Ppgua Volume 7

PETRONAS Procedures
and Guidelines for Upstream

Activities (PPGUA 3.0)
OPERATIONS MANAGEMENT
VOLUME 7
2013 PETROLIAM NASIONAL BERHAD (PETRONAS)

All rights reserved. No part of this document may be reproduced, stored in a retrieval system or transmitted in any form or by
any means (electronic, mechanical, photocopying, recording or otherwise) without the permission of the copyright owner.
VOLUME 7
Table of Contents
Executive Summary
Contact Information
Definitions
Section 1: Well and Reservoir Management
1.1 Introduction

1.1.1 Reservoir Management

1.1.2 Well Management

1.1.3 Annual Review (FRMR/FRW)

1.1.4 Full Field Review (FFR)
1.2 Different Stages of Reservoir Management

1.2.1 Early Depletion Stage

1.2.2 Middle and Late Stage

1.2.3 Full Field Review (FFR)

1.2.4 Improved and Enhanced Recovery
1.3 Well and Reservoir Management Plan

1.3.1 Reservoir Management Strategy and Plan

1.3.2 Well Flow Assurance Management

1.3.3 Idle String Management
1.4 Production Enhancement
1.5 Annual Field Performance Review

1.5.1 FRMR/FRW

1.5.2 Requirement for FRMR/FRW
1.6 Well Abandonment
1.7 Asset Relinquishment (Subsurface)
Section 2: Well Test and Surveillance
2.1 Introduction

2.1.1 Oil Producing Well

2.1.2 Gas Producing Well

2.1.3 Injection Well
2.2 Periodic Production Rate Test
2.3 Bottom Hole Pressure Survey

2.3.1 Static Bottom Hole Pressure (SBHP) Survey

2.3.2 Transient Pressure Survey

2.3.3 Flowing Survey for Oil Producing Well

2.3.4 Deliverability Test for Gas Producing Well

2.3.5 Production Logging Tool (PLT) Survey
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2.3.6 Saturation Logging Survey
2.4 Injection Wells

2.4.1 Injection Rate Measurement

2.4.2 Injectivity Test

2.4.3 Injection Profiling Survey

2.4.4 Injection Fall Off Survey
2.5 Record Keeping and Data Quality
2.6 Production Allocation

2.6.1 Production Allocation to Each Producing String

2.6.2 Production Allocation to Each Producing Interval
Section 3: Facilities Reliability and Integrity Management
3.1 Introduction
3.2 Reference
3.3 Management System

3.3.1 Leadership and Commitment

3.3.2 Policy and Strategic Objectives

3.3.3 Organisation, Roles and Responsibilities

3.3.4 Reliability and Integrity Management Processes

3.3.5 Improvement Plan and Implementation
3.3.6 Assurance/Audit

3.3.7 Management Review
3.4 Operation of Facilities
3.5 Inspection and Maintenance

3.5.1 Compliance to Legislative Requirements

3.5.2 Philosophy and Related Documents

3.5.3 Minimum Requirements for Inspection & Maintenance of

Topsides/Onshore Terminals

3.5.3.1 Mechanical Static Equipment

3.5.3.2 Major Rotating Equipment

3.5.3.3 Safeguarding Devices and Systems

3.5.3.4 Fire Fighting and Life Saving Equipment


Structures


Pipelines


Wellhead and Downhole Systems


Subsea Systems
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3.6 Planning and Implementation
3.7 Materials Management
3.8 Contracting and Contractor Management
3.9 Reporting and Key Performance Indicators (KPI)
3.10 Major Failures and Corrective Action
3.11 Management of Change
3.12 Information and Knowledge Management

3.13 Preservation
3.14 Facilities Modification, Upgrading or Rejuvenation
Section 4: Liquid Hydrocarbon Measurement
4.1 Introduction

4.1.1 Scope

4.1.2 Distribution, Intended Use and Regulatory Considerations
4.2 Definitions
4.3 General Requirements

4.3.1 Units of Measurement

4.3.2 Approval Requirements

4.3.2.1 Measurement and Allocation Concept

4.3.2.2 Metering Project Implementation - Metering
Specification

Acceptance

4.3.3 Static Measurement Project Implementation

4.3.4 Government Regulatory Requirements

4.3.5 Deviation
4.3.6 Documentation
4.4 Design

4.4.1 General Requirements

4.4.2 Meter Run Design/Pipework
4.4.3 Meters

4.4.4 Prover Design

4.4.4.1 Displacement Prover

4.4.4.2 Master-Meter Prover

4.4.5 Field Instrument Requirements

4.4.6 Computer Based Monitoring and Control Functions

Requirements

4.4.7 Sampling and Analysis Requirements

4.4.8 Metering Data
4.5 Calibration, Testing and Commissioning
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4.5.2 Calibration

4.5.2.1 Displacement Prover Calibration

4.5.2.2 Master-Meter Prover Calibration
4.5.3 Testing

4.5.3.1 General Testing

4.5.3.2 Factory Acceptance Test

4.5.3.3 Site Acceptance Test
4.5.4 Commissioning
4.6 Operation, Validation and Accounting


4.6.2 System Operations

4.6.3 System Validation

4.6.4 System Maintenance
4.6.5 Security

4.6.6 Accounting and Allocation

4.6.7 Metering Station Record Keeping

4.6.8 Direct Reporting
4.7 Final Provision
4.8 References
Section 5: Gas Measurement
5.1 Introduction

5.1.1 Scope

5.1.2 Distribution, Intended Use and Regulatory Considerations
5.2 Definitions

5.3.1 Units of Measurement



Specification

Acceptance


5.3.4 Deviation
5.3.5 Documentation
5.4 Design


5.4.2 Mechanical Requirements and Primary Element
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5.4.2.1 Orifice Meter

5.4.2.2 Gas Ultrasonic Meter (Multi-Path)

5.4.2.3 Other Meters


5.4.4 Computer Based Monitoring and Control Functions

Requirements

5.4.5 Sampling and Analytical Instrumentation

5.5.2 Calibration
5.5.3 Testing



5.5.4 Commissioning
5.6 Operations, Validation and Accounting



5.6.3 System Validation

5.6.5 Security



5.7 Final Provision
5.8 References
Section 6: Onshore/Offshore Operations
6.1 Introduction
6.2 Notice of Intent
6.3 Operations Manual/Equipment Dossier
6.4 Simultaneous Operations Procedures
6.5 As-Built Drawings
6.6 Shutdown

6.6.1 Shutdown Plan

6.6.2 Unplanned Shutdown
6.7 Daily Production Operations Report
6.8 Monthly Performance Report and Production Forecast
6.9 Terminal Operations
6.10 Inspection and Operations Audit
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6.11 Integrated Operations
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6.11.1 Introduction
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6.11.2 Objective
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6.11.3 Requirement
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6.11.4 Standard Request & Budget Submission
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Section 7: Gas Flaring/Venting Limit
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7.1 Objective
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7.1.1 Non-Associated Gas (NAG)
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7.1.2 Associated Gas (AG)
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7.2 Flaring/Venting Limit
153
Section 8: PETRONAS Guidelines for Barges Operating Offshore Malaysia
(PGBOOM)
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8.1 Introduction
154

8.1.1 Application
154

8.1.2 Requirements
155-156

8.1.3 Definitions
156

8.1.3.1 Steel or Other Equivalent Material
156

8.1.3.2 Non-Combustible Materials
156

8.1.3.3 A Standard Fire Test (as defined in SOLAS
Chapter II-2 Regulation 3)
156-157

8.1.3.4 A Class Divisions (as defined in SOLAS Chapter
II-2 Regulation 3)
157

8.1.3.5 B Class Divisions (as defined in SOLAS Chapter
II-2 Regulation 3)
157-158

8.1.3.6 C Class Divisions (as defined in SOLAS Chapter
II-2 Regulation 3)
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8.1.3.7 Public Spaces
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8.1.3.8 Control Stations
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8.1.3.9 Corridors
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8.1.3.10 Accommodation Spaces
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8.1.3.11 Stairways
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8.1.3.12 Service Spaces (low risk)
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8.1.3.13 Category A Machinery Spaces
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8.1.3.14 Other Machinery Spaces
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8.1.3.15 Hazardous Areas
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8.1.3.16 High Risk Service Spaces
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8.1.3.17 Open Decks
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8.2 Accommodation Spaces
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8.2.1 Restrictions

8.2.2 Construction

8.2.3 Arrangement of Sleeping Spaces

8.2.4 Size of Sleeping Spaces

8.2.5 Berths and Lockers

8.2.6 Washing, Toilet and Shower Spaces

8.2.7 Mess Rooms

8.2.8 Hospital (Sick Bay)

8.2.9 Miscellaneous Accommodation Spaces
8.3 Automatic Fire Detection and Alarm Systems
8.4 Automatic Flammable Gas Detection and Alarm Systems
8.5 Life Saving Appliances

8.5.1 Life Rafts

8.5.2 Life jackets
8.5.3 Lifebuoys

8.5.4 Line Throwing Appliances

8.5.5 Muster List

8.5.6 Survival Equipment
8.6 Fire Fighting Equipment

8.6.1 Fire Pump

8.6.2 Fire Water Main

8.6.3 Fire Hose

8.6.4 Hydrants (Fire Monitors)

8.6.5 International Shore Connection

8.6.6 Portable Fire Extinguisher

8.6.7 Firemens Outfits

8.6.8 Sprinkler System
8.7 Provision for Helicopter Services

8.7.1 Helideck

8.7.2 Fire Extinguishers
8.8 Operating Manual

8.8.1 Operating Manual
8.9 Structural Fire Integrity

8.9.1 Requirements Governing the Application of the Tables
8.10 General Waste and Scheduled Waste Management
8.11 Electrical Power Supply
Section 9: Asset Relinquishment
9.1 Introduction
9.2 Relinquishment
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9.3 The Relinquishment Process
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9.3.1 Exploration/Development Period
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9.3.2 Production Period
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Section 10: Decommissioning of Upstream Installations
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10.1 Introduction
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10.2 Decommissioning Philosophy and Requirement
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10.2.1 PETRONAS Decommissioning Philosophy
178-179
10.2.2 General Decommissioning Requirement
179-180

10.3 Legal Framework
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10.3.1 General
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10.3.2 Environmental
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10.3.3 International Obligations
182
10.4. Pre-decommissioning Process
182-183
10.4.1 Establishment of Decommissioning Options Assessment 183-186
10.4.2 Decommissioning Plan
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10.4.3 HSE Requirement Health
186-187
10.4.4 Consultation and Liaison
187-188
10.4.5 Incorporation in Work, Programme and Budget (WPB)
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10.5 Decommissioning Execution
188
10.5.1 Project Execution Plan
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10.6 Post Decommissioning Process
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10.6.1 Removal of Debris and Land/Seabed Clearance
194
10.6.2 Verification
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10.6.3 Post Environmental Assessment
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10.6.4 Disposal
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10.7 Report
195
10.8 De-gazetting and Admiralty Chart
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10.9 Residual Liability
195
10.10 Contractors Obligations during Handover
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Section 11: Operating Performance Improvement
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11.1 Introduction
197
11.2 Performance Management
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11.2.1 Key Performance Indicators (KPI)
197-201
11.2.2 Performance Reporting
201-202
11.2.3 Management Meeting
202
11.3 Bad Actor Management
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11.3.1 Identification of Bad Actor field
202-203
11.3.2 Action Item for Bad Actor field
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11.3.3 Criteria to Graduate
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Abbreviations
Appendix 1
Appendix 2
Appendix 3
Appendix 4
Appendix 5
Appendix 6
Appendix 7
Appendix 8
Appendix 9
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Executive Summary
This volume provides Contractor with a comprehensive inventory of all the guidelines
related to Operations Management.
The volume is arranged in eleven (11) sections as follows:
SECTION
GUIDELINES
Section 1
Well and Reservoir Management
Section 2
Well Test and Surveillance
Section 3
Facilities Reliability and Integrity Management
Section 4
Liquid Hydrocarbon Measurement
Section 5
Gas Measurement
Section 6
Onshore/Offshore Operations
Section 7
Gas Flaring/Venting Limit
Section 8
PETRONAS Guidelines for Barges Operating Offshore Malaysia

(PGBOOM)
Section 9
Asset Relinquishment
Section 10
Decommissioning of Upstream Installations
Section 11
Operating Performance Improvement
Contact Information
All correspondence related to this volume shall be addressed to:
SUBJECT
CONTACT
Well and Reservoir

Management
Head
Subsurface Asset Management
Petroleum Operations Management
Petroleum Management Unit
Well Test and Surveillance
Head
Subsurface Asset Management
Facilities Reliability and

Integrity Management
Head
Production Operations
Liquid Hydrocarbon
Measurement
Head
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SUBJECT
CONTACT
Gas Measurement
Head
Onshore/Offshore
Operations
Head
Gas Flaring/Venting Limit
Head
PETRONAS Guidelines for

Barges Operating Offshore
Malaysia (PGBOOM)
Head
Asset Relinquishment
For Exploration Phase:

Senior Manager
Exploration PSC & Business Development
Petroleum Resource Exploration
For Development Phase:
Senior Manager
Commercial & Strategy Value Management
Petroleum Arrangement
Petroleum Resource Development
For Production Phase:
Senior Manager
Compliance Management
Compliance
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Decommissioning of
Upstream Installations
Head
Operating Performance
Improvement
Senior Manager
Operational Excellence
Compliance
PPGUA/3.0/042/2013
VOLUME 7
Definitions
TERM
DEFINITION
Equipment Register
An equipment inventory comprising pressure vessels, boilers,

heat exchangers, launchers & receivers, tanks, cranes,
Single-Leg Buoy Mooring (SLBM)/Single Buoy Mooring (SBM)
systems, rotating equipment, structures, fire fighting and
lifesaving equipment, pipelines, wellhead and subsea systems.
Facilities
Infrastructure related to the production and processing of

hydrocarbons including but not limited to wells, structures,
sub-structures, pipelines, sub-sea systems, terminals and
floaters.
Halal
Allowed, permitted by Islamic Law and certified by local Islamic

authority or foreign Islamic authorities approved by Jabatan
Kemajuan Islam Malaysia (JAKIM).
Integrity
The ability of the asset to perform the required function(s)

under specified operating conditions with the risk of failure
endangering safety of personnel, environment or the asset value
reduced to an acceptable level throughout its service life.
Major Failures
Facilities failure that leads to prolonged production deferment

of up to seventy-two (72) hours, damage to facilities, adverse
impact to Health, Safety and Environment and any other major
failures deemed by PETRONAS to have a critical impact.
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TERM
14
DEFINITION
Marine Facilities
Defined as, but not limited to: Floating Production, Storage and
Offloading Unit (FPSO), Floating Storage and Offloading Unit
(FSO), Mobile Offshore Production Unit (MOPU), Single Point
Anchor Reservoir (SPAR)/Tension Leg Platform (TLP) and their
ancillaries (buoys, chains, anchors, turrets/risers).
Offshore Installations
Any upstream installation beyond the official coastal line

(territorial sea, shallow water & deep water as in Appendix 8.5
to 8.7) that includes: platform topside & substructure, offshore
pipeline, offshore development well/subsea well and marine
facilities.
Onshore Installations
Any upstream installation that includes: land production topside

& substructure, crude/gas terminal topside & substructure, land
pipeline and land development wells.
Petroleum Arrangement
Types of contractual arrangements entered into between

PETRONAS and any other parties, which may take the form of a
Production Sharing Contract, Risk Service Contract and/or other
forms of contract as may be developed by PETRONAS.
Pipeline
The physical facilities use to transport the product (liquid or

gas) from one offshore platform to another offshore platform
or from an offshore platform to Pipeline End Manifold (PLEM)/
Pipeline End Termination (PLET) or from an offshore platform to
the terminal or from a subsea well to an offshore platform and
all of the above which are governed by ASME code B31.4, ASME
code B31.8 and API 17 B & J for flexible risers.
Reliability
The ability of the asset to perform the required function(s) under

specified operating conditions for a stated period of time.
Shadowing Period
This refers to a duration during which the new Contractor learns

and understands the production operations processes and
procedures from the existing Contractor.
Substructure
Defined as, but not limited to: platform jackets, piles and other
foundations.
PPGUA/3.0/042/2013
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Section 1: Well and Reservoir Management
1.1 Introduction

This section provides Contractor with the basic framework of the reservoir
management guidelines for the following:

a) The continuous acquisition of reservoir data and the monitoring and
analysis of reservoir performance, with reasonable accuracy and as

appropriate through the field life cycle

b) The carrying out of periodic FFR and other studies for the further

development for ongoing reserves and production optimization

c) The maintaining/keeping of accurate records pertaining to all
reservoir related data for submission in accordance with Volume 10,
Section 5: Data Management and Data Submission. An accurate well
test plus other reservoir and production related data must be obtained
in accordance with the requirements outlined in the relevant sections

in this volume

PETRONAS aims to promote optimum development by economically

optimising hydrocarbon recovery and maintaining optimal field
performance.

For the purpose of this section, the term reservoir may also include
reference to a fault block or compartment where the unit is being managed.
Contractor must operate in a manner that is consistent with principles of

sound reservoir management at all stages of the reservoirs life cycle.

1.1.1 Reservoir Management
Reservoir management is defined as:

An ever-changing and ongoing process, which must be conducted at

all stages of petroleum reservoir systems life cycle (from discovery
to abandonment) thus ensuring the optimum development and
depletion of the reservoirs.
Reservoir management must be a multidisciplinary process aimed at

cost effectively enhancing the knowledge and understanding of the
reservoir system and translating that enhanced understanding into
operational plans for ongoing development in order to optimise
production and reserves. A reservoir system includes any associated
aquifers, gas caps, wells and surface facilities.
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1.1.2 Well Management
Well management is defined as:
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A systematic approach to maintaining a conduit to and from the

reservoir in order to ensure that optimum reservoir management
can be achieved.
A well must serve its purpose, namely: to support reservoir

management and surveillance whilst maintaining the integrity and
safety of its operations. Well management includes well integrity
management and idle well inventory management.

1.1.3

Annual Review (FRMR/FRW)

An annual review is defined as an official discussion between
Contractor and PETRONAS to discuss, but not necessarily be
limited to the following topics:
a)
b)
c)
d)
Contractor should supply visuals and other documentation relevant

to the topics being discussed.
The annual review refers to the Field Reservoir Management Review

(FRMR) and/or the Field Review Workshop (FRW).

1.1.4

Full Field Review (FFR)

Full Field Review (FFR) entail a comprehensive and multidisciplinary
re-evaluation of all basic reservoir characterisation data, dynamic
reservoirs and well performance data as well as considering the
relevant surface facilities pertaining to an oil or gas field. This
re-evaluation must use the most relevant current interpretation
techniques to maximise knowledge distillation from the data. Such
re-evaluation should include, but not be limited to:
a)
b)
c)
d)
e)
reservoir performance
well performance
future plans
the way forward for the discussed field
seismic reprocessing
sequence stratigraphic correlations
petrophysical re-evaluation
re-evaluation of reservoir and fluid properties
fit for purpose 3-D static and dynamic reservoir modeling
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1.2
Different Stages of Reservoir Management

1.2.1 Early Depletion Stage
Contractor shall operate in a manner that is consistent with the
optimum reservoir management strategy of the field as approved in
the Field Development Plan (FDP). Contractor shall ensure that
prudent reservoir management policies or strategies are being
implemented at all times. The reservoir management strategy may
need to be revised or modified in light of any new data that
is acquired during the initial development stage. Depending upon the
variations of the new data from the FDP data, a revised FFR may be
required.

During the course of production operations, Contractor is required

to maintain a database of production, pressure, reservoir
performance and data relating to reservoir geological description.
Contractor shall update models and/or the performance forecast,
with the new data, when necessary. Contractor shall also submit a
proposal for PETRONAS review and approval if the reservoir
performance and other data show that a different reservoir
management strategy other than that approved in the FDP is required
for optimum reservoir management. Prior to submitting the proposal
for PETRONAS approval, Contractor shall hold an upfront technical
review with PETRONAS.
Due to the uncertain drive mechanism and in accordance with

prudent management practices all Gas-Oil-Ratio (GOR) controls or
reservoir pressure controls, where appropriate, shall be addressed in
the approved FDP. If significant uncertainty exists in the reservoir
drive mechanism, the FDPs should contain multiple scenarios that
cover the potential range of reservoir drive mechanisms and reservoir
descriptions and consequently the range of anticipated reservoir
behavior.

However, if no studies have been conducted, the reservoir GOR shall

be limited to one and a half times the solution gas-oil ratio at initial
reservoir pressure (1.5 x Rsi) during the initial production stage. This is
to ensure that there is no adverse impact to oil recovery and to allow
sufficient time to gather data which will aid in understanding the
behaviour of the reservoir.
Nevertheless, Contractor may request PETRONAS approval for a

revision of the GOR limit with regard to technical justification and in
accordance with good industry practices.
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Reservoir depletion shall not exceed ten percent (10%) of developed
EUR per year, any depletion rate exceeding ten percent (10%) needs
to be supported by techno-commercial studies and approved by
PETRONAS.

Some fields may be subjected to the National Depletion Policy (NDP).

Refer to Volume 4, Section 3: Crude Oil Annual Production Target
and Quarterly Performance Review (QPR).

1.2.2 Middle and Late Stage
Contractor must continue to gather and analyse reservoir
performance data and operate in a manner that is consistent with
the optimum reservoir management strategy of the field, in line with
Section 1.3.1: Reservoir Management Strategy and Plan in this
volume.
Contractor shall apply the appropriate reservoir management tools
and/or techniques for analysing field performance. Any new data
that becomes available during the course of producing the field and
reservoir can be used to compare actual performance to that
forecasted in the FDP. Any deviation in performance from the FDP
will deter optimum reservoir management and limit reservoir
recovery.

1.2.3

Full Field Review (FFR)

Contractor is required to conduct reservoir studies such as: a full field
review or a depletion study when new data becomes available, for
example, new or reinterpreted seismic data or new well data. This
requirement should also be applied when the performance deviates
from the FDP forecast. When performance is as expected, Contractor
shall also nevertheless conduct the full field review/depletion study
at least once every three (3) to five (5) years from the time of initial
production. The results from the reservoir studies must be submitted
to PETRONAS for review. These full field reviews/depletion studies
shall cover but not be limited to subsurface static and
dynamic model updates and further development opportunities.
FFR must examine interfaces and mutual optimization of the

reservoirs, wells and the surface facilities and seek production and
reserves optimization opportunities including, but not limited to
examining the potential for:
a) Workovers
b) Infill drilling
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VOLUME 7

c)
d)
e)
f )
Artificial lift
Secondary recovery
Enhanced/improved recovery
Surface facilities debottlenecking and optimisation
While some existing evaluation of data sets such as seismic,

petrophysical interpretations, reservoir and fluid properties or
transient well test analyses may be accepted, they must be
thoroughly reviewed as part of the FFR exercise and the decision not
to re-evaluate any data set comprehensively justified to PETRONAS
satisfaction.

At any time when it is observed that the performance of the field and
reservoir deviates from the FDP forecast, Contractor shall conduct
FFR. FFR process flow and approval process is described in Volume 6,
Section 1: Field Development Plan (FDP) Review and Approval Process.

1.2.4

Improved and Enhanced Recovery

At any stage of reservoir depletion Contractor shall look for
opportunities to add reserves. Artificial lift and/or improved recovery
method (surface pressure debottlenecking) may be implemented in
cases where natural drive mechanisms are insufficient and it is
economically viable. Contractor shall submit the artificial lift and/or
improved recovery programme in the FDP or FDP Revision for
PETRONAS technical review and approval.
Examples of improved recovery methods include but are not limited

to, water injection and/or immiscible gas injection for pressure
maintenance as well as displacement efficiency improvement.

For fields with water injection or gas injection, Contractor shall

conduct voidage replacement and a volumetric sweep analysis of
each reservoir and present a summary of the results to PETRONAS
on an annual basis. For water injection, the voidage replacement
policy of each reservoir will be determined by the optimum reservoir
management strategy (for example operating reservoir pressure
requirement, injection target percentage (%) of pore volume
hydrocarbon) of the field. For immiscible gas injection for pressure
maintenance, the voidage replacement policy of each reservoir will
be determined by the optimum reservoir management strategy (for
example operating reservoir pressure requirement, injection target
percentage (%) of pore volume hydrocarbon) of the field and/or a
group of fields sharing the same infrastructure.
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At any stage of depletion, Contractor may seek PETRONAS approval

for the application of enhanced recovery techniques. Contractor
shall conduct a screening study for enhanced recovery development
opportunities during the initial FDP and/or investigate this as part of
the FFR.
Examples of enhanced recovery techniques include, but are not

limited to:

a)
b)
c)
d)
e)
f )
immiscible or miscible gas injection

microbial enhanced recovery
surfactant flooding
steam flooding
polymer flooding
air injection
In particular, Contractor must examine the potential for reserves

optimisation and geo-sequestration of greenhouse gas through
immiscible and miscible carbon dioxide injection into fields that
contain gas reservoirs with high carbon dioxide content.
1.3 Well and Reservoir Management Plan

20
Contractor shall submit a Reservoir Management Plan (RMP) to PETRONAS

for approval, which should include all strategies and plans. This RMP will be
subjected to review during the annual review (FRMR/FRW). The content shall
include the following but not be limited to:

1.3.1

Reservoir Management Strategy and Plan

The Reservoir Management Strategy and Plan should include the
various recommended operational conditions that have been
developed during the field development stage with the purpose of
maximising the reserves/recovery.
As stipulated in Section 1.2 in this volume, the Reservoir Management

Plan shall be reviewed periodically based on when new data is
acquired during the production phase of the reservoir or if there is
any deviation of reservoir performance from that predicted and
during every FFR. Contractor shall also provide PETRONAS with an
updated simulation model of the reservoir that is compatible with
PETRONAS system as and when requested in order to facilitate the
review of the revision/update to the RMP. Any other technical study
that supports the justification to revise or update the RMP may also
be submitted.
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Any revision or update to the RMP requires PETRONAS approval prior

to implementation as stipulated in Appendix 1.

1.3.2 Well Flow Assurance Management
Contractor shall ensure reliable and continuous flow of production
stream from the formation to the processing facilities and injection
stream from processing facilities to the formation. Contractor shall
make all efforts to remove any obstruction to flow (for example wax,
asphaltine, scale, hydrate and sand) leading to sub optimal
production/injection.

Integrated flow assurance studies/assessment needs to be done in

the FDP and to be periodically reviewed as the new information are
available during production.

1.3.3

Idle String Management

Idle string is defined as a string that has not produced or injected for
more than ninety (90) consecutive days. The idle string is classified
according the state of its capacity. Refer to Appendix 2 for
information on how an idle string is defined and classified.
Strings that are able to produce but are temporarily shut down
because they are cyclic or swing producers are not considered idle.
These cyclic producers are defined as having intermittent flow with
shut downs of less than ninety (90) days.
Contractor shall ensure that all strings in its inventory including

injectors are active or serve their purpose in supporting reservoir
management and surveillance while maintaining integrity and safety
of their operations. Wells or strings that fall into the idle category
must undergo a proper inventory and be categorised according to
the above definition. Contractor shall also plan to reactivate the idle
wells or strings as soon as possible. The inventory must be updated
and shared with PETRONAS on a monthly basis.
Contractor shall conduct a production rate well test every quarter

for strings that are non-effective or idle to re-evaluate their potential
and gather the necessary information to determine if the wells can
return to production. Under any condition if Contractor wants to
produce the Reservoir Management (RM) non-effective idle strings
with a deviation from the approved Reservoir Management Plan
(RMP), Contractor shall inform PETRONAS of the deviation from the
approved RMP.
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Contractor shall reinstate effective idle strings within one (1) year
from the date the well became idle. If Contractor anticipates that the
idle string would not be able to be reinstated within one (1) year,
Contractor shall supply PETRONAS with a valid justification in order
to get agreement.
If the well is declared idle because it has been depleted (under

Reservoir (RES) category) and Contractor does not believe it has
any future potential and given that PETRONAS agrees with this
assessment, then Contractor shall submit a plan for well
abandonment. This submission to PETRONAS shall be within one
(1) year from the date the well was agreed by PETRONAS to be RES
depleted idle. For Ultimate Recovery (UR) depleted idle string,
the plan and timeline to produce the identified behind casing
potential shall be included in monthly update to PETRONAS.
1.4 Production Enhancement

Contractor shall take action to improve the injection or deliverable

performance of a well as deemed necessary. To achieve this, Contractor
may carry out workovers and/or other well work activity and artificial lift
programmes. Contractor shall refer to Appendix 1, which lists the activities
required for submission of the proposal for PETRONAS approval.
To ensure smooth delivery, Contractor should initiate a discussion for any

activity requiring a workover unit three (3) months before the expected
execution date. Discussions for activities that do not require a workover unit
should start one (1) month before the expected execution date.
Contractor shall share the results of any production enhancement activities

they undertake with PETRONAS within three (3) months of the completion of
the activities.
1.5 Annual Field Performance Review

1.5.1

22
FRMR/FRW
Contractor shall present PETRONAS with an assessment of the field
performance/surveillance, in the annual Field Reservoir Management
Review (FRMR). The timing for the annual review will be
determined by PETRONAS with agreement from Contractor and
the package submission deadline will be two (2) weeks before the
date of the review. PETRONAS may request a detailed review of the
well in a Field Review Workshop (FRW) which will be requested with
ample notice to Contractor or at least once every two (2) years.
Contractor shall also invite PETRONAS to participate in any
in-house well by well review to obtain exemption for a separate FRW.
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Contractor should assess the RMP annually and this should be
reviewed by PETRONAS during the annual performance review
(FRMR or FRW).

1.5.2

Requirement for FRMR/FRW

Contractor shall make all necessary data and information available
during any review. Contractor should refer to FRMR Guideline, which
is available upon request for template and the FRW requirements.
The package presentation shall follow this template for an
effective review session of the field and reservoir. Contractor shall
use recent data and information in the presentation package. The
data and information shall be as recent as three (3) months prior to
the planned review session. Contractor shall also make sure that key
personnel are available during the review.
1.6 Well Abandonment

Contractor shall submit any plans for well abandonment for PETRONAS
approval in accordance with Volume 8, Section 9: Plug and Abandonment
of Wells or once Contractor and/or PETRONAS has determined that the
reservoir/well is no longer economically productive and has no future
potential to produce. This requirement shall be in line with Section 10:
Decommissioning of Upstream Installations in this volume.
1.7 Asset Relinquishment (Subsurface)

Contractor shall continue to gather and analyse reservoir performance data

and operate in a manner that is consistent with the optimum reservoir
management strategy of the field in line with Section 1.3.1 at any time during
the period of the Contract.
At the end of the Contract period, Contractor shall uphold surveillance

compliance and reservoir management strategy of the field and reservoir.
Contractor shall maintain all the data and information pertaining to the field
and make it readily available to PETRONAS by the end of the Contract
agreement. Contractor shall handover all the wells in a safe and operable
condition at the end of the Contract period. This requirement shall be in line
with Section 9: Asset Relinquishment in this volume.
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Section 2: Well Test and Surveillance
2.1 Introduction

This section provides the scope and requirements for the information

PETRONAS requires to be submitted related to the completion and

recompletion of development/production wells on well test and production
allocations.

It also outlines the procedures to be adopted for acquiring basic information

relating to reservoir management. These procedures do not cover all aspects
of well testing and production allocations however and ought to be regarded
as the necessary requirements while ensuring safety and integrity of
production facilities based on good oilfield practices.
For any areas of well test and surveillance that are not specifically mentioned
in this section, Contractor is obliged to use best oilfield practices,
internationally recognised codes and standards and at all times
comply with the relevant Malaysian Law.
Contractor must gather information from all newly completed and active
wells for the purpose of reservoir management. An active well is defined as
a well or string that is producing with a stable rate and is not intermittent for
more than ten (10) days in one (1) calendar month.

2.1.1

Oil Producing Well

An oil producing well is defined as a well or string that is completed
in the oil zone in the reservoir(s) and is intended to produce oil from
the reservoir.

2.1.2

Gas Producing Well

A gas producing well is defined as a well or string that is completed in
the gas zone in the Non-Associated Gas (NAG) reservoir(s) or in gas
cap zone in the oil reservoir(s) and is intended to produce gas from
the reservoir.

2.1.3

Injection Well
An injection well is defined as a well or string that is completed in
either a gas, oil or water zone in the reservoir(s) and is intended to
inject gas, water or other fluids for the purpose of reservoir
management or fluid disposal.
2.2 Periodic Production Rate Test

24
Upon the initial completion or recompletion of a well, Contractor shall

carry out the initial production rate test as soon as stable flow is established
and/or has been subject to not more than sixty (60) days of initial
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production or at the first safe opportunity available. The test shall be carried
out on each separated producing interval of the well whenever the
interval is put into production.
Contractor shall conduct subsequent production rate tests monthly for all
active producers. Additional production rate tests shall also be conducted if
the following conditions arise:

a)

b)

c)

The new choke size has never been used before

The well performance is anticipated to be significantly different from
that predicted
As per PETRONAS request
A shut-in well with the capability of flowing shall be tested quarterly.

Results of the production test shall be maintained by Contractor and must

be submitted as per Volume 10, Section 5: Data Management and Data

Submission. The test report shall include but not be limited to the following
information:

a) Choke size used for the well during the time the production test was
conducted

b) Result of the production rate test, including Base Sediment &
Water (BS&W) measurement, gas lift or other related information,

where applicable

c) Measurement of the surface production conditions, namely: tubing
and casing head pressure, pressure and temperature (where applicable)

of the measuring equipment

d) Bottom hole pressure and temperature data where down hole gauge

is available

For an oil and gas well, the measurement devices to be used for well testing

purposes shall be calibrated annually with an accuracy of +/- ten percent
(10%).

It is Contractors responsibility to ensure that the measurement system for

well testing purposes at all times complies with the required accuracy of
ten percent (10%). This can be conducted by means of onsite calibration or
other methods that are deemed appropriate.
2.3 Bottom Hole Pressure Survey

2.3.1 Static Bottom Hole Pressure (SBHP) Survey
This survey shall be conducted on at least fifty percent (50%) of the
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total active producers in each reservoir annually for the first two (2)
years of its producing life and on at least twenty-five percent (25%)
of total active producers thereafter. An additional survey shall also be
conducted if PETRONAS so requests. The survey can be conducted
on active or non-active producers.

2.3.2

Transient Pressure Survey

Contractor shall conduct pressure build up (PBU) or drawdown (DD)
pressure survey(s) for newly completed or recompleted oil wells for
each reservoir or based on PETRONAS requirement. The pressure
build up shall be conducted with the following sequences:
a)
b)
c)
d)
The length of the build-up or DD period must be sufficient to capture

well and reservoir parameters.
first/initial flow
first buildup
main flow
final/main buildup
This survey shall be conducted at the first safe opportunity available.

Subsequent to the initial survey, a periodical survey shall be
conducted on each active producer when deemed necessary for
reservoir characterisation and wellbore evaluation. The exercise shall
be conducted in accordance with prudent reservoir management
practices.
26

2.3.3

Flowing Survey for Oil Producing Well

For oil wells with artificial lift, Contractor shall conduct a flow survey
every two (2) years as a minimum requirement to validate the well
model and achieve optimum well operating condition.

2.3.4

Deliverability Test for Gas Producing Well

Upon the initial completion or the recompletion of gas wells,
Contractor shall carry out the initial deliverability test as soon as
stable flow is established and/or has been subject to not more than
sixty (60) days of initial production; or at the first available safe
opportunity. The test shall be carried out on each separate producing
interval of the well whenever the interval is put on production. The
test shall be carried out on a minimum of three (3) rates.
Subsequent to the initial deliverability test, a periodical delivery test

shall be performed at least once a year on all active producers. If a
single rate test indicates significant delivery change, the deliverability
test shall be repeated.
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2.3.5

Production Logging Tool (PLT) Survey

For commingle oil reservoirs, Contractor shall conduct an initial PLT
survey to define the proper production allocation and/or identify
any well/reservoir problems. The subsequent survey shall be
conducted as and when required. For non-commingle oil reservoirs,
the PLT survey shall be conducted as required by PETRONAS.
For commingle gas reservoirs, Contractor shall conduct an annual

PLT survey to define the proper production allocation and/or
identify any well/reservoir problems.

2.3.6

Saturation Logging Survey

Contractor shall conduct a saturation logging survey for oil reservoirs
once every two (2) years in some key wells, so as to define the
saturation distribution in the reservoir.
Contractor shall conduct saturation logging surveys for gas reservoirs

as required by PETRONAS.
2.4 Injection Wells

2.4.1 Injection Rate Measurement
Injection volume shall be measured on well basis and subsurface
allocation shall be done on monthly basis.

2.4.2

Injectivity Test
Contractor shall conduct an initial injectivity test for every injection
well or any well that has been converted to an injection well for the
purpose of pressure maintenance. For water injection, the test shall
be done until it reaches above the fracture pressure or the maximum
safe operating injection pressure, to determine the reservoir fracture
gradient and other well/reservoir information.
The test shall be conducted after thirty (30) days of injection but not
later than after ninety (90) days of injection or at the first safe
practical opportunity available after thirty (30) days of injection.

2.4.3

Injection Profiling Survey

For commingle reservoirs, Contractor shall conduct an initial
Injection Profiling Survey to define the proper injection allocation and
/or identify any well/reservoir problems. The subsequent survey shall
be done once every two (2) years as a minimum requirement.
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2.4.4 Injection Fall Off Survey
Contractor shall conduct an initial Injection Fall Off Survey for newly
completed or recompleted wells for each reservoir. The length of the
shut in period must be sufficient to capture well and reservoir
parameters.

This survey shall be conducted after thirty (30) days of injection but
not later than ninety (90) days of injection or at the first safe practical
opportunity available after thirty (30) days of injection.
Subsequent to the initial survey, a periodic survey shall be conducted

on each active injector when deemed necessary for wellbore
evaluation. The exercise shall be conducted in accordance with
prudent reservoir management practices.
2.5 Record Keeping and Data Quality

The results of the above tests shall be maintained by Contractor and shall be
submitted to PETRONAS in accordance with Volume 10, Section 5: Data
Management and Data Submission.
Contractor is responsible to ensure that all data and information of the well
tests and surveys are validated to ensure the reliability and usability of these
data and information.
2.6 Production Allocation

2.6.1

Production Allocation to Each Producing String

The production rates of oil, gas, condensate (if applicable) and
formation water for an individual string shall be determined based on
a production rate test and monthly production. This allocation should
be carried out at the end of each calendar month.

2.6.2 Production Allocation to Each Producing Interval
When two (2) or more producing intervals are being produced
through a common string, the oil, gas, condensate (if applicable)
and formation water production of the string shall be allocated to
each producing interval according to the split ratio for the individual
fluid.

28
A determination of the split ratios shall be made before a new

combination of producing intervals is put into production or when
the combination is changed or when the data indicates a change is in
order. A revision of the split ratios shall be made, when deemed
necessary, based on well performance and survey and when
operationally feasible.
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For wells that are not accessible for survey, the split ratio shall be
based upon a reservoir engineering calculation from the subject
well or from other wells in the same field. Consideration should be
given to data such as: porosity, thickness, estimated permeability,
reservoir pressure and other characteristics of the producing intervals
for calculations of the split ratio.
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Section 3: Facilities Reliability & Integrity Management
3.1 Introduction

The safe and efficient operation of facilities is essential to Contractors

and PETRONAS successful business and Health, Safety and Environment
(HSE) performance. Apart from enabling the achievement of the desired
production target and the quality of the hydrocarbons produced, it is
important to ensure that all facilities operate with integrity and reliability to
preclude any undesirable HSE impacts resulting from functional failures of
such facilities. All facilities must perform their functions as intended and
when facilities performance falls below the intended level, effective
corrective actions need to be promptly implemented.
3.2 Reference

In managing reliability and integrity of facilities, Contractor is required to

adopt a full life cycle management concept, which encompasses all phases
of the facilities life cycle - from conceptualisation to decommissioning.
It must comply with PETRONAS minimum requirement for Process
Safety Management.
Throughout the field development phase, measures to ensure reliability and

integrity must be incorporated into the Field Development Plan (FDP) and
the design of the facilities. In addition, the highest standards of reliability and
integrity should be applied during the construction, installation and
commissioning of facilities. These are to be addressed as part of the
assurance programme for each development project.
Throughout the production phase, reliability and integrity must be sustained

and safeguarded through prudent operations and proper inspection and
maintenance of facilities.
Due consideration should also be given to the reliability and integrity of the
facilities prior to relinquishing the field to PETRONAS. Contractor is required
to ensure that the integrity of the facilities is in the state that enables safe
and reliable operation after the handover. Contractor must conduct Facilities
Extended Full Life Cycle Study for ageing facilities and fields at least five (5)
years before the end of design life with the exception of fields with
unjustifiable economics.
Throughout the facilities life cycle, the measures adopted to ensure a

reduction of the risks associated with their operation are to be based on the
principle of As Low as Reasonably Practicable (ALARP).
3.3 Management System

30
The management of facilities reliability and integrity must be strongly

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integrated with HSE best practices as well as Quality Management.

Contractor is therefore required to incorporate the following key elements

of reliability and integrity into all its management systems, at a minimum, in

order to provide a structured framework for effective management of the
facilities.

3.3.1

Leadership and Commitment

Contractors management shall demonstrate visible leadership and
commitment by placing high priority and playing an active role in all
activities related to the reliability and integrity of each facility. Apart
from allocating sufficient financial and human resources, the
management must also put a mechanism in place that measures and
monitors the performance of the facilities in terms of reliability and
integrity. In addition, Contractors management is required to inspire,
motivate and empower their employees to achieve the targeted
reliability and integrity of the facilities and to take account of the
impact this has on business performance.

3.3.2

Policy and Strategic Objectives

The policy shall clearly outline the principles, objectives, strategies
and performance targets related to facilities, reliability and integrity.
Contractor must ensure the dissemination of the policy and strategic
objectives to all employees and to other relevant parties as necessary.

3.3.3

Organisation, Roles and Responsibilities

Contractor is required to establish a functional structure and allocate
resources to show that reliability and integrity management is
a departments responsibility. Hence, the roles, responsibilities and
accountability of all relevant personnel must be clearly defined.
Contractor is also required to institute a method of communication

that allows for the dissemination of information about the facilities
reliability and integrity management across its organisation.

3.3.4

Reliability and Integrity Management Processes

Contractor is obliged to identify and clearly define methodologies
that assure the reliability and integrity of facilities. As minimum
requirements, the methodologies must include the following:
a)

b)

c)

risk assessment to estimate the magnitude of risk and determine

the risk tolerance
risk and reliability management to determine the maintenance
requirements of the facilities
criticality assessment to determine the relative importance
of equipment to the overall operation of the facilities
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d)
e)

f )

g)

h)

3.3.5

incident investigation and failure analysis

Bad Actor Management to identify and rank issues relating
to the facilities reliability and integrity and to work towards
elimination of the problems
remnant life assessment to ensure the safe operation of
critical equipment and those nearing the end of their design
life
assessment of operational performance, process effectiveness
and personnel competencies
implementation of an Improvement Plan
Improvement Plan and Implementation

Contractor must review or assess the reliability and integrity
performance of the facilities and identify any areas that need
improvement. Corrective or improvement efforts shall be prioritised
according to Contractors criticality and risk matrix.

3.3.6 Assurance/Audit
Contractor is required to conduct an assurance/audit to verify
compliance to and assess the effectiveness of the management
system. PETRONAS, at its discretion, may participate in the assurance
/audit or conduct a similar exercise.

3.3.7

Management Review
Contractors management shall review the performance and
remedial plans that relate to the facilities reliability and integrity. Any
improvement objectives and targets must be in line with PETRONAS
aspirations and requirements.
Apart from assuring performance, the review must also aim to:
a)
b)

c)

establish optimal use of all resources

assure the competency of all personnel and/or any subcontractor
apply appropriate existing and new technology
Following the review, appropriate improvement measures are to be

implemented accordingly.
Proper implementation is essential to the effectiveness of the

management system and therefore, the management system must be
supported by relevant guidelines, standards and procedures.
32
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3.4 Operation of Facilities

Contractor shall prudently ensure safe, reliable and efficient operation of

facilities. Procedures and work instructions for both routine and non-routine
activities are to be developed and adhered to during operations. Contractor
shall employ adequate number of competent personnel for its production
operations. The operating procedures and other relevant technical
instructions including drawings and equipment dossier shall be made
accessible on locations and updated when necessary.
The operating limits as defined during design of facilities are to be monitored

during operations so as to ensure the design intents are met. Should the
operating limits deviate from the design basis, Contractor is to undertake
necessary corrective measures to ensure safety, reliability and efficiency of
facilities operations. In addition Contractor shall monitor the quality of
produced hydrocarbon and effluent to ensure that there is no presence of
elements which will be detrimental to integrity and reliability of facilities.
3.5 Inspection and Maintenance

Inspection and maintenance needs to be an integral and essential part of

Contractors overall production operation strategy. The functional fitness of
all facilities must be maintained to ensure their suitability to the activity.
Contractor shall also ensure that the activities are undertaken effectively in
order to realise the desired performance of the facilities.

3.5.1 Compliance to Legislative Requirements
All inspection and maintenance activities undertaken by Contractor
shall be, as a minimum in full compliance with relevant legislation
including, but not limited to, applicable offshore self-regulation with
reference to Offshore Self-Regulation Management System (OSR MS).

3.5.2 Philosophy and Related Documents
Contractor must develop and establish an inspection and
maintenance philosophy outlining the objectives, policies and
principles governing the inspection and maintenance of the facilities.
In addition, the document needs to include strategies that address
or mitigate potential threats to the reliability and integrity of the
facilities. As much as possible, cost effectiveness shall be a primary
consideration.

As deemed necessary by changes in legislations, revision in company

standards, assessment of maintenance effectiveness, advancement in
technology or enhancement in industry best practices, Contractor
shall review and update its system and all documents related to
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inspection and maintenance of facilities.
Contractor shall submit one (1) copy of document related to facilities

reliability and integrity management and a list of equipment register
to PETRONAS. Should there be any revision to any of the documents,
Contractor is to provide PETRONAS with the updated revision within
six (6) months of such change.

3.5.3 Minimum Requirements for Inspection & Maintenance of Topsides/
Onshore Terminals
34
3.5.3.1

Mechanical Static Equipment

Mechanical static equipment includes pressure vessels,
pipings, boilers, heat exchangers, launchers & receivers,
tanks, cranes, Single-Leg Buoy Mooring (SLBM)/Single Buoy
Mooring (SBM) systems including floating hoses and subsea
hoses.
Contractor must establish an appropriate corrosion

management programme including chemical applications,
microbiological monitoring and appropriate analysis to
ensure the sustained integrity of static equipment.
A baseline survey must be conducted before any equipment

is put into service (new static equipment or any that has
been inherited from another Contractor) to obtain a
reference which future surveys will be compared against.
A periodic inspection of equipment consisting of both
external visual checks for coating degradation and an
assessment of internal corrosion and/or erosion through
wall thickness measurement shall be the basis for
condition-based maintenance of the equipment.
For pressure vessels that cannot be internally inspected, a

suitable alternative method must be used. Additionally, an
appropriate technique shall be employed to perform
Corrosion Under Insulation (CUI) and heat exchanger tubes
inspection tube inspections.
Contractor may adopt a risk-based methodology for

inspection of static equipment in lieu of the time-based
approach. However, the risk-based methodology selected
by Contractor must be able to reduce the associated
residual risks to an acceptable level to ensure safe operation
of the equipment and to comply with OSR-MS. Any action
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to rectify findings that are identified during the inspection of

static equipment shall be promptly taken by Contractor to
avoid failures.
The maintenance or replacement of any equipment shall be

determined based on the inspection findings.
3.5.3.2

Major Rotating Equipment

Major rotating equipment includes gas turbines, internal
combustion engines (gas & diesel), gas compressors
(reciprocating & centrifugal) and pumps.
As much as possible, Contractor shall adopt a risk and

reliability management methodology to determine the
appropriate inspection and maintenance strategy, tasks and
intervals.

Planned preventive maintenance must be performed based
on
Original
Equipment
Manufacturer
(OEM)
recommendations and if applicable, improved practices

acquired as a result of Contractors operational experience.
Contractor, whenever feasible, shall continuously or
periodically conduct condition monitoring to establish a
basis for predictive or condition-based maintenance of
equipment. This condition monitoring must include

vibration and temperature monitoring, operating parameters

trending, lube oil analysis and boroscope inspection.

Functional test to address dormant failures must be

conducted at a defined frequency for emergency
equipment such as firewater pumps and emergency diesel
generators as well as for standby equipment and any
safeguarding/protective machinery.
Major inspection and overhaul must be performed based

on the combination of OEM recommendations and any
condition monitoring data acquired. Any inspection
and overhaul must take the operating parameters and mode
of operation into consideration. Contractor must provide
PETRONAS with any major rotating equipment overhaul and
change out plan on an annual basis.
3.5.3.3 Safeguarding Devices and Systems

The devices and systems are safety-critical items which
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detect abnormal conditions, perform logical processing and

initiate necessary executive actions per defined Cause and
Effect Matrix to ensure the facilities are brought to a safe
state.
Such devices and systems include:
a) instrumentations such as sensors, transmitters,

switches and pilots
b) detectors
c) initiating devices such as breakglasses, pushbuttons,

kill knobs and fusible plugs

d) fire and gas systems

e) shutdown systems
f ) High-Integrity Pressure Protection system (HIPPS)

g) shutdown and blowdown valves

h) pressure relief devices such as relief valves and rupture
discs
36
Contractor is required to conduct periodic functional tests

for all safety-critical/protective devices and systems at a
defined frequency to address dormant failures within the
devices and systems. The testing will establish that the
Cause & Effect Matrix, implemented in the systems, remains
correct and unchanged. Pressure relief devices shall be
subjected to periodic non-destructive functional tests. In
order to avoid failures, Contractor shall promptly rectify any
faults or failures that are identified during these functional
tests or inspections of safety-critical devices and systems.
However, impact to production resulting from such testing

needs to be taken into consideration and minimised. Where
possible, Contractor must employ technologies and
practices that allow on-line testing of devices and systems.
Where applicable, shutdown & blowdown valves and

pressure relief valves are required be inspected for leakage,
damage and corrosion.
3.5.3.4

Fire Fighting and Life Saving Equipment

Contractor shall conduct periodic inspection and functional
tests for all fire fighting equipment including fire water pumps,
monitors, deluge, sprinklers, portable extinguishers and
life saving equipment such as lifeboats, life rafts and escape
capsules to ensure functionality and validity at all times.
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3.5.4 Minimum Requirements for Inspection & Maintenance of Structures
Contractor must conduct a baseline survey which should include
visual inspection of the entire structure including any appendages
and Non-Destructive Test (NDT) on selected structural members and
nodes.

In addition, Contractor is required to develop and implement a

periodic survey programme that covers all structural members above
the Mean Sea Level (MSL), the splash zone and below the MSL area.
The survey must assess if there is any damage, anomaly, corrosion,
marine growth, debris or coating deterioration. Visual inspection,
NDT and Cathodic Protection (CP) reading must be part of the
periodic survey programme.
Contractor may adopt a risk-based methodology for the inspection

of structures in lieu of a time-based approach. However, the riskbased methodology selected must be able to reduce the residual
risks associated with the structure to an acceptable level. Contractor
must take immediate measures to rectify any findings that are
identified during the inspection to avoid failures.
The maintenance requirements which may involve touch-up

painting, major re-painting, repair or replacement of structural
members and cleaning of marine growth are to be condition-based
as necessitated by the survey findings.

3.5.5 Minimum Requirements for Inspection & Maintenance of Pipelines
Pipelines include subsea pipelines, risers, onshore (buried and above
ground) pipelines and associated facilities.

Contractor is required to establish Pipeline Integrity Management

System (PIMS) manual in accordance with PETRONAS Pipeline Safety
& Integrity Regulatory framework.
Contractor must develop and implement an appropriate corrosion

management programme to sustain the integrity of all pipelines.
The corrosion management programme shall, whenever applicable,
include chemical inhibition, dissolved gas analysis, microbiological
monitoring and cathodic protection.
All pipelines shall be equipped with facilities for internal cleaning and
internal inspection that can detect both internal and external defect
to ascertain the condition of the pipelines. Any deviation will be
subjected to economics and risk assessment for PETRONAS
consideration.
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Contractor shall conduct a baseline survey for pipeline internal and

external within the first two (2) years of service. Contractor must
adopt risk-based methodology for pipeline inspections to assess the
risk associated with pipeline failure and are required to implement
measures to mitigate any associated residual risks to an acceptable
level, to ensure safe operation of all pipelines.
Contractor must deal promptly to rectify any findings that are

identified as critical during a pipeline or riser inspection, in order to
avoid failures. All anomalies that have the potential to threaten the
integrity of the pipeline leading to failure shall be reported to
PETRONAS. Contractor is required to conduct integrity assessment
such as the Fitness For Service (FFS) assessment, which is to be based
on the inspection findings for all pipelines. The integrity assessment
must indicate the pipelines level of fitness to operate in the year
of inspection at Maximum Allowable Operating Pressure (MAOP) as
well as determining the remnant life of the pipeline and recommend
the next inspection date for the pipeline. Contractor must submit the
annual pipeline integrity report to PETRONAS.
To mitigate environmental impacts due to pipeline failure, Contractors

operating trunk lines, which are subject to risk and feasibility, have to
install a leak detection system.
Contractor shall further provide PETRONAS with any relevant

information relating to the Pipeline Integrity Performance Monitoring
(PIPeM) System as well as ensuring that the data provided is reliable
and updated.
All pipeline plan modifications and repairs shall be reported to

PETRONAS. Contractor shall extend a copy of the notification or
reporting to authorities on any related pipeline to PETRONAS.
38

3.5.6

Minimum Requirements for Inspection & Maintenance of Wellhead

and Downhole Systems
Contractor is required to establish and implement a system that
comprehensively manages well integrity.
The inspection programme for wellheads and christmas trees,

including assemblies, shall include visual checks for physical damage,
corrosion and leaks. Christmas tree valves have to be subjected to
leak and functional tests at a frequency determined by Contractor.
Contractor must monitor corrosion and erosion in a downhole
system, particularly with regard to production tubings, by using
appropriate means. Measures to rectify any issues identified during
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the inspection must be promptly taken by Contractor to avoid failure.
The functionality of all Surface-Controlled Subsurface Safety Valve

(SCSSSV) and wellhead valves must be assured through regular
testing. To establish the integrity of a downhole system, Contractor
shall also perform a bleed down and monitoring of annulus pressure
build up. Monitoring of sand production from wells is also required to
form part of the inspection programme for a downhole system.
Preventive maintenance for wellheads and christmas trees (including

assemblies) shall include regular greasing/lubricating of and
injection of sealing compounds into valves. Depending on functional
test results, the SCSSSV may need a change-out or servicing.

3.5.7 Minimum Requirements for Inspection & Maintenance of Subsea
Systems
The entire subsea production system shall be ideally designed to be
maintenance-free. All valves, fittings and connectors have to be
maintenance-free for the whole of their design life. Based on
manufacturers recommendations, Contractor shall also develop and
implement inspection programmes for subsea systems using
appropriate methods (Remote Operated Vehicle (ROV), Remote
Operated Tool (ROT) and/or diver.)
Due to the high cost of intervention, particularly for deepwater
facilities, subsea systems shall, as much as possible, be designed for
no scheduled/preventive maintenance.
3.6 Planning and Implementation

To ensure effectiveness in terms of both performance and cost, Contractor

must properly plan and schedule all inspection and maintenance
programmes. Contractor must employ appropriate computerised
management system for planning and scheduling of such programmes.
All inspection and maintenance activities that will totally or partially impact
production have to be clearly stated in the Work Programme & Budget
(WPB). Timely and consistent execution is essential to ensure the
effectiveness of planned inspection and maintenance activities. Contractor
must endeavour to fully comply with its inspection and maintenance plan.
Deviations from the plan shall be managed systematically. To minimise
production impact, Contractor shall maximise opportunistic maintenance by
capitalising on any facility shutdown.
As with any other activity related to production operations, full compliance

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to HSE requirements during inspection and maintenance is non-negotiable

and supersedes all economic considerations.
3.7 Materials Management

Whilst Contractor must avoid wastage due to incorrect and excessive

inventory in the warehouse, it is critical that correct spare parts, tools and
consumables for inspection and maintenance activities be made available in
a timely manner. Stock inventory shall be determined based on criticality and
failure rates of equipment and lead-time for spare parts.
The materials management system shall be integrated with the maintenance

management system employing appropriate computer system.
Contractor shall refer to PETRONAS Tenders and Contracts Administrative

Manual for Upstream Procurement on disposal of assets.
3.8 Contracting and Contractor Management

In the event of insufficient in-house resources or capability or due to

specialised nature of certain works or purely for cost effectiveness reasons,
Contractor may contract out inspection and maintenance works. However,
Contractor shall ensure that all third party contractors are technically
competent to perform the works. All tendering and contracting shall be
undertaken in full compliance to PETRONAS procurement procedures.
Contractor shall be responsible to manage cost, schedule and quality

aspects of the works whilst ensuring strict adherence to HSE requirements
by Contractor employed for inspection and maintenance of facilities.

For facilities operated by Contractor under lease arrangement, Contractor

shall be accountable to monitor and review the inspection and maintenance
programme.
3.9 Reporting and Key Performance Indicators (KPI)

Contractor shall measure performance and report to PETRONAS on the

compliance and effectiveness of reliability and integrity using the KPIs listed
in Appendix 3.
3.10 Major Failures and Corrective Action
40
Contractor shall inform PETRONAS of any findings that could potentially

lead to HSE issues, major failure of the facility and production reliability.
Contractor must conduct Root Cause Failure Analysis (RCFA) for all major
failures and are required to submit a copy of the RCFA report to PETRONAS.
To minimise the impact on production, Contractor shall immediately take

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the necessary corrective action(s) to safely resume production at the desired

level and work out long term measure(s) to prevent a recurrence of the
failure.
3.11 Management of Change

Contractor shall develop and maintain a system to properly manage all

permanent and temporary changes and deviations including those covering
the physical or functional aspects of the facilities, the operating procedures
and the inspection and maintenance plan that may have an impact on the
reliability and integrity of the facilities.
The principal elements of the change control system shall include, but not
be limited to:
a) definition
b) justification
c) technical review
d) risk assessment
e) approving authority and documentation
Contractor shall periodically review the list and status of changes and
institute necessary measures to counteract any adverse effects. Care must
be taken, however, to ensure that the system does not degenerate such that
expediency takes precedence over thorough review.
3.12 Information and Knowledge Management

All data, information, documents and technical drawings of Contractors

facilities are to be properly maintained and updated. Data about the reliability
and integrity of facilities is to be properly collected, validated, processed,
analysed and documented. Contractor must maintain proper and auditable
records of inspection and maintenance activities.
The history of failures, root cause(s) and remedial actions are to be properly
documented. Documents containing information on the reliability and
integrity of facilities are to be systematically managed by having a document
management system in place. For ease of storage and the longevity of the
documents, electronic copies are preferred over hard copies.
Lessons learnt and best practices are to be recorded, documented and

disseminated in a systematic manner. PETRONAS may request that
Contractor shares its lessons learnt with others.
3.13 Preservation

In the event that any facilities need to be put out of service, partially or
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totally, for a period exceeding three (3) months, Contractor shall develop
the procedures to properly and cost effectively preserve the facilities or part
of the facilities throughout the duration in accordance with equipment
manufacturers recommendations or good industry practices.
3.14 Facilities Modification, Upgrading or Rejuvenation

Modification, upgrading or rejuvenation of facilities may be necessary due to

the following reasons:

a) To enhance processing capacity (excluding requirements for new reserve
development)

b) To sustain/improve integrity or reliability

c) To address obsolescence of the system or its component(s)

d) To improve the quality of processed hydrocarbon

e) To ensure effluent meets environmental regulatory specifications
42
If the total estimated value of the project exceeds the threshold limit of
RM10 Million or if the project is deemed critical by PETRONAS, Contractor
shall submit the Facilities Improvement Plan (FIP)/Facilities Rejuvenation
Plan (FRP) for PETRONAS approval prior to undertaking the project.
The document must contain the following information:
a) Objectives
b) Project Definition
c) Scope of Work
d) Operations & Maintenance Philosophy
e) Cost & Economics
f ) Schedule
g) Project Organization
h) Contracting Strategy
i ) Technology
j ) HSE
k) Quality Management
In the event of any changes to the projects objective, concept, technology,

cost, operation and maintenance philosophy, Contractor is required to
submit a revision of the FIP/FRP. During the projects implementation,
Contractor must send PETRONAS a monthly progress report that highlights
the progress, achievements, look-ahead plan and any other issues pertaining
to the project. Contractor is further obliged to submit a close-out report
after the project is completed.
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Section 4: Liquid Hydrocarbon Measurement
4.1 Introduction

This section provides the minimum requirements for the establishment of

liquid hydrocarbon custody transfer and allocation metering systems. They

shall be regarded as PETRONAS general requirements and shall be fully

complied with whilst ensuring safety, accuracy and integrity of the liquid

hydrocarbon metering systems based on oil and gas best practices,

internationally recognised codes and standards and applicable Malaysian
laws.

In cases where the requirements are not specifically stated in this section,
Contractor shall derive the scope of work relevant to the liquid hydrocarbon
metering systems based on oil and gas best practices, internationally
recognised codes and standards and applicable Malaysian laws and shall
implement the same accordingly.

4.1.1 Scope
This section provides the minimum requirements for the design,
installation, testing, commissioning, operation and maintenance
of liquid hydrocarbon custody transfer and allocation metering
systems. Unless otherwise specified, the requirements stipulated in
this section are applicable to both types of liquid hydrocarbon
metering systems.
The objective of this section is to ensure that the liquid hydrocarbon
metering systems are designed, installed, tested, commissioned,
operated and maintained in accordance with PETRONAS minimum
requirements for accurate dynamic measurement of liquid
hydrocarbon.

This section does not give specific details for the requirements
relating to static measurement, namely, tank gauging, however, it is
recognised that should the dynamic measurement fails, the static
measurement shall be used to determine quantity in accordance with
the relevant approved offshore or onshore terminal procedures.

4.1.2

Distribution, Intended Use and Regulatory Considerations

Unless otherwise authorised by PETRONAS, the distribution of this
section is confined to any company that forms a part of PETRONAS,
Contractor or any appointed third party appointed by Contractor for
the above scope of work.
This section is intended to be used by all those involved in the design,

installation, testing, commissioning, operations and maintenance of
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liquid hydrocarbon custody transfer and allocation metering systems
in PETRONAS, Contractor or the appointed third party. It is
Contractors responsibility, as referred to in this section, to ensure
that the requirements stipulated in this section are followed, if the
above scope of work is outsourced or contracted out to the third
party.
In developing oil and gas fields that straddle a neighbouring country,
Contractor shall carefully scrutinise the requirements of both
PETRONAS and the co-host country to ascertain which are more
stringent, which combination of the requirements will be acceptable
with regard to safety, integrity and economics. In all cases,
Contractor shall inform PETRONAS about any deviation from the
requirements stipulated in this section that is considered to be
necessary in order to comply with the requirements of the
neighbouring country. PETRONAS may then negotiate with the
Malaysian authorities and any other concerned authority with the
objective of obtaining agreements to follow the requirements
stipulated in this section as closely as possible and also to be cost
effective.
4.2 Definitions
44
Accuracy is the closeness of agreement between a measured quantity value

and a true quantity value of a measurand.
Allocation metering system is a measuring system comprising mechanical,

instruments and computer parts that register the measured liquid
hydrocarbon quantities used for allocation purpose between differently
owned fields that share common facilities. This type of system is normally
designed with an uncertainty of within 1%.
Automatic sampler is a system installed in a pipe and actuated by automatic

control equipment that enables a representative sample to be obtained from
liquid hydrocarbon flowing in the pipe. The system generally consists of a
sampling probe, a sample extractor, an associated controller and a sample
receiver. Normally, it is also equipped with a sampler performance
monitoring device.
Computer part is a part of a liquid hydrocarbon metering system that

consists of digital computers and receives digital signals from Analogue to
Digital (A/D) converters or from digital instrument loops.
Custody transfer metering system is a measuring system comprising

mechanical, instruments and computer parts that register the measured
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liquid hydrocarbon quantities used for custody transfer purpose when there

is a change in the liquid hydrocarbon ownership. This type of system is

normally designed with an uncertainty of within 0.25% of standard volume.

Density is a quantity of homogeneous substance represented by the ratio of

its mass to its volume. The density varies as temperature changes and

therefore it is generally expressed as mass per unit volume at a specific
temperature.

Density meter is also known as a densitometer that operates on a

representative sample of liquid hydrocarbon withdrawn continuously from a

process line or vessel via a sampling system.

Displacement prover is a prover that operates on the principle of repeatable

displacement of a known volume of liquid hydrocarbon from a calibrated
section of pipe between two (2) detectors. This includes provers that are
commonly referred to as conventional pipe and small volume provers.
Flow computer is an arithmetic processing unit and associated memory

device that accepts electrically converted signals representing input variables
from a liquid hydrocarbon measuring system and performs calculations for
the purpose of providing flow rate and the total quantity data.
Forced balance method is a method used to allocate hydrocarbon or

hydrocarbon related products to a stream with higher level of uncertainty
that flows to a common facility.
Instrument loop includes all elements that form part of the measurement of
each individual quantity from a sensor to an input of A/D converter or an
input of digital signal to a computer part.
Maximum flow rate is the maximum rate of flow recommended or

authorised by the relevant meter manufacturer or regulatory body,
respectively. The maximum rate is determined by considerations of accuracy,
repeatability, linearity, durability and pressure drop.
Meter is a flow measuring device that indicates a measured flow rate. In

some cases, it is also the device that indicates the total amount of liquid
hydrocarbon passing through during a selected time interval.
Meter linearity is an ideal accuracy curve of a volume meter represented by

a straight line denoting a constant meter factor. The meter linearity is
expressed as the total range of accuracy curve deviation from such a straight
line between the minimum and maximum recommended flow rates.
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Meter proving is an exercise carried out in accordance with the approved

Validation Manual or proving procedure in order to determine a relationship
between the volume of liquid hydrocarbon passing through a meter at a set
of conditions and reference volume at the same conditions.
Meter run is the length of straight, unobstructed liquid hydrocarbon-flow

conduit complete with an associated strainer, inlet and outlet piping,
upstream and downstream straight lengths, a meter, a flow straightener,
pressure transmitter and gauge, temperature transmitter and gauge with
thermowell and an online density meter, where applicable.

Minimum flow rate is the minimum rate of flow recommended or authorised

by the relevant meter manufacturer or regulatory body, respectively. The

minimum rate is determined by considerations of accuracy, repeatability and
linearity.

Positive displacement meter is a meter that has a discrete volume segment

as its measuring element and the volume is directly measured and counted

by continuously separating or isolating a flow stream into discrete volume
segments.
46
Proration method is a method used to allocate hydrocarbon or hydrocarbon

related products to streams in proportion to its measured quantities. The
method is typically applied to streams having similar level of uncertainty.
Prover computer is an arithmetic processing unit and associated memory

device that consists of proving function for proving a meter and calculation
of meter factor.
Pulse interpolation is any of the various techniques by which the whole

number of meter pulses are counted between two (2) events (such as
detector switch closures) and the remaining fraction of a pulse between the
two (2) events is calculated.
Repeatability is a quality characterisation of the ability of a measuring

instrument to give identical indications or responses for repeated
applications of the same value of measured quantity under stated conditions
of use.
Sampling is an exercise in accordance with the approved sampling

procedure that is carried out either automatically or manually to obtain a
sample that is representative of liquid hydrocarbon in a pipe, tank or other
vessel and to transfer that sample into a container from which a
representative test specimen can be taken for analysis.
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Small volume prover is a prover used to calibrate a meter and having a

volume between detectors that does not permit a minimum accumulation of
10,000 whole (unaltered) pulses from the meter. The small volume prover
requires meter pulses discrimination by pulse interpolation or other
techniques to increase its resolution.
Standard conditions are the standard reference conditions of temperature

and pressure to which the measured volume is to be corrected. The standard
reference conditions for pressure and temperature shall be 101.325 kPa
(absolute) and 15C, respectively in accordance with ISO 5024:1999.
Supervisory computer is an arithmetic processing unit and associated

memory device that sends commands and accepts calculated data from
each flow computer and a prover computer for station totalisation
computation and archiving.
Terminal Operator refers to any party that operates common facilities either
onshore, marine or in an authorised place.
Turbine meter is a meter that has a multi-bladed rotor or impeller as

its measuring element to which a metered stream imparts rotational velocity
proportional to the average velocity of the stream. The rotor revolutions are
counted to register a measured volume.
Validation is a process of confirming or substantiating the accuracy of input

variables to a measuring system at normal operating conditions using
reference equipment traceable to certified standards.
Vendor refers to any party that manufactures or supplies equipment and

provides services to perform the duties specified by Contractor.
Uncertainty is an absolute value parameter characterising the dispersion of

the quantity values being attributed to a measurand, based on the
information used.

4.3.1

Units of Measurement
The standard conditions (base conditions) for all measurements shall
be in SI units in accordance with ISO 5024:1999 at a pressure and
temperature of 101.325 kPa (absolute) and 15C, respectively. If
volume is to be measured in imperial unit such as barrel, it shall be
converted from the base Sl unit and referenced to a pressure and
temperature of 14.696 psi (absolute) and 60F, respectively.
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The liquid hydrocarbon measurement shall either be in volume, mass

or energy.

Contractor shall submit a Measurement and Allocation

Concept proposal to PETRONAS for approval during the

FDP stage. Contractor shall carry out a financial exposure

and cost benefit analysis during the concept evaluation and

determine the most appropriate location or arrangement

for the installation of any liquid hydrocarbon metering

system, its meter run configuration and the required level

of uncertainty. To facilitate the approval, the submission to

PETRONAS shall include but not limited to the following
information:

a) Measurement philosophy

b) Product allocation principles, where applicable

c) Measurement methods and standards

d) Production accounting exposure analysis
e)
Proposed uncertainty
f ) Field area and installation layout with the main
pipelines

g) Project cost estimates
48
The liquid hydrocarbon metering system can be used either

for custody transfer or allocation purpose. There are two (2)
categories of liquid hydrocarbon metering systems that fall
under the purview of this section, namely:
a) Custody transfer metering system

b) Allocation metering system
4.3.2.2

Metering Project Implementation Metering Specification

Contractor shall submit a Technical Requisition Package
or equivalent documents relating to any liquid hydrocarbon
metering system to PETRONAS for Metering Specification
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It is the responsibility of Contractor to obtain agreements

from the respective equity Partners and any other
interested party that will be affected by the installation of
the liquid hydrocarbon metering system before the concept
is submitted to PETRONAS for approval.
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approval prior to the release of a tender plan. To facilitate

the approval, the submission to PETRONAS shall include
but not limited to the following information:

a) Design specifications and datasheets

b) Design formulae and calculations

c) Design uncertainty calculation and analysis based on

ISO 5168:2005 or equivalent standards
d) Design drawings inclusive of system architecture,

Piping and Instrumentation Diagram (P&ID), instrument

hook-up, isometric and general arrangement
e) Other relevant information e.g. project milestone,

WPB status and cost breakdown

Contractor shall submit a Functional Design Specification

or equivalent documents inclusive of the above information
to PETRONAS prior to the fabrication of the liquid
hydrocarbon metering system and PETRONAS will inform
Contractor if other information is required.
4.3.2.3

Metering Project Implementation - Metering Acceptance

Contractor shall submit comprehensive project documents
for any liquid hydrocarbon metering system to PETRONAS
for Metering Acceptance approval for its official use. To
facilitate the approval, the submission to PETRONAS shall
include but not limited to the following:

a) Updated Functional Design Specification inclusive of
the final design specifications, datasheets, formulae,

calculations and uncertainty calculation and analysis

b) As-built drawings inclusive of the final design system
architecture, P&ID, instrument hook-up, isometric

and general arrangement

c) Factory Acceptance Test (FAT) and Site Acceptance
Test (SAT) reports inclusive of the final test, validation
and calibration procedures and results, punch list

closure and work completion evidence

d) The final Validation Manual and/or Measurement and
Accounting/Allocation Manual/Procedure and other
relevant procedures
e) Approvals/certificates from all relevant authorities,
certified/accredited
third
parties/independent
laboratories traceable to their national certification/
accreditation and standards and manufacturers,
where applicable
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f ) Other relevant information e.g. validation and calibration

schedules and equipment inventory list

PETRONAS may grant the approval if the liquid hydrocarbon
metering system performance and its documentation
are satisfactory.

