PETRONAS

Exploration & Production

CONTENTS
ABOUT PETRONAS

INTEGRATED VALUE CHAIN

PETRONAS E&P (EP) GLOBAL PRESENCE

PETRONAS EP MALAYSIA OPERATIONS

INVESTMENT & PARTNERSHIP OPPORTUNITIES

10

EXPLORATION

12

DEVELOPMENT

16

PRODUCTION

20

UNCONVENTIONAL

24

MAKING IT POSSIBLE

26

ADVANCING TECHNOLOGY & ENGINEERING

28

PEOPLE DEVELOPMENT

32

HEALTH, SAFETY & ENVIRONMENT

36

COMMUNITIES

38

CONTACT US

40

ABOUT
PETRONAS
Petroliam Nasional Berhad is Malaysias fully integrated oil and gas multinational with
proven capabilities in a broad spectrum of the petroleum value chain.
Building on the success of managing Malaysias 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

PETRONASANNUALREPORTPE2011

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

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 worlds 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

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 EPs 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.

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 countrys oil and gas resource base.

As an operator, we aim to maximise upstream value, sustain production and enhance

prospectivity of the nations acreages.

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.

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 nations 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

10

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

11

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.
Worlds first 3D Broadband Circular Shooting Survey
Worlds 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.

12

13

Standout
performer
Malaysia contributed 72% of total
upstream exploration discoveries
with 1.4 billion boe in Southeast Asia
in 2012

24

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

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

15

DEVELOPMENT
Delivering Excellence

Superior Project Management

PETRONAS EPs 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

16

Worlds
first

Pilot implementation of
a refurbished wellhead
platform concept at D21,
a marginal field in Malaysia

Worlds 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

17

First

91%

quartile performance for project

development schedule, IPA
Benchmark in 2012

Projects delivered within

budget in 2012

Worlds first use of composite bridge plug system for

production testing purposes in Kuang North field, Malaysia
Borneos longest: Sabah-Sarawak Gas Pipeline (SSGP) of
more than 500 km to transport offshore natural gas to
processing terminals
18

Kanowit: Malaysias first subsea well with a potential of

producing 100 mmscfd from each well

19

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 reservoirs 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

20

24

IOR/EOR/
IGR production
enhancement projects
underway

32

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

21

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

22

2017

Higher yields: 440 mmscfd of raw high CO2 gas at Tangga

Barat cluster fields, first application of membrane type
CO2 removal technology

23

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 worlds 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 worlds first CBM to LNG projects with
7.8 MTPA (onstream target 2015) at Queensland, Australia

24

Shale gas
200 tcf gas in place at
Montney Shale, Canada

25

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 EPs Strength And Capabilities

We have explored some of the worlds 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.

26

Today, we are amongst the worlds 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 worlds 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

27

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.

28

29

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

30

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

31

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.

32

33

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

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

35

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

36

6.5

million
safe manhours without LTI:
Miri Crude Oil Terminal, Malaysia

4.5

million
safe manhours without LTI:
Myanmar

37

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

38

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

39

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.

40

www.petronas.com