration & Production Argentina (PEPASA) has made significant strides in refining its emission measurement and reduction strategies, steering IA’s ambition in realising Upstream GHG emission reduction targets. Implementation of two major initiatives in alignment with this goal i.e. installation of Vapor Recovery Units (VRUs) in all the production facilities in the equity sharing La Amarga Chica (LACh) block as well as the debottlenecking of the gas evacuation trunkline within the Vaca Muerta field have shown substantial reductions in emissions particularly at LACH, driving positive collaborative move towards achieving the IA desires of contributing to PETRONAS Group Emission goals.
Significant reduction of emission is demonstrated by LACh since the past years, with the trend continuously declining as shown below.
Initially, emissions at LACh were measured indirectly and theoretically, resulting in an unrealistic set of data that scarcely reflect the accurate actual emission levels. This indirect approach was primarily focusing on emissions at production facilities including tanks, and relying heavily on interference rather than direct measurement.
However, in the late 2021 and early 2022, PEPASA transitioned to a more realistic and accurate method of measuring emissions. By implementing a robust and realistic equation, the company began to identify the highest emissions contributors, primarily at the facilities. This change marked a significant leap in understanding and managing emissions more effectively. Which driven to steer the IA’s vision in reducing emission and directly contributing to Upstream 2030 targets.
This transition was deemed critical in pursue of aggressive progress in the landscape of the oil and gas industry, addressing climate change and enhancing sustainability have become fundamental and indispensable. PETRONAS is leading this transition, firmly committing to a net-zero carbon emissions target by 2050. This commitment is integral to the strategy, reflecting dedication to delivering energy solutions that align with global environmental goals. As part of the journey towards net-zero emissions, IA remains committed to making significant strides in sustainability, ensuring a positive social impact while adhering to business ethics and corporate governance standards, hence setting PETRONAS brand for the global recognition of its sustainable contribution to the community and being the Partner of Choice.
It is PEPASA’s vision and commitment to support IA in realizing the PETRONAS Energy Transition Strategy on GHG Emissions i.e. 25% reduction by 2030, as stipulated below. This is also aligned with the collaboration.
Having done the necessary assessments, PEPASA together with its operating partner, YPF S.A., begun analyzing potential solutions using existing technologies, which could help reduce emissions while averting significant cost creep. In this scenario, the Vapor Recovery Units (VRUs) emerged as the most feasible and potential tool to begin driving the necessary actions towards lowering emission in operations.
After the implementation of the mentioned VRUs at the production facilities, notable improvements in environmental management where noted. These units allowed for the capture of emissions from tanks, compress them, and inject them into large compressor units, resulting in a reduction of emissions with minimal expenditure and additionally reducing the risk of facilities downtime and its associated production, which align with IA aspiration in delivering affordable barrels that has positive impact to CFFO contributing to the Upstream targets.
In addition to the VRUs, the complete electrification of the field has allowed for separate tracking of electrical usage emissions, providing a clearer picture of the overall emission landscape. Despite the increase in production, emissions have remained stable, demonstrating the effectiveness of these measures.
However, the key attribute to the achievement of significant emissions reduction is the conversion of the main gas trunkline to medium pressure, i.e. the debottlenecking of gas evacuation initiative.
In pursue of achieving positive growth in social impact, the back pressure in the gas trunkline grid coming from other blocks/companies in the northern part of Vaca Muerta field presented significant challenges. The higher pressure has evidently resulted in a more complex process of injecting gas into the pipeline, and this has been aggravated by the non-permissible flaring under regulatory guidelines. To overcome these obstacles, PEPASA has collaborated with other YPF blocks and decided to operate at a medium pressure through a new alternative gas pipeline. Although this required modifications to the compressors, the strategy allowed reducing of emissions in terms of carbon intensity (KgCo2/Boe) towards PETRONAS’ Groupwide Zero Routine Flaring of Hydrocarbon target by 2030, while also having a positive impact on gas monetization.
PEPASA’s energy efficiency initiatives prioritize technical simplicity, speed, and low cost. In parallel with these efforts, another gas pipeline was constructed to connect with TGS (Transportadora de Gas del Sur) the largest natural gas extractor company in Argentina, serving as a contingency plan. As production increases, there is potential for a new bottleneck in the high-pressure segment, and intermediate compression is being considered as a solution. Current gas production stands at 560 million, with projections to increase by 2025.