4.3.3

Static Measurement Project Implementation

Contractor shall ensure that all liquid hydrocarbon tanks used for
static measurement, namely, tank gauging for custody transfer or
trade purpose, are calibrated by a certified/accredited third party
traceable to its national certification/accreditation and standards and
certified by National Metrology Laboratory - Standards and Industrial
Research Institute of Malaysia (NML-SIRIM). Contractor shall submit a
certificate of ullage tables to PETRONAS prior to official use.
The calibration shall be conducted in accordance with the following

standards, where applicable:

HM 2 (2000)(formerly IP PMM Part II, S1 or IP 202/69)

ISO 7507-1:2003, ISO 7507-2:2005 and ISO 7507-4:2010
API MPMS Chapter 2.2A (R2012), API MPMS Chapter 2.2B
(R2007) and API MPMS Chapter 2.2D (R2009)

The liquid hydrocarbon tank gauging and manual sampling shall be
conducted in accordance with the following standards, where
applicable:

HM 4 (1998)(formerly IP PMM III, S1) and IP 475-2005

ISO 3170:2004
API MPMS Chapter 3.1A (2005) and API MPMS Chapter
8.1 (1995)
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The calculation of liquid hydrocarbon quantity shall be based on the

following standards, where applicable:

HM 1 (1999) (formerly IP PMM Part I or IP 201/64)

API MPMS Chapter 12.1.1 (2012) and API MPMS Chapter
12.3 (R2011)/Addendum (2007)

All liquid hydrocarbon measurement systems shall be subject to the
applicable Malaysian laws that include but not limited to the
following:
MALAYSIAN LAWS
LEGISLATIVE CONTROLS FOR
Customs Act 1967 (Act 235)

Sales Tax Act 1972 (Act 64)
Weights & Measures Act 1972 (Act 71)
Custody transfer or trade purpose
National Measurement System Act 2007 (Act 675)
Traceability purpose
Petroleum (Safety Measures) Act 1984 (Act 302)
Safety purpose
Contractor shall further ensure that the necessary approvals/

certifications are obtained from the following Malaysian authorities,
where applicable:
MALAYSIAN AUTHORITIES
Royal Malaysian Customs Department
REGULATORY AUTHORITIES FOR

Any liquid hydrocarbon measurement system
used for custody transfer or trade purpose that
may involve tax calculation.
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NML-SIRIM (as the Custodian of Weights
and Measures)

Pattern or type approval of meter, master
meter, displacement prover volume, prover
tank volume, pipeline volume and tank ullage
tables used for custody transfer or trade
purpose. Similar approvals/certifications, i.e.
pattern or type approval of meter and prover
tank volume shall also be applied to any liquid
hydrocarbon allocation metering system.
Reference shall also be made to the relevant
NML-SIRIM/SIRIM Berhad circulars for any
liquid hydrocarbon measurement system used
for custody transfer or trade purpose.
Department of Occupational Safety and

Health (DOSH)
Fabrication and testing of any liquid

hydrocarbon measurement system carried
out in Malaysia, if required. Similar approval,
if required, shall also be obtained if the liquid
hydrocarbon measurement system is to be
installed and operated onshore.
Contractor shall also ensure that the following equipment is

traceable to NML-SIRIM (as the National Measurement Standards
Laboratory) or any certified/accredited third party/independent
laboratory traceable to its national certification/accreditation and
a)

b)

c)

d)

The relevant equipment used for validating and calibrating the

primary and secondary equipment and proving facility of any
liquid hydrocarbon metering system
The relevant equipment used for any liquid hydrocarbon tank
calibration
The relevant equipment used for any liquid hydrocarbon tank
gauging
The relevant equipment or reference materials used for
laboratory analysis of any liquid hydrocarbon sample

4.3.5 Deviation
Any deviation from the requirements stipulated in this section shall
require PETRONAS approval with respect to:

52
a)
b)
c)
measurement and allocation concept

metering project implementation
static measurement project implementation
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d) operation and maintenance

measurement system
of
any
liquid
hydrocarbon

4.3.6 Documentation
Contractor shall establish and maintain up to date files containing all
specifications, calculations and as-built drawings. The files shall
also contain reports on verification revision, design, fabrication,
installation and commissioning inclusive of inspection and testing
programmes, operation manuals for all fixed and temporary phases
and other relevant documentation.

Contractor shall ensure that all documentation throughout the

project implementation is completed promptly, is readily available
and inclusive of uncertainty analysis, FAT and SAT procedures and
results and the project completion report. The information shall be
submitted to PETRONAS upon the project completion.
Contractor shall establish an internal control system and maintain an

up-to-date list of documentation.
4.4 Design

4.4.1

General Requirements
A liquid hydrocarbon metering system shall be designed, fabricated,
inspected and tested in accordance with the latest agreed editions
and supplements of technical specifications, codes, standards and
references mentioned in Section 4.8, where applicable, that may be
amended or supplemented from time to time.
Contractor shall request vendor to quote for the design,
manufacture, testing, calibration and documentation of a fully
integrated skid with its associated control panel.
The liquid hydrocarbon metering system shall comprise the following
major component parts:
a) Field Mounted Skid and Instrumentation

The minimum number of parallel meter runs required from

the specified minimum and maximum flow rates at a specific
accuracy with a complete standby meter run and/or a

proving facility

All transducers and instrumentation necessary for measuring

mass and volume flow rates, temperature, pressure, density

and water content and proving operations
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Automatic and manual sampling systems

All associated pipework, valves and fittings, access stairs,
walkways (for operation, maintenance and validation) and
drip pans
b) Control Panel and Computer System in Control Room

A control panel shall include all necessary terminations,

computer and control systems and operational indicators

A computer system shall consist of flow and/or prover
computers, supervisory computer and communication
bus. The supervisory computer and communication bus

shall be provided with full redundancy

All relevant items necessary for system functionality

inclusive of equipment for testing, validation and calibration

The liquid hydrocarbon metering system shall be designed to allow
subsequent recalibration of a displacement prover on site with a
portable master pipe prover-master meter calibration equipment,
tank prover-master meter or calibration can. For a liquid
hydrocarbon allocation metering system where a master meter is
used, a calibration facility for proving the master meter shall be made
available. Suitable process and electrical equipment and connections
shall be provided for the above purposes.

Bypassing the liquid hydrocarbon metering system is strictly
forbidden for normal operations after commissioning and start-up.
For the purpose of commissioning and start-up, should a bypass line
be required, it shall be provided with a blind or positive shut off
double block and bleed valve with telltale bleed for verifying shut off
integrity. The valve shall always be sealed.

All equipment within the skid shall be ergonomically arranged such
that there is safe and easy access for operations, maintenance and
validation. Facilities such as platforms, gratings and stairs shall be
provided to accommodate any work that needs to be performed on
the liquid hydrocarbon metering system. For a liquid hydrocarbon
metering system with heat tracing insulation, all equipment and
components that will be accessed periodically shall be provided with
removable covers that are fitted with quick release fasteners. All
equipment and materials supplied shall be brand new and suitable to
be used in accordance with their design operating conditions.
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Other designs can be accepted provided that Contractor can

demonstrate and provide documentation to show that they offer
the equivalent or better accuracy and integrity of the liquid
hydrocarbon metering system.

4.4.2

Meter Run Design/Pipework

A meter run shall be designed in accordance with the following
standards or other relevant standards as specified in Section 4.8,
where applicable:
A typical liquid hydrocarbon custody transfer metering system

schematic diagram is shown in Appendix 4, Figure 5.

ISO 2714:1980, ISO 2715:1981, ISO 10790:1999/Amd 1:

2003 and ISO 12242:2012

API MPMS Chapter 5.1 (R2011)/Errata (2008)/Errata (June

2011)ANSI/API MPMS Chapter 5.2 (2005), API MPMS Chap
ter 5.3 (2005)/Addendum 1 (2009), API MPMS Chapter 5.4

(2005), API MPMS Chapter 5.5 (2005), API MPMS Chapter

5.6 (R2008) and ANSI/API MPMS Chapter 5.8 (2011)

The materials selected shall conform to the applicable codes,

pressure and temperature ratings, process conditions, corrosion
resistance, ingress protection and electrical safety classification.
Each parallel meter run shall be provided with:
a) inlet and outlet piping

b) stream control and prover inlet valves
c) thermal relief valves
d) a meter with upstream and downstream straight lengths or

flow straightening vane as required
e) a strainer with differential pressure gauge and draining

facility. The strainer shall be able to handle the highest flow

capacity of the meter with a minimum pressure drop
f ) temperature transmitter and gauge with thermowell
g) pressure transmitter and gauge

The number of parallel meter runs shall be such that a liquid
hydrocarbon metering system shall be capable of measuring all flow
rates from the minimum to the maximum of the liquid hydrocarbon
metering system throughput with one (1) meter run on standby and
the remaining meter run still operating within its working range.
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Full bore through conduits or ball valves should be fitted to the
appropriate upstream, downstream and prover inlet of the meter
runs.
Double block and bleed valves shall be fitted at the following
locations:
a) Each meter run outlet to a prover inlet
b) Each meter run outlet to an outlet header
c) A prover outlet to the outlet header
d) All prover drain lines

These valves shall include instrumentation for cavity pressure relief
and shut off integrity verification. Drain connections from the double
block and bleed valves configuration shall have isolation valves and
pressure gauges for verification of tight shut off. For an offshore
liquid hydrocarbon metering system there shall be a suitable
arrangement for the valves that meets safety standard.

Flow control valves shall preferably be located at the following
locations:
a) On each meter run outlet between a tee and a double block

and bleed valve outlet
b) On the prover outlet between a 4-way diverter valve and a

double block and bleed valve outlet

The valves shall be capable of providing stable control over normal
linear range of the meter as a minimum. Valve and actuator sizing
calculations are required as part of the documentation.

Thermal relief valves shall be provided for all sections of pipework
capable of isolation and possible overpressure. All connections shall
be self-draining.

The total pressure drop of each meter run, at the maximum linear
operating conditions, shall be provided.

4.4.3 Meters
Turbine and positive displacement meters are normally used to
measure liquid hydrocarbon for custody transfer purpose. However,
the turbine meter has been the meter of choice for measuring liquid
hydrocarbon for custody transfer and allocation purposes. The
commonly used turbine meter is a twin-bladed helical turbine that
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has reduced sensitivity to viscosity changes than conventional
multi-bladed turbine.
Although factors such as pressure, temperature, viscosity, flow range
and fluid contamination may influence the type of meter selected,
viscosity, flow rate and fluid contamination should be considered
first.
Preferably, the meter shall be initially calibrated in liquid hydrocarbon
of the viscosity the system has been designed for and if not available,
in water by a certified/accredited third party/independent laboratory
traceable to its national certification/accreditation and standards.
Viscosity performance shall be established when the meter is in
operation.

The meter linearity shall be within 0.25% of average meter factor

over 10:1 flow range at a specific operating viscosity. The repeatability
after five (5) consecutive proving runs under stable conditions shall
be within 0.025% of average meter factor at each flow rate point,
where applicable.
The methods to calculate the linearity and repeatability shall be in

accordance with NML-SIRIM/SIRIM Berhad Circular ALIR 1991/01, API
MPMS Chapter 4.8 (R2007), API MPMS Chapter 5.3 (2005)/Addendum
1 (2009) and the common practice, where applicable. Other methods
to calculate the linearity, repeatability or other performance
characteristics shall be discussed with and agreed by PETRONAS
prior to their application.
The repeatability shall be checked at the minimum and maximum

flows and at evenly distributed flow rates within the specified 10:1
range, in both water and liquid hydrocarbon of the relevant viscosity.
The former check shall be carried out at the relevant manufacturers
facility during FAT and the latter during SAT.
In recent years, there have been growing needs to venture into other
technology such as a coriolis or ultrasonic meter that may provide an
alternative to turbine and positive displacement meters, for
applications at conditions deemed unsuitable to them. The selection
of the coriolis or ultrasonic meter shall be based on a need basis and
is subject to PETRONAS approval.

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4.4.4 Prover Design
A permanent meter proving facility shall be provided and designed as
per the following standards, where applicable:

ISO 7278-1:1987, ISO 7278-2:1988, ISO 7278-3:1998 and

ISO 7278-4:1999

API MPMS Chapter 4.1 (R2009), API MPMS Chapter 4.2

(R2011), API MPMS Chapter 4.4 (R2005), API MPMS

Chapter 4.5 (2011), API MPMS Chapter 4.6 (R2008), API

MPMS Chapter 4.7 (2009), API MPMS Chapter 4.8 (R2007),

API MPMS Chapter 4.9.1 (2005), API MPMS Chapter

4.9.2 (2005) and API MPMS Chapter 4.9.3 (2010)

Other relevant standards as specified in Section 4.8
References

The meter proving facility can use any of the following methods:
a)
b)
Displacement prover
Master-meter prover
4.4.4.1

Displacement Prover
A displacement prover includes a calibrated section in
which a displacer travels with flow, hence activates
detection devices. All types of displacement prover systems
operate on a principle of repeatable displacement of known
volumes of liquid hydrocarbon from a calibrated section
of pipe between the two (2) detectors. The displacement of
the volume of liquid hydrocarbon is achieved by an
oversized sphere or a piston travelling through the pipe.
The liquid hydrocarbon flow should not be interrupted
during meter proving. This uninterrupted flow permits a
meter to be proved under specific operating conditions and
at uniform flow rate without having to start and stop.

Generally, the displacement provers can be categorised as
follows:
a)

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Conventional Pipe Prover

A conventional pipe prover shall preferably be bidirectional with quick opening and closing for sphere
removal. These provers shall be designed and
manufactured in accordance with the relevant standards
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as specified in Section 4.4.4 and subscribe to the

following criteria:

A number of meter pulses generated over a
calibrated volume shall not be less than 10,000 whole
pulses (unaltered) per trip i.e. 20,000 pulses (unaltered)
total round trip volume

The resolution of the detectors or displacer system
shall permit pulse resolution to be at least 1 part in
10,000 or a detection range within 0.0001.

Displacer velocity shall not exceed 3 m/s

Connections to the conventional pipe prover shall
be downstream of meters

The conventional pipe prover shall be designed
such that its repeatability during calibration of the
volumes, where five (5) calibration trials i.e. five (5)
consecutive runs are performed and be within 0.01%
of average volume

Appropriate connections shall be provided for the
conventional pipe prover loop to facilitate recalibration
with a portable master pipe prover-master meter or
tank prover-master meter. Drain at the lowest point
and vent at the highest point shall also be provided.
The conventional pipe prover shall also be equipped
with temperature and pressure measuring elements

Other considerations for the design inclusive of

the following:

-
Detector Switches
The conventional pipe prover shall have two (2)
detector switches at each end of its prover loop
with preferably four (4) independent calibrated
volumes. The volumes from the cross-sectionally
installed detector switches shall be very similar
and these calibrated volumes are to be independent
of each other, where at any point of time if either
one (1) of the detector switches fails it does not
invalidate the other volumes.

The detector should be designed such that its
contacting head protrudes far enough into the
pipe to ensure switching takes place at all flow
rates during calibration and normal operations. The
detectors and switches should be weatherproofed
against the corrosive marine environment and be
suitable for electrical safety classification of the
installation.
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-
Internal Diameter and Coating
The internal diameter of the conventional pipe
prover loop shall be consistent throughout and
there shall be no tapping or drain point between
the calibrated volumes of the conventional pipe
prover.

The internal coating of the conventional pipe
prover shall provide a continuous level, durable
and smooth surface for the application. Vendor
shall provide full details of the coating, surface
preparation and its method, method of application,
the maximum allowable liquid hydrocarbon
temperature and method of repair. The porosity
and explosive decompression of the lining shall
also be avoided.

-
4-Way Diverter Valve
A 4-way diverter valve shall be motorised and
provided with a local and remote actuator together
with a manual override hand wheel. If remote
status of the valve is required, limit switches
shall be provided. Necessary instrumentation to
detect valve leakage shall also be included. The
4-way flow diverter valve in the bi-directional
prover shall be fully seated and sealed before the
displacer meets the first detector.

- Freedom from Shock
When the conventional pipe prover is operating at
the maximum design flow rate, the displacer shall
come to rest safely at the end of its travel without
shock.

-
Guide Bars/Tees
Careful design consideration shall be given to
guide bars or tees to avoid any damage to the
displacer.
b)

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Small Volume Prover

A small volume prover performance is critically
dependent on the mechanical precision of its tube
bore and movable element position detecting system,
measurement accuracy and stability of temperature and
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pressure, tightness of moving parts and ratio between
diameter of the tube and the actual displacement of the

moveable elements.

For offshore applications, where space and weight
are of important considerations, the small volume
prover may provide smaller and lighter solutions.

The small volume prover shall be designed and
manufactured in accordance with the relevant
standards as specified in Section 4.4.4 and the

following criteria:

Connections to the small volume prover shall
be installed downstream of meters

A piston seal leakage check kit shall be delivered
together with the small volume prover

A field standard test measure should be delivered
together with the small volume prover

The small volume prover shall be designed such
that its repeatability during calibration of its
volumes, where five (5) calibration trials, i.e. five (5)
consecutive runs are performed and be within
0.01% of average volume

Appropriate connections shall be provided for the
small volume prover system to facilitate recalibration
by water draw method at site

The small volume prover shall be vertically installed
except for application with clean and stabilised

liquid hydrocarbon

The field standard test measure for the calibration of the
small volume prover shall comply with the requirements
of the relevant standards as specified in Section 4.4.4
and shall be supplied by vendor, with a certificate issued
by a certified/accredited third party/independent
laboratory traceable to its national certification/
accreditation and standards. Prior to the calibration of
the small volume prover at site, the field standard test
measure shall be first calibrated and certified by NML
SIRIM.

The following elements shall form the parts of the small

volume prover:

A precision cylinder

A displacer piston, spheroid or other liquid
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hydrocarbon separation device

A means of positioning and launching the displacer
upstream of the calibrated section

The displacer detectors

A valve arrangement that allows liquid hydrocarbon
to flow whilst the displacer is travelling from
one position to the opposite position

Pressure measurement and indication devices

Temperature measurement and indication devices.

Instrumentation with timers, counters and pulse

interpolation capabilities

During the proving of a turbine or positive displacement
meter, the displacer velocity shall not exceed 1.5 m/s.
The small volume prover shall have a consistent inner
diameter throughout the flow tube. The calibrated
or swept volume of the small volume prover located
between displacer-position sensors shall be free from
any tapping, vent or drain point.

The small volume prover shall be installed downstream
of the meters. The small volume prover shall allow the
displacer to come to rest safely and without shock at
the end of its travel, when operating at the maximum
design flow rate. There shall be no sign of cavitation in
the small volume prover, valves or any other apparatus
within specific temperature and pressure ranges when
operating at the design maximum flow rate.

The internal coating of the small volume prover shall
have uniform bore, be durable and have a smooth long

lasting surface.

Block valves shall be installed to isolate the small
volume prover from line pressure during maintenance,
removal of the displacer and replacement of seal and

cleaning.

A drain at the lowest point and a vent at the highest
point shall be provided. Pressure relief valves and
leak detection facilities shall be installed with discharge
piping to control thermal expansion of liquid
hydrocarbon in the small volume prover whilst it is
being isolated from the main stream.
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4.4.4.2

Master-Meter Prover
A master meter is an indirect meter-proving device that
has been proved by a direct prover (pipe or tank prover). A
meter with exceptional linearity and repeatability is selected
to serve as the master meter (transfer standard) for proving
another meter or prover operating in the field. A
comparison of two (2) outputs is the basis of the mastermeter proving method.

The master meter shall be designed and manufactured in

accordance with the relevant standards as specified in
Section 4.4.4.

The situations where master-meter proving method can

achieve satisfactory results are those in which proving by a
direct method cannot be accomplished because of
logistical reasons such as the unavailability of the direct
prover. However, the master-meter proving method
introduces uncertainties between the meter being proved
and the prover that is used to calibrate the master meter.
The master-meter prover shall be used for a less critical
metering system with considerations given on safety,
accuracy, integrity and economic aspects.
The master meter should be placed at the downstream of the

meter to be proved and shall be connected in series that
are close enough to minimise corrections for volume
during proving. All liquid hydrocarbon diverting valves
between the meters shall have positive seals.

If the master meter is in portable service, it should be

protected against damage during transportation, installation
and handling.

a) Location of Sensors

Temperature and pressure shall be measured in each meter run

and at the inlet and outlet of the prover.
b)

Installation of Instruments
A thermowell shall be installed adjacent to each electronic
temperature sensor or group of sensors for calibration purpose.
It shall be possible to connect the test instruments in parallel
with all pressure sensors in a liquid hydrocarbon metering
system. The measurement of temperature, pressure and density
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shall be representative of conditions at a meter and situated as
follows:

In a volumetric measurement system: as close to the
meter as possible without infringing API requirements or

other standards as specified in this section

In a mass measurement system: as close to a density
meter as possible that should also be located as near
to the meter as possible without infringing API
requirements or other standards as specified in this
section
c)

Instrument Loops
Instrument loops shall be kept separated from other types of
instrumentation and power supply cabling in the area of use.
Cables and junction boxes shall not be shared with instrument
loops that are not part of the liquid hydrocarbon metering
system.
d)

Transmission of Pulse Signal

Pulse signal transmission and treatment from a turbine meter
shall be designed in accordance with the following standards,
where applicable:
64
The cables and other parts of the instrument loops shall be

designed and installed so that they will not be affected by
electromagnetic fields.
HM 23 (1998)(formerly IP PMM Part XIII, S1 or IP 252/76)

ISO 6551:1982 and BS EN ISO 6551:1996
API MPMS Chapter 5.5 (2005)
A pulse comparator shall be installed that signals an alarm

when a pre-set number of error pulses occur on either of the
transmission lines in accordance with the above codes. The preset level should be adjustable and when an alarm occurs, it
should be recorded on a non-resettable comparator register.
Where the pulse error alarm is determined by an error rate, the
error threshold shall be less than one (1) count in 100,000.
Pulse discrepancies that occur during low flow rates,
experienced during meter starting and stopping, should be
inhibited. The pulse transmission to a prover counter should be
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from one (1) or both of the secured lines to the pulse

comparator and precautions should be taken to avoid any signal
interference in a spur from the comparator line.
e)

Conversion of Signals from Analogue to Digital Form

A/D conversions shall not contribute systematic errors to
measurement. The total inaccuracy in analogue to digital
conversion, including resolution, drift, linearity, repeatability and
other random errors shall be within 0.025% of full scale.
Internationally accepted pulse interpolation methods, for the

pulse signals from the turbine meters, may be used if it can be
proved that the accuracy of this liquid hydrocarbon metering
system satisfies the requirements stipulated in this section and
satisfactory documentation showing the reliability for the
interpolation is produced.

When a single A/D conversion is used, a back-up converter is
required.
f )

Temperature Measurement
A temperature sensor shall be constructed of 4-wire platinum
Resistance Thermal Detector (RTD) element (100 at 0C),
resistance tolerance Class A or equivalent classes. The resistance
tolerance and the relation between resistance and temperature
shall be in accordance with IEC 60751:2008. The sensor shall be
installed in a thermowell.
A temperature transmitter should be located in the field using

a head-mounted intelligent type. An intelligent analogue
communication (4-20 mA) with superimposed Highway
Addressable Remote Transducer (HART) shall be preferred. The
transmitter output signal shall be linear with measured
temperature. The transmitter shall have galvanic separation
between the sensor element and output amplifier.
g)

Pressure Measurement
A pressure transmitter range of specific series shall be selected
so that normal operating pressure is between 50% and 75% of
scale, but where a narrow-span instrument is required, the
adjusted range shall cover the minimum and maximum
operating pressures. An intelligent analogue communication
The accuracy of a complete circuit of temperature sensor or

transmitter shall be within 0.15C.
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(4-20 mA) with superimposed HART shall be preferred.

The accuracy of a complete loop of a pressure transmitter shall
be within 0.25% of span.
h)

Density Measurement
The density measurement, where specified, shall be designed in
accordance with the following standards, where applicable:

i )

HM 8 (1997) (formerly IP PMM Part VII, S2)

API MPMS Chapter 9.1 (2012), API MPMS Chapter 9.2
(2012), API MPMS Chapter 9.3 (2012) and API MPMS
Chapter 14.6 (R2012)/Errata (1998)
For mass measurement, two (2) density transducers should be

installed. The installation shall be such that liquid hydrocarbon
passing through a density meter is representative of line density
and no gas can be trapped in the density meter that could
cause error of the density reading. They should both be installed
at an inlet of a liquid hydrocarbon metering system, within a fast
loop arrangement. An insertion type density meter may be
installed at the inlet or outlet of the liquid hydrocarbon metering
system.
The density meter installation should be such that one (1) will remain
online for continuous density measurement whilst the other one (1) is
taken out for maintenance or validation. Necessary correction to
meter conditions shall be carried out. A built-in temperature sensor
in the density meter shall only be used for indication purpose.
The accuracy of a complete loop of density meter shall be within
0.5 kg/m3.
Control Room Instrumentation - Environmental
Instruments that are sensitive to temperature or other
environmental factors shall be installed in locations where these
factors can be controlled.

4.4.6 Computer Based Monitoring and Control Functions Requirements
a) General

Metering and meter proving shall be managed by a computer

system. Manual proving shall also be incorporated as a back-up.

The computer system shall be installed in a central control room,
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local control room or local equipment room. Normally, separate

computers shall be dedicated to each meter run, to a station and
to a prover control. However, the functionality of the prover and
supervisory computers may be combined into one (1) or more
computers if it can be demonstrated that the required reliability,
availability and redundancy standards will be met. However such
an arrangement has to be agreed by PETRONAS.

The computer system is to be designed as follows:

The computer part in a liquid hydrocarbon metering system

shall have no function other than that which involves the

metering. The liquid hydrocarbon metering system shall

be designed in such a way that the maximum liquid

hydrocarbon flow will be measured

The computer part shall have the capability of continuously

displaying the number of pulses received from the meter
during proving

The computer system should include at least two (2)
independent registers for storing accumulated fiscal

quantities for each meter run and the station total. It shall

not be possible to delete or change these registers by

operator encroachment or power failure

The computer shall also be designed to ensure that

amounts generated during validation or calibration, are

registered separately from measured amounts

Manually entered parameters shall be displayed without

rounding off or truncation of digits. The display on the
computer shall have sufficient resolution to enable

verification for the calculation accuracy, be carried out.
Facilities shall be installed to prevent access to the

computer by any unauthorised personnel

The computer system shall be designed in such a way

that the transfer of data to a distributed control system,
supervisory control and data acquisition or plant
information system is permissible and all interfacing
requirements such as handshaking and necessary

software are provided

The computer part shall have an automatic watch over for
differences between readings of measured values for

parallel meter runs

For continuous monitoring of measurement data, the

computer shall, for each meter run, automatically log and

store for at least one (1) year the following data:
- At intervals of one (1) hour cumulative quantities:
meter factor and average values of pressure, temperature
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and density.
- At intervals of twenty-four (24) hours: cumulative

quantities.

The information shall be accessible on a printout in a

clearly set out format using a standard computer printer

and paper. Access to the logs shall not be possible without

the use of a key operated switch.

The flow computer shall be able to receive, as a standard

feature and without further modification, at least 2-pulse

trains from a turbine meter to perform a pulse security

check in accordance with the following standards, where
applicable:
HM 23 (1998) (formerly IP PMM Part XIII, S1 or IP 252/76)

ISO 6551:1982 and BS EN ISO 6551:1996

b)

68
ASTM D 1250 IP 200 1952 Tables, ANSI/ASTM D 125080 IP 200/52 API D 2540 1980 Tables and calculations
shall be made available in the flow computer for
correcting volume to standard conditions.
Report facility for computer constants and keypad setting
shall be available.
The computer shall have the ability to perform a meter
curve (foot-print) interpolation for a minimum of eight
(8) calibration points.
Data Security
The computer data transmission shall be designed in
accordance with Level A in the following standards, where
applicable:

HM 23 (1998)(formerly IP PMM Part XIII, S1 or IP 252/76)

ISO 6551:1982 and BS EN ISO 6551:1996
The computer shall have a self-diagnostic capability. It shall

monitor that programme loops are executed at the correct
intervals by means of a watchdog function.
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The parts of memory that contain permanent data shall have a

periodical check sum control.
Algorithms and fixed parameters important for accurate
computation of fiscal quantities shall be stored in non-alterable
memory.
A security system shall be provided for the manual entry of data.
The computer system shall be designed for and have features
provided for sealing.
Programme version numbers shall be assigned to identify
all programmes used and this will be able to be determined
directly from a visual display unit or printout. The version
number can be updated every time the permanent programme
is altered.
c) Calculation

Computer routines for fiscal measurement calculation shall
satisfy the requirements of the following standards, where
applicable:

HM 1 (1999)(formerly IP PMM Part I or IP 201/64)

ISO 9770:1989

API MPMS Chapter 11.1 (2004)/Addendum (2007), API

MPMS Chapter 11.2.2M (1986), API MPMS Chapter

11.2.4 (2007)/Errata (2011), API MPMS Chapter 12.2.1

(R2009)/Addendum (2007)/Errata (July 2009), API

MPMS Chapter 12.2.2 (2003)/Addendum (2007), API

MPMS Chapter 12.2.3 (R2009)/Addendum (2007), API

MPMS Chapter 12.3 (R2011)/Addendum (2007) and API

MPMS Chapter 21.2 (R2004)/Addendum 1 (2000)

ASTM D 1250 IP 200 1952 Tables and ANSI/ASTM D

1250-80 IP 200/52 API D 2540 1980 Tables

Other relevant equations and algorithms

References

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The computer shall satisfy the following criteria:

The update time to changes of input signals shall not

be more than two (2) seconds and parameters having

a response time such as density and temperature shall

not exceed five (5) seconds

The interval between each cycle for the computation of
instantaneous flow rate and accumulated flow shall

be less than ten (10) seconds

The algorithm for the calculation of meter factor at

reference conditions shall contain all correction factors
given in API MPMS Chapter 4.1 (R2009), API MPMS
Chapter 12.2.1 (R2009)/Addendum (2007)/Errata (July
2009), API MPMS Chapter 12.2.2 (2003)/Addendum

(2007) and API MPMS Chapter 12.2.3 (R2009)/Addendum

(2007), where applicable

The algorithm and rounding off error for the computation

of fiscal quantities in a flow computer shall be within

0.001% for flow rate and 0.01% for the totalisation
(integration) of the computed values. Rounding or

truncation shall only be carried out at the end of the
final computation

The temperature reading in degrees Fahrenheit (F) shall
be corrected to one (1) decimal place. Temperature

readings in degrees Celsius (C) shall be corrected to

two (2) decimal places

For meter factor and volume prover computation

purposes, the decimal places used shall be as follows:

- Correction for the Effect of Temperature on Liquid
(CTL), Correction for the Effect of Pressure on Liquid
(CPL), Correction for the Effect of Temperature on
Steel (CTS) and Correction for the Effect of Pressure on
Steel (CPS) six (6) decimal places
- Prover volume calculation four (4) decimal

places

- Meter factor six (6) decimal places

- The final prover volume shall be corrected to three (3)

decimal places

d)

70
If there is any deviation from the above requirements,

Contractor shall consult PETRONAS.
Printouts and Hardcopies

A computer system should have dedicated printers for alarms and
reports. The supervisory computer shall be able to electronically
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archive all the alarms and reports. A common printer can be used

if an acceptable priority routine is established. Automatic logging

on the following information is to be provided:

Alarms for faults detected by the computer (date, time)

Inserted parameters/constant, both fixed and changeable.

Quantity report

Instantaneous values of rate and measured input

parameters. Fixed values that are used instead of live

signals shall be identified

Meter proving report. All data required for manual checks
of calculated correction factors and meter factor

shall also be included

After consultation with PETRONAS, Contractor shall establish

a system for reporting of agreed data.
e) Meter Proving Algorithm Routine
The design of the computer routine for meter proving

operation shall be according to the following:

All meter runs outlet and prover inlet valves and status check

for meter proving sequencing shall be automatic

All proving calculations shall be carried out by the computer

system and printed automatically. Sufficient data shall be

available on the printout such that meter proving calculations
can be verified externally. Repeatability limits and the
required number of consecutive runs for repeatability

acceptance shall only be changeable with the highest

security level. Meter repeatability shall be such that it can be

calibrated against a permanent meter prover with a sequence

of five (5) consecutive runs and meets 0.025% of average

meter factor or range of 0.05%

The maximum trial runs before the computer aborts the

proving operation shall also be made changeable with the

highest security level (default number of trial runs is ten (10))

Prover stabilisation period for process conditions i.e.

temperature, flow rate and pressure parameters of the

stability limit, shall be user changeable with appropriate

security level (supervisor/engineer)

Automatic loading of meter factor to flow computer upon

confirmation from operator. Acceptable meter factor shall

be within the meter factor high and low limit of the respective
meter

Contractor, after consultation with PETRONAS, shall establish

a system for conducting the proving operation.
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f )

Power Supply
A computer system shall be equipped with an uninterruptable
power supply system for back up purpose. Normal operation
of a liquid hydrocarbon metering system shall not be affected
if there is any change from one power source to another.

4.4.7 Sampling and Analysis Requirements
A liquid hydrocarbon metering system shall be provided with an
automatic sampling system to collect representative samples for the
determination of Base Sediment and Water (BS&W), average density
and for other analysis purposes. Manual spot sampling, for the
purpose of back-up, shall be made available. The sampling system
shall be designed in accordance with the following standards, where
applicable:

IP 476-2002 and IP 475-2005

ISO 3171:1988 and ISO 3170:2004
(R2010), ANSI/API MPMS Chapter 8.3 (R2010) and API
MPMS Chapter 8.4 (2004)
A sampler controller and sample monitoring unit should be installed

as part of the sampling system.

The selection of sampling point shall be such that the pipeline
condition at the selected point is homogeneous. Contractor needs
to demonstrate, by calculation, whether there is any additional
mixing requirement such as a static or jet to ensure homogeneity of
the liquid hydrocarbon prior to sampling.

Where slugs of water may be experienced, inline water detection
probes shall be fitted to detect abnormal levels of water content.

For the sampling of pressurised liquid hydrocarbon, the following
should be observed:
a) A pressurised cylinder should be lightweight
b) The samples shall be representative and this can be

achieved by taking them from the mixture in the cylinder
prior to the extraction of liquid hydrocarbon either for
further transportation or analysis. The integrity of the

samples is to be maintained throughout the exercise
c) For pressurised manual sampling, an appropriate sample
point and a sampling cylinder for pressurised liquid is to
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be used. It shall be ensured that no lighter components of

the fluid are able to be liberated out of the cylinder

4.4.8 Metering Data
Metering data should be made available by Contractor at hourly
basis, daily basis and/or upon request as specified in Appendix 4.1.

4.5.1

Prior to on-site installation, an FAT shall be conducted to check the
integrity of both computer software and mechanical/skid
instrumentation. The FAT procedure shall be agreed between
Contractor and Vendor prior to the FAT.
During the FAT, all electronic and mechanical instrumentation shall

be tested together. The prover system shall be calibrated by a
certified/accredited third party/independent laboratory traceable to
its national certification/accreditation and standards, before the flow
integration test can be carried out. It is essential that Vendor shall
demonstrate that the equipment had been internally tested and
found to be in good working order before Contractor and PETRONAS
are invited for the FAT.
All FAT results are to be fully documented and only upon successful
completion of the FAT can a liquid hydrocarbon metering system be
accepted and shipped out to an offshore or onshore site. On site,
an SAT shall be carried out prior to the commissioning of the liquid
hydrocarbon metering system. Validation and calibration of all
instrumentation using certified test equipment traceable to NMLSIRIM shall be carried out. It is the responsibility of Contractor to
ensure that the FAT and SAT procedures be made available prior to
the tests. PETRONAS may request these procedures to be submitted
for review.
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Contractor shall notify and invite PETRONAS and NML-SIRIM, where

applicable, to witness the following activities, at least three (3) weeks
in advance:
WITNESSING REQUIREMENTS
CALIBRATION AND TESTING ACTIVITIES
PETRONAS,
Contractor and
Vendor
NML-SIRIM
Calibration of any displacement prover and master

meter used for custody transfer or trade purpose
Yes
Yes
Calibration of any displacement prover and master

meter used for allocation purpose
Yes
No
Calibration of any meter used for custody transfer or

trade purpose
Yes
Refer to Note 1
Calibration of any meter used for allocation purpose
Yes
No
FAT of any liquid hydrocarbon metering system used

for custody transfer, trade or allocation purpose
Yes
No
SAT of any liquid hydrocarbon metering system used

for custody transfer or trade purpose
Yes
Yes
SAT of any liquid hydrocarbon metering system used

for allocation purpose
Yes
No
Note 1: NML-SIRIMs participation is not required unless the liquid

hydrocarbon metering system has no displacement prover or master
meter in place.

PETRONAS may decide on its participation for the calibration and

testing activities.

4.5.2 Calibration
a) General

Liquid hydrocarbon custody transfer and allocation metering

systems shall be calibrated with certified test equipment traceable

to NML-SIRIM or any certified/accredited third party/independent

laboratory traceable to its national certification/accreditation and
standards.

Secondary standards or test equipment used for validation and

calibration of all relevant parts of the liquid hydrocarbon metering

system shall be calibrated and certified by NML-SIRIM or any

certified/accredited third party/independent laboratory traceable

to its national certification/accreditation and standards.
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b)

Instrument Calibration
All relevant instruments used in any liquid hydrocarbon metering
system shall be calibrated and certified by the manufacturers or
any certified/accredited third party/independent laboratory
traceable to their/its national certification/accreditation and
standards.
c) Prover Calibration

A prover system shall be calibrated at vendors facility as part of

system checks and after installation on site, immediately prior to

start-up. The details of the calibration method used will depend

on the type of meter proving system installed.

4.5.2.1 Displacement Prover Calibration

a) Conventional Pipe Prover Calibration
A conventional pipe prover shall be calibrated using a
water draw or master-meter proving method at vendors
facility as part of the system checks. The conventional
pipe prover shall also be calibrated by using a water draw
or master-meter proving method upon installation on
site for the SAT before it is put into service. If a master
meter is used, the meter shall be calibrated on site using
the water draw method. Similar method of calibration
should be done both at vendors facility and on site.

Both calibrations shall be in accordance with the
relevant standards as specified in Section 4.8 in this

volume.

All conventional pipe prover calibrations shall be

performed by any certified/accredited third party/
independent laboratory traceable to its national
certification/accreditation and standards and attested
to in writing.
The relevant field standard test measure used for the

conventional pipe prover volume calibration shall be
calibrated and certified by NML-SIRIM.
The conventional pipe prover shall be calibrated with at
least two (2) separate volumes, although four (4) volumes
are preferred. The conventional pipe prover shall be
capable of producing corrected volumes for five (5)
consecutive runs in any given direction within 0.01% of
average. The average of the five (5) consecutive round
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trips volumes shall be used as the base volume of the
conventional pipe prover.

The conventional pipe prover volume calibration process
shall be repeated at a flow rate change of at least 25% or
greater, to verify any possible leakage during the base
volume calibration. The corrected volumes for three (3)
consecutive runs at any given direction shall repeat
within 0.01% of average. The average volume of the
three (3) round trip volumes shall not deviate from the
newly established prover base volume by more than

0.02%.

Copies of calibration certificates for each of these and all
subsequent calibrations shall be documented in a
calibration report and shall be submitted to PETRONAS.
These certificates shall show the reference numbers of
sphere detectors. The calibrated volume shall be in SI
units at standard reference conditions.

b) Small Volume Prover Calibration
A small volume prover shall be calibrated physically at
Vendors facility using the water draw method as part of
the system checks for both upstream and downstream
volumes. The small volume prover shall also be calibrated
by using the same method, namely, the water draw
method upon installation on site before it is put into

service.

Both calibrations shall be in accordance with the
standards as specified in Section 4.8.

All small volume prover calibrations shall be
performed by any certified/accredited third party/
independent laboratory traceable to its national
certification/accreditation and standards and attested
to in writing.

The relevant field standard test measure used for the
small volume prover calibration shall be calibrated and
certified by NML-SIRIM.

The small volume prover shall be calibrated physically for
both upstream and downstream volumes if these
volumes are used for meter proving. The small volume
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4.5.2.2

prover shall be capable of producing corrected volumes

for five (5) consecutive runs in any given direction that
are repeatable within 0.01% of average.
The average of the five (5) consecutive volumes shall be
used as the base volume of the small volume prover. The
small volume prover calibration process shall be repeated
at a flow rate change of at least 25% or greater, to verify
any possible leakage during the base volume calibration.
The corrected volumes for three (3) consecutive runs in
any given direction shall repeat within 0.01% of average.
The average volume of the three (3) round trip volumes
shall not deviate from the newly established prover base
volume by more than 0.02%.
Copies of calibration certificates for each of these and all
subsequent calibrations shall be documented in a
These certificates shall show the reference numbers of
optical detectors. The calibrated volume shall be in SI
units at standard reference conditions
Master-Meter Prover Calibration

A master-meter prover shall be calibrated in similar
liquid hydrocarbon or other liquid as appropriate that
will be used during the meter operation. A linearity
curve of the master meter should be developed at a
minimum of eight (8) points over the range of the meter
design. Five (5) of these points shall span within normal
operating range (turndown ratio point to the maximum
operating point (or design maximum)) and three (3)
points shall span from below turndown ratio point to
the minimum operating point (or design minimum). The
linearity limit shall be within 0.25% of average meter
factor for up to 2 meter and 0.15% of average meter
factor for meter size greater than 2. The meter factor
that is applied to the master meter shall be the average
value of five (5) consecutive runs repeating within
0.01% of average meter factor.
Contractor shall consult both PETRONAS and NML

SIRIM should there be more stringent requirements by

NML-SIRIM with regard to the linearity and repeatability

limits of any master meter used for custody transfer or
trade purpose.
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All master meter calibrations shall be performed by any

certified/accredited third party/independent laboratory
traceable to its national certification/accreditation and
standards and attested to in writing.
Copies of calibration certificates for each of these and
all subsequent calibrations shall be documented in a
Meter Calibration
The first calibration test on each meter shall be
performed at vendor/manufacturers facility. For each
type of meter used, vendor/manufacturer shall, prior

to the FAT, demonstrate the performance of the meter
by initial calibration with a suitable medium at a

minimum of eight (8) flow rate points. Five (5) of these
flow rate points shall span within normal operating

range (turndown ratio point to the maximum operating

flow rate (or design maximum)) and three (3) flow rate

points shall span from below turndown ratio point to

the minimum operating flow rate (or design minimum).

Vendor/manufacturer shall issue a calibration certificate

for the calibrated meter.

Each flow rate point shall consist of five (5) consecutive
runs and the results shall repeat within 0.025% of

average meter factor. The meter linearity shall be within
0.25% of average meter factor over the specified
normal operating flow range. During the SAT, vendor

or Contractor shall perform the final test and calibration
with
liquid
hydrocarbon
against
meter
prover

(displacement prover or master-meter prover).

4.5.3 Testing
4.5.3.1

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General Testing
General testing shall include checking, flushing,
cleaning, hydrostatic pressure testing and electrical
earthing against the original specifications and drawings
of a liquid hydrocarbon metering system and shall be
done on an individual item basis. Vendor shall perform
its own test prior to the FAT and provide the necessary
evidence, if required, via filled test sheets.
VOLUME 7
a) General Check
Prior to further tests in the factory, a general check

on a liquid hydrocarbon metering system is to be

carried out. This includes checking of the following items:

Dimension check as per approved drawings and

standards

Instrument installation and quantity check as
per approved drawings and bill of quantity,

respectively

Availability of all documentation
b)
Metering Panel and Instrumentation Equipment

Tests

All panel and field mounted instrumentation, cabling
and connectors shall be visually inspected for
compliance with specifications with regard to
segregation of cables, satisfactory access, vents,
drains and general good quality of installation work

Calibration checks using precision test equipment
shall be performed on all transducers, transmitters,
converters, indicators, recorders, gauges and switches
and the relevant instruments supplied for use with the
liquid hydrocarbon metering system

All safety and relief valves shall be tested, set and
tagged with the set pressure

An insulation test shall be made on all power supply
and instrument cables and panel wiring using a
voltage tester. Instruments that may cause internal
damage shall be disconnected during the test. All
resistance thermometer elements shall be tested for
insulation resistance to BS EN 60751:2008

A sample of the power circuit breakers shall be tested
by simulating a short circuit failure

The control panel shall be fully functionally tested
before connection to the skid using appropriate
simulators and other test equipment

These tests shall include:
- panel mounted receiving indicators
- outputs from panel mounted controls
- meter run and prover instruments
- computer functional test
- verification of computer calculation and
integration accuracy
- interlocks and alarms
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- checking of power distribution circuits and
breakers for correct wiring and
- analogue functions shall be calibrated at a
minimum of five (5) points rising and five (5) points
falling in the range (0%, 25%, 50%, 75% and 100%)

All remotely operated valves shall be checked
after installation on the skid by:
- manual stroking of the valves to check limit switch
actuation and to ensure full operating
- local operation to verify phase of electrically
operated actuators rotation and functioning of
local controls
- remote operation and checking of remote position
indication and interlocks and
- noting the time for each valve to full stroke in each

direction

After connection between the panel and skid, loop
checks shall be made on all circuits to check correct
wiring and calibration of the liquid hydrocarbon
metering system. This shall include checks of all
alarms, interlocks, digital and analogue inputs and

outputs

A check shall be made on the effects of power supply
variations by setting all instruments in normal
operating mode and varying the output voltage to
upper and lower limits and noting the effect by
repeating functional checks

The panel should be heat soaked for a minimum of
one hundred (100) hours. Records shall be made of
the temperature at selectedpoints on the panel.
Following the completion of the heat soak, the loop
checks shall be repeated at ambient temperature to
ensure that none of the equipment has suffered any
thermal effects. A check of microprocessor
functional performance shall be made during
the soak test (after internal panel temperatures have

stabilised).

Measurement and records shall also be made on
panel maximum power consumption (Alternating
Current (AC) and Direct Current (DC))

Data transfer to another system shall be checked for
data accuracy, data correctness and redundant
switching of communication channels

Spares should be tested upfront
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A simulation test shall include simulating with at

least five (5) different values that cover the minimum
and maximum levels in the working range of the skid
instrument and the computers using test simulators
The simulators shall simulate signals connected to the

computers input or in any other way to secure a
controlled, constant input to the computers.

Testing or simulating different functions of the

computers shall include but not limited to manually
input data, printouts, alarms and data transmission
between the computers.
All computer calculations shall be verified by injecting

known values into the computers and comparing the
results using manual calculation e.g. flow calculation

software.
c) Flow Testing Calibration
Prior to flow test at vendors facility, all individual
equipment inclusive of mechanical equipment,
instruments and computing systems has to be
tested first. The liquid hydrocarbon metering
system shall be connected to a suitable pump
and test equipment where the following tests are
to be carried out using water or another suitable

test medium.

All meters shall be individually flow tested and
proved against a prover at their rated minimum
and maximum flows on five (5) flow rate points
at the specified intervals between the minimum
and maximum. Each flow rate point shall
consist of five (5) consecutive runs and the
results shall repeat within 0.025% of average
meter factor. The meter linearity shall be within
0.25% of average meter factor over the
specified normal operating flow range

Observations shall also be made and recorded

relating to:
- pressure drop across strainer
- pressure drop across meter run
- pressure drop across prover and
- density measurement, if applicable
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Checks shall be made during testing for the
tightness of shut-off on high integrity and 4-way
diverter valves.

Preferably, all meter runs shall be simultaneously
flow tested, namely, for metering and proving and
preferably up to the maximum linear capacity of

each meter

Checks shall be made on the functioning of flow

control valves

Checks shall be made on the correctness of
meter proving algorithms

Checks shall be made to ensure correct reports
such as the meter proving report and the
metering report (hourly or batch report) are
generated by the computer system

Checks on the correct functionality of the
sampling system to ensure the volume collected
and accuracy per number of grab, accuracy of
sampling system, alarms and switching of

sampling cylinders

Following the completion of flow testing, the liquid test

medium shall be drained and a thorough inspection
shall be carried out to determine the condition of the
prover lining and other equipment, where possible.
Computer simulations shall be carried out whereby all

computer calculations shall be verified.


Contractor shall provide test procedure for punch list

items arriving on site.

Other items to be provided shall include but not limited

to the following:

a) Loop diagram and loop checkout sheets

b) Full print database checking

c) System functional test procedure and schedule

The SAT shall be considered as an extension of the FAT.

Prior to the SAT, all wiring terminations shall be checked

and the powering of panels should be carried out by

vendor or any authorised vendors representative. Some

tests carried out during the FAT shall also be repeated
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during the SAT. The SAT

specifically on the following:
shall
concentrate
more
a)
Inspection of material and equipment upon

arrival
on
site
including
spares
and
documentation.
If
damage
occurred
during
transportation, it is important to establish without
delay, the extent of the damage and whether it
is repairable on site or it is necessary to order new
materials.
Suitable
storage
of
materials
and
equipment should be provided
b) Field calibration of the displacement prover or
master meter and the relevant meter proving shall
be conducted in accordance with the following

ISO 7278-1:1987, ISO 7278-2:1988, ISO 7278-3:1998

and ISO 7278-4:1999
API MPMS Chapter 4.1 (R2009), API MPMS Chapter 4.2
(R2011), API MPMS Chapter 4.4 (R2005), API MPMS
Chapter 4.5 (2011), API MPMS Chapter 4.6 (R2008),
(R2007), API MPMS Chapter 4.9.1 (2005), API MPMS
Chapter 4.9.2 (2005) and API MPMS Chapter 4.9.3 (2010)
All calibration equipment used for the provers

and other metering equipment shall be traceable
to NML-SIRIM or any certified/accredited third
party/independent
laboratory
traceable
to
its
national certification/accreditation and standards
c)
All prover calibrations on liquid hydrocarbon
custody transfer metering systems that involve tax
calculation
shall
be
witnessed
by
vendor,
Contractor and NML-SIRIM. PETRONAS may at
any time witness the calibration exercise. The
results shall be certified by NML-SIRIM.
In the case of a master meter, where it is not
possible to calibrate it on site or at a local facility,
certification or recognition by NML-SIRIM shall be
obtained for the results of calibration overseas
d)
The
metering
panel
and
instrumentation
equipment test shall also be repeated that shall
also include the computations check carried out
by the computer system. The calibration exercise
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carried out on the instruments in the exercise is
considered as Validation No. 1
e) The completed metering skid and panel shall be
subject to an operational functional test during
actual flow condition to demonstrate satisfactory
performance at design flow rates
f )
Contractor shall submit a project completion
report that should include the first official
validation report to PETRONAS within thirty (30)
days of the system being commissioned. Approval
from PETRONAS shall be obtained before the
liquid hydrocarbon metering system is put in
operation for official use

4.5.4 Commissioning
a) General
The installation, commissioning and start-up of a liquid
hydrocarbon metering system shall be carried out in

accordance with the requirements in this section.
b)

Installation Quality Assurance

Contractor shall develop a master plan for the installation
and commissioning activities in order to provide sufficient
assurance and evidence that the overall quality control shall
be effectively maintained.

The master plan shall be applied systematically to all liquid
hydrocarbon metering systems and deviations will not be
tolerated.
c) Commissioning
Commissioning shall include the running of all rotating
equipment, checking alignment, testing control loops,
stroking valves, flushing, hydrotesting, the final testing of
electrical instrumentation systems, purging, drying, inerting

and other relevant activities usually carried out sequentially

on a system basis. The commissioning is completed when

the liquid hydrocarbon metering system is ready for start up.
d) Start-up

This begins with the introduction of process hydrocarbons

not counting where these may have been used previously

for pressure testing/purging.
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4.6.1

Contractor shall operate and maintain a liquid hydrocarbon metering
system to the highest degree of engineering standard in order to
maintain accuracy and integrity. As such, operating, validation and
hydrocarbon accounting procedures/manuals shall be prepared by
Contractor and approved by PETRONAS before start-up. These
procedures shall document all activities that influence the
measurement system.

Contractor is required to carry out the following essential activities:
a) A liquid hydrocarbon metering system shall be operated
and maintained in accordance with the manufacturers
recommendations and approved operations, validation and
hydrocarbon accounting procedures/manuals. Particular

attention shall be given to flow stabilisation prior to meter

proving and checking of block and bleed valves for leaks.

Meter Proving Operations for Continuous Flow
Measurement System
For a newly commissioned liquid hydrocarbon
metering system with a dedicated meter proving
facility in a continuous production system (as distinct
from tanker loading), meters shall be proved at least
once a month at approximately equal intervals
between proving. The proving frequency may be
reduced to every two (2) months or quarterly basis
provided that the results of meter factor scatter be
acceptable to PETRONAS and until a meter factor

control chart is established
The proving frequency may be further reduced upon

approval by PETRONAS.

Meter Proving Operations for Batch Measurement
System
For tanker loading systems, any meter on stream
shall be proved at least once regardless of the

duration of loading. Additional proving is required on
any stream where conditions have changed and an

alarm of proving requirement is triggered.
b) Where the type of meter other than those mentioned in this
section, the type and frequency of meter proving by
Contractor shall be determined based on a case-to-case
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basis by PETRONAS after consultation with Contractor.

Account shall be taken of the type of meter and the process
fluid and operational load cycle. Where a meter employing
novel technology is to be used, extra evaluation periods
and tests will usually be required before a long-term
operational schedule can be determined.
c)

Meter factors that are acceptable for use shall be based on

the acceptance criteria of repeatability within 0.025% of
average meter factor, of five (5) consecutive runs. A meter
factor control chart shall be developed and meter factor
high and low limits shall be established to verify the
acceptability of the meter factors.
Any maintenance work on the prover that could affect the

swept volume, e.g. changes of sphere detectors, switches,
optical detectors or seals should not be undertaken without
prior notice to PETRONAS requesting further advice about
whether a calibration is required.
Pipe and small volume provers shall be calibrated at least

once a year. Where this is not possible for operational or
whatever reasons, a longer calibration interval may be
considered by PETRONAS. However, the liquid hydrocarbon
metering system that is affected by tax calculation shall
require NML-SIRIMs approval. For the case of pipe provers,
inspection of the sphere, checking size and concentricity,
other relevant factors should take place prior to calibration.
After the calibration, all sphere detectors and switches shall
be sealed.
Operating Manual
An operating manual shall be prepared for the purpose of providing
operational guidelines for operators in performing metering activities.
It shall then describe the operations of a liquid hydrocarbon metering
system that includes computers, skid instrumentation, sampling
activities and other operations of the liquid hydrocarbon metering
system.

Amongst other things, the manual shall also include what actions are
to be taken in case of a malfunction or an alarm triggered on the liquid
hydrocarbon metering system. The contents of the manual shall
contain the following as a minimum:
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a) Overall process description
b) Metering system description
c) Metering instrument specification
d) Computer system operations (including

codes) and actions taken on alarms
e) Metering system operations
f ) Metering sealing procedure
g) Sampling procedure
computer
read

4.6.3

System Validation
In order to maintain the reliability and accuracy of a liquid
hydrocarbon metering system, Contractor shall conduct a periodic
validation and calibration of the liquid hydrocarbon metering system
at a frequency agreed by PETRONAS. For a new liquid hydrocarbon
metering system, monthly validation shall be performed. A new
validation frequency can be agreed with PETRONAS after such time
the liquid hydrocarbon metering system is stable. The validation and
calibration shall be performed in accordance with a Validation
Manual prepared by Contractor and approved by PETRONAS.
All validation and calibration results shall be recorded on the format

agreed in a validation report. The validation report shall include but
not limited to the following:
a) As-found and as-left results of the validation and calibration

exercises
b) System errors shall preferably be in accordance with ISO
5168:2005
c) Findings and recommendations
d) Metering irregularities that have occurred since the

previous validation and between the last validations

The validation report shall then be prepared after each validation

and calibration exercise and submitted to PETRONAS within one (1)
month. Any irregularity of the figures generated from the validation
and calibration activity shall be endorsed by PETRONAS.
Validation Manual
A Validation Manual shall be prepared for the purpose of providing
guidelines for the verification of liquid hydrocarbon metering system
instrumentation. The contents of the Validation Manual shall consist
of, but not limited to the following:
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88
a)

Brief Description of Liquid Hydrocarbon Metering System

This shall include a concise description of the design
concept of the system and its instrumentation including the
computer system. Descriptions such as the function of
each individual instrument, its accuracy and location in the
system layout, system capacity, flow operating condition
and the schematic drawing of the liquid hydrocarbon
metering system should be included.
The instrument description shall include the manufacturers

name and model number, range, accuracy, input/output
signal and tag number.
b)

Validation and Calibration Procedures

Step-by-step validation and calibration procedures for the
instruments shall be set out in detail for each individual
instrument in the liquid hydrocarbon metering system. A
set of validation check sheets shall also be included and all
readings obtained during each validation and calibration
shall be recorded on these check sheets. Adjustment shall
be made when a reading is out of tolerance. After any
adjustment, the complete test shall be repeated.
c)

Frequency of Validation and Calibration

Contractor shall supply detail on the frequency of validation
and calibration of each of the liquid hydrocarbon metering
instruments.
d)

Flow Calculation
The calculations/formulae used to arrive at the volume,
mass and energy throughputs shall be clearly laid out. All
flow constants that are to be used shall be shown in the
actual units in which they are used. Where the flow
constants are fixed, the actual values and their derivations
shall be shown.
e)

Metering Irregularity Calculation

All types of irregularities in the liquid hydrocarbon metering
system and the methods for their correction shall be clearly
stated.
f )

Validation and Calibration Equipment

A list of validation and calibration equipment to be used in
the validation exercise shall be provided in the Validation
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Manual. All information related to equipment specifications

such as accuracy, repeatability, serial number and range
shall also be provided.
The accuracy of the calibration equipment shall be better

than the accuracy of the instrument to be validated.
The equipment shall be traceable to NML-SIRIM or any
third
party/independent
laboratory
standards.
g)

System Error Calculation

System error calculation shall be listed in the Validation
Manual
and
preferably
in
accordance
with
ISO
5168:2005.

Contractor shall conduct maintenance of a liquid hydrocarbon
metering system in order to retain its accuracy and integrity.

Contractor shall notify and seek PETRONAS approval before any

change or modification is made to the liquid hydrocarbon metering
system. Drawings and sufficient data shall be submitted together with
the request for approval (refer to Section 4.3.2 in this volume).
Contractor shall notify and invite PETRONAS to witness maintenance

activities related to modifications of the liquid hydrocarbon metering
system. All results pertaining to these activities shall then be properly
documented. Contractor shall also obtain from vendor the
recommended comprehensive spare parts list and priced quotation
for parts for commissioning and two (2) years operations.

4.6.5 Security
All software and flow factors, status and alarm information stored in a
liquid hydrocarbon metering system shall be protected to prevent
loss of information by inadvertent operator action or input power
failure.
In order to ensure security of the data in the computers and other
critical instrumentation in the liquid hydrocarbon metering system,
sealing procedure shall be adhered to. Contractor shall prepare this
procedure.

Critical instruments such as computers and critical valves shall be

sealed where practically possible. This is to prevent any unauthorised
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entry or manipulation of the computer system and the opening or

closing of the critical valves at the skid. The sample cans of the
sampling systems shall be sealed. The seals shall have serial numbers
for easy identification.
The last valve downstream of an outlet header or offloading valve

shall be sealed as per Customs requirements (for a liquid
hydrocarbon custody transfer metering system).

The sealing of these identified critical instruments shall be carried out

by a person authorised by Contractor and shall be recorded in a
dedicated sealed logbook. The logbook shall be kept in the metering
control room where PETRONAS will review it on a need basis.

a) General Requirements
A Production Accounting/Allocation Manual shall clearly
describe the methods used to allocate crude oil and
condensate productions and natural gas sales, from the

point of sale to the respective Contractor, by fields/streams
and these shall be developed prior to the first oil/gas
production.

The allocation of products to Contractor is to be
conducted monthly on the basis of mass, volume and/or
energy.
A
Terminal
Operator
shall
develop
a
production
accounting/common allocation manual from the terminal

to the respective tie-in Contractor.

There are two (2) types of allocation methods used when
the metering systems are installed between different

ownership fields that share common facilities:

The Full Allocation or Proration method

The
Forced
Balance
or
Measurement
by
Difference method
b)

90
Accounting/Allocation Manual/Procedure
Contractor shall prepare an Accounting/Allocation Manual
that shall require PETRONAS approval. The purpose of this
manual is to precisely define the way metered and other
data is to be used for the determination of sales, allocation
and production quantities. This manual as the minimum
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requirements shall consist of the following:

Accounting and allocation overview

Production measurement system

Product sampling and analysis

Data requirements

Allocation algorithm and calculation

Inventory calculation method

Methods to account for irregularities in quantity
c) Accounting and Allocation Overview

The approved concept by PETRONAS shall be adopted in

the allocation manual that should include the following:

Allocation algorithm concept

Allocation network diagram

Metering systems

Allocation type i.e. Full Allocation or Forced Balance

Allocation system i.e. spreadsheet, software based
and others
d)

Production Measurement System

This section shall consist of Primary and Secondary
production measurement system that should include the
following:

Meter type and uncertainty

Metering configuration

Meter standard calculation
e)

f )

Product Sampling and Analysis

This section shall consist of Primary and Secondary product
sampling and analysis that should include the following:

Sampling location and configuration

Sampling method and frequency

Lab analysis methodology and standards

Samples validation process
Data Requirements
This section describes the data requirements to be used for
production allocation that shall include but not limited to
the following:

Mass

Volume

Heating value

BS&W
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g)

Allocation Algorithm and Calculation

The allocation algorithm and calculation shall consist of
sequential
mathematical
equations
that
have
been
developed from the approved concept. Each equation shall
be tested and accepted by the relevant parties prior to
official use.
h) Inventory Calculation Method

The inventory calculation, namely, pipeline inventory and

tank inventory shall be prepared six (6) months before the

expiry of the first gas/oil contract and shall be documented

inside the manual/procedure.

i ) Methods to Account for Irregularities in Quantity
Contractor shall develop irregularities procedure that shall

require PETRONAS approval.

j ) Production Allocation Reporting

Following the end of each calendar month and based on
the official measurement in either the onshore or marine

terminal or another authorised place, the monthly production
of oil, gas, condensate (if applicable) and/or formation
water for each field and production platform/station
shall be determined. A monthly report shall be submitted

within thirty (30) days from the end of the month under
review and shall include the following reconciled figures:

Petroleum and/or formation water

Fluids injected

Petroleum/gas utilised, flared or vented, stored in and

delivered from each production station/terminal

Monthly official allocation report produced that involves

two (2) or more Contractors shall obtain the agreement
of all their shareholders and PETRONAS approval prior
to the distribution of the report.
A Typical Allocation Work Process Flow Liquid Hydrocarbon

is shown in Appendix 4.2, Figure 6.

Logbooks/Records
Contractor shall maintain an electronic/manual logbook and records
of a liquid hydrocarbon metering system inclusive of a prover system,
meter proving and metering printout. Records of parameters such
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as meter flow rate, liquid temperature and density shall be kept for
the liquid hydrocarbon metering system for at least three (3) months.

All logbook and records shall be made available within a reasonable
timeframe for inspection by PETRONAS. The electronic or manual
logbook and records shall be maintained and should comprise
information about the following systems:
a)

Prover System
Contractor shall maintain a logbook for the prover system
detailing all calibrations, sphere detector serial numbers
and any maintenance work done on the proving facilities
loop and its associated equipment.
b) Metering System

Metering Logbook

A logbook for the liquid hydrocarbon metering system
shall be kept, preferably for each meter, showing

details as follows:
- Type, stream and tag number particulars including
location and production measured

- Totaliser readings, where applicable, on commencement
and cessation of metering

- All mechanical, electrical repairs or adjustments made
to the meter or its read-out equipment and other parts of
the liquid hydrocarbon metering system

- Metering errors due to equipment malfunction, incorrect
operations and relevant factors including data, time and
totaliser readings; both at the time or on recognition,
of an error condition and when remedial action is

completed

- Alarms, together with reasons and operator response
- Any breakdown of the meter or withdrawal from

normal service, including time and totaliser readings

- Replacement of security seals when broken

Metering Record

A manual/automatic recording should also be kept, at
intervals of not more than one (1) hour, of the
following parameters:

- All meter totaliser readings
- Meter flow rates (also relevant meter factors),
pressure and temperature and (if measured continuously)

density
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One of these sets of readings should be recorded at

2400 hours or at the agreed time for taking the daily
closing figure.

Other parameters such as liquid density and the percentage
of BS&W content should be recorded at the agreed
intervals.

Meter Proving Record

Contractor shall also keep a meter proving record for each
meter. This record should give the details of each proved
run such as the proved flow rate, pressure, temperature and
meter factor. The record shall include a running plot or
similar control chart, so that any undue changes or
fluctuations in meter factors may be easily detected.

Contractor shall notify PETRONAS prior to any major maintenance
and recalibration work on a liquid hydrocarbon metering system as
well as other operational related activities. PETRONAS shall also be
officially notified, when any abnormal situation or error occurs that
could require significant adjustment to the totalised meter
throughputs.

If a meter has to be removed for maintenance work or replacement,

PETRONAS shall be officially informed with details of the meter serial
number and the reasons for the action taken.
When correction to meter totalised figures is required due to known

metering errors, a formal report shall be submitted to PETRONAS
detailing the time of the occurrence, totaliser readings and suspected
causes for the error.
4.7 Final Provision

a)

b)

c)

94
The final acceptance of a liquid hydrocarbon metering system will

depend on the successful completion of the SAT during actual
flowing conditions at the field site
Contractor shall submit a project completion report to PETRONAS
at least thirty (30) days after the liquid hydrocarbon metering system
has been commissioned for official approval of system usage
PETRONAS reserves the right to increase the requirements for all
items stipulated in this section
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4.8 References

These references shall be used for the design, installation, testing,

commissioning, operations and maintenance of liquid hydrocarbon custody

transfer and allocation metering systems:



Weights and Measures Act 1972 (Act 71)



NML-SIRIM/SIRIM Berhad Circulars - ALIR 1991/01, ALIR 1991/02 and

ALIR 2006/01

NML-SIRIM/SIRIM Berhad Circular - Static Petroleum Measurement,
Recommendations for Recalibration, Monitoring, Verification and

Recalculation of Vertical Cylindrical Tanks, May 2000

PETRONAS Technical Standards

IP 475-2005 Petroleum Liquids - Manual Sampling (ISO 3170:2004)

IP 476-2002 Petroleum Liquids - Automatic Sampling

HM 1 (1999) Calculation of Oil Quantities, Second Edition (formerly IP

PMM Part I or IP 201/64)

HM 2 (2000) Tank Calibration, Section 1 - Strapping, Internal
Diameter and Internal Offset Methods for the Calibration of Vertical
Cylindrical Tanks, Second Edition (formerly IP PMM Part II, S1 or IP
202/69)

HM 4 (1998) Manual Measurement of Level in Tanks, Section 1
Non-Electrical Methods, First Edition (formerly IP PMM III, S1)

HM 8 (1997) Density, Sediment and Water, Section 2 - Continuous

Density Measurement, Second Edition (formerly IP PMM Part VII, S2)

HM 23 (1998) Fidelity and Security of Measurement Data Transmission
Systems, Section 1 - Electric and/or Electronic Pulsed Data Cabled
Transmission for Fluid Metering Systems, Second Edition (formerly IP

PMM Part XIII, S1 or IP 252/76)

ISO 1998-6:2000 Petroleum Industry - Terminology, Part 6
Measurement, First Edition

ISO 2714:1980 Liquid Hydrocarbons - Volumetric Measurement by

Displacement Meter Systems Other than Dispensing Pumps, First Edition

ISO 2715:1981 Liquid Hydrocarbons - Volumetric Measurement by Turbine

Meter Systems, First Edition

ISO 3170:2004 Petroleum Liquids - Manual Sampling, Third Edition

ISO 3171:1988 Petroleum Liquids - Automatic Pipelines Sampling,

Second Edition

ISO 4124:1994 Liquid Hydrocarbons - Dynamic Measurement - Statistical

Control of Volumetric Metering Systems, First Edition

ISO 4267-2:1988 Petroleum and Liquid Petroleum Products Calculation of Oil Quantities, Part 2 - Dynamic Measurement, First
Edition
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ISO 5024:1999 Petroleum Liquids and Liquefied Petroleum Gases
Measurement - Standard Reference Conditions, Second Edition

ISO 5168:2005 Measurement of Fluid Flow - Procedures for the

Evaluation of Uncertainties, Second Edition

ISO 6551:1982 Petroleum Liquids and Gases - Fidelity and Security of
Dynamic Measurement - Cabled Transmission of Electric and/or

Electronic Pulsed Data, First Edition

ISO 7278-1:1987 Liquid Hydrocarbons - Dynamic Measurement Proving Systems for Volumetric Meters, Part 1 - General Principles,

First Edition

ISO 7278-2:1988 Liquid Hydrocarbons - Dynamic Measurement Proving Systems for Volumetric Meters, Part 2 - Pipe Provers, First
Edition

ISO 7278-3:1998 Liquid Hydrocarbons - Dynamic Measurement Proving Systems for Volumetric Meters, Part 3 - Pulse Interpolation

Techniques, Second Edition

ISO 7278-4:1999 Liquid Hydrocarbons - Dynamic Measurement Proving Systems for Volumetric Meters, Part 4 - Guide for Operators

of Pipe Provers, First Edition

ISO 7507-1:2003 Petroleum and Liquid Petroleum Products Calibration of Vertical Cylindrical Tanks, Part 1 - Strapping Method,

Second Edition

ISO 7507-2:2005 Petroleum and Liquid Petroleum Products Calibration of Vertical Cylindrical Tanks, Part 2 - Optical-Reference
Line Method, Second Edition

ISO 7507-4:2010 Petroleum and Liquid Petroleum Products Calibration of Vertical Cylindrical Tanks, Part 4 - Internal Electro
Optical Distance-Ranging Method, Second Edition

ISO 9770:1989 Crude Petroleum and Petroleum Products Compressibility Factors for Hydrocarbons in the Range of 638 kg/m3

to 1074 kg/m3, First Edition

ISO 10790:1999/Amd 1:2003 Measurement of Fluid Flow in Closed
Conduits Guidance to the Selection, Installation and Use of Coriolis
Meters (Mass Flow, Density and Volume Flow Measurements), Second

Edition, Includes Amendment 1 - Guidelines for Gas Measurement

ISO 12242:2012 Measurement of Fluid Flow in Closed Conduits
Ultrasonic Transit-Time Meters for Liquid, First Edition

ISO 80000-1:2009/Cor 1:2011 Quantities and Units, Part 1 General,

First Edition, Includes Corrigendum 1

API MPMS Chapter 1 (1994) Chapter 1 - Vocabulary, Second Edition

API MPMS Chapter 2.2A (R2012) Chapter 2 - Tank Calibration,
Section 2A - Measurement and Calibration of Upright Cylindrical
Tanks by the Manual Strapping Method, First Edition (1995), Includes

Reaffirmed (R2007)
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API MPMS Chapter 2.2B (R2007) Chapter 2 - Tank Calibration,
Section 2B - Calibration of Upright Cylindrical Tanks Using the

Optical Reference Line Method, First Edition (1989)

API MPMS Chapter 2.2D (R2009) Chapter 2 - Calibration of Upright
Cylindrical Tanks Using the Internal Electro-Optical Distance Ranging

Method, First Edition (2003)