With all the initiatives implemented thus far, the reduction of emissions from the main sources at LACh is shown as below, indicating positive prospect towards achieving Net Zero Emission.
PEPASA's strategy for emission reduction has been a collaborative effort between PEPASA and YPF, and also involving various stakeholders to devise effective solutions. Regulatory authorities closely monitor plant emissions, ensuring compliance with rigorous environmental audits, which are more rigorous in Argentina compared to other countries. The ratio of emissions to kilowatts is lower compared to other fuels, highlighting the benefits of electrification. Among the fields in Vaca Muerta, PEPASA's electrification initiative is unique, setting a benchmark for others to follow, and showcase IA commitments in setting PETRONAS for the global recognition against its peers.
Aside from the challenges initially on the emission measurement and high-pressure trunkline, the future of LACh seems bright in the aspect of emissions. This can be attributed to the aligned target of YPF and other stakeholders, seeing South America region to champion the greenhouse gas emissions meeting the World Standards.
In the current context of the oil and gas industry, there is an elevated emphasis on reducing carbon emissions and adopting sustainable practices. This is part of a broader strategy to address global environmental challenges and meet the expectations of stakeholders and regulatory authorities. This effort has helped Argentina maintain its goals positioning within others IA (International Assets) as one of the more resilient blocks concerning the global push towards an energy transition agenda prioritizing cleaner and more sustainable solutions, with a focus on gas resources as the most suitable option for transition and the efficient development of renewable energies.
PEPASA together with YPF is incessantly pursuing further emission abatement initiatives, carving a greener roadmap in future. The potential initiatives are as below.
At PEPASA, our commitment to innovation and operational excellence drives our focus on producing high-value, low-carbon barrels with a strong ESG (Environmental, Social, and Governance) (Environmental, Social, and Governance) rating, supporting IA desire in delivering differentiated barrels. Our low-carbon emission operations contribute significantly to the NetZero 2050 commitment adopted in PETRONAS's Sustainability Strategy with positive social impact and adherence to business ethics and corporate governance. PETRONAS aims to allocate 20% of total capital expenditure to scale up decarbonization and renewables from 2022 to 2026.
PEPASA's proactive measures in emission reduction embodying IA commitments in positioning PETRONAS for Global recognition as a leader in sustainable practices within the industry. Through continuous innovation and collaboration, PEPASA remains committed towards IA vision in achieving its environmental goals hence supports PETRONAS Upstream targets and contributing to a more sustainable future.
International Assets is thrilled to share some exciting news from PETRONAS Abu Dhabi as it has
reached
two significant milestones that mark a new chapter in the Upstream journey.
Firstly, PETRONAS Abu Dhabi has successfully signed a new oil and gas exploration concession in
Onshore
Block 2, that was granted by the Supreme Council for Financial and Economic Affairs (SCFEA), which
is
the central authority that drive and shape the economic and financial landscape of Abu Dhabi on 26
September 2024. Under the agreement, PETRONAS Abu Dhabi will hold 100% equity and assume
operatorship
during the exploration period.
Onshore Block 2, a conventional exploration area in Abu Dhabi's Al Dhafra region, covers over 7,300
square kilometers and overlaps with PETRONAS's existing unconventional blocks. This marks PETRONAS
Abu
Dhabi's first foray into conventional resources in the UAE and represents the company’s third
concession, following Unconventional Block 1 in 2022 and Unconventional Block 5 in 2024.
This achievement is a testament to IA’s commitment to positioning PETRONAS as the Partners of
Choice.
It expand our presence in the region while driving sustainable energy development, fostering
innovation,
enhancing collaboration, and solidifying PETRONAS’s reputation as a solutions partner and the
preferred
partner.
The award was marked with a momentous occasion attended by leaders from PETRONAS and ADNOC. It was
led
by Mohd Jukris Abdul Wahab, EVP & CEO Upstream from PETRONAS and Abdulmunim Saif Al Kindy, Executive
Director Upstream Directorate, ADNOC. The event was also attended by Mohd Redhani Abdul Rahman, VP
Exploration, Upstream, and Max Vorobiev, CEO, PETRONAS Abu Dhabi as part of PETRONAS delegation and
various senior leaders from ADNOC.“We are excited about this new venture and extend our deepest
gratitude to SCFEA for their unwavering trust and collaboration. This endeavor broadens PETRONAS
Upstream portfolio in Abu Dhabi, incorporating both unconventional and conventional resources,
offering
potential for exploration growth and execution synergies,” said Mohd Jukris.