API MPMS Chapter 3.1A (2005) Chapter 3 - Tank Gauging, Section 1A
- Standard Practice for the Manual Gauging of Petroleum and

Petroleum Products, Second Edition

API MPMS Chapter 4.1 (R2009) Chapter 4 - Proving Systems, Section

1 - Introduction, Third Edition (2005)


2 - Displacement Provers, Third Edition (2003)


4 - Tank Provers, Second Edition (1998)

API MPMS Chapter 4.5 (2011) Chapter 4 - Proving Systems, Section

5 - Master-Meter Provers, Third Edition


6 - Pulse Interpolation, Second Edition (1999), Includes Errata

API MPMS Chapter 4.7 (2009) Chapter 4 - Proving Systems, Section

7 - Field Standard Test Measures, Third Edition


8 - Operation of Proving Systems, First Edition (1995)

API MPMS Chapter 4.9.1 (2005) Chapter 4 - Proving Systems, Section
9 - Methods of Calibration for Displacement and Volumetric Tank
Provers, Part 1 - Introduction to the Determination of the Volume of

Displacement and Tank Provers, First Edition

Provers, Part 2 - Determination of the Volume of Displacement and

Tank Provers by the Waterdraw Method of Calibration, First Edition

Provers, Part 3 - Determination of the Volume of Displacement

Provers by the Master Meter Method of Calibration, First Edition

API MPMS Chapter 5.1 (R2011)/Errata (2008)/Errata 2 (2011) Chapter
5 - Metering, Section 1 - General Considerations for Measurement by

Meters, Fourth Edition (2005), Includes Errata, Errata 2 (June 2011)

ANSI/API MPMS Chapter 5.2 (2005) Chapter 5 - Metering, Section 2 Measurement of Liquid Hydrocarbons by Displacement Meters, Third
Edition

API MPMS Chapter 5.3 (2005)/Addendum 1 (2009) Chapter 5 Metering,
Section 3 - Measurement of Liquid Hydrocarbons by Turbine Meters,

Fifth Edition, Includes Addendum 1

API MPMS Chapter 5.4 (2005) Chapter 5 - Metering, Section 4 PPGUA/3.0/042/2013
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Accessory Equipment for Liquid Meters, Fourth Edition

API MPMS Chapter 5.5 (2005) Chapter 5 - Metering, Section 5 Fidelity and Security of Flow Measurement Pulsed-Data Transmission

Systems, Second Edition

API MPMS Chapter 5.6 (R2008) Chapter 5 - Metering, Section 6 Measurement of Liquid Hydrocarbons by Coriolis Meters, First Edition
(2002)

ANSI/API MPMS Chapter 5.8 (2011) Chapter 5 - Metering, Section 8 Measurement of Liquid Hydrocarbons by Ultrasonic Flow Meters

Using Transit Time Technology, Second Edition

ANSI/API MPMS Chapter 6.6 (R2012) Chapter 6 - Metering
Assemblies, Section 6 - Pipeline Metering Systems, Second Edition
(1991)

API MPMS Chapter 7.3 (2011) Chapter 7 - Temperature Determination,

Section 3 - Fixed Automatic Tank Temperature

Systems, Second Edition

API MPMS Chapter 8.1 (1995) Chapter 8 - Sampling, Section 1 Standard Practice for Manual Sampling of Petroleum and Petroleum

Products, Third Edition

API MPMS Chapter 8.2 (R2010) Chapter 8 - Sampling, Section 2 Standard Practice for Automatic Sampling of Liquid Petroleum and

Petroleum Products, Second Edition (1995)

ANSI/API MPMS Chapter 8.3 (R2010) Chapter 8 - Sampling, Section
3 - Standard Practice for Mixing and Handling of Liquid Samples of

Petroleum and Petroleum Products, First Edition (1995), Includes Errata

API MPMS Chapter 8.4 (2004) Chapter 8 - Sampling, Section 4 Standard Practice for Sampling and Handling of Fuels for Volatility

Measurement, Second Edition

API MPMS Chapter 9.1 (2012) Chapter 9 - Density Determination,
Section 1 - Standard Test Method for Density, Relative Density or API
Gravity of Crude Petroleum and Liquid Petroleum Products by

Hydrometer Method, Third Edition

Section 2 - Standard Test Method for Density or Relative Density of

Light Hydrocarbons by Pressure Hydrometer, Third Edition

Section 3 - Standard Test Method for Density, Relative Density and
API Gravity of Crude Petroleum and Liquid Petroleum Products by

Thermohydrometer Method, Third Edition

API MPMS Chapter 10.3 (2008) Chapter 10 - Sediment and Water,
Section 3 - Standard Test Method for Water and Sediment in Crude

Oil by the Centrifuge Method (Laboratory Procedure), Third Edition

API MPMS Chapter 10.4 (R2010) Chapter 10 - Sediment and Water,
Section 4 - Determination of Water and/or Sediment in Crude Oil by
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the Centrifuge Method (Field Procedure), Third Edition (1999)

API MPMS Chapter 11.1 (2004)/Addendum (2007) Chapter 11 Physical Properties Data, Section 1 - Temperature and Pressure
Volume Correction Factors (VCF) Software for Generalized Crude
Oils, Refined Products and Lubricating Oils (Single User), Includes
Addendum

API MPMS Chapter 11.1 (2004)/Addendum 1 (2007) Chapter 11 Physical Properties Data, Section 1 - Temperature and Pressure
Volume Correction Factors for Generalized Crude Oils, Refined
Products and Lubricating Oils, Includes Addendum 1 (Adjunct to

ASTM D 1250-04 and IP 200/04)

API MPMS Chapter 11.2.1M (1984) Chapter 11 - Physical Properties
Data, Section 2 - Volume Correction Factors for Meter Proving
and Hydrocarbon Compressibility Factors, Part 1M - Compressibility
Factors for Hydrocarbons: 638-1074 Kilograms per Cubic Metre

Range, First Edition (Incorporated in API MPMS Chapter 11.1 (2004)

API MPMS Chapter 11.2.2M (1986) Chapter 11 - Physical Properties
Data, Section 2 - Volume Correction Factors for Meter Proving
and Hydrocarbon Compressibility Factors, Part 2M - Compressibility
Factors for Hydrocarbons: 350-637 Kilograms per Cubic Meter
Density (15 deg. C) and 46 deg. C to 60 deg. C Metering

Temperature, First Edition

API MPMS Chapter 11.2.4 (2007)/Errata (2011) Chapter 11 - Physical
Properties Data, Section 2 - Volume Correction Factors for Meter
Proving and Hydrocarbon Compressibility Factors, Part 4 Temperature Correction for the Volume of NGL and LPG Tables 23E,

24E, 53E, 54E, 59E and 60E, First Edition, Includes Errata

API MPMS Chapter 11.4.1 (2003) Chapter 11 - Physical Properties
Data, Section 4 - Properties of Reference Materials, Part 1 - Density
of Water and Water Volumetric Correction Factors for Water

Calibration of Volumetric Provers, First Edition

API MPMS Chapter 12.1.1 (2012) EI HM 1 Section 1 - Calculation of
Static Petroleum Quantities, Part 1 - Upright Cylindrical Tanks and

Marine Quantities Vessels, Third Edition

API MPMS Chapter 12.2.1 (R2009)/Addendum (2007)/Errata (2009)
Chapter 12 - Calculation of Petroleum Quantities, Section 2 Calculation of Petroleum Quantities Using Dynamic Measurement
Methods and Volumetric Correction Factors, Part 1 - Introduction,

Second Edition (1995), Includes Addendum, Errata (July 2009)

API MPMS Chapter 12.2.2 (2003)/Addendum (2007) Chapter 12 Calculation of Petroleum Quantities, Section 2 - Calculation of
Petroleum Quantities Using Dynamic Measurement Methods and
Volumetric Correction Factors, Part 2 - Measurement Tickets, Third

Edition, Includes Addendum

API MPMS Chapter 12.2.3 (R2009)/Addendum (2007) Chapter 12 PPGUA/3.0/042/2013
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Calculation of Petroleum Quantities, Section 2 - Calculation of
Petroleum Quantities Using Dynamic Measurement Methods and
Volumetric Correction Factors, Part 3 - Proving Reports, First Edition

(1998), Includes Addendum

Methods and Volumetric Correction Factors, Part 4 - Calculation
of Base Prover Volumes by the Waterdraw Method, First Edition

(1997), Includes Addendum, Errata (July 2009)

Methods and Volumetric Correction Factors, Part 5 - Calculation
of Base Prover Volume by Master Meter Method, First Edition (2001),

Includes Addendum, Errata

API MPMS Chapter 12.3 (R2011)/Addendum (2007) Chapter 12 Calculation of Petroleum Quantities, Section 3 - Volumetric
Shrinkage Resulting from Blending Light Hydrocarbons with Crude

Oils, First Edition (1996), Includes Addendum

API MPMS Chapter 13.1 (R2011) Chapter 13 - Statistical Aspects
of Measuring and Sampling, Section 1 - Statistical Concepts and
Procedures in Measurement, First Edition (1985), Includes Reaffirmed
(2006)

API MPMS Chapter 13.2 (R2011) Chapter 13 - Statistical Aspects of
Measuring and Sampling, Section 2 - Statistical Methods of Evaluating

Meter Proving Data, First Edition (1994), Includes Reaffirmed (2006)

API MPMS Chapter 14.6 (R2012)/Errata (1998) Chapter 14 - Natural
Gas Fluids Measurement, Section 6 - Continuous Density

Measurement, Includes Errata

API MPMS Chapter 15 (R2007) Chapter 15 - Guidelines for Use of the
International System of Units (SI) in the Petroleum and Allied

Industries, Third Edition (2001)

API MPMS Chapter 20.1 (R2011)/Addendum (2013) Chapter 20 Allocation Measurement of Oil and Natural Gas, Section 1 - Allocation

Measurement, First Edition (1993), Includes Addendum

API MPMS Chapter 21.2 (R2004)/Addendum 1 (2000) Chapter 21 Flow Measurement Using Electronic Metering Systems, Part 2 Electronic Liquid Measurement, First Edition (1998), Includes

Addendum 1

ASTM D 1250 IP 200 1952 Temperature Correction Tables, 1952

Tables or Blue Book Tables

ANSI/ASTM D 1250-80 IP 200/52 API D 2540 1980 Temperature

Correction Tables or 1980 Tables
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IEC 60751:2008 Industrial Platinum Resistance Thermometers and

Platinum Temperature Sensors, Second Edition

BS EN 60751:2008 Industrial Platinum Resistance Thermometers and

Platinum Temperature Sensors

BS EN ISO 6551:1996 Petroleum Liquids and Gases - Fidelity and
Security of Dynamic Measurement - Cabled Transmission of Electric

and/or Electronic Pulsed Data

ISA 5.1-2009 Instrumentation Symbols and Identification

BIPM JCGM 200:2008 (E/F) International Vocabulary of Metrology Basic and General Concepts and Associated Terms (VIM), Third
Edition
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Section 5: Gas Measurement
5.1 Introduction

This section provides the minimum requirements for the establishment of

gas custody transfer and allocation metering systems. They shall be regarded
as PETRONAS general requirements and shall be fully complied with whilst
ensuring safety, accuracy and integrity of the gas metering systems based
on oil and gas best practices, internationally recognised codes and standards
and applicable Malaysian laws.
In cases where the requirements are not specifically stated in this section,
Contractor shall derive the scope of work relevant to the gas metering
systems based on oil and gas best practices, internationally recognised
codes and standards and applicable Malaysian laws and shall implement the
same accordingly.

5.1.1

Scope
This section provides the minimum requirements for the design,
gas custody transfer and allocation metering systems. Unless
otherwise specified, the requirements stipulated in this section are
applicable to both types of gas metering systems.
The objective of this section is to ensure that the gas metering

systems are designed, installed, tested, commissioned, operated and
maintained in accordance with PETRONAS minimum requirements
for accurate measurement of gas.

5.1.2

Distribution, Intended Use and Regulatory Considerations

Unless otherwise authorised by PETRONAS, the distribution of this
section is confined to any company that forms a part of PETRONAS,
Contractor or any third party engaged by Contractor for the above
scope of work.
This section is intended for use by all those involved in the design,
gas custody transfer and allocation metering systems in PETRONAS,
Contractor or the appointed third party. It is Contractors
responsibility, as referred to in this section, to ensure that the
requirements stipulated in this section are followed, if the above
scope of work is outsourced or contracted out to a third party.
In developing oil and gas fields that straddle a neighbouring country,

Contractor shall carefully scrutinise the requirements of both
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PETRONAS and the co-host country to ascertain which are more
stringent, which combination of the requirements will be acceptable
with regard to safety, integrity and economic aspects. In all cases,
Contractor shall inform PETRONAS about any deviation from the
requirements stipulated in this section that is considered to be
necessary in order to comply with the requirements of the
neighbouring country. PETRONAS may then negotiate with the
Malaysian authorities and any other concerned authority with the
objective of obtaining agreements to follow the requirements
stipulated in this section as closely as possible and also to be cost
effective.
5.2 Definitions

Accuracy is the closeness of agreement between a measured quantity value

and a true quantity value of a measurand.
Automatic sampler is a system installed in a pipe and actuated by automatic

control equipment that enables a representative sample to be obtained
from gas flowing in the pipe. The system generally consists of a sampling
probe, a sample extractor, an associated controller and a sample receiver.
Normally, it is also equipped with a sampler performance monitoring device.
Computer part is a part of a gas metering system that consists of digital

computers and receives digital signals from A/D converters or from digital
instrument loops.
Custody transfer metering system is a measuring system comprising

mechanical, instrument and computer parts that register the measured
gas quantity used for custody transfer purpose when there is a change in
the gas ownership. This type of system is normally designed with an
uncertainty of within 1%.
Allocation metering system is a measuring system comprising mechanical,

instrument and computer parts that register the measured gas quantity used
for allocation purpose between differently owned fields that share common
facilities. This type of system is normally designed with an uncertainty of
within 2%.

Density is a quantity of homogeneous substance represented by the ratio of

its mass to its volume. The density varies as temperature changes and

therefore it is generally expressed as mass per unit volume at a specific
temperature.

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Density meter is also known as a densitometer and operates on a

representative sample of gas continuously withdrawn from a process line or
vessel via a sampling system.
Flow computer is an arithmetic processing unit and associated memory

device that accepts electrically converted signals representing input variables
from a gas measuring system and performs calculations for the purpose of
providing flow rate and the total quantity data.
Forced balance method is a method used to allocate hydrocarbon or

hydrocarbon related products to a stream with higher level of uncertainty
that flows to a common facility.
Gross Heating Value (mass based) is the number of heat units liberated when
a mass unit of product in vapour phase is burnt completely in air saturated
with water vapour at standard temperature and pressure. The gaseous
products of combustion are brought to the same standard conditions for
temperature and pressure, but the water produced is condensed to form
liquid that is in equilibrium with the water vapour.
Instrument loop includes all elements that form part of the measurement of
each individual quantity from a sensor to an input of A/D converter or an
input of digital signal to a computer part.
Linearity is a deviation or spread of calibration data points from an

acceptable straight line over a defined flow range.
Maximum flow rate is the maximum rate of flow recommended or

authorised by either the relevant meter manufacturer or regulatory body,
respectively. The maximum rate is determined by consideration of accuracy,
repeatability, linearity, durability and pressure drop.
Meter is a flow measuring device that indicates a measured flow rate. In

some cases, it is also the device that indicates the total amount of gas
passing through a system during a selected time interval.
Meter run is the length of straight, unobstructed gas-flow conduit complete

with an associated strainer, inlet and outlet piping, upstream and
downstream straight lengths, a meter, a flow straightener, pressure
transmitter and gauge, temperature transmitter, a thermowell gauge and an
online density meter, where applicable.
Meter verification is an exercise carried out in accordance with the approved

Validation Manual or verification procedure in order to verify the
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performance of a meter using a master meter at the same conditions or any

agreed methodology deemed appropriate for the purpose.
Minimum flow rate is the minimum rate of flow recommended or authorised

by the relevant meter manufacturer or regulatory body. The minimum rate is
determined by considerations of accuracy, repeatability and linearity.
Orifice meter (plate) is a device used for measuring flow rate, either in
volume or mass flow rate depending on calculations associated with the
orifice plate. It uses the same principle as a venturi nozzle, namely,
Bernoullis Principle.

Proration method is a method used to allocate hydrocarbon or hydrocarbon

related products to streams in proportion to their metered quantities. The

method is typically applied to streams having similar level of metering
uncertainty.

Repeatability is a quality characterisation of the ability of a measuring

instrument to give identical indications or responses for repeated
applications of the same values of measured quantity under stated
conditions of use.
Sampling is an exercise in accordance with the approved sampling

procedure that is carried out either automatically or manually to obtain a
sample that is representative of gas in a pipe, tank or other vessel and to
transfer that sample into a container from which a representative test
specimen can be taken for analysis.
Standard conditions are the standard reference conditions of temperature

and pressure to which the measured volume is to be corrected. The standard
reference conditions for pressure and temperature shall be 101.325 kPa
(absolute) and 15C, respectively in accordance with ISO 13443:1996.
Supervisory computer is an arithmetic processing unit and associated

memory device that sends commands and accepts calculated data from
each flow computer for station totalisation computation and archiving.
Terminal Operator refers to any party that operates common facilities either
at onshore, marine or in an authorised place.
Ultrasonic meter is a meter that measures the velocity of gas (fluid) using
the principle of ultrasound. The meter uses ultrasonic transducers to
measure the average velocity along the path of an emitted ultrasound beam
by averaging the difference in measured transit time between the pulses into
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and against the direction of flow.
Uncertainty is an absolute value parameter characterising the dispersion of

the quantity values being attributed to a measurand, based on the
information used.
Validation is a process for confirming or substantiating the accuracy of input

variables to a measuring system at normal operating conditions and uses
reference equipment traceable to certified standards.
Vendor refers to any party that manufactures or supplies equipment and

provides services to perform the duties specified by Contractor.

5.3.1

Units of Measurement
The standard conditions (base conditions) for all measurements shall
be in SI units in accordance with ISO 13443:1996 at a pressure and
temperature of 101.325 kPa (absolute) and 15C, respectively.
The gas measurement shall either be in volume, mass or energy.
5.3.2.1

Measurement and Allocation Concept

Contractor shall submit a Measurement and Allocation
Concept proposal to PETRONAS for approval during the
FDP stage. Contractor shall carry out a financial
exposure and cost benefit analysis during the concept
evaluation and determine an appropriate location or
arrangement for the installation of any gas metering
system, its meter run configuration and the required
level of uncertainty. To facilitate the approval, the
submission to PETRONAS shall include but not limited
to the following information:
a)
Measurement philosophy

b) Product allocation principles, where applicable

c) Measurement methods and standards

d) Production accounting exposure analysis
e)
Proposed uncertainty

f ) Field area and installation layout with the main

pipelines

g) Project cost estimates
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The gas metering system can be used either for custody

transfer or allocation purpose. There are two (2)
categories of gas metering systems that fall under the
purview of this section, namely:
a) Custody transfer metering system

b) Allocation metering system
It is Contractors responsibility to obtain agreements

from the respective equity Partners and any other
interested party that will be affected with the installation
of the gas metering system before the concept is
submitted to PETRONAS for approval.
5.3.2.2

Metering Project Implementation - Metering Specification

Contractor shall submit a Technical Requisition Package
or equivalent documents for any gas metering system to
PETRONAS for Metering Specification approval prior to
the release of a tender plan. To facilitate the approval,
the submission to PETRONAS shall include but not
limited to the following information:

a) Design specifications and datasheets

b) Design formulae and calculations
c) Design uncertainty calculation and analysis based
on ISO 5168:2005 or equivalent standards
d) Design drawings inclusive of system architecture,
P&ID, instrument hook-up, isometric and general

arrangement
e) Other relevant information e.g. project milestones,
WPB status and cost breakdown

Contractor
shall
submit
a
Functional
Design
Specification or equivalent documents inclusive of the
above information to PETRONAS prior to the fabrication
of the gas metering system and PETRONAS will inform
Contractor if other information is required.
5.3.2.3

Metering Project Implementation - Metering Acceptance

Contractor shall submit a comprehensive list of project
documents for any gas metering system to PETRONAS
for Metering Acceptance approval. To facilitate the
approval, the submission to PETRONAS shall include but
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not limited to the following:
a) Updated Functional Design Specification inclusive

of the final design specifications, datasheets, formulae,
calculations and uncertainty calculation and analysis

b) As-built drawings inclusive of the final design system
architecture, P&ID, instrument hook-up, isometric and

general arrangement
c) FAT and SAT reports inclusive of the final test,
validation and calibration procedures and results,
punch list closure and work completion evidences
d) The final Validation Manual and/or Measurement
and Accounting/Allocation Manual/Procedure and
other relevant procedures
e) Approvals/certificates from all relevant authorities,

third
parties/independent
laboratories traceable to their national certifications/
accreditations and standards and manufacturers,
where applicable
f )
Other relevant information e.g. validation and
calibration schedules and equipment inventory list

PETRONAS may grant the approval if the gas metering

system performance and its documentation are satisfactory.

All gas metering systems shall be subject to the applicable Malaysian
laws that shall include but not limited to the following :
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MALAYSIAN LAWS
LEGISLATIVE CONTROLS FOR

Weights & Measures Act 1972 (Act 71)
Custody transfer or trade purpose
Traceability purpose
Safety purpose
Contractor shall further ensure that the necessary approvals/

certifications are obtained from the following Malaysian authorities,
where applicable:
Royal Malaysian Customs Department
Any gas metering system used for custody

transfer or trade purpose that may involve tax
calculation.
NML-SIRIM (as the Custodian of Weights

and Measures)
Pattern or type approval of meter and master

meter used for custody transfer or trade
purpose. Similar approvals/certifications, i.e.
pattern or type approval of meter shall also be
applied to any gas metering system.
Reference shall also be made to the relevant
NML-SIRIM/SIRIM Berhad circulars for any gas
metering system used for custody transfer or
trade purpose.
Department of Occupational Safety and

Health (DOSH)
Fabrication and testing of any gas metering

system carried out in Malaysia, if required.
Similar approval, if required, shall also be
obtained if the gas metering system is to be
installed and operated onshore.
Contractor shall also ensure that the following equipment is

traceable to NML-SIRIM (as the National Measurement Standards
Laboratory) or any certified/accredited third party/independent
laboratory traceable to its national certification/accreditationand
a)

b)

The relevant validation equipment used for validating and

calibrating the primary and secondary equipment and
verification facility of any gas metering system
The relevant equipment or reference materials used for
laboratory analysis of any gas sample
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5.3.4 Deviation
Any deviation from the requirements stipulated in this section shall
requires PETRONAS approval with respect to:

a)
b)
c)
measurement and allocation concept,

metering project implementations
operations and maintenance of any gas metering system

5.3.5 Documentation
Contractor shall establish and maintain up to date files containing all
specifications, calculations and as-built drawings. The files shall
also contain reports on verification revision, design, fabrication,
installation and commissioning inclusive of inspection and testing
programmes, operation manuals for all fixed and temporary phases
and other relevant documentation.

Contractor shall ensure that all documentation during project

implementation is completed promptly, is readily available and
inclusive of uncertainty analysis, FAT and SAT procedures and results
and the project completion report. The information shall be
submitted to PETRONAS upon project completion.
Contractor shall establish an internal control system and maintain an

up-to-date list of documentation.
5.4 Design

5.4.1

A gas metering system shall be designed, fabricated, inspected and
tested in accordance with the latest agreed editions and supplements
of technical specifications, codes, standards and references
mentioned in Section 5.8, where applicable, that may be amended or
supplemented from time to time.
Contractor shall request vendor to quote for the design,

manufacture, testing, calibration and documentation of a fully
integrated skid with its associated control panel.
The gas metering system shall comprise the following major
component parts:
a) Field Mounted Skid and Instrumentation

The minimum number of parallel meter runs required
from the specified minimum and maximum flow
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rates at a specific accuracy with a complete standby

meter run and/or a verification facility
All transducers and instrumentation necessary for
measuring mass and volume flow rates, temperature,
pressure, density and verification operations. A density
calculation
using
gas
component
can
be
an
alternative means in the event that direct measurement
by the instrumentation is not possible
Automatic and manual sampling systems
All associated pipework, valves and fittings, access
stairs, walkways (for operations, maintenance and validation)
and drip pans
b) Control Panel and Computer System in Control Room

A control panel shall include all necessary terminations,

computer and control systems and operational indicators

A computer system shall consist of flow computers,
supervisory computer and communication bus. The
supervisory computer and communication bus shall be

provided with full redundancy

All relevant items necessary for system functionality

inclusive of equipment for testing, validation and calibration
The gas metering system shall have common inlet and outlet headers
with valves to facilitate inspection and maintenance. No bypassing of
the gas metering system is allowed for normal operations after start up.
The gas metering system should be designed to minimise the
probability of liquid carry-over into the gas metering system and
from any condensation or separation that would have significant
effect on measurement uncertainties.

The energy content of the gas delivered shall be computed by
multiplying the total mass over a period of time by average Gross
Heating Value (GHV) of gas during the same period of time.
The composition of gas GHV (mass based) shall be determined by
using online gas chromatography or through flow proportional
sampling and laboratory analysis. The Sl unit shall be used and
the energy content of gas shall be expressed in megajoules (MJ) at
standard conditions.

All equipment within the skid shall be ergonomically arranged such

that there is safe and easy access for operation, maintenance and
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validation. Facilities such as platforms, gratings and stairs shall be

provided to accommodate any work that needs to be performed on
the gas metering system. All equipment and materials supplied shall
be brand new and suitable to be used in accordance with their
design operating conditions.
Where any new technology other than an orifice or ultrasonic meter

is to be explored, details of the proposed equipment, its layout and
verification procedure should be discussed with PETRONAS, in
advance.

A typical gas custody transfer metering system schematic diagram is

shown in Appendix 5, Figure 7.
5.4.2 Mechanical Requirements and Primary Element
5.4.2.1

Orifice Meter
Orifice meter design and installation shall be in
accordance with ISO 5167-1:2003 and ISO 51672:2003, unless otherwise specified in this section.
Proposals to implement any new requirement based

on the latest revisions of ISO 5167-1 and ISO 5167-2 for

the existing gas metering system, either partially or in
full, should be discussed with PETRONAS prior to
implementation.
a) Orifice Plate and Fitting

The minimum diameter ratio ( ratio) shall not
be less than 0.2 and the maximum allowable
shall not exceed 0.6

The maximum Differential Pressure (DP) of 0.5
bar shall be preferred. A higher DP may be used
where it is demonstrated that the below
conditions are met:
- The deformation of the orifice plate at the
maximum DP shall be less than 1% (i.e. not
exceeding flatness limit). When measured on a
bench or flat surface, the flatness shall be
within 0.5%.
- The uncertainty in flow caused by elastic
deformation of the orifice plate shall be less
than 0.1%.
Deformation calculation shall be calculated for the
worst-case condition if the meter forms
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part of a blowdown system

An orifice plate shall have the thickness as
determined in ISO 5167-1:2003 and ISO 5167
2:2003

Upstream and downstream pressure tapping
shall be in the same axial plane in accordance
with the direction stated in ISO 5167-1:2003
and ISO 5167-2:2003

Carrier for the orifice plate should be of the
type that may allow the plate to be changed or
removed
for
routine
inspections
without
depressurising the line
b) Meter Tubes
Upstream and downstream straight pipe lengths
from an orifice plate shall have lengths that
correspond to zero additional uncertainty as
specified in ISO 5167-2:2003.
A meter tube should be installed in a manner that
allows it to be able to be disassembled for
inspection and maintenance of the inner wall
both upstream and downstream of the orifice

plate.
The meter tube should be externally insulated
to minimise heat transmission or loses to or from
the surroundings to ensure temperature stability.
The density tapping line and other lines such as a
temperature transmitter that form part of density
calculation shall be fully insulated to minimise

errors.
The use of flow straightening vanes, drain and
vent holes in the meter tubes shall follow the
recommendations as stipulated in ISO 5167 1:2003 and ISO 5167-2:2003.

The upstream pipe run between the primary

device and first upstream fitting or disturbance
may be made up of one (1) or more sections of
pipes as per ISO 5167-1:2003 and ISO 51672:2003. It shall be ensured that the diameter step
between any two (2) sections does not exceed
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0.3% of mean value of D, i.e. pipe diameter that is
measured in accordance with ISO 5167-1:2003
and ISO 5167-2:2003.
c) Valves and Fittings
Both ends of the gas meter run shall be provided
with block and bleed valves for isolation and this
may be achieved either through conduit gates
or full bore ball valves. The gas isolation system
shall be designed in such a way that the DP across
an orifice plate does not exceed 1 bar during
pressurisation
and
depressurisation.
Equalising
line and valves shall be provided by passing across
an inlet valve for pressurising/equalising and
depressurising the meter run.
The gas metering system shall be provided with a
vent system. The connection to the system
should not be located near to the orifice meter.
Each connection shall be provided with dual
block valves and a pressure gauge located in
between the block valves.
5.4.2.2 Gas Ultrasonic Meter (Multi-Path)
The design of a gas metering system shall be in
accordance with the following standards, where
applicable:

114
ISO 17089-1:2010
AGA XQ0701 AGA Report No. 9 (2007) and AGA XQ0310
AGA Report No. 10 (2003)
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Contractor
should
also
consider
recommendation from the meters
any
specific
manufacturer.
a)

The ultrasonic meter to be used shall have a
sufficient number of sound paths and shall be
proven to provide a representative gas velocity
measurement covering the cross section of a pipe
at the relevant flow conditions.
The meter shall be installed in accordance with

field proven installation practices. It shall also be
installed such that no accumulation of liquid or
particles could possibly occur in the vicinity of the
transducers that could affect its performance.
The piping arrangement or construction of the

meter shall allow for inspection and necessary
maintenance on the meter to be carried out. Its
transducer shall be retrievable and with the
removal of a pair of the transducers, the uncertainty
of the meter shall still be within the specified
tolerable limit. All paired transducers shall be

tagged accordingly.
A facility for the detection of a meter malfunction
such as transducer failure, should also be provided.
A low flow alarm shall be indicated when
the meter starts to operate below its specified
minimum flow rate.
Self-diagnostic features or equivalent features shall be
provided and utilised for performance monitoring of

the meter.
Tamper-free computing features should be provided
to log the required data.
Precautionary measures should be taken if carbon

dioxide (CO2) levels are expected to approach
8% (depending on technology development) or if the
meter is operating near the critical gas density.
The presence of high levels of some components in the
gas such as CO2, can influence and possibly inhibit
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the operations of the meter.
b) Meter Tubes
The number of meter tubes shall be based on
design capacity and a standby run shall be
provided for a gas metering system. A minimum
set of a pair of offline transducers shall also be

made available.
The minimum upstream straight pipe length
inclusive of a flow conditioner and the minimum
downstream straight pipe length of the meter
shall be 10D and 5D, respectively. For bi directional applications, both ends of the meter
should be considered as upstream. It shall be
further
verified
that
the
upstream
and
downstream of the meter will not result in the

required
measurement
uncertainty
to
be
exceeded. Flow straighteners of any recognised
standard can be installed, if necessary.

The meter manufacturer shall be consulted about

the installation location such as not installing
the meter near a pressure reduction system such
as valves and to ensure that the surrounding
equipment will not affect the ultrasonic signals.
Proper evaluation needs to be carried out.
5.4.2.3 Other Meters

The use of other types of meter than an orifice and gas
ultrasonic meter shall be subject to PETRONAS prior
approval.

a)

116
Installation of Instruments
A thermowell shall be installed adjacent to each electronic
temperature sensor or group of sensors for calibration. It
shall be possible to connect test instruments in parallel with
all pressure sensors in a gas metering system. Temperature,
pressure and density, where the specified measuring points
shall be representative of conditions at a meter and situated
as follows:
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In volumetric measurement system: as close to the
meter as possible without infringing ISO requirements

or other standards as specified in this section.

In mass measurement system: as close to a density

meter as possible that should also be located as near
to the meter as possible without infringing ISO
requirements or other standards as specified in this
section.
b)

Instrument Loops
Instrument loops shall be kept separated from other types
of instrumentation and power supply cabling in the area of
use. Cables and junction boxes shall not be shared with
instrument loops that are not part of the gas metering
system.
The cables and other part of the instrument loops shall be

designed and installed so that they will not be affected by
electromagnetic fields.
c)

Temperature Measurement
A temperature sensor shall be constructed of 4-wire
platinum RTD element (100 at 0C), resistance tolerance
Class A or equivalent classes. The resistance tolerance and
the relation between resistance and temperature shall be in
accordance with IEC 60751:2008. The sensor shall be
installed in a thermowell.
A head-mounted intelligent temperature transmitter should

be located in the field as well as intelligent analogue
communication (4-20 mA) with superimposed HART shall
be preferred. The transmitter output signal shall be linear
with measured temperature. The transmitter shall have
galvanic separation between the sensor element and
output amplifier.
The temperature measuring device shall be located

downstream of an orifice meter close to a density meter.

The accuracy of a complete circuit of temperature sensor

or transmitter shall be within 0.15C.
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118
d)

Differential Pressure Measurement

If relative measurement uncertainty at the lowest
operational DP exceeds 0.7%, each meter tube shall have
more than one (1) transmitter, each covering a part of the
total DP range in the system. In addition, there shall be
a check DP cell connected to a computer part that will
generate an alarm if the difference in readings from pay and
check cell exceeds a set limit.
The signal from the pay transmitter shall normally be used

to compute mass flow. In the event of the failure of the pay
transmitter, a check transmitter will be used. The system
shall also be designed in such a way that auto switch over is
provided between low and high DPs.
Impulse lines connecting static and DP sensors shall be as

short as possible and upstream and downstream pressure
tappings shall be in the same axial plane and shall not be
below the central axis of meter tube.
The DP sensor transmitter shall be installed vertically

upright. The impulse lines shall have a downward gradient
or tilt angle and shall also be provided with a condensate
trap.
The DP sensor/transmitters shall be protected against

weather and vibration. Manifolds valves and pipe assemblies
shall be designed for isolation purpose, maintenance and
shall also have the provision for online calibration.
The accuracy of a complete loop of DP transmitter shall be

within 0.25% of span.
e)

Pressure Measurement
A pressure transmitter range of a specific series shall be
selected so that normal operating pressure is between 50%
and 75% of scale, but where a narrow-span instrument
is required, the adjusted range shall cover the minimum
and maximum operating pressures. An intelligent analogue
communication (4-20 mA) with superimposed HART shall
be preferred.
A static pressure tapping shall be in accordance with ISO

5167-1:2003 and ISO 5167-2:2003 and located in a plane
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of upstream pressure tapping. It shall be

separated from the tapping used to measure DP.
The accuracy of a complete loop of pressure transmitter

shall be within 0.25% of span.
f)

Density Measurement
The density measurement where
designed in accordance with the
where applicable:
specified
following
preferably
shall be
standards,
HM 8 (1997)(formerly IP PMM Part VII, S2)

ANSI/API MPMS Chapter 14.6 (R2012)
AGA XQ9212 AGA Report No. 8 (1994); and other
equivalent standards
Gas density at the meter may be determined by continuous

direct measurement using a density meter or calculated
based on the equation of state with the measurements of
gas temperature, pressure and composition. However, both
methods can be used for pay and check functions. The
minimum requirements for the density measurement using
both methods are as follows:

Each meter run shall be provided with a facility to
measure online density. The position of the density

meter shall be such that the density of gas is measured

at line temperature and pressure

The output signal from the density meter shall be in the

form of frequency

The density meter shall be provided with facilities for

online calibration without needing to remove the unit

from its mounting

The density meter shall be installed as near as possible
to a density sample probe, downstream of an orifice

meter, in a pocket. Density samples shall be extracted
at a point 8D downstream of the orifice meter and

returned to a flange tap downstream

A built-in RTD shall be used for indication purpose only

and the whole system shall be insulated against heat
loss

The accuracy for a complete density circuit using vacuum

check method shall be within 300 ns
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g)

Local Recorder
For an orifice meter, a local recorder shall be used to give a
local readout and act as a back-up unit for each flow
computer. It can be either a chart recorder or an
independently powered flow computer (e.g. solar powered
or multi-stream flow computer).
Local recorder inputs or inputs to the independently

powered flow computer for differential pressure, line
temperature as well as line pressure shall be provided in
each meter run in order to facilitate the computation of
mass and volume throughput for a particular line, in case
the main computer fails.

h)

The local recorder shall be located at a gas metering skid

and shall be sheltered.
Control Room Instrumentation
Instruments that are sensitive to temperature or other
environmental factors should be installed where these
factors can be controlled.

5.4.4 Computer Based Monitoring and Control Functions Requirements
a) General
All gas metering computations shall be managed by a
computer system.
This system has to be installed in a
central control room, local control room or local
equipment room. Normally, separate computers will be

dedicated for meter runs and station control. However, the

functionality of the computers may be combined if it can

be demonstrated that the required reliability, availability and
redundancy standards will be met.
However such an

arrangement has to be agreed by PETRONAS.

The computer system is to be designed as follows:

The computer part in a gas metering system shall have

no functions other than those involved in the metering.

The gas metering system shall be designed in such a

way that the maximum gas flow will be measured

The system should include at least two (2) independent
registers for storing accumulated fiscal quantities for

each meter run and station total. It shall not be possible
to delete or change these registers by operator

encroachment or power failure
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The computer shall also be designed to ensure that
cumulative quantities generated during validation/

calibration are registered separately from the measured
amount

Manually entered parameters shall be displayed without

rounding off or truncation of digits. The display on the

computer shall have sufficient resolution to enable the
verification for calculation accuracy, be carried out.
Facilities shall be installed to prevent access to

computer by any unauthorised personnel

The computer system shall be designed in such a way

that the transfer of data to a distributed control system,
supervisory control and data acquisition or plant
information system is permissible and all interfacing
requirements such as handshaking and necessary

software are provided

Computer parts shall have an automatic watch-over for
differences between readings of measured values, for

parallel meter runs

For continuous monitoring of measurement data the

computer shall, for each meter run, automatically log

and store for at least one (1) year the following data:

- at intervals of one (1) hour cumulative quantities and
average values of pressure, temperature and density;
- at intervals of twenty-four (24) hours: cumulative

quantities
This information shall be accessible on printout in a

clearly set out format using standard computer printer
and paper. Access to the logs will not be possible

without the use of key operated switch.

A gas meter verification algorithm should be available

A report facility for computer constants keypad settings

should be available

The computer will have the ability to perform meter

curve (foot-print) interpolation for the minimum of eight

(8) calibration points

b) Data Security
The computer data transmission shall be designed

in accordance with Level A in HM 23 (1998) (formerly IP

PMM Part XIII, S1 or IP 252/76).

The computer is required to have a self-diagnostic

capability. It shall monitor to ensure that programme loops
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are executed at the correct intervals by means of a

watchdog function.
The parts of the memory that contain permanent data shall
have a periodical check sum control.
Algorithms and fixed parameters important for accurate
computation of fiscal quantities shall be stored in nonalterable memory.
A security system shall be provided for manual data entry.
The computer system shall be designed with features that
provide for sealing.
Programme version numbers shall be assigned to identify

all programmes and these shall be able to be determined

directly from the visual display unit or printout. The version

number can be updated every time permanent programme

is altered.

c) Calculation

Computer routines for fiscal measurement calculation shall
satisfy the requirements of the following standards, where
applicable:

122
ISO 5167-1:2003, ISO 5167-2:2003, ISO 5167-3:2003,

ISO 5167-4:2003, ISO 6976:1995/Cor 3:1999, ISO
12213-1:2006, ISO 12213-2:2006, ISO 12213-3:2006
and ISO 17089-1:2010
AGA XQ9212 AGA Report No. 8 (1994), AGA XQ0701
AGA Report No. 9 (2007) and AGA XQ0310 AGA Report
No. 10 (2003)
GPA 2145-09 (2009) and GPA 2172-09 (2009)
API MPMS 21.1 (2013)
References
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The computer shall satisfy the following criteria:

The update time to changes of input signals shall not
be more than two (2) seconds and the parameters

having a response time such as density and temperature

shall not exceed five (5) seconds

The interval between each cycle for the computation of

instantaneous flow rate and accumulated flow shall be

less than ten (10) seconds

The algorithm and rounding off error for the

computation of fiscal quantities in the flow computer

shall be within 0.001% for flow rate and 0.01% for the
totalisation of the computed values. Rounding or

truncation shall only be carried out at the end of the
final computation

Temperature readings in degrees Fahrenheit (F) shall
be corrected to one (1) decimal place and two (2)

decimal places for readings in degrees Celcius (C)

Contractor shall consult PETRONAS if there is any deviation

from the above requirements.

d) Printouts and Hardcopies
A computer system should have dedicated printers for

alarms and reports. The supervisory computer shall be able
to electronically archive all the alarms and reports. A
common printer can be used if an acceptable priority
routine has been established. Automatic logging of the

following information is to be provided:

Alarms for faults detected by the computer (date, time)

Inserted
parameters/constant,
both
fixed
and
changeable

Quantity report

Instantaneous values of rate and measured input

parameters. Any fixed values that are used instead of live

signals, shall be identified

A meter verification report. All data required for manual
checks of calculated correction factors inclusive of
errors
After consultation with PETRONAS, Contractor

establish a system for reporting of agreed data.
shall
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e)

Power Supply
A
computer
system
shall
be
equipped
with
an
uninterruptable power supply system for back up purpose.
The normal operation of a gas metering system shall not be
affected if there is any change from one power source to
another.

5.4.5 Sampling and Analytical Instrumentation
a) General Requirements Sampling

The recommendations as specified in ISO 10715:1997 are to

be followed. A delay time calculation shall be performed to

ensure that the delay time between the sample point and

the analyser is kept short, at least shorter that the duration

of the analytical cycle.
b)

Online Gas Chromatograph

GHV (mass based) shall be calculated in megajoules per
kilogramme (MJ/kg) at standard conditions.
Packing materials used in each chromatograph column,

carrier gas, valves configuration and pressure flow
regulators shall be according to industry standards.
Gas composition shall be determined with the defined
uncertainty of a gas chromatograph based on ISO 69741:2012/Cor 1:2012, ISO 6974-2:2012, ISO 6974-3:2000,
ISO 6974-4:2000, ISO 6974-5:2000 and ISO 6974-6:2002/
Cor 1:2003, where applicable.
The composition of the gas used for calibration of the gas

chromatograph shall be as close as possible to the
composition of the process gas. Standard test methods to
determine and analyse the composition of the gas using
gas chromatography shall be in accordance with ASTM D
1945 03 (2010).
A controller shall be programmed such that the

computations are made based on the peak integration of
individual
component
constituting
the
sample.
Hydrocarbon fractions heavier than and including hexane

should be combined and treated as normal hexane.

124
The analysis shall be normalised to 100% and the results

shall be expressed in percentage mole fractions. An
operating density calculation is normally performed by a
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computer system using the percentage mole fractions from

the gas chromatograph. The computer system shall also be
capable of calculating the following based on the
compositional data according to ISO 6976:1995/Cor
3:1999:

Compressibility factor at standard conditions

Gross calorific value (synonomus with GHV)

Wobbe-index

Relative density (real/ideal)

Density at standard conditions
The sampling system used shall ensure that gas entering

the gas chromatograph is representative and that the
sampling tube is protected from liquid contamination.
The recommendations as specified in ISO 10715:1997 are to

be followed. The route between a sampling point and the
gas chromatograph shall be practically as short as possible.
c)

Gas Sampler System

Where no online gas chromatograph is installed and an
automatic gas sampler is used, it shall be able to collect and
store a representative gas sample at line conditions
for transportation and analysis. The system shall be in
accordance with ISO 10715:1997.
The automatic gas sampler shall be provided with the

following monitoring facilities:

Amount of sample collected

Health status of sampler controller/system

Sampler cans in use
d)

Manual Sample Point

In addition to the above, a manual sampling point equipped
with valves and quick connectors, be installed such that a
representative sample of the gas can be collected if the
above equipment fails. The manual sampling can be taken
from the same probe.
e)

Metering Data
Contractor shall make metering data available at hourly
basis, daily basis and/or upon request as specified in
Appendix 5.1.
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5.5.1

An FAT shall be conducted, prior to on-site installation, to check the
integrity of both the computer software and the mechanical/skid
instrumentation. The FAT procedure shall be agreed between
Contractor and vendor prior to the FAT.
During the FAT, the electronic and mechanical instrumentation shall

be tested together. It is essential that vendor shall demonstrate that
the equipment has been internally tested and is in good working
order before Contractor and PETRONAS are invited for the FAT.
All FAT results are to be fully documented and only upon successful
completion of the FAT can a gas metering system be accepted and
shipped out to an offshore or onshore site. Once on site, further
testing shall be carried out prior to the commissioning of the gas
metering system. Validation and calibration of all instruments using
certified test equipment traceable to NML-SIRIM or any certified/
accredited third party/independent laboratory traceable to
its national certification/accreditation and standards shall
be carried out. It is the responsibility of Contractor to ensure
that the FAT and SAT procedures are made available

prior to the tests. PETRONAS may request these procedures to be
submitted for review.

126
Contractor shall notify and invite PETRONAS and NML-SIRIM, where

applicable, to witness the following activities, at least three (3) weeks
in advance:
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WITNESSING REQUIREMENTS
CALIBRATION AND TESTING ACTIVITIES
PETRONAS,
Contractor and
Vendor
NML-SIRIM
Calibration of any master meter used for custody

transfer or trade purpose
Yes
Yes
Calibration of any master meter used for allocation

purpose
Yes
No
Calibration of any meter used for custody transfer or

trade purpose
Yes
Refer to Note 1
Calibration of any meter used for allocation purpose
Yes
No
FAT of any gas metering system used for custody

transfer, trade or allocation purpose
Yes
No
SAT of any gas metering system used for custody

transfer or trade purpose
Yes
Yes
SAT of any gas metering system used for allocation

purpose
Yes
No
Note 1: NML-SIRIMs participation is not required unless the gas

metering system has no master meter in place.

PETRONAS may decide on its participation for the calibration and

testing activities.

5.5.2 Calibration
a) General

Gas custody transfer and allocation metering systems shall
be calibrated with certified test equipment traceable to
NML-SIRIM
or
any
third
party/
independent
laboratory
traceable
to
its
national

certification/accreditation and standards.

Secondary standards or test equipment used for validation
and calibration of all relevant parts of the gas metering
system shall be calibrated and certified by NML-SIRIM or
any certified/accredited third party/independent laboratory
standards.
b) Meter Inspection/Calibration

Orifice Meter

Inspection and measurement of upstream pipe sections
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(D) adjacent to an orifice plate shall be checked for

circularity and cylindricality in accordance with ISO
5167-1:2003 and ISO 5167-2:2003. Inspection shall be
conducted by a certified third party and shall be
traceable to NML-SIRIM or any certified/accredited third
party/independent laboratory traceable to its national
certification/accreditation and standards.
Ultrasonic Meter
An ultrasonic meter when intended for use for custody
transfer and allocation purposes shall be initially
calibrated at a certified/accredited laboratory traceable
to its national certification/accreditation and standards
at conditions near to its operational conditions and a
certificate is to be issued.
The meter shall be calibrated under undisturbed and

steady flow conditions, over a statistically significant

duration of time and over an appropriate range of flow

rates to describe the in-service response of the meter;

a minimum of six (6), but preferably seven (7) points shall
be taken. For example: for seven-point calibration:

100%, 70%, 40%, 25%, 10%, 5% of operating maximum

flow rate (or design maximum) and the minimum flow
rate (or design minimum) as specified in ISO 17089 1:2010.

The meter shall be calibrated over the whole operating
range (or design range) of the meter after which an
errors curve shall be generated. The geometric

dimensions of the ultrasonic meter that may affect the
measurement results shall be measured by traceable
equipment and its results made available on the
certificate.
128
Where system diagnostics is used to justify an extension

to intervals between recalibrations for multi-path
ultrasonic meters, the features and data acquired should
be agreed with PETRONAS in advance.
Instrument Calibration
All relevant instruments used in a gas metering system
shall be calibrated and certified by the manufacturers
or any certified/accredited third party/independent
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laboratory traceable to their/its national certification

accreditation and standards.
5.5.3 Testing

General testing shall include checking against drawings,

flushing, cleaning, hydrostatic pressure testing, electrical

earthing and it shall be done on an individual item basis.

Vendor shall perform its own test prior to the FAT and

provide the necessary evidence if required via filed test
sheets.
a) General Check
Prior to further test in the factory, a general
check on a gas metering system is to be carried
out. This includes checking of the following

items:

Dimension check as per approved drawings and

standards

Instrument installation and quantity check as per
approved
drawings
and
bill
of
quantity,

respectively

Availability of all documentations
b) Metering Panel and Instrumentation Equipment Tests

All panel and field mounted instruments, cabling
and connectors shall be visually inspected
for compliance to specifications with regard to
segregation of cables, satisfactory access, vents,
drains and general good quality of installation work

Calibration checks using precision test equipment,
shall be performed on all transducers, transmitters,
converters, indicators, recorders, gauges and
switches and the relevant instruments supplied
for use with the gas metering system

All safety and relief valves shall be tested, set
and tagged with the set pressure

An insulation test shall be undertaken on all power
supply and instrument cables and panel wiring using
a voltage tester. All instruments that may cause
internal damage shall be disconnected during
the test. All resistance thermometer elements shall
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be tested for insulation resistance to BS EN

60751:2008

A sample of the power circuit breakers to be used
shall be tested by simulating a short circuit failure

The control panel shall be fully functionally tested
before connection to the skid using appropriate
simulators and other test equipment

These tests shall include:
- panel mounted receiving indicators
- outputs from panel mounted controls
- meter run instruments
- computer functional test
- verification of computer calculation and
integration accuracy
- interlocks and alarms
- checking of power distribution circuits and
breakers for correct wiring
- analogue functions shall be calibrated at a
minimum of five (5) points rising and five (5)
points falling in the range (0%, 25%, 50%, 75% and
100%)

All remotely operated valves shall be checked after
installation on the skid by:
- manual stroking of the valves to check limit
switch actuation and to ensure full operations
- local operations to verify the phase of electrically
operated actuators rotation and functioning of
local controls
- remote operations and checking of remote
position indications and interlocks
- noting the time for each valve to fully stroke in
each direction

After connection between the panel and skid, loop
checks shall be carried out on all circuits to check
correct wiring and calibration of the gas metering
system. This shall include checks of all alarms,
interlocks, digital and analogue inputs and outputs

A check shall be made on the effects of power
supply variation by setting all instruments in normal
operating mode and varying the output voltage to
upper and lower limits whilst noting the effect by
repeating functional checks

The panel should be heat soaked for a minimum of
one hundred (100) hours. Records shall be made
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of the temperature at selected points on the panel.
Following completion of the heat soak, loop checks
shall be repeated at ambient temperature to ensure
that none of the equipment has suffered any adverse
thermal effects. A check of the microprocessor
functional performance shall be made during the
soak test (after internal panel temperatures have

stabilised)

Measurement and records shall also be made on
panel maximum power consumption (AC & DC)

Data transfer to another system shall be checked
for data accuracy, data correctness and redundant
switching of communication channels

Spares should be tested upfront

A simulation test shall include simulating with at least
five (5) different values that cover the minimum and
maximum levels in the working range of the skid
instrument and the computers using test simulators
The simulators shall simulate signals connected to
the computers input or in any other way to secure a
controlled, constant input to the computers.

Testing or simulating different functions of the

computers shall include but not limited to manually
input data, printouts, alarms and data transmission
between the computers.
All computer calculations shall be verified by

injecting known values into the computers and
comparing the results using a manual calculation
method such as flow calculation software.
5.5.3.3

Site Acceptance Test

Contractor shall provide test procedure for punch list
items arriving on site.
Other items to be provided shall include but not limited
to the following:
a) Loop diagram and loop checkout sheets

b) Full print database checking
c) System functional test procedure and schedule

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The SAT shall be considered as an extension of the FAT.

Prior to the SAT, all wiring terminations shall be checked
and the powering of the panel should be carried out by
vendor or any vendors authorised representative. Some
tests carried out during the FAT shall also be repeated
during the SAT. The SAT shall concentrate more
specifically on the following:
a) Inspection of material and equipment upon arrival

on site including spares and documentation. If
damage occurs during transportation, it is
important to establish without delay, the extent of
the damage and whether it can be repaired on
site or if it will be necessary to order new
materials. Suitable storage of materials and
equipment should be provided.
b) Field inspection of the meter and the relevant
meter
verification
shall
be
conducted
in
accordance with the following standards, where

applicable:

ISO 5167-1:2003, ISO 5167-2:2003, ISO 51673:2003, ISO 5167-4:2003 and ISO 17089-1:2010
AGA XQ0701 AGA Report No. 9 (2007) and AGA
XQ0310 AGA Report No. 10 (2003)
All calibration equipment used for the inspection,

meter verification and other metering equipment
shall be traceable to NML-SIRIM or any certified/
accredited third party/independent laboratory
traceable to its national certification/accreditation

and standards.
c) All meter inspections and verification on custody
transfer metering systems that involve tax
calculation shall be witnessed by vendor,
Contractor and NML-SIRIM. PETRONAS may at
any time witness the inspection/verification
exercise. The results shall be certified by NML
SIRIM.
d) In the case of a master meter, where it is not
possible to calibrate it on site or at a local facility,
certification or recognition by NML-SIRIM shall be
obtained for the results of calibration overseas.
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e) The metering panel and instrumentation equipment
test shall also be repeated and shall also include the
computations check carried out by the computer
system. The instrument calibration exercise carried
out in this exercise is considered as Validation No. 1.
f ) The completed metering skid and panel shall be
subject to operational functional test during actual
flow conditions to demonstrate satisfactory
performance at design flow rates.
g) Contractor shall submit a project completion report
that should include the first official validation report
to PETRONAS within thirty (30) days of the system
being commissioned. Approval from PETRONAS shall
be obtained before the gas metering system is put in
operation for official use.

5.5.4 Commissioning
a) General
The installation, commissioning and start-up of a gas
metering system shall be carried out in accordance with

the requirements in this section.
b)

Installation Quality Assurance

Contractor shall develop a master plan for all installation
and commissioning activities in order to provide sufficient
evidence and that the overall quality control shall be
effectively maintained.

The master plan shall be applied systematically to all gas

metering systems. Deviations will not be tolerated.

c) Commissioning
Commissioning shall include the running of all rotating
equipment, checking alignment, testing control loops,

stroking valves, flushing, hydrotesting, final test of electrical
instrumentation systems, purging, drying, inerting and
other relevant activities usually carried out sequentially on

a system basis. The commissioning is completed when the

gas metering system is ready for start-up.
d) Start-up

This begins with the introduction of process hydrocarbons

not counting where these may have been used previously

for pressure testing/purging.
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5.6.1

Contractor shall operate and maintain a gas metering system to
the highest degree of engineering standard in order to maintain its
accuracy and integrity. As such, Contractor shall prepare operating,
validation and hydrocarbon accounting procedures/manuals and
approved by PETRONAS before start-up. These procedures shall
document all activities that influence the measurement system.

Contractor is required to carry out the following essential activities:
a) A gas metering system shall be operated and maintained in
accordance with the manufacturers recommendations and
approved
operations,
validation
and
hydrocarbon
accounting procedures/manuals. Particular attention shall

be given to flow stabilisation prior to meter verification and

checking of block and bleed valves for leaks.

For a newly commissioned gas metering system with a

dedicated meter verification facility in a continuous
production system, meters shall be verified at least once
a month at approximately equal intervals between verification.
The verification frequency may be reduced to every two (2)
months or quarterly basis provided that the results of error
scatter are acceptable to PETRONAS and until an error control
chart is established.
The frequency of the verification may be further reduced upon

approval by PETRONAS.
b)

Where the type of meter is other than those mentioned in

this section, the type and frequency of meter verification by
Contractor shall be determined based on a case-to-case
basis by PETRONAS after consultation with Contractor.
Account shall be taken of the type of meter, process fluid
and operational load cycle. Where a meter that uses novel
technology is to be used, extra evaluation periods and
tests will usually be required before a long term operational
schedule can be determined.
c) The error and its correction factor for acceptable ultrasonic

meters shall be, where applicable, in accordance with the
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following standards:

ISO 17089-1:2010
AGA XQ0701 AGA Report No. 9 (2007)
AGA XQ0310 AGA Report No. 10 (2003)
Operating Manual
An operating manual shall be prepared for the purpose of providing
operational guidelines for operators in performing metering
activities. It shall describe the operations of the gas metering system
including computers, skid instrumentation, sampling activities and
other operation of the gas metering system.

The manual shall, amongst other things, include what action will be
taken in case of a malfunction or an alarm triggered on the gas
metering system.

The contents of the manual shall contain the following as a
minimum:
a) Overall process description
b) Metering system description
c) Metering instrument specification
d) Computer system operation (including

codes) and actions taken on alarms
e) Metering system operations
f ) Metering sealing procedure
g) Sampling procedure

5.6.3

computer
read
System Validation
In order to maintain the reliability and accuracy of a gas metering
system, Contractor shall conduct a periodic validation and calibration
of the gas metering system at a frequency agreed by PETRONAS. For
a new gas metering system, monthly validation shall be performed.
A new validation frequency can be agreed with PETRONAS after such
time as the gas metering system is stable. The validation and
calibration shall be performed in accordance with a Validation
Manual prepared by Contractor and approved by PETRONAS.
All validation and calibration results shall be recorded in the format
agreed upon in the validation report. The validation report shall
include but not limited to the following:
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a) As-found and as-left results of the validation and calibration
exercises
b) System errors shall preferably be in accordance with ISO
5168:2005
c) Findings and recommendations
d) Metering irregularities that have occurred since the

previous validation and between the last validations

A validation report shall be prepared after each validation and
calibration exercise and submitted to PETRONAS within one (1)
month. Any irregularity of the figures generated from the validation
and calibration shall be endorsed by PETRONAS.
Validation Manual
A Validation Manual shall be prepared for the purpose of providing
guidelines for the verification of gas metering system
instrumentation. The contents of the Validation Manual shall consist
of, but not limited to the following:
136
a)

Brief Description of Gas Metering System

This shall include a concise description of the design
concept of the system and its instrumentation, including
the computer system. Descriptions of the function of each
individual instrument, its accuracy and location in the
system layout, system capacity, flow operating condition
and the schematic drawing of the gas metering system.
Instrument description shall include the manufacturers

name, model number, range, accuracy, input/output signal
and tag number.
b)

Validation and Calibration Procedures

Step-by-step validation and calibration procedures for the
instruments shall be given in detail for each individual
instrument in the gas metering system. A set of validation
check sheets shall also be included and all readings
obtained during each validation and calibration exercise
shall be recorded on these check sheets. Adjustments shall
be made when a reading is out of tolerance. After making
the adjustments, the complete test shall be repeated.
c)

Frequency of Validation and Calibration

Contractor shall give a detailed account of the frequency of
validation and calibration of each of the gas metering
instruments.
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d)

Flow Calculation
The calculations/formulae used to arrive at volume, mass
and energy throughputs shall be clearly laid out. All flow
constants that are to be used shall be shown in the actual
units in which they are used. Where the flow constants are
fixed, the actual values and their derivations shall be shown.
e)

Metering Irregularity Calculation

All types of irregularities of the gas metering system and the
methods for their correction shall be clearly stated.
f )

Validation and Calibration Equipment

A list of validation and calibration equipment to be used in
the validation exercise shall be provided in the Validation
Manual. All information related to equipment specifications
such as its accuracy, repeatability, serial number and range
shall also be provided.
The accuracy of the calibration equipment shall be better

than the accuracy of the instrument to be validated.
The equipment shall be traceable to NML-SIRIM or any

third
party/independent
laboratory
standards.
g)

System Error Calculation

Any system error calculation shall be listed in the Validation
Manual
and
preferably
in
accordance
with
ISO
5168:2005.

Contractor shall maintain a gas metering system in order to maintain
its accuracy and integrity.

Contractor shall notify and seek PETRONAS approval before any

change or modification is made to the gas metering system.
Drawings and sufficient data shall be submitted together with the
request for approval (refer to Section 5.3.2 in this volume).
Contractor shall notify and invite PETRONAS to witness maintenance

activities relating to the modification of a gas metering system. All
results pertaining to these activities shall then be properly
documented. Contractor shall also obtain from vendor the
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recommended comprehensive spare parts list and price quotation for

parts for the commissioning and two (2) years operation.

5.6.5 Security
All software and all flow factors, status and alarm information stored
in a gas metering system shall be protected to prevent loss of
information by inadvertent operator action or input power failure.

In order to ensure the data security in the computers and other

critical instrumentation in the gas metering system, sealing
procedure shall be adhered to. The procedure for sealing shall be
prepared by Contractor.
Critical instruments such as the computers, transmitters and critical

valves shall be sealed where practically possible to prevent
unauthorised entry or manipulation of the computer system and
opening or closing of the critical valves at the skid. The sample cans
of the sampling systems shall be sealed. The seals shall have serial
numbers for easy identification.
The last valve downstream of an outlet header or offloading valve

shall be sealed as per Customs requirements (for a custody transfer
metering system).
The sealing of these identified critical instruments shall be carried out

by a person authorised by Contractor and shall be recorded in a
dedicated sealing logbook. The logbook shall be kept in a metering
control room where PETRONAS will review it on a need to basis.

a) General Requirements
A Production Accounting/Allocation Manual shall clearly
describe the methods used to allocate crude oil and
condensate productions and natural gas sales, from the

point of sale to the respective Contractor, by fields/streams
and these shall be developed prior to the first oil/gas
production.

The allocation of products to Contractor is to be conducted
monthly on the basis of mass, volume and/or energy.
A
Terminal
Operator
shall
develop
a
production
accounting/common allocation manual from the terminal

to the respective tie-in Contractor.
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There are two (2) types of allocation methods used when
the metering systems are installed between different

ownership fields that share common facilities:

The Full Allocation or Proration method

The Forced Balance or Measurement by Difference
method
b)

Accounting/Allocation Manual/Procedure
Contractor shall prepare an Accounting/Allocation Manual
that shall require PETRONAS approval. The purpose of this
manual is to precisely define the way metered and other
data is to be used for the determination of sales, allocation
and production quantities. This manual as the minimum
requirements shall consist of the following:

Accounting and allocation overview

Production measurement system

Product sampling and analysis

Data requirements

Allocation algorithm and calculation

Inventory calculation method

Methods to account for irregularities in quantity
c) Accounting and Allocation Overview

The approved concept by PETRONAS shall be adopted in

the allocation manual that should include the following:

Allocation algorithm concept

Allocation network diagram

Metering systems

Allocation type i.e. Full Allocation or Forced Balance

Allocation system, i.e. spreadsheet, software based and
others
d)

Production Measurement System

This section shall consist of Primary and Secondary
production measurement system that should include the
following:

Meter type and uncertainty

Metering configuration

Meter standard calculation
e)

Product Sampling and Analysis

This section shall consist of Primary and Secondary product
sampling and analysis that should include the following:

Sampling location and configuration
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f )

g)

Sampling method and frequency

Lab analysis methodology and standards
Samples validation process
Data Requirements
This section describes the data requirements to be used for
production allocation that shall include but not limited to
the following:

Mass

Volume

Heating value

BS&W
Allocation Algorithm and Calculation
The allocation algorithm and calculation shall consist of
sequential
mathematical
equations
that
have
been
developed from the approved concept. Each equation shall
be tested and accepted by the relevant parties prior to
official use.
h) Inventory Calculation Method

The inventory calculation, namely, pipeline inventory and

tank inventory shall be prepared six (6) months before the

expiry of the first gas/oil contract and shall be documented

inside the manual/procedure.

i) Methods to Account for Irregularities in Quantity
Contractor shall develop irregularities procedure that shall

require PETRONAS approval.

j) Production Allocation Reporting

Following the end of each calendar month and based on
the official measurement in either the onshore or marine
terminal or another authorised place, the monthly
production of oil, gas, condensate (if applicable) and/or
formation water for each field and production platform/
station shall be determined. A monthly report shall be

submitted within thirty (30) days from the end of the month
under review and shall include the following reconciled
figures:

Petroleum and/or formation water

Fluids injected

Petroleum/gas utilised, flared or vented, stored in

and delivered from each production station/terminal
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Monthly
official
allocation
report
produced
that
involves two (2) or more Contractors shall obtain the
agreement of all their shareholders and PETRONAS
approval prior to the distribution of the report.
A Typical Allocation Work Process Flow - Gas is shown in

Appendix 5.2, Figure 8.

Log Books/Records
Contractor shall maintain an electronic/manual logbook and gas
metering system records inclusive of inspection, master meter, meter
verification and metering printout. Records of parameters such as
meter flow rate and gas temperature and density shall be kept at the
gas metering system for at least three (3) months. All logbook/
records shall be made available within a reasonable timeframe for
inspection by PETRONAS. The electronic or manual logbook and
records shall be maintained comprising information of the following
systems:
a) Metering Logbook
A logbook for the gas metering system shall be kept

preferably for each meter showing details of the following:

Particulars of type, stream and tag number including

location and production measured

Totaliser readings, where applicable, on commencement

and cessation of metering

All mechanical, electrical repairs or adjustments made to
the meter or its read-out equipment and other parts

of the gas metering system

Metering errors due to equipment malfunction,
incorrect operation and relevant factors including

data, time and totaliser readings; both at the time of or the

recognition of an error as well as when remedial action
is completed

Alarms, together with reasons and operator response

Any breakdown of the meter or withdrawal from normal

service, including time and totaliser readings

Replacement of security seals when broken

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b) Metering Record
A manual/automatic recording should also be kept, at

intervals of not more than one (1) hour, of the following
parameters:

All meter totaliser readings

Meter flow rates (also relevant errors), pressure and

temperature and density

Composition and heating value

c)

5.6.8

One of these sets of readings should be recorded at 2400

hours or at the agreed time for taking the daily closing
figure.
Meter Verification Record
Contractor shall also keep a meter verification record for
each meter giving the details of each verified run such as
verified flow rate, pressure, temperature and error. The
record shall include a running plot or similar control chart,
so that any undue change or fluctuation in errors may be
easily detected.
Direct Reporting
Contractor shall notify PETRONAS prior to any major maintenance
and recalibration work on a gas metering system and also other
operational related activities. PETRONAS shall also be officially
notified, when any abnormal situation or error occurs that could
require significant adjustment to the totalised meter throughputs.
If a meter needs to be removed for maintenance work or

replacement, PETRONAS shall be officially informed with details of
the meter serial number and the reasons for the action taken.

142
When corrections to the meter totalised figures are needed, due to

known metering errors, a formal report shall be submitted to
PETRONAS detailing the times of the occurrence, totaliser readings
and suspected causes for the errors.
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5.7
Final Provision

a) The final acceptance of a gas metering system will depend on the
successful completion of the SAT during actual flowing conditions at

field site

b) Contractor shall submit a project completion report to PETRONAS
at least thirty (30) days after the gas metering system has been

commissioned for official approval of system usage

c) PETRONAS reserves the right to increase the requirements for all

items stipulated in this section

d) PETRONAS may, in special cases, provide exemption from the

requirements stipulated in this section
5.8 References

These references shall be used for the design, installation, testing,

commissioning, operation and maintenance of gas custody transfer and

allocation metering systems:



Weights and Measures Act 1972 (Act 71)



PETRONAS Technical Standards

ISO 5167-1:2003 Measurement of Fluid Flow by Means of Pressure
Differential Devices Inserted in Circular Cross-Section Conduits

Running Full, Part 1 - General Principles and Requirements


Running Full, Part 2 - Orifice Plates


Running Full, Part 3 - Nozzles and Venturi Nozzles


Running Full, Part 4 - Venturi Tubes

ISO 5168:2005 Measurement of Fluid Flow - Procedures for the

Evaluation of Uncertainties, Second Edition

ISO 6551:1982 Petroleum Liquids and Gases - Fidelity and Security of
Dynamic Measurement - Cabled Transmission of Electric and/or

Electronic Pulsed Data, First Edition

ISO 6974-1:2012/Cor 1:2012 Natural Gas - Determination of
Composition and Associated Uncertainty by Gas Chromatography,
Part 1 - General Guidelines and Calculation of Composition, Second

Edition, Includes Corrigendum 1 (November 2012)

ISO 6974-2:2012 Natural Gas - Determination of Composition and
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Associated Uncertainty by Gas Chromatography, Part 2 - Uncertainty

Calculations, Second Edition

ISO 6974-3:2000 Natural Gas - Determination of Composition with
Defined Uncertainty by Gas Chromatography, Part 3: Determination
of Hydrogen, Helium, Oxygen, Nitrogen, Carbon Dioxide and

Hydrocarbons Up to C8 Using Two Packed Columns, First Edition

Defined Uncertainty by Gas Chromatography, Part 4 - Determination
of Nitrogen, Carbon Dioxide and C1 to C5 and C6+ Hydrocarbons for
a Laboratory and Online Measuring System Using Two Columns, First
Edition

Defined Uncertainty by Gas Chromatography, Part 5 - Determination
of Nitrogen, Carbon Dioxide and C1 to C5 and C6+ Hydrocarbons for
a Laboratory and Online Process Application Using Three Columns,

First Edition

ISO 6974-6:2002/Cor 1:2003 Natural Gas - Determination
of Composition with Defined Uncertainty by Gas Chromatography,
Part 6 - Determination of Hydrogen, Helium, Oxygen, Nitrogen,
Carbon Dioxide and C1 to C8 Hydrocarbons Using Three Capillary

Columns, First Edition, Includes Corrigendum

ISO 6976:1995/Cor 3:1999 Natural Gas -- Calculation of Calorific
Values, Density, Relative Density and Wobbe Index from

Composition, Second Edition, Includes Corrigendum 3

ISO 10715:1997 Natural Gas - Sampling Guidelines, First Edition

ISO 12213-1:2006 Natural Gas - Calculation of Compression Factor,

Part 1 -Introduction and Guidelines, Second Edition

Part 2 -Calculation Using Molar-Composition Analysis, Second
Edition


Part 3 -Calculation Using Physical Properties, Second Edition

IS0 13443:1996/Cor 1:1997 Natural Gas - Standard Reference

Conditions, First Edition, Includes Corrigenda 1

ISO 15970:2008 Natural Gas - Measurement of Properties Volumetric
Properties:
Density,
Pressure,
Temperature
and

Compression Factor, First Edition

ISO 17089-1:2010 Measurement of Fluid Flow in Closed Conduits
- Ultrasonic Meters for Gas, Part 1 - Meters for Custody Transfer and

Allocation Measurement, First Edition

ISO 80000-1:2009/Cor 1:2011 Quantities and Units, Part 1 - General,

First Edition, Includes Corrigendum 1

AGA XQ1201 AGA Report No. 3 (2012) Orifice Metering of Natural Gas
and Other Related Hydrocarbon Fluids - Concentric, Square-Edged
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Orifice Meters, Part 1 - General Equations and Uncertainty

Guidelines, Fourth Edition

AGA XQ0901 AGA Report No. 5 (2009) Natural Gas Energy
Measurement

AGA XQ9212 AGA Report No. 8 (1994) Compressibility Factor of

Natural Gas and Related Hydrocarbon Gases, Second Edition

AGA XQ0701 AGA Report No. 9 (2007) Measurement of Gas by

Multipath Ultrasonic Meters, Second Edition

AGA XQ0310 AGA Report No. 10 (2003) Speed of Sound in Natural

Gas and Other Related Hydrocarbon Gases

GPA 2145-09 (2009) Table of Physical Properties for Hydrocarbons

and Other Compounds of Interest to the Natural Gas Industry

GPA 2172-09 (2009) Calculation of Gross Heating Value, Relative

Density, Compressibility and Theoretical Hydrocarbon Liquid Content

for Natural Gas Mixtures for Custody Transfer, Third Edition

ANSI/API MPMS Chapter 14.6 (R2012) Chapter 14 - Natural Gas Fluids
Measurement, Section 6 - Continuous Density Measurement, Second

Edition (1991)

API MPMS 21.1 (2013) Chapter 21 - Flow Measurement Using
Electronic Metering Systems, Section 1 - Electronic Gas

Measurement, Second Edition

IEC 60751:2008 Industrial Platinum Resistance Thermometers and

Platinum Temperature Sensors, Second Edition

BS EN 60751:2008 Industrial Platinum Resistance Thermometers and

Platinum Temperature Sensors

BS EN ISO 6551:1996 Petroleum Liquids and Gases - Fidelity and
Security of Dynamic Measurement - Cabled Transmission of Electric

and/or Electronic Pulsed Data

ASTM D 1945 03 (2010) Standard Test Method for Analysis of

Natural Gas by Gas Chromatography, Reapproved

ISA 5.1-2009 Instrumentation Symbols and Identification

BIPM JCGM 200:2008(E/F) International Vocabulary of Metrology Basic and General Concepts and Associated Terms (VIM), Third
Edition
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Section 6: Onshore/Offshore Operations
6.1 Introduction

This section provides the basic guidelines for the operations of onshore
and offshore facilities, which shall include but not limited to:

a) Floating Production, Storage and Offloading (FPSOs)

b) Floating Storage and Offloading (FSOs)

c) Mobile Offshore Production Unit (MOPUs)

d) Mobile Offshore Drilling Unit (MODUs)

e) Work Barges

f) Platforms

g) Onshore Crude Oil, Condensate and Gas Terminals

h) Other locations such as: supply bases and warehouses, as well as all
other
associated
facilities
and
equipment
for
example:
accommodation barges, pipelines, export facilities, pumps and
compressors

Contractor shall operate these offshore and onshore facilities, structures and
pipelines safely and in accordance with good and modern petroleum
practices and in full compliance with PETRONAS HSE and regulatory
requirements as well as all applicable Malaysian laws.
For all onshore and offshore facilities, Contractor is required to develop,

update and maintain:
a)
b)
c)
d)
e)
f )
g)
All onshore and offshore facilities must be free of drugs and alcohol. In
addition, the food served shall be strictly Halal.
operation manuals
simultaneous operations procedures
as-built drawings
shutdown programmes
daily production operations report
monthly performance report and production forecast
operating procedure
6.2 Notice of Intent

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Contractor must submit a notice of intent to the Head of Petroleum

Operations Management (POM), Petroleum Management Unit (PMU) and
advise them at least thirty (30) days before the commencement of
operations with regard to any newly constructed onshore and offshore
facilities, structures and pipelines. Any change of operatorship of these
facilities shall likewise be dealt with as above. Contractor is required to
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advise PETRONAS immediately if there are any changes to the first

commercial production date as defined in the Contract.
6.3 Operations Manual/Equipment Dossier

Contractor shall prepare relevant operation manual consisting of starting,

operating and shutdown procedures. It shall outline the preventive measures
and systems checks required to ensure proper functioning of all shutdown,
control and alarm systems for production facilities.
Contractor must give a copy of the operation manual to PETRONAS as and

when required.
Contractor must make all the latest operation manuals and/or equipment
dossiers available to PETRONAS prior to field relinquishment as required
under the Contract.
6.4 Simultaneous Operations Procedures

In the case of simultaneous operations that may expose personnel to

harmful working conditions, increase the possibility of undesirable events,
affects environment or cause property damage, Contractor is required to
prepare the procedure for simultaneous operations and where necessary,
update the relevant operations procedure.
The simultaneous operating procedures shall include the detail description

of operations and procedures for mitigation of undesirable events.
Activities requiring simultaneous operations procedures include, among

others: drilling, well work over, underwater activities and major construction
operations and maintenance activities.
Contractor shall prepare a specific/dedicated simultaneous operations

procedure for each activity and location prior to execution.
Contractor shall provide a copy of all simultaneous operations procedures to

PETRONAS when requested.
6.5 As-Built Drawings

As-Built drawings must be made available to PETRONAS as and when

requested. Contractor is required to update all As-Built drawings for facilities,
structures and pipelines whenever modifications are carried out.
Contractor shall make available to PETRONAS, all the latest As-Built drawings
prior to field relinquishment as required under the Contract.
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6.6 Shutdown

6.6.1 Shutdown Plan
Contractor is required to advise PETRONAS on the annual shutdown
plan, as per the original WPB submission, the reasons and the
duration of the planned shutdown. Contractor shall update
PETRONAS on a quarterly basis during the Quarterly Performance
Review.