In addition to this exciting development, International Assets is also proud to announce the opening
of
PETRONAS Abu Dhabi new office in Abu Dhabi. Located in Landmark Tower, one of the tallest towers in
the
city, this office will serve as a hub for Upstream operations in the UAE. The inauguration ceremony,
held on 18 September 2024, was also graced by Mohd Jukris Abdul Wahab, EVP & CEO Upstream, with Mohd
Redhani Abdul Rahman, VP Exploration and incoming VP International Assets, in attendance.
These milestones reflect our strategic vision to strengthen our foothold in the Middle East and
enhance
our operational capabilities. The new office will not only provide a modern and efficient workspace
for
our team but also facilitate closer collaboration with our stakeholders in the country.
Charting the Course for Strategic ESG and the Future of Energy Transition in Brazil.
PETRONAS Brazil team participated in the ESG Energy & Business 2024 event.
ESG Energy and Business 2024 is a prominent forum among the industry players represented by
most
of the O&G players in Brazil.
The forum aims to bring together different ecosystem agents and integrating them through
experiences, exchanges of insights and connections with public authorities, the private
market
and third sector agents.
And PPBL participation comes with the efforts to support IA aspirations of setting PETRONAS for the
Global Recognition against the global peers.
The theme chosen for this second edition was: “Investment strategies and financial risk
reduction”,
where the forum addressed topics such as the dimensions of Diversity, Equity and Inclusion of the
Human Rights agenda; CCUS; risks and opportunities in the face of investment fund restrictions;
diversity and technology; ESG management in the supply chain; among other topics.
PETRONAS Brazil had the opportunity to participate in two panels at the event.
Pamela Belém, Office Administrator at PPBL and D&I Lead, spoke on the panel about the
diversity, equity, and inclusion dimensions of the human rights agenda in ESG, bringing to
light the similarities in the diversity of people between Malaysia and Brazil. Showcasing
the efforts IA is deriving towards the space of D&I for an inclusive work environment to
position PETRONAS as an Employer of Choice.
Meanwhile, Adriana Frenkiel, Head of HSSE at PPBL, was a speaker on the Risks and
Opportunities for ESG Investments panel. She shared PETRONAS' effort to reduce emissions in
our current operation and energy transition efforts leveraging on PETRONAS Carbon Commitment
to guide the company’s decision making and with CCS particularly Kasawari as a key signature
project.
Suhana Sidik, the Country Head of PETRONAS Brazil explains the importance of the ESG
Agenda
during the session.
“ESG is very important to PETRONAS Brazil. Our core sustainability agenda has been related
to low carbon emissions, a highly meaningful social impact program and a very diverse and
inclusive team with notably more than 60% female leadership in the company.
She added, “Although our journey is still very new in Brazil, PETRONAS efforts in ESG is gaining prominence as we take lead in some of the D&I agenda in the industry. With Sepia-2 FID under way, PETRONAS will soon deliver production with very low emission intensity, which will be gamechanger in future FPSO low emission design.”
The addition of hydrocarbon will set PETRONAS Brazil to surpass its current 50kbd and well
within
the
Top 5 companies in Brazil.
The Sepia consortium achieved unanimous approval for the project in May 2024 which saw the Operator
awarding the contract with Seatrium to build an FPSO capable of processing 225,000 barrels of
oil/day and a processing capacity of 10 million cubic meters of gas/day.
The Sepia projects is one of the largest oil & gas project in the history of the sector and
comes
with objective to supports IA commitment towards the Upstream 2030 Targets of delivering
Differentiated Barrel.
On the second week of June 2024, Association of International Energy Negotiators (AIEN) awarded the
exclusive Venture of the Year award to the consortium consisting Petrobras, TotalEnergies, PETRONAS
and QatarEnergy for our Sépia Project.
This is a testament of a strong consortium in the venture working collaboratively throughout
finalising the transaction and remain committed in excellence, having started production in August
2021.
In IA we are aligned with PETRONAS commitment to the environment!
The reduction in PPBL is due to the benefits of All Electric configuration, optimisations in
the processing plant to increase energy efficiency and the incorporation of various
technologies, such as zero routine ventilation, deep seawater abstraction, use of variable
speed drives in pumps and compressors, cogeneration, zero routine flaring, valves with
requirements for low fugitive emissions and the capture, use and geological storage of CO2
from the gas produced.