6.6.2 Unplanned Shutdown
Contractor shall notify PETRONAS promptly of any major unplanned
crude oil production shutdown. A major unplanned crude oil
production shutdown refers to any shutdown event that was not
planned in Contractors WPB, which may impact the agreed tanker
lifting programme, as well as the monthly crude oil production
forecast as submitted in accordance with Volume 4, Section 3: Crude
Oil Annual Production Target and Quarterly Performance Review
(QPR).
Contractor shall notify PETRONAS promptly of any major unplanned
gas production shutdown event which was not planned in
Contractors WPB that has an impact on downstream gas customers.

Contractor shall also notify PETRONAS promptly of any shutdown

of their crude oil/condensate/gas terminals and/or export facilities,
either due to weather or concerns about technical integrity of
associated equipment such as loading hoses, Single Anchor Leg
Mooring (SALM), Single Buoy Mooring (SBM) and export pumps,
which render the facilities as unavailable or unsafe for any loading
operations to be performed.
Prompt notification means within twenty-four (24) hours via a

telephone call or text message and must be followed up in writing
either in the form of an e-mail or telefax. Notification must include,
at a minimum:
a) a description of the
failure or the reason(s) for the
shutdown
b) an estimate of volume shortfall
c) the impact on flaring or re-injection (where applicable)
d) the actions taken
e) the estimated time for normalisation
These requirements are in addition to the normal Contractors
reporting via the daily production operations report as described in
Section 6.7 below.
(Refer to Appendix 6: Format of the 24-hour Notification Report)
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6.7 Daily Production Operations Report

Contractor must submit or make accessible to PETRONAS, the daily

operations report, which should include but not limited to:

a) crude, condensate, Associated Gas (AG) and Non-Associated Gas

(NAG) production per platform and field

b) crude and condensate sales and stocks

c) gas sales and utilisation (for example flaring/venting, fuel, injection

and/or lift)

d) reasons for any abnormalities in the performance such as production

shortfall and/or excessive gas flaring

The submission can be made via electronic mailing system.
Contractor is also required to ensure that the daily operations log is

maintained and updated to record significant daily operational activities at all
work locations.
6.8 Monthly Performance Report and Production Forecast

Contractor shall submit a monthly performance report to PETRONAS by the
16th of the month as stipulated in Section 11: Operating Performance

Improvement in this volume.

Contractor must submit a Monthly Production Forecast to PETRONAS via

email by the 4th week of the month for each field. This report shall include

the detail of daily forecast for crude, condensate and gas production for the

subsequent month including the planned and unplanned downtime
assumption.
6.9 Terminal Operations

In addition to the above requirements, all onshore and offshore terminal

operations for crude oil/condensate and gas terminals, namely: receiving,
processing, stabilisation, storage, offloading and export/transfer facilities,
must comply with the following requirements:

a) PETRONAS Measurement & Allocation Procedures that consist of
the hydrocarbon inventory, loading, metering, validation, custody

transfer and accounting procedures

b) PETRONAS HSE requirements (refer to Volume 3: Health, Safety &
Environment)

c) PETRONAS Marine Guideline

d) Malaysian Statutory requirements or any international instruments to

which Malaysia has ratified

e) Relevant PETRONAS procedures and Contractors internal requirements.
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6.10 Inspection and Operations Audit

PETRONAS reserves the right to conduct any operations inspection or audit

at Contractors and/or their contractors operational locations, whenever and
wherever necessary. This may be conducted either as a separate exercise
or together with an inspection of the HSE, facilities and/or other activities
open to inspection and audit.
6.11 Integrated Operations

6.11.1 Introduction
Integrated Operations is an approach towards resource and
asset optimisation that integrates people and work processes,
appropriately facilitated by technology. It is a collaborative effort
with optimisation in focus.

A Contractor who wishes to implement Integrated Operations

shall submit the implementation plan to PETRONAS for approval. This
may be applicable to Contractor who has critical operations
issues as identified by the PETRONAS.

6.11.2 Objective
The aim of operating in an integrated manner is to achieve the
targeted or improved state in the following areas:
a)
b)
c)
d)

e)
f)

g)
h)

Business and operations decision-making

HSE performance
Reservoir drainage/ultimate recovery (UR)
System efficiency and productivity (increased production or
reduced deferment)
Equipment condition monitoring and reliability
Internal supply chain integration
CAPEX and OPEX
Operations transparency and real-time accessibility of data
by PETRONAS

6.11.3 Requirement
Integrated Operations requires:
a)

b)

150
an integration of business processes and advanced ICT

technologies, supported by organisational alignment to deliver
operational excellence
the elimination of physical boundaries between people,
making it possible in real-time or right-time to cooperate and
collaborate across global business units
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c)

that the application of information technology is adequately

supported by competent resources, available infrastructure and
work processes to ensure efficient and optimised asset
operation

6.11.4 Standard Request & Budget Submission
Submission of an Integrated Operations implementation plan
fulfilling the stated pre-requisites must be directed to General
Manager,
Production
Operations,
Petroleum
Operations
Management, PMU for evaluation and approval.

Contractor should aim to align submission with WPB deadlines.
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Section 7: Gas Flaring/Venting Limit
7.1 Objective

Contractor shall seek PETRONAS approval for flaring or venting of NonAssociated Gas (NAG) and Associated Gas (AG) resulting from production
operation activities from a petroleum field.
Contractor must comply with the flaring or venting limit set by PETRONAS
for the year.

7.1.1 Non-Associated Gas (NAG)
NAG shall NOT be flared or vented, except under the following
circumstances (subject to prior approval from PETRONAS):
a) when gas is released from condensate stabilisation and gas

conditioning units and the utilisation of such gas cannot be

economically justified
b) during cleaning up of a well and well evaluation tests not
exceeding a continuous testing period of forty-eight (48)
hours
c) when gas is released during emergencies
d) during regular scheduled facilities maintenance and
inspection of gas related equipment
(not exceeding the

duration as stipulated in the WPB)
e) during commissioning of gas related equipment not

exceeding two (2) continuous weeks
152
PETRONAS shall be notified of flaring or venting of NAG during the

exploration and development operations.

7.1.2

Associated Gas (AG)

Contractor shall seek PETRONAS approval for flaring or venting of
AG as a result of production operations from any petroleum field.
Contractor must submit the corresponding AG production and

utilisation forecast based on a crude oil availability forecast and shall
provide justification for the flaring or venting level. The forecast
shall be submitted together with the production forecast during the
WPB and ECR submission (as stipulated in Volume 4, Section 4: Gas
Production, Condensate and Quarterly Performance Review (QPR)).
PETRONAS shall convey the annual flaring/venting limit of AG from

any petroleum field for Contractor to comply with.
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The flaring or venting of AG requires prior approval by PETRONAS

except in the following cases:
a)

b)

c)

d)

e)

f)

when gas vapours are released from storage vessels including

tanks and specifically surge tanks and free water knock-out
vessels and if such gas vapours cannot be economically
utilised
during temporary equipment failure (for example, compressor)
of up to seventy-two (72) hours
during cleaning up of a well, production test or any other
well evaluation tests (not exceeding a continuous period of
forty-eight (48) hours)
when regular scheduled preventive maintenance, inspections
and testing are conducted as per WPB
when gas is released during emergencies (for example,
emergency shutdowns, blanketing or pressure relief operations
or as part of normal production operations (instrument gas))
during commissioning of gas related equipment (not exceeding
two (2) weeks)
PETRONAS shall be notified of any flaring or venting of AG during any

exploration and development operations.
7.2 Flaring/Venting Limit

Contractor must comply with PETRONAS annual flaring or venting limit set
for the year by PETRONAS.

In the event that the flaring or venting exceeds the specific period as stipulated

in Section 7.1.1 and 7.1.2, Contractor shall notify PETRONAS as per Volume 1:
Preamble.

In line with PETRONAS Carbon Commitment, Contractor must take all steps
to:

a) minimise the flaring at all facilities where operationally and

economically feasible

b) aim for zero continuous venting for venting facilities with more than

twenty (20) years remaining life
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Section 8: PETRONAS Guidelines for Barges Operating Offshore Malaysia
(PGBOOM)
8.1 Introduction

This section provides the procedures and guidelines for barges operating

offshore Malaysia. It applies to all mobile offshore installation units and

surface units which can be moved from place to place without major

dismantling or modification, whether or not they have their own motive
power.

The adoption of these procedures and guidelines will ensure the desired
standardisation will be achieved, as well as upgrading the safety requirement
for the barges.

8.1.1 Application
The units include, but are not limited to the following:
a) Mobile Offshore Drilling Units (MODUs) maintained for
underwater exploitation or exploration of resources

beneath the seabed
b) Drilling Tender Barges maintained as of (a) above
c) Accommodation Barges, Jack-ups and semisubmersibles

used to accommodate offshore personnel
d) Construction and Pipe Laying Barges or semisubmersibles

used for offshore related construction operations
e) Engineering Work Barges or semisubmersibles used for

hook-up and commissioning of offshore installations
f ) Engineering Work Barges or semisubmersibles used for the
topside
and
underwater
maintenance
of
offshore
installations
g) Well Stimulation Barges or semisubmersibles used for oil

well stimulation exercises
h) Floating Storage and Offloading Unit (FSO) and Floating

Production, Storage and Offloading Unit (FPSO)
i) Mobile Offshore Production Units (MOPUs)

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Provisions in Section 8.2 of this volume apply to (a) to (i) above and
the provisions in Sections 8.3 to 8.8 apply to (c) to (i) above.
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8.1.2 Requirements
Specific requirements are as follows:
Accommodation
Spaces
All constructions must comply with Section 8.2.

They must be constructed from steel or an equivalent
material.
Applicable fire integrity standards must be used between
adjacent spaces as per Tables 7A and 7B of Appendix 7.
Automatic Fire Detection

and Alarm Systemm
An automatic fire detection and alarm system must be

provided in all accommodation and service spaces. The
system shall comply with Section 8.3.
Automatic Flammable Gas

Detection and Alarm System
An automatic flammable gas detection and alarm system

must be provided in all accommodation entrances and
service spaces. The system shall comply with Section 8.4.
Life Saving Appliances
All life saving appliances must comply with Section 8.5.

All barges that are involved in drilling activities that are either
producing hydrocarbons or are shut-in or semi-submersible
must be provided with rigid Totally Enclosed Motor Propelled
Survival Craft (TEMPSC) and there must be sufficient places in
the craft for all personnel.
If no TEMPSC is available, Contractor must demonstrate that
the substitute craft meets the same objectives as a TEMPSC.
Fire Fighting Equipment
All fire fighting equipment must comply with Section 8.6.

A fixed fire extinguishing system in compliance with
International Maritime Organization (IMO) must be provided
in machinery spaces. Halon is strictly prohibited.
Provisions for Helicopter

Facilities
Adequate provision for helicopter facilities, when provided,

must comply with Section 8.7.
Operating Manual
An operating manual for safe operation of the unit must be

kept on board and must comply with Section 8.8.
Structural Fire Integrity
The fire integrity of bulkheads and decks must comply with

the minimum fire integrity requirements as prescribed in
Tables 7A and 7B in Appendix 7.
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General Waste and
Scheduled Waste
Management
Contractor must comply with PETRONAS E&P Minimum

Environmental Specifications (MES) when managing general
and scheduled waste.
The discharge of untreated sewage is strictly prohibited, in
compliance with Annex IV of Marine Pollutions (International
Convention for Prevention of Pollution from Ships) (MARPOL).
Oily bilge water must be discharged according to Annex I of
MARPOL.
Electrical Power Supply
Portable generators are not allowed to supply the barges

main power needs.
8.1.3 Definitions
8.1.3.1 Steel or Other Equivalent Material

Where the words steel or other equivalent material occur,

equivalent material means any non-combustible material

which, by itself or due to insulation provided, has equivalent

structural integrity to steel when exposed to the standard fire
test (for example Aluminum Alloy with appropriate
insulation).
8.1.3.2

Non-Combustible Materials
Non-combustible materials are materials which neither
burn nor give off flammable vapors in sufficient quantity to
self-ignite when heated to approximately 750OC.
8.1.3.3 A Standard Fire Test (as defined in SOLAS Chapter II-2

Regulation 3)

A Standard Fire Test requires that relevant bulkheads or

decks are exposed in a test furnace to temperatures that
approximately correspond to the standard time
temperature curve. The exposed surface of the specimen

must not be less than 4.65 square metres (50 square feet)

and 2.44 metres (8 feet) in height/length of deck. The test

conditions should resemble, as closely as possible, the
intended construction and include, where appropriate,

at least one joint. The standard time-temperature curve is

defined by a smooth curve drawn through the following

points measured above the initial furnace temperature:

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a) at the end of the first 5 minutes: 556OC

b) at the end of the first 10 minutes: 659OC
VOLUME 7

c) at the end of the first 15 minutes: 718OC

d) at the end of the first 30 minutes: 821OC
e) at the end of the first 60 minutes: 925OC
8.1.3.4 A Class Divisions (as defined in SOLAS Chapter II-2

Regulation 3)

A class divisions are those divisions formed by bulkheads

and decks which must comply with the following:

a) They must be constructed of steel or other equivalent

material;

b) They have to be suitably stiffened;

c) They must be constructed to be able to prevent the
passage of smoke and flames in the one-hour standard

fire test;

d) They are required to be insulated with non-combustible
materials such that: the average temperature of the
unexposed side will not rise more than 139OC above
the original temperature. Nor will the temperature, at
any one point including any joint, rise more than 180OC
above the original temperature, within the times listed

below:

Class A - 60: 60 minutes



Class A - 0: 0 minute
8.1.3.5 B Class Divisions (as defined in SOLAS Chapter II-2
Regulation 3)

B class divisions are those that are formed by bulkheads,

decks, ceilings or linings, which must comply with the
following:

a) They must be so constructed as to be capable of
preventing the passage of flame to the end of the first
half hour of the standard fire test.

b) They shall have an insulation value such that the average
temperature of the unexposed side will not rise more

than 139OC above the original temperature. Nor will the
temperature at any one point, including any joint, rise
more than 225OC above the original temperature, within
the times listed below:

Class B - 5 : 15 minutes

Class B - 0 : 0 minute
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c)
They shall be constructed of approved non combustible materials. Additionally all materials used in
the construction and erection of B class divisions shall

be non-combustible.
8.1.3.6 C Class Divisions (as defined in SOLAS Chapter II-2
Regulation 3)

C class divisions are divisions constructed of approved non
combustible materials. They do not need to meet either of the

requirements relative to the passage of smoke and flame or

limitations relative to the temperature rise.
8.1.3.7

Public Spaces
Public spaces are those portions of the accommodation
which are used for halls, dining rooms, lounges and other
similar permanently enclosed spaces.
8.1.3.8

Control Stations
Control stations are:

a) spaces containing emergency sources of power and

lighting

b) spaces containing barge radio equipment, fire control
and recording stations

c) spaces containing centralised fire alarm equipment
d)
spaces containing centralised emergency public
address system stations and equipment
8.1.3.9 Corridors

Corridors mean corridors and lobbies.
158
8.1.3.10

Accommodation Spaces
Accommodation spaces are public spaces, corridors,
lavatories, cabins, offices, hospitals, cinemas, games and
hobbies rooms and pantries that do not contain cooking
appliances or similar permanently enclosed spaces.
8.1.3.11

Stairways
Stairways are interior stairways, lifts, escalators (other
than those wholly contained within the machinery spaces)
and enclosures. In this connection a stairway that is
enclosed only at one (1) level should be regarded as part of
the space from which it is not separated by a fire door.
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8.1.3.12 Service Spaces (low risk)

Service spaces (low risk) are lockers and store rooms that have

an area of less than 2 square metres, as well as drying rooms
and laundries.
8.1.3.13

Category A Machinery Spaces

Category A machinery spaces are all spaces that contain
internal combustion type machinery with an aggregate total
power of not less than 375 kilowatts or ones which contain
an oil fired boiler or oil fuel unit. This category also
includes any trunks to such spaces.
8.1.3.14 Other Machinery Spaces

This category includes all machinery

than those in category A above.
8.1.3.15

spaces
other
Hazardous Areas
A hazardous area is any area where, the atmosphere is
potentially inflammable due to operations or in areas where
the use of machinery or electrical equipment without
proper consideration may lead to a fire hazard or explosion.
8.1.3.16 High Risk Service Spaces

Galleys, pantries containing cooking appliances, paint rooms,

lockers and store rooms having areas of 2 square metres or

more are regarded as being high risk service spaces as are,

workshops, other than those forming part of the machinery
spaces.
8.1.3.17 Open Decks

Open decks are open deck spaces, excluding hazardous
areas.

8.2 Accommodation Spaces

8.2.1 Restrictions
a) There must be no direct communication between
accommodation spaces and any chain locker, cargo

stowage or machinery spaces, except through solid, close
fitted doors or hatches
b) There should be no access via vent or sounding tube, from a

fuel or cargo oil tank into accommodation spaces. Access

openings and sounding tubes may be located in corridors,

provided they are closed and sealed air-tightly, when not in
use
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c) Accommodation must be of a permanent fixture
d) Sharing of a sleeping berth between two (2) people of different

work shift (hot beds) is also strictly prohibited

8.2.2 Construction
a) Each space used for sleeping, recreation or as a hospital
(sick bay) that is adjacent to immediately above a
machinery stowage space, paint locker, drying room,
washroom, toilet or other odour source must be made

odour proof
b) Each accommodation space must be protected from

operational heat and noise
c) Where the shell or an unsheathed weather deck forms the
boundary of an accommodation space, the shell of the

deck must have a covering that prevents the formation of
moisture
d) The deck heads of each accommodation space must be

light in colour
e) Each accommodation space in which water may

accumulate must have a drain scupper located at its lowest

part, considering the average trim of the unit
f ) Each public toilet must be constructed and located in a way

that odour from the unit is prevented from polluting any
sleeping spaces, mess halls, recreational facilities or

hospital (sick bays)
g) Built-up types of accommodation are strictly not allowed

8.2.3

Arrangement of Sleeping Spaces

Wherever practicable, crew from the same shift should be
berthed together to minimise sleep disturbance caused by personnel
getting up for work or just finishing a working period.

8.2.4 Size of Sleeping Spaces
No sleeping space may accommodate more than four (4) berths/
people.
Each occupant must have access to at least:
a) 2.8 square metres (approximately 30 square feet) of deck

area; and
b) 5 cubic metres (approximately 210 cubic feet) of volume
Each sleeping space must have at least 191 centimetres
(approximately 6 feet 3 inches) of clear headroom over deck areas.
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8.2.5 Berths and Lockers
a) Each sleeping space must have a separate berth for each
occupant
b) No more than one (1) berth may be placed over another
c) Each berth must have a framework of a hard smooth
material that is not likely to corrode or harbour vermin.

Each berth and locker shall be permanently secured to the
decks
d) Each berth must be arranged to provide ample room for

easy occupancy
e) Each berth must be at least 76 centimetres (approximately
30 inches) wide by 193 centimetres (approximately 76

inches) long
f ) Adjacent berths must be separated by a partition that
extends at least 46 centimetres (approximately 18 inches)

above the sleeping surface
g) The bottom of the lower berth must be at least 30

centimetres (approximately 12 inches) above the deck
h) The bottom of the upper berth must be at least 76
centimetres (approximately 2 feet 6 inches) from the

bottom of the berth below it or from the deck or any pipe,

ventilating duct or overhead installation
i ) Each berth must have its own light
j ) Each occupant of a sleeping space must have an easily

accessible locker made of hard, smooth material
k) Each locker must be at least 0.194 square metres

(approximately 300 square inches) in cross section and 1.53

metres (approximately 60 inches) high

8.2.6 Washing, Toilet and Shower Spaces
For the purposes of this section:
a) Private Facility means a toilet, washing or shower space
that is accessible only from one (1) single or double

occupancy sleeping space
b) Semi-Private Facility means a toilet, washing or shower
space that is accessible from either of two one-to-four

person occupancy sleeping spaces; and
c) Public Facility means a toilet, washing or shower space

that is not private or semi-private
Requirements are as follows:
a) Each private facility must have one (1) toilet, one (1) shower
and one (1) washbasin, all of which may be in a single
space
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b) Each semi-private facility must have at least one (1) toilet

and one shower, which may be in a single space
c) Each room adjoining a semi-private facility must have a

washbasin if a washbasin is not installed in a semi-private
facility
d) Each unit must have access to at least one (1) toilet, one

shower and one (1) washbasin for each eight (8) persons

who occupy a sleeping space that does not have private or

semi-private facilities
e) Urinals may be installed in toilet rooms, but toilets must be

provided and cannot be replaced by a urinal
f ) Each public toilet and washing space must be conveniently

located to the sleeping space that it serves
g) No public facility may open into any sleeping space
h) Each washbasin, shower and bathtub must have hot and

cold running water
i ) Adjacent toilets must be separated by a partition that is

open at the top and bottom for ventilation and cleaning
j ) Public toilet facilities and shower facilities must be
separated
k) Each toilet must have at least one (1) washbasin unless the

only access to the toilet is through a washing space
l ) Each washing space and toilet space must be so
constructed and arranged that it can be kept in a clean
and sanitary condition and the plumbing and mechanical

appliances kept in good working order
m) Washbasins may be located in a sleeping space

8.2.7 Mess Rooms
a) Each mess room must be able to seat the number of

people expected to eat in the mess room at any one time.
b) Food served in the mess room shall be strictly Halal

8.2.8 Hospital (Sick Bay)
a) Each unit carrying twelve (12) or more people on a voyage
of more than (3) days must have a hospital (sick bay)
space
b) Each hospital (sick bay) space must be suitably separated

from other spaces
c) No hospital (sick bay) space may be used for any other

purpose, when it is being used for care of the sick
d) The entrance to each hospital (sick bay) space must be
wide enough to easily allow access to a person on a
stretcher
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e)

f )

g)

h)

i )

j )

k)

Each berth in the hospital (sick bay) space must be made of

metal
Each upper berth must be hinged and arranged so that it
can be secured clear of the lower berth
Each hospital (sick bay) space must have at least one (1)
berth that is accessible from both sides
There must be one (1) berth for every fifty (50) people or
portion thereof and the number of berths in a hospital
(sick bay) should not exceed two (2)
Each hospital (sick bay) space must have a toilet, washbasin
and bath-tub or shower that is accessible from the hospital
(sick bay)
Each hospital (sick bay) space must have a clothes locker, a
table and seats
The air conditioning system shall be isolated from the main
system

8.2.9 Miscellaneous Accommodation Spaces
a) Each unit must have enough facilities to provide a twenty
four (24)-hour laundry service (i.e. clothes returned in twelve (12)
hours)
b) Each unit must have enough equipment or space to
provide a twenty-four (24)-hour clothes drying service for

all personnel on board
c) Each unit must have an accommodation space that can be

used for recreation
d) Each unit must have an accommodation space that can be

used as a Muslim prayer room
8.3 Automatic Fire Detection and Alarm Systems

a) The system must be capable of immediate automatic activation with

no manual activation by the crew necessary and has to include:

An automatic visual and audible alarm that activates
whenever any fire detector comes into operation

An indicator showing the location of the fire in any space
served by the system

The centralised placement of indicators on the navigating
bridge or in the Main Fire Control station. These areas must
be manned or equipped to ensure that any alarm from the
system is immediately received by a responsible member of
the crew

A fault detector that indicates any fault that may develop in
the alarm system
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b) The detection system must be sensitive to abnormal air temperatures
and abnormal concentrations of smoke or by other factors indicative

of incipient fire in any of one of the spaces to be protected

c) The detection system must not be used for any purpose other than

fire detection

d) The detectors must turn on the alarm by the opening or closing of
contacts or by other appropriate methods. Detectors that rely on
the closing of contacts must be sealed and the circuit continuously

monitored to indicate any fault conditions

e) All fire detectors must be:

Fitted in an appropriate position and suitably protected
against impact and physical damage

Suitable for use in a marine environment

Placed in an open position clear of beams and other
objects likely to obstruct the flow of hot gases or smoke to
the sensitive element

f ) At least one (1) detector must be installed in each space where
detection facilities are required and there shall not be less than one
(1) detector for each 37 square meters (400 square feet) of deck area
or as per the approved ships safety plan. In large spaces, the
detectors should be arranged in a regular formation so that no
detector is more than 9 metres (30 feet) from another detector or

more than 4.5 metres (15 feet) from a bulkhead

g) There must be at least two (2) independent sources of power for the
fire alarm and fire detection system, one of which shall be an
emergency source. The electrical supply should have separate
feeders reserved solely for that purpose. The feeders have to run to a
change-over switch situated in the control station for the fire

detection system

h) Contractor is required to display a plan of the automatic alarm

systems adjacent to each indicating unit showing the spaces covered

i ) Contractor is also responsible for testing the detectors and the
indicator units by applying hot air or smoke at detector positions as

recommended by the operation manual

j ) There must be one (1) spare detector head for every five (5) detectors
8.4 Automatic Flammable Gas Detection and Alarm Systems

Contractor is required to ensure that a fixed automatic hydrocarbon gas

detection and alarm system is provided to continuously monitor all enclosed

areas of the unit in which an accumulation of flammable gas may be

expected to occur. It must also be capable of indicating, at the main control

point, by aural and visual means the presence and location of an
accumulation.
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At least two (2) portable gas-monitoring devices must be provided, each

being capable of accurately measuring concentrations of flammable gas.
At least two (2) portable hydrogen sulphide gas monitoring devices are
required on the unit.
8.5 Life Saving Appliances

All barges must carry the following equipment:

8.5.1 Life Rafts
Enough life rafts must be provided to accommodate twice the total
number of people onboard.
Barges that are involved in drilling activities and all semisubmersibles
are required to carry:

a) Rigid and Totally Enclosed Motor Propelled Survival Craft

(TEMPSC) of sufficient capacity to accommodate all people
onboard
b) Life rafts of sufficient capacity to accommodate all persons
onboard.

8.5.2

Life jackets
These must comply with the IMO-LSA (Life Saving Appliance) code.
There must also be twice the number of lifejackets onboard as
people. Each life jacket must be fitted with a whistle and a battery
powered light or equivalent.
Each person must have a life jacket stowed in their accommodation.

Additional life jackets must also be stowed at or near the normal
embarkation positions. They must be kept in a suitable dry stowage
position and be unlocked and clearly marked. Work vests are not to
be considered as life jackets at any time.

8.5.3 Lifebuoys
At least eight (8) lifebuoys of a type complying with the LSA
Code shall be provided so that they can be quickly thrown overboard
in an emergency. Barge shall carry not less than the number of
lifebuoys as per the following table :
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LENGTH OF BARGE IN METRES
MINIMUM NUMBER OF LIFEBUOYS
Less than 100
Eight (8)
100 150
Ten (10)
150 200
Twelve (12)
Above 200

Fourteen (14)
At least half of the lifebuoys shall have self-igniting lights complying

with the LSA Code attached and at least one on each side with a
buoyant lifeline the length should be at least 1.5 times the freeboard
at light draft or 30 metres whichever is greater. In addition the selfactivating smoke signal is to be provided to at least two (2) of the
lifebuoys attached with self-igniting lights.

8.5.4

Line Throwing Appliances

These must be of an approved type capable of carrying a line not less
than 230 metres (250 yards) with reasonable accuracy and shall
include not less than four (4) projectiles and four (4) lines.

8.5.5 Muster List
This must outline the special duties that have been allocated to
member of the crew in the event of an emergency. It should also
specify a set of clear signals for calling all the crew to their survival
craft, life raft and fire stations and shall give full particulars of those
signals.

8.5.6 Survival Equipment
All survival craft, life rafts, life jackets and lifebuoys must incorporate
retro-reflective material.
8.6 Fire Fighting Equipment

All barges must have a range of firefighting equipment as follows:

8.6.1 Fire Pump
There must be at least two (2) independently driven fire pumps
onboard each barge.

There must also be an alternative means of providing water for fire

fighting in case a fire puts all the fire pumps out of action. This must
be a fixed pump independently driven which is capable of supplying
two (2) jets of water.
Portable fire pumps are strictly prohibited.
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8.6.2

Fire Water Main

The diameter of pipes for the fire water main must be sufficient to
effectively distribute the maximum required discharge from two (2)
fire pumps operating simultaneously.

8.6.3

Fire Hose
There should be one (1) fire hose on deck each complete with
couplings and nozzles for each 30 metres (100 feet) length of the
ship and one (1) spare. Under no circumstance shall there be less
than five (5) fire hoses on deck. Machinery spaces shall also be
provided with fire hoses.

8.6.4

Hydrants (Fire Monitors)

Hydrants (fire monitors) must be positioned so that at least two (2)
jets of water from different hydrants (fire monitors) can be used to
contain the fire. Each length of fire hose coming from the hydrants
must be long enough to reach all parts of the barge normally
accessible by the crew.

8.6.5

International Shore Connection

There must be at least one (1) international shore connection and
communication facilities should be placed so that the connection is
available from either side of the barge.

8.6.6 Portable Fire Extinguisher
A sufficient number of portable fire extinguishers must be supplied
to ensure that at least one (1) extinguisher will be readily available for
use in any part of the accommodation or service spaces at all times.
The minimum number of extinguishers must be not less than five (5)
units.

8.6.7 Firemens Outfits
At least two (2) sets of firemans outfits must be provided or
additional sets, according to the approved safety plan. Firemens
outfits must be stored in a way that makes them easily accessible and
ready for use. The firemens outfit shall consist of the following as a
minimum:
a) Protective clothing made of fire-resistant material to

protect the skin from the heat radiating from the fire and

from burns and scalding by steam. The outer surface must

be water-resistant
b) Rubber boots and gloves or another electrically non
conducting material
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c)
d)

e)
f)
g)

h)

A rigid helmet providing effective protection against impact

An electrical safety lamp of an approved type with a
maximum burning period of three (3) hours
An axe
Self-contained breathing apparatus of an approved type
A fireproof lifeline of sufficient length and strength that it is
capable of being attached by a snap hook to a harness on a
separate belt in order to prevent the breathing apparatus
becoming detached when the lifeline is operated
At least two (2) fire control plans permanently exhibited in
all barges for the guidance of the crew. They should consist
of a General Arrangement Plan clearly showing the Control
Stations on each deck, the particulars of the Fire Alarm and
Detection Systems, the location of fire extinguishing
appliances
and
the
means
of
accessing
different
compartments, areas and decks in an emergency

8.6.8 Sprinkler System
All sprinkler systems are to be specified by Contractor and outlined in
their respective contracts.
8.7 Provision for Helicopter Services

8.7.1 Helideck
All mobile or fixed offshore helidecks operating in Malaysian waters
are to comply with Airport Standard Directives (ASD).

ASD 103, ASD 104, ASD 106 and ASD 904 directives require
Contractor to get approval before constructing a helideck and to be
granted helideck certification before helicopter is permitted to
land and take off. The helideck must be designed to accommodate
the largest, heaviest helicopter intended to be used at the facility.
The size must be equal to the diameter Dvalue and be heavy
enough to equal the tonnage tvalue (refer to PTS 37.19.10.31). The
helideck shall be adequately equipped with serviceable equipment
and be competently manned to ensure the safety of the helideck and
helicopter operations.
The helideck must have sufficiently clear approach/departure paths

for the helicopter to land and take off in any wind and weather
condition within the permitted range for helicopter operations within
the bisector of the 210 Obstacle Free Sector (OFS) and 150 Limited
Obstacle Sector (LOS).
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The helideck must comply with the following requirements:
a)

b)

c)

d)

e)

f)

The helideck must be in dark green colour. The perimeter of the

landing area is required to be clearly marked with a white
painted line 30 cm wide. Non-slip materials must be used
Correct helideck markings and sizes shall be adhered for
name,
side
identification
panels,
D-value,
t-value,
H-marking, TD/PM marking (circle), perimeter line and
Chevron markings
Sufficient flush fitting tie-down points should be provided
for securing the helicopter when its not in use
The perimeter safety net should extend 1.5 metres in the
horizontal plane and be arranged so that the outboard
edge does not exceed 25cm from the landing area and has
an angled upward and outward slope of approximately 10.
HELIMESH stainless steel material is recommended for the
perimeter safety net. Any horizontal bars attached to the
perimeter safety net to support aerial, sensor, solar systems
and antennas that could cause infringement or noncompliance are prohibited
A minimum of two (2) access/egress routes located apart
from each other are required for embarking and
disembarking passengers. A third emergency access escape
route may be installed for adequacy of evacuation
Perimeter lighting must be installed according to the DCAs
recommendations for night landing. The lights shall be
placed along the perimeter

8.7.2 Fire Extinguishers
The following fire extinguishers must be provided and stored on all
helidecks allowing ease of access:
a) A suitable foam system consisting of monitors or foam making branch pipes that are capable of delivering
sufficient foam according to the D-value size of the
helideck
b) There must be one (1) or more dry powder fire

extinguishers with an overall capacity of not less than forty

five 45 kilograms
c) CO2 extinguishers having a total content of not less than

eighteen (18) kilograms must be provided. These must have

a long lance to enable the extinguisher to reach the engine

area of the helicopter
d) At least two (2) dual-purpose nozzles (twin agent units) and
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e)

hoses sufficient to reach any part of the helicopter deck

A Deck Integrated Fire Fighting System (DIFFS) capable of
delivering foam and/or seawater in a jet/spray pattern to
the whole of the landing area is recommended
8.8 Operating Manual

8.8.1

Operating Manual
An Operating Manual containing guidance for the safe operation of
the unit under normal and emergency conditions should be on board
and available to all concerned.
The Operating Manual should include but not be limited to the

following information, where applicable:
a) A general description of the unit

b)
General
arrangement
plans
showing
watertight
compartments, closures, vents, permanent ballast and

allowable deck loadings
c) Light ship data and hydrostatic curves or equivalent
d) Capacity plan showing the capacity, center of gravity and

free surface correction for each tank
e) Stability information setting forth the allowable maximum

height of the center of gravity in relation to draught data or
other parameters. Stability calculation shall be carried out

prior to every operation
f ) Plans and instructions for the operation of the ballast
system
g) Schematic diagrams of main and emergency power

supplies and electrical installations
h) Fire control plan including type and location of firefighting

appliances and escape routes from all compartments
i ) Safety provisions including location and operation of life
saving appliances and a procedure for evacuation of

personnel from the unit
j ) Procedures for anchor handling
k) Procedures for adverse weather conditions
l ) Procedures for management of waste discharges, inclusive
of hydrocarbon and effluent discharges and sewage and

garbage in compliance with all relevant maritime laws and
regulations
m) Muster list and station bill
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8.9 Structural Fire Integrity

The fire integrity of bulkheads and decks must comply with the minimum fire

integrity requirements as prescribed in Tables 7A and 7B in Appendix 7.

8.9.1 Requirements Governing the Application of the Tables
Tables 7A and 7B in Appendix 7 shall be applied to the bulkheads and
decks separating adjacent spaces, respectively.

To determine the appropriate fire integrity standards to be applied

to divisions between adjacent spaces, Contractor are directed to
categories 1-11 below. The title of each category is intended to be
typical rather than restrictive.
The number preceding each category refers to the applicable

column or row in the tables.
1. Control Stations
2. Corridors
3. Accommodation Spaces
4. Stairways
5. Low Risk Service Spaces
6. Category A Machinery Spaces
7. Other Machinery Spaces
8. Hazardous Areas
9. Service Spaces (high risk)
10. Open Decks
11. Sanitary Spaces and Communal Facilities (such as showers, baths

and lavatories)

The following notes are to be applied to both Tables 7A and 7B in

Appendix 7, as appropriate:
a)

b)

c)

The boundary bulkhead or decks need to be an A-60 class

divisions between spaces containing an emergency power
source or emergency power source components that
adjoin a space containing the barges service generator
Where spaces are of the same numerical category, the
bulkhead or deck rating, shown in the tables, is only
required when the adjacent spaces are being used for a
different purpose. For example, in category 9, a galley next
to a galley does not require a bulkhead but a galley next to
a paint room requires an A-O bulkhead
Bulkheads separating the navigation bridge, chartroom and
radio room from each other may be B-O rating
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d) Where an asterisk (*) appears in the tables, the division is

required to be made of steel or equivalent material but is

not required to be of A Class standard

Windows and sidecuttles, with the exception of navigation bridge

windows, must be non-opening. Navigation bridge windows may be
of the opening type provided their design permits rapid closure.
PETRONAS may permit windows and sidecuttles outside hazardous
areas to be of the opening type.
External doors in the superstructure and deckhouse shall be

constructed to A-O standard and must be self-closing, where
practicable.

Protection of accommodation spaces, services spaces and control

stations is as follows:
a)

b)

c)

d)

e)

172
Corridor bulkheads, including doors, need to be A or B

Class divisions extending from deck to deck. Where
continuous B Class ceilings and/or linings are fitted on
both sides of the bulkhead, the bulkhead may terminate
at the continuous ceiling or lining. Doors of cabins and
public spaces in such bulkheads may have a louvre in the
lower half of the door. These openings shall not be
provided in a door in an A or B Class division forming a
stairway enclosure
Stairs should be constructed of steel or other equivalent
material.
Stairways which only penetrate a single deck should be
protected, at least at one level, by A or B Class divisions
and self-closing doors so as to limit the rapid spread of
fire from one deck to another. A Class divisions should
protect personnel lift trunks. Stairways and lift trunks which
penetrate more than a single deck should be surrounded
by A Class divisions and protected by self-closing doors at
all levels. Self-closing doors should not be fitted with
holdback
hooks.
However,
holdback
arrangements
incorporating remote release fittings of the fail-safe type
may be utilised
Air spaces enclosed behind ceilings, paneling or linings
should be divided by close fitting draught stops spaced not
more than 14 metres apart
Ceilings, linings, bulkheads and all insulation, except for the
insulation
in
refrigerated
compartments,
should
be
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constructed of a non-combustible material. Vapour
barriers and adhesives used for insulation, as well as

insulation for pipe fittings for cold service systems do not

need to be non-combustible, but they should be kept to a
minimum and their exposed surfaces should have

resistance to flame propagation
f ) The framing, including grounds and bulkhead joints, linings,
ceilings and draught stops need to be made from non
combustible material
g) All exposed surfaces in corridors and stairway enclosures
and surfaces in concealed or inaccessible spaces in

accommodation spaces and control stations is required to

have low flame-spread characteristics
h) Bulkheads, linings and ceilings may have combustible

veneers provided that the thickness of such veneers must
not exceed 2 millimetres within any space other than
corridors, stairway enclosures and control stations where
the thickness of such veneers must not exceed 1.5
millimetres
i ) Primary deck coverings, if applied, must be of approved

materials that will not readily ignite
j ) Paints, varnishes and other finishes used on exposed

interior surfaces must not offer any undue fire hazard and
should be incapable of producing excessive quantities of

smoke or toxic fumes
k) Ducts provided for the ventilation of Category A machinery

spaces and hazardous areas should not pass through any
accommodation and service spaces or control stations.

However, this requirement may be waived provided that:

The ducts are constructed of steel and insulated to

A-60 standard; or

The ducts are constructed of steel and fitted with

an automatic fire damper close to the boundary and
must be insulated to A-60 standard to a point at

least 5 metres beyond the fire damper
l ) The ducts provided for the ventilation of accommodation
and service spaces or control stations should not pass
through any Category A machinery spaces or hazardous

areas. However, this may be waived provided that the ducts
are constructed of steel and an automatic fire damper is

fitted close to the boundaries covered
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8.10 General Waste and Scheduled Waste Management

Contractor must comply with PETRONAS E&P MES when managing general
and scheduled waste.
The discharge of untreated sewage is strictly prohibited, in compliance with

Annex IV of MARPOL.
Oily bilge water must be discharged according to Annex I of MARPOL.
8.11 Electrical Power Supply

174
Portable generators are not allowed to supply the barges main power needs.
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Section 9: Asset Relinquishment
9.1 Introduction

This section provides the procedures for sub-block, oil field or gas field
relinquishment and the expiration of Contracts.
9.2 Relinquishment

PETRONAS will coordinate the overall relinquishment process as below:

CATEGORY
FOCAL PEOPLE
Relinquishment during the exploration

period
Senior General Manager, Petroleum Resource

Exploration (PREX)
Relinquishment during development and

gas holding period
Senior General Manager, Petroleum Resource

Development (PRD)
Relinquishment during production period
Senior General Manager, Petroleum Operations

Management (POM)
9.3 The Relinquishment Process

9.3.1 Exploration/Development Period
a) Relinquishment with Notification
The notification of relinquishment shall

PETRONAS in accordance with the Contract.
be
made
to
b)

Document submission
Contractor shall submit a detail Relinquishment and
Remaining Prospectivity Report that includes a Geological
& Geophysical assessment to PETRONAS.
Contractor shall also provide PETRONAS with a list of

available
Geological,
Geophysical,
Petrophysical
and
Engineering data, acquired through seismic investigation,
well drilling, interpretative works, in accordance with
Volume 10, Section 5: Data Management and Data
Submission.
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9.3.2 Production Period
Figure 1: Relinquishment Process for Production Period
Notice to PETRONAS on expiry

date
(At least twenty-four (24) months
before expiry)
Conduct Due Diligence Audit

(DDA)
(At least eighteen (18) months before
expiry)
Commencement of shadowing
period
(At least nine (9) months before
expiry)
Notice to PETRONAS on Contractors future plan for the sub-block/

oil field/gas field
(At least twelve (12) months before
expiry)
Official handover
(Expiry date)
a) The objectives of the Due Diligence Audit (DDA) are as

follows:

To ensure the smooth relinquishment of producing

sub-blocks, oil fields or gas fields to PETRONAS

To assure the reliability and integrity of the petroleum

facilities upon relinquishment to PETRONAS

To ensure the continuity of the petroleum operations

in a safe and working condition in the post Production

Period or when the Contract expires
b) Notices to PETRONAS:

Contractor shall notify PETRONAS about the expiry
of the Production Period or Contract at least twenty

four (24) months prior to the expiry date

Contractor shall notify PETRONAS of their intent or

future plans for the sub-blocks, oil fields or gas fields
in
terms
of
either
continuing
operation
or
relinquishing it to PETRONAS at least twelve (12)

months prior to the expiry date
c) PETRONAS and Contractor shall conduct a DDA at least
eighteen (18) months prior to the expiry date, in

accordance with the agreed Terms of Reference.
d) The scope of the DDA shall include but not be limited to:

Maintenance & Reliability
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Engineering & Projects

Health, Safety & Environment

Production Operation Management

Sub-surface

Business & Legal

Data & Document Management

Human Resource
e) PETRONAS and Contractor shall jointly establish a
Relinquishment Task Force that should have a minimum

structure as below:

Steering Committee (SC)
- To oversee the overall progress and ensure the
objectives of sub-block, oil field or gas field
relinquishment are fully accomplished

- To provide direction to the Working Committee (WC),
endorse issues raised by the WC and approve the

DDA Report

Working Committee (WC)
- To direct and coordinate the audit fieldwork for
the DDA activities
- To optimise resources to ensure sufficient
coverage for the DDA activities
- To issue the final DDA Report
Note: Once new Operator is identified, a Working Committee
for Asset Relinquishment will be established to manage and
ensure smooth petroleum operations handover to the new Operator.
f ) The summary of agreed audit findings and action plans

shall be incorporated in the DDA Report
g) The costs associated with conducting the DDA and the

execution of action plans outlined in the DDA Report, shall

be part of the petroleum operation cost
h) PETRONAS or any of its appointed parties and the existing
Contractor shall discuss their mobilisation plan, not less

than nine (9) months prior to the expiry date to facilitate the

safe and smooth transfer of petroleum facilities
i ) Existing Contractor shall provide all reasonable support
required by PETRONAS or any party appointed by
PETRONAS, to complete their familiarisation of the

petroleum facilities until the expiry date
Notes:
1. Reference shall also be made to Volume 9, Section 5:

Reporting Statements for expiring contract quarterly audited
accounts.
2. For asset transfer involving a Contract, the above DDA

requirement shall be applicable.
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Section 10: Decommissioning of Upstream Installations
10.1 Introduction

This section provides the guidelines and requirements for the

decommissioning of Contractors upstream installations that includes both
onshore and offshore installations. Decommissioning is a process that put
disused upstream installations out of service. The purpose of this section
is to provide guidance for all Contractors to ensure that all activities
pertaining to decommissioning of upstream installation shall be consistent
with the terms of the Contract, national and local laws and international
conventions. While the intent of this section is to provide guidelines and
requirements to decommission the onshore and offshore installation as
a total, the requirement for single or partial equipment/module/pipeline/well
decommissioning which is to be conducted during the operation stage shall
be at PETRONAS discretion on a case by case basis.
PMU, as the custodian and statutory manager of the national petroleum

resources in Malaysia, is obligated to address the process of the
decommissioning of all disused upstream installations that have ceased to
accommodate oil and gas production or are at the end of their design life,
consistent with the national laws and international conventions.
Contractor conducting upstream installation decommissioning, pursuant to

their Contract, must comply with these requirements, which may be
expanded or amended from time to time upon written notice by PETRONAS.
10.2 Decommissioning Philosophy and Requirement

10.2.1 PETRONAS Decommissioning Philosophy
Contractor shall adopt PETRONAS Decommissioning Philosophy as
follows:
a) PETRONAS, as the statutory manager for petroleum

resources and/or owner of petroleum facilities, is required

to adhere to the standards and obligations committed to by
the Government of Malaysia and will adopt measures
consistent
with
established
international
rules
and

standards in addition to the national and local laws
b) Disused upstream installations need to be decommissioned.

The extent of the removal shall be decided on a case-by case decommissioning assessment, taking into account all
factors, particularly the legitimate interests of other

Contractor, users of the sea, the safety of navigation and

the preservation of the marine environment
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c) It is envisaged that each case-by-case decommissioning

assessment shall entail consultations involving all interested
parties

10.2.2 General Decommissioning Requirement
All disused upstream installations are required to be fully
decommissioned, except where non-removal or partial removal is
consistent with the standards and requirements imposed by this
section. In general, decommissioning of upstream installations shall
be evaluated on a case-by-case basis.
In line with Contractors obligation as stipulated in Volume 6, Section
1: Field Development Plan (FDP) Review and Approval Process,
Contractor shall provide the decommissioning plan, which must
include but not be limited to schedule, method (options) and
cost estimates based on the end of the petroleum operations
life or the fields economic life.

The decommissioning work is driven by the following factors:
a)

Safe operation of upstream installations towards integrity and

HSE
The integrity of upstream installations must be regularly
assessed in line with Volume 7, Section 3: Facilities
Reliability and Integrity Management. In the event that the
integrity assessment falls below the integrity safe limit,
poses serious risk to HSE and is beyond repair, Contractor
may consider the upstream installations to be decommissioned.
b)

End of field economic life

The field review can be conducted through a Full Field
Review (FFR), Depletion Studies or Subsurface Review. The
field review must be completed three (3) to five (5) years
prior to the projected date the fields production level is
expected to decline or drop below Contractors forecasted
economic region (case-by-case basis). The decision to
decommission the field will be based on the field review
and in cases where the field can no longer produce and/
or be redeveloped commercially using the current facilities
and existing or new technology (including Enhanced Oil
Recovery (EOR)).
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The field review shall include but not limited to the
following:

Re-interpretation of the current seismic data.

Study of redevelopment opportunities using Improved
Oil Recovery (IOR) techniques
Screening study for EOR opportunities and techniques.
The outcome of the field review shall be submitted to

PETRONAS and the decision to decommission any field will
be subjected to PETRONAS approval.
c)

Legislative requirements
Refer to Section 10.3: Legal Framework below.
The general approval process for the decommissioning of

upstream installations is shown in Appendix 8.1.
10.3 Legal Framework

10.3.1 General
The following legislation and standards shall be referred to in the
implementation of the various decommissioning options for disused
upstream installations within Malaysia. At present, the government
has not promulgated any specific decommissioning regulations for
the oil and gas industry. There are however, enabling provisions in
several Acts which allow the government to promulgate any
decommissioning regulations as it deems fit.

These are:
a)

The Merchant Shipping Ordinance, 1952 - Section 485A.

Power to make regulations relating to offshore industry
structures.
Notwithstanding anything contained in this Act, the
Minister may make regulations for the purpose of ensuring
the safety of and control over offshore industry structures,
offshore industry mobile units and offshore industry
vessels.
b)

The Continental Shelf Act, 1966 (Revised 1972) - Section

16.6. Regulations (1) The Yang di Pertuan Agong may
make regulations for:
Providing for the removal of installations or devices constructed,
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erected or placed in, on or above the continental shelf which

have been abandoned or become disused.
c) Exclusive Economic Zone Act, 1984

Section 21: Prohibition of construction, operation or

use of artificial island, except with authorisation.

- No person shall construct, operate or use any artificial
island, installation or structure in the Exclusive
Economic Zone or on the continental shelf except
with the authorisation of the government and subject
to such conditions as it may impose

Section 22: the consent of the government is
necessary for delineating the course for laying of

submarine cables and pipelines.
- No person shall lay submarine cables or pipelines
in the exclusive economic zone or on the
continental shelf without the consent of the
government as to the delineation of the course
for the laying of such cables and pipelines
- Without prejudice to the above, the government
may impose such conditions as it may consider
necessary for the laying or maintenance of such
cables and pipelines in the exercise of its right to
take reasonable measures for the exploration
of the continental shelf, the exploitation of natural
resources and the prevention, reduction and
control of pollution from such cables or pipelines

Section 23: Duty of the owner of a submarine cable or
pipeline.
- The owner of any submarine cable or pipeline
which has fallen into disuse or is beyond repair
shall forthwith inform the government and must,
if so directed by the government, remove such
cable or pipeline within such a period of time as
the Government may direct

Section 41: Power to make regulations.

- The Yang di-Pertuan Agong may make regulations for
carrying out the provisions of this Act

10.3.2 Environmental
Potential environmental pollution arising from the decommissioning
process has always been a critical dimension to consider. The
relevant legislative acts to consider are as follows:
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a) Exclusive Economic Zone Act 1984

Section 2: Interpretation

Section 10: Offence in respect of the discharge or

escape of certain substances
b) Environmental Quality Act, 1974

Section 27: Prohibition of discharge of oil into Malaysian
waters

Section 29: Prohibition of discharge of wastes into Malaysian
waters
c) Environmental Quality (Prescribed Activities Environmental

Impact Assessment) Order 1987 - Item 12. Petroleum
d)
Environmental
Impact
Assessment
Guidelines
for
Petroleum Industries: an administrative guideline issued in
1997 by Department of Environment, Ministry of Science,

Technology & Environment, Malaysia

10.3.3 International Obligations
Malaysia is a party to the following international instruments and,
therefore, it is obligated to uphold the decommissioning standards
and requirements under those international instruments:
a) United Nations Convention on the Law of the Sea (UNCLOS),

1982 Article 60(3)
b) International Maritime Organization (IMO) Guidelines &

Standards, 1989
c) International Convention for the Prevention of Pollution
from Ships, 1973 and the modifying Protocol, 1978

(MARPOL 73/78)
d) ASEAN Council on Petroleum (ASCOPE) Decommissioning
Guideline

Notwithstanding to the above, Contractor shall adhere to this section

as the requirement for decommissioning activities.
10.4. Pre-decommissioning Process
182
A Decommissioning
Options
Assessment (for
example,
Best
Practicable Environmental Option Assessment (BPEOA)) shall be conducted
to evaluate potential decommissioning options, taking into consideration the
strategies, environmental, safety and cost elements. In addition to that, the
options recommended shall not pose any undue risk to human life,
environment, existing asset and reputation.
The selection of the options above will be evaluated on a case-by-case

basis. Contractor shall present their Decommissioning Options Assessment
to PETRONAS for approval. The Decommissioning Options Assessment
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proposal shall include but not limited to:

a)

b)

c)

Removal options
A relative ranking of the options based on its strengths and weaknesses
The estimated cost and days for each option including the schedule
for the recommended option

10.4.1 Establishment of Decommissioning Options Assessment
Contractor shall forward Decommissioning Options Assessment for
PETRONAS consideration, which shall include but not limited to:

a) Onshore Installations

Production and Crude/Gas Terminal Topside & Substructure
Total removal and reinstatement of land in this

option the entire topside and substructure of production
and crude/gas terminal above ground shall be
totally removed and the land shall be reinstated.
Total land reinstatement shall be subjected to local
authorities requirement.

Land Pipeline
Land pipelines above ground must be totally
removed
while
underground
pipelines
can
be
decommissioned either by leaving them in-situ or by
total removal. However, the decommissioning of
land pipelines may be subject to local authorities
regulations and requirements.
Land Development Well

Land development well decommissioning shall be
conducted as per Volume 8: Drilling and Well Operations.

Relocation/Reuse of any Onshore Installations
Other than disposing their onshore installations as
scrap, Contractor may consider either relocating or
reusing them.
Relocation means the installations are technically

feasible to be used for oil and gas operations at a different
location.

Reuse involves using the installations for other purposes

than oil & gas.
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For PETRONAS consideration of these options, Contractor
shall:
- identify immediate or future developments in
the area that use similar types of facilities
- investigate whether the existing facilities are
suitable for continued use

- estimate the duration and maintenance cost
of the mothball period
- prepare the system for minimum maintenance
upon PETRONAS approval to proceed.

There may be a request from government authorities or

PETRONAS, other than these decommissioning options, as

such, PMU shall inform Contractor accordingly and discuss

the way forward.

b) Offshore Installations

Offshore Platform Substructures - Total Removal

In this option the entire offshore platform substructure
above the seabed is removed. The substructure shall

be disposed by taking it onshore where it can either

be scrapped, relocated or reused.

Partial Removal
Partial removal would leave the lower part of the

substructure in place at a minimum of fifty-five (55) metres
water clearance from mean low tide sea level or as
specified by the local authorities. The top part of
the substructure shall be disposed by taking it
onshore where it can either be scrapped, relocated
or reused.

Topple in Place
The substructure is toppled into the seabed at a

minimum of fifty-five (55) metres water clearance from mean
low tide sea level or as specified by local
authorities.

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Artificial Reef
Depending on the local authorities requirements, the
substructures could either be toppled in place or
relocated to designated sites to create artificial reefs.
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c) Offshore Platform Topsides

Total Removal
The topsides shall be disposed by taking them
onshore where they can either be scrapped,

relocated or reused.

Offshore Pipeline
Depending of the local authorities requirements,
offshore pipelines can be decommissioned either by
leaving them in-situ or by total removal.
Offshore Development Well

Offshore decommissioning for shallow and deep water
development wells shall be conducted as per Volume 8:
Drilling and Well Operations.
Marine Facilities
The decommissioning and removal of marine facilities
which are owned by PETRONAS shall be decided
by PETRONAS in line with the findings of the
Decommissioning Options Assessment. The leased
marine facilities shall be decommissioned as specified
in the leasing contracts.
Relocation/Reuse of any Offshore Installations

Other than disposing their disused offshore installations
as scrap or converting them into artificial reefs,
Contractor may consider either relocating or reusing them.
Relocation means that the installations are technically

feasible to be used for oil and gas operations at a different
location.

Reusing involves disused installations being used for

other purposes other than oil and gas.

For PETRONAS consideration of these options, Contractor
shall:

- identify immediate or future developments in the area
that could use similar types of facilities;

- investigate whether the existing facilities are suitable
for continued use

- estimate the duration and maintenance cost of the

mothball period

- prepare the system for minimum maintenance; upon
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PETRONAS approval to proceed.

PETRONAS, other than these decommissioning options, as
such, PETRONAS shall inform Contractor accordingly and
discuss the way forward.

10.4.2 Decommissioning Plan
A decommissioning plan deals with the overall decommissioning
strategy and plan of disused upstream installations. Refer to Appendix
8.2 for the requirements to be included in the decommissioning plan
where the precise content of a decommissioning plan may vary
according to the circumstances. Contractor is only required to
submit one (1) decommissioning plan per campaign that may involve
decommissioning of topsides, substructures, pipelines, wells and
marine
facilities
together. Contractor
must
submit
the
decommissioning plan to PETRONAS for approval at least twelve (12)
months prior to the decommissioning activities.

10.4.3 HSE Requirement Health
HSE considerations for each decommissioning option will vary to
be consistent with the Decommissioning Options Assessment taking
into account human life, environment, asset and reputation. While
the approved decommissioning option must not pose any adverse
impact to the environment, it is required to properly balance the
considerations of environmental protection, safety and cost.
An Environmental Management Plan (EMP) together with the
comparative environmental risks associated with different
decommissioning alternatives will be required for submission to
PETRONAS for review and approval six (6) months prior to the
decommissioning activities. In the case where an Environmental
Impact Assessment (EIA) is applicable, the EMP needs to be
consistent with the EIA requirements.

The EMP shall cover but not limited to:
a)

b)

186
Pre-decommissioning activities covering baseline studies,

chemical and waste inventory and pollution control
Decommissioning activities covering environmental aspects
and any significant impact of platform decommissioning
and mitigation measures to be taken during platform
removal, transport and disposal to minimise health, safety
and environmental impact
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c) Post-decommissioning activities covering the monitoring
of the impact/effects on the marine environment and

ecosystem, navigation and other users of the sea

The risk assessment must be conducted to cover the safety, health

and social aspects of the proposed decommissioning proposal for
submission to PETRONAS. It should include but not limited to:
a) Identification
of
hazard
potential
issues

consequential impacts of the option selected
b) Measures to reduce risks to As Low As

Practicable (ALARP)
and
the
Reasonably

10.4.4

Consultation and Liaison

An integral part of the decommissioning plan is to demonstrate the
industrys high level of environmental awareness and ability to be
proactive. In the event that a public consultation process becomes
necessary in certain cases, Contractor may be required to assist
PETRONAS to initiate and manage the dialogue process to obtain the
community and stakeholders views and concerns.
Decommissioning may also require notification to/approval from

the local authorities, before proceeding with any activities. As such,
PETRONAS together with Contractor are required to liaise
accordingly with those relevant local authorities to notify and/or
obtain necessary approval.
The various departments include but not limited to:
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DEPARTMENT
CONSULTATION AND LIAISON ON
Department of Environment
Protection and preservation of the marine

environment
Federal Marine Department
Safety of navigation, search and rescue and

other maritime services
Maritime Enforcement Coordination Centre
Coordination of the enforcement of maritime

activities in Malaysian waters
Department Of Fisheries
Fishing industry, marine parks and reserves,

including coral reefs and artificial reefs,
enforcement on fishing activities
Inland Revenue
Taxation
Royal Customs
Excise duty
Attorney Generals Office
Legal aspects of maritime affairs
Local Authorities
Disposal and potential use of platforms on

land
Department of Safety and Occupational

Health
Policies and legislations of occupational safety

and health

10.4.5 Incorporation in Work, Programme and Budget (WPB)
As soon as PETRONAS approves the decommissioning plan,
Contractor shall provide budget provisions for the decommissioning
activities as part of the immediate forthcoming WPB. The detailed
information required must be consistent with the pre-budget
guidelines. Decommissioning activities shall only commence after
PETRONAS approves the decommissioning WPB.
10.5 Decommissioning Execution

10.5.1 Project Execution Plan
A Decommissioning Project Execution Plan (PEP) needs to be
submitted to PETRONAS for review at least one (1) month prior to
execution. In the event of any deviation from the approved
Decommissioning Plan, Contractor shall seek PETRONAS approval
for execution. Refer to Appendix 8.3 for table of content.
a) Onshore Installation
Production and Crude/Gas Terminal Topside &
Substructure Total Removal and Reinstatement of Land
The integrity of the topside and substructure of the
production and crude/gas terminal shall be
reassessed prior to decommissioning to ensure safe
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decommissioning activities. The entire topside and
substructure of a production and crude/gas terminal
above ground, must be totally removed. Contractor
must ensure that the piles are cut at a minimum two
(2) metres below the ground or as specified by
standard regulation and the land reinstated back to
its original condition. Total land reinstatement shall
be subjected to the relevant local authorities

requirements.
Land Pipeline
Above ground land pipelines must be totally removed

whereas
underground
pipelines
can
be
decommissioned by either leaving them in-situ or
by total removal. Land pipeline decommissioning
work involves flushing and cleaning to meet
regulatory requirements Pipelines, which are to be
left in-situ, shall be flushed, cut and plugged at both
ends at a minimum of two (2) metres underground.
However, land pipelines decommissioning may
be subjected to local authorities regulation

and requirement.

Land Development Well
Land development well decommissioning shall be

Relocate/Reuse of any Onshore Installations

Other than disposing of onshore installations as scrap,
Contractor may consider either relocating or reusing
them. However, relocation is only an option if it is
technically feasible to use the installations in oil
and gas operations at a different location.
Reusing involves the usage of the onshore

installations for purposes other than oil and gas.
For PETRONAS consideration of these options,

Contractor shall:
- identify immediate or future developments in
the area that can use similar facilities;
- investigate whether the existing facilities are
suitable for continued use

mothball period
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- prepare the system for minimum maintenance;
upon PETRONAS approval to proceed
PETRONAS, other than these decommissioning options,
as such, PETRONAS shall inform Contractor accordingly
and discuss the way forward.
b) Offshore Installation

Offshore Platform Substructures
The integrity of offshore platform substructures shall
be reassessed prior to decommissioning to ensure
safe decommissioning activities. The International
Maritime
Organization
(IMO)
Guidelines
and
Standards for the Removal of Offshore Installations
and structures on the Continental Shelf and in the
Exclusive Economic Zone, adopted by IMOs
Resolution A.672 (16), sets out the minimum global
standards to be applied for the removal of offshore

platform substructures.
In general, the applicable means are:

- Total Removal
This is achieved by lifting/floating the substructure
after the piles have been cut. The cut must
be made at a minimum of one (1) metre below
the mud line subject to the cutting method
used and seabed conditions such as the siltation
rate, erosion rate and type of soil. The substructure
must be disposed by taking it onshore
where it can either be scrapped, relocated or reused.

- Partial Removal
Partial removal would leave the lower part of
the substructure in place allowing a minimum
of fifty-five (55) metres water clearance from the mean
low tide sea level or as specified by local
authorities. The top part of substructure must
be disposed by taking it onshore where it can
either be scrapped, relocated or reused.

- Topple in Place
The substructure is toppled to the seabed at its
piled location giving a minimum of fifty-five (55)
metres water clearance from the mean low tide
sea level or as specified by local authorities.
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-
Artificial Reef
Artificial reef options depend

authorities requirements.
on
the
local
The substructures can either be toppled in

place or relocated to a designated site to create
an artificial reef. There are various factors to be
considered such as:
- the potential enhancement for fisheries,
- the usefulness of the platform,
- the environmental impact and effect to
other users of the sea.

If the platform is located in an ideal reef site, the

topple-in-place option is often the best provided
the water depth at the site is sufficient to provide
navigational clearance of fifty-five (55) metres or as
specified by local authorities.
For this artificial reef option, PETRONAS and

Contractor must liaise with the relevant local
authorities when choosing this removal option.
Offshore Platform Topside
Contractor is required to comply with Section 3.13
upon
cessation
of
production.
In
addition,
Contractor must obtain prior approval from
PETRONAS for the removal of any components from
the facilities until decommissioning has been

completed.

Decommissioning activities shall only be carried out

after the platform has been totally shutdown, cleared
of all hazardous materials and certified safe for
decommissioning to proceed.
The scope of the decommissioning requirements

should cover at least the four (4) principal categories
of all production and utilities systems topside

namely:

- Hydrocarbon systems
All separators, process vessels and piping shall
be purged and flushed. Residual hydrocarbons
shall be collected and disposed at a certified
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onshore disposal site/agency. Radioactive materials
must be handled according to Atomic Energy Licensing
Board (AELB) guidelines.

- Non-hazardous systems
Cooling water, firewater, utility air and instruments
need to be de-pressurised, flushed, drained and

isolated.

- Toxic and hazardous chemical systems
Toxic and hazardous materials must be removed. The
system has to be purged, flushed and detoxified.
Any discharge of cleaning effluent must satisfy

applicable regulations.

- Electrical power systems
Decommissioning of electrical systems is a planned
sequenced shutdown of all motor control centers,
switchgear and generators according to proper

safety procedures.
Upon completion of all decommissioning work,
the topside must be rendered safe for hot work
via a Permit To Work (PTW) system. The
issuance of a safe certificate for hot work must
be strictly enforced.
The integrity of the structures has to be verified prior
to any cutting, removal, lifting/floatation and
transportation of any package or modules. The
center of gravity of the topsides loads have to be

established.

Offshore Pipeline
Depending on government authorities requirement,
offshore pipelines can be decommissioned either
by leaving them in-situ or by total removal. Pipeline
decommissioning work involves flushing and cleaning
to meet regulatory requirements. Pipelines that are left
in-situ shall be flushed, cut and plugged, with
their ends buried at minimum of one (1) metre
below the mud line.

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Based on industrial best practices, the risers,

tube turns and a minimum of one hundred and fifty
(150) metres of the pipeline section from the
base of the substructure must be totally removed.
The removal can be concurrent with substructure
removal where applicable.
Where appropriate, special measures and considerations

need to be taken for decommissioning hot tap
or other special pipeline-to-pipeline connections.
This reduces the risk and exposure of the remaining
section of pipeline. Before executing total pipeline
removal, Contractor must consult the relevant
local authorities on method and disposal options.
Offshore Development Well

Offshore development well decommissioning shall be
Marine Facilities
The decommissioning and removal of marine
facilities owned by PETRONAS shall be decided
by PETRONAS in line with the findings of the
Decommissioning Options Assessment. The leased
marine facilities shall be decommissioned as specified
in the leasing contracts.
Relocation/Reuse of any Offshore Installations
Other than disposal as scrap or an artificial reef,
Contractor may consider either relocating or reusing the

decommissioned installations.
Relocation is viable when the installations are technically
feasible to use in oil and gas operations at a different

location.
Reusing involves putting the decommissioned
installations to use for other than oil and gas purposes.
Contractor seeking PETRONAS consideration for
relocation or reuse must:
- identify the immediate or future developments in the
area that can use similar types of facilities
- investigate whether the existing facilities are suitable
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for continued use

mothball period
- prepare the system for minimum maintenance upon
PETRONAS approval to proceed.

Other than Contractor, there may be request from

external parties or PETRONAS to choose one of
these options. In such cases, PETRONAS will inform
Contractor accordingly to discuss the way forward.
10.6 Post Decommissioning Process

10.6.1 Removal of Debris and Land/Seabed Clearance
Upon completion of all decommissioning activities, the land/seabed in
the upstream installation vicinity must be cleared of all debris that has
to be properly disposed according to legislative requirements. For
partial removal or in-situ toppling, the remaining structures must be
surveyed and their positions recorded. This information should be
submitted to PETRONAS and/or the relevant local authorities.

Contractor is required to check the specified area and remove any

debris located within its footprint and the vicinity of the upstream
installation (gazette area). Contractor must verify that the site is clear
after decommissioning by appropriate methods such as an
underwater divers survey, trawling in two (2) directions across the
location or any other suitable method.

10.6.2 Verification
Contractor must verify that the area has been cleared of all
obstructions and debris. They are required to run side-scan sonar or
bottom-scan sonar or any other suitable method, across the location
to ensure that there is no debris cluttering the specified area. Where
practicable, Contractor shall also visually record the cleared site area
as evidence.

Contractor must conduct the survey immediately after the

completion of decommissioning work. Contractor shall submit the
detail survey report and certification to PETRONAS in writing. The
report must include, but not limited to the following:
a) Extent of the area surveyed, (as per gazette) or specified

otherwise by PETRONAS
b) Survey method used
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c)
d)

Original Survey Report by the Surveyor

Original third party Certification. PETRONAS and Contractor shall
mutually agree on the selection of third party Certifier and Surveyor

10.6.3 Post Environmental Assessment
Contractor must conduct the Post Environmental Assessment within
three (3) months from the date of completion of decommissioning
work to ensure that there is no adverse impact on the surrounding
marine and land environment. This assessment shall be consistent
with the Post Decommissioning Environmental Assessment Plan as
per the approved PEP.

After completion of the Post Environmental Assessment, the findings

must be submitted or presented to PETRONAS