RUSA Paper: International Assets fostering Sustainable Innovation through PETRONAS BRAZIL and
Brazilian Universities Partnerships.
Energy is the driving force of life, and this constant movement demands increasingly innovative
solutions that benefit people, businesses, and the environment. We find ourselves at a crucial
juncture where the quest for large-scale solutions aimed at reducing carbon emissions and addressing
climate change is imperative for driving significant transformations in our society.
Leading the Change
With a robust infrastructure, operational excellence, technical resources, and a talented workforce,
we are well-equipped to lead the changes that propel progress. This journey is fueled by
cutting-edge research, enabling us not only to understand but also to address the challenges we
face.
Since 2020, Petronas Brazil has been investing over 310 million Brazilian Reais in Research,
Development, and Innovation (RD&I) projects aimed at advancing technologies towards
elevating operations excellence to deliver an affordable barrel and reducing GHG emissions aligning
with IA vision, which ultimately aspire to showcase Petronas’ global commitment to achieving
net-zero carbon emissions by 2050 and advancing the energy transition.
Our Research, Development & Innovation department has distinguished itself through partnerships with
renowned universities, merging industry strength with scientific rigor across various fields. Our
focus on climate change solutions leads us to innovative projects, such as studies on carbon capture
and storage.
Academic Partnerships
PETRONAS Brazil collaborates with 8 universities and entities, including PETRONAS Lubricants Brazil,
to drive innovation and develop sustainable solutions. Among these partnerships, four standout
projects are highlighted, showcasing collaborations with University of Brasilia, University of São
Paulo, University of Campinas, and PETRONAS Lubricants Brazil. These projects are pivotal in
advancing research and achieving the company’s environmental goals. Through specific research, the
company studies innovative solutions which positions PETRONAS as a leader in sustainable energy
practices and demonstrates its commitment to a low-carbon future, embodying IA’s commitments in
setting PETRONAS brand for the recognition of its sustainable social contribution.
At the Department of Mechanical Engineering at UnB, the Ceramic and Nanostructured Materials Laboratory, sponsored by PETRONAS Brazil, is at the forefront of developing membrane structures for gas processing. This research not only enhances the effectiveness of our products but also makes our processes more sustainable.
Moving to São Paulo, we find a promising example of collaboration between industry and academia at USP. In the laboratories of the Polytechnic School, we conduct research projects involving chemical elements and processes aimed at cleaner industrial production, committed to environmental preservation.
At the Center for Studies of Energy and Petroleum at Unicamp, our efforts focus on enhancing the sustainability of oil and gas projects, addressing global concerns about carbon emissions in the atmosphere. These initiatives are vital for shaping a more sustainable and responsible future.
Science as the Cornerstone of Excellence
PETRONAS Brazil believes that science is the foundation of excellence. By fostering high-level
scientific research, we develop innovative technologies at our Technology and Research Center at the
Lubricants Plant in Contagem, Minas Gerais. Our initiatives make a difference in everyday life and
guide the world toward a sustainable future for all.
Conclusion
The path to innovation and sustainability is plural and diverse, but we are prepared to face it.
With strong academic partnerships and an unwavering commitment to research and development, we will
continue to lead the pursuit of solutions that transform our reality and ensure a greener future.
Together, we can move energy toward a more sustainable tomorrow.
Petronas Brazil’s RD&I projects reflect a comprehensive approach to addressing climate change and
supporting the energy transition. Through investments in CCS, methane management, renewable energy,
energy efficiency, electrification, and nature-based solutions, PETRONAS Brazil is making
significant strides towards its net-zero ambitions and setting a benchmark for the industry.
Physical remodel of PETRONAS Canada’s well pad design checking all the boxes.
Learn more about the new Generation 4 well pad design and how it’s helping the company deliver
differentiated and more affordable barrels.
International Assets (IA) is embracing operational excellence and is proud to share PETRONAS
Canada’s (PECL) success of updating the company’s well pad design. The Generation 4 well pad design,
which is currently in its pilot phase, is checking all boxes to deliver differentiated and
affordable barrels of energy to global markets in alignment with Upstream 2030 Ambition targets.
Accountability towards excellence: “How can we make our design more efficient and cost
effective?”
That was a question members of PECL’s Facilities team knew they had the answer to from their
experience working on Steam Assisted Gravity Drainage (SAGD) oilsands wells in northern Canada in
the past.
PECL has seen steady progression of its well pad design (each major phase known as Generation 1, 2
and 3) from the time the company was appraising its North Montney assets in Northeast B.C. in the
early 2000s to where they are today.
“When we look at our past generation well pad designs, what really stands out is the layout of the
wells typically used in unconventional gas production” explains Stephen Morris, Team Lead,
Facilities Engineering at PECL. “Relying on our team’s experience in oilsands well design, we knew
that we could achieve significant efficiencies if we rethought the layout and adopted a modular,
templated design philosophy. Working collaboratively with our Drilling & Completions, Production
Operations, and Field Operations teams, we feel we’ve achieved a new well design that will add
material value for years to come.”
Celebrating success and sharing the knowledge: Generation 4 well design features.
To fully appreciate what’s changed in the Generation 4 well pad design, it helps to understand how
PECL’s well pads have traditionally been developed. Here’s a (very) high-level overview:
In the Generation 4 design, the first five steps essentially remain the same. The big change comes
in the last step when the second round of wells are drilled. Rather than drilling them perpendicular
to existing wells, PECL now drills them directly behind them in a parallel fashion. This allows the
new wells to be tied into the existing communal equipment (piping racks, test separators, etc.).
Doing so shrinks the permanent footprint by 30 percent over two rounds of drilling.
Striving for differentiated and affordable barrels and delivering sustainable
performance.
“When we studied our Generation 3 design, we validated that our processes were very effective and
there wasn’t much room for improvement for how we measured or handled our gas,” explains Rachel
Czerwony, Team Lead, Facilities Engineering at PECL. “However, through those studies we identified
that we could be much more aggressive in our layout. This new design is essentially a physical
remodeling that has us targeting a 10 percent reduction in our overall per well costs across two
rounds of drilling, which will ultimately help us deliver more affordable barrels.”
The new layout significantly decreases the amount of piping and structural steel used and eases
power requirements, driving down costs. In turn, this design uses less fuel gas for power and heat,
ultimately reducing the company’s greenhouse gas emissions.
What comes next?
PECL has now started implementing the Generation 4 well pad design at new (greenfield) pads or on
existing pads that can accommodate it. The team is already working on further refining the design
and coming up with value engineering cost savings that will continue to benefit PETRONAS going
forward.
Design schematics
Below you can see a comparison between the Generation 3 and Generation 4 layouts.
The objective of this study is to locate and map distribution of porous zones associated with karst. The geometry of karst is thin, spatially uncertain, and below seismic vertical resolution.
Once all the neuron topologies have been generated through SOM, the neurons are taken to Well Section view to define the Neuron Topology (layers) based on the which well log characters (i.e. porous interval / zone of interest) the Topology correlates to.
In the initial neuron-log correlation, only vertical/exploration wells were used. The main objective to see whether any neuron can specifically capture porous features based on the vertical log characters. From the correlation, the porous intervals observed in wells AB-1 & AB-4 can be defined with the primary neuron topology cluster 63-84.
Successfully cultivate a robust data culture that empowers PCIHBV employees to harness data in their tasks, promoting a data-driven mindset that safeguards and recognises data as an asset towards achieving a data-driven organisation for sustainable operations.
This effort is aligned with the Upstream Technology, Digital & Innovation (UTDI) programme launched in April 2023, which aims to develop advocates and foster a strong Data Culture across the Upstream sector, steering it towards becoming a Data-Enabled and Data-Driven organisation.
Data quality exercises are currently being conducted to identify any gaps and address these gaps through action plans.
The Garraf Data Culture Programme can be emulated at other international assets.
IA advancing Technology: Pilot Application of Autonomous Inflow Control Device (AICD) in a Heavy Oil Mature Field of Blocks 3/7, South Sudan.
Implementation of the AICD significantly improved production efficiency in a heavy oil mature fields of Block 3/7 (DPOC) in South Sudan.
Two wells (Anbar-13 and FG-23) were recompleted with AICD and resulted to incremental gains of 900BOPD and reduced water production of 1065BWPD.
Increasing water cut trending that depicts late field life asset was observed in recent years in Blocks 3/7 despite numerous water shut off activities conducted. Heavy oil with high water cut at the main producing field i.e., Fal makes it challenging to optimise production adding more complexities to the existing produced water management system.
South Sudan’s pilot technology application of Autonomous Inflow Control Device (AICD) was identified as a possible solution to improve production efficiency through:
1. Delaying water breakthrough at newly perforated intervals and providing the
best
commingled production scenario via recompletion of existing wells.
2. Reducing production downtime from workover jobs for water shut-off and
eliminating
the need for production logging to identify water producing intervals.
3. Extending well life and maximising oil recovery via long term water control.
War in Sudan impacting logistics and delivery of materials, steep learning curve during installation of South Sudan’s pilot AICD.
Dedication of DPOC, business partners and contractor for successful implementation of AICD with zero HSE incidents & LTI, contributing to 100 safe manhours.
Proven AICD technology with successful implementation brings future opportunities for technology replication in other key wells in South Sudan Operations.
Sustainable growth of SSO oil industry with local contractors embracing technology advancement. Potential Economies of Scale (EOS) via bulk purchase of AICD for the abundant high producer wells in SSO.
Solving this prolonged issues has regained reliance of stakeholders and assured PETRONAS' commitment to the host country, Turkmenistan, as a primary gas supplier for power generation and petrochemical processing.
The data-driven approach also has elevated levels of data literacy among frontliners which underscored the importance of data-driven decision making and facilitating deeper operational insights.
MESSI Reset is a short-term solution to solve MRU System efficiency. Due to the superior results from MESSI Reset, the team will continue to re-evaluate the identified medium/long-term solutions.
Strengthening decarbonisation effort to comply, support and gain benefits through strategy and initiatives…
The fear of Clients & Contractors in sharing the best practices during Leader-to Leader conversation was overcome by:
The establishment of the Upstream Sustainability Framework (USF) has brought structured sustainability strategies and target-setting into the Upstream business, transforming previously fragmented efforts into a cohesive approach.
Prior to the establishment of the Sustainability & Strategic Partner (SSP) function, Upstream lacked a centralized reference point for coordinating sustainability initiatives, as well as a structured approach for sustainability reporting. This often resulted in a fragmented execution of sustainability strategies across Upstream. With the formation of SSP, a single-point accountability was instituted to effectively orchestrate and drive Upstream sustainability efforts.
A key milestone was the development of the Upstream Sustainability Framework (USF), which was the first ever Sustainability framework that was developed by a Business division across PETRONAS and aligns with PETRONAS' sustainability lenses. This framework enables a consistent approach to strategy deployment, streamlined reporting and thereby enhancing our ability to showcase sustainability success stories and demonstrate tangible value across the Upstream business.
Our communication initiatives have significantly advanced sustainability awareness and engagement across the Upstream business. By conducting sharing sessions on the Upstream Sustainability Framework (USF) and launching the ‘Sustainable Upstream’ campaign, we have fostered a culture of sustainability. Additionally, we have published success stories and highlights on our microsite, highlighting regional and country-level efforts toward achieving our 2030 targets.
The lack of clarity and awareness on sustainability across Upstream business has hindered effective engagement and alignment on sustainability goals. To address this, a targeted communication plan is crucial to build understanding, foster a shared sense of responsibility, and highlight the value of sustainability in driving business success. This plan will ensure that key messages are cascaded consistently, creating a strong foundation for embedding sustainability into Upstream culture.
Following the PETRONAS Board's approval of the Nature and Biodiversity (N&B) Position on 28th July 2022, Upstream Sustainability has refined and contextualised the position, providing clarity on its effective operationalisation in Upstream. N&B operationalisation approach for Upstream was approved by ULT SH on 11th July 2024, positioning Upstream to effectively support PETRONAS’ Sustainability Agenda.
To support PETRONAS’ Energy Transition Strategy, PETRONAS position on N&B has been established, showcasing leadership in this agenda both in Malaysia and globally. Acknowledging the connection between climate and biodiversity, PETRONAS is committed to conserving, protecting, and restoring nature wherever possible. However, despite expectations for Upstream to begin operationalising this position by January 2024, the absence of a Level 2 guideline has created significant uncertainty. Upstream business entities lack sufficient clarity on how to implement the N&B position and understand its full impact on their operations, hindering effective execution.
Continue delivering Culture aspiration guided by these lenses - 3 Strategic Compass focus areas, Upstream Culture Framework and POCS Upstream interventions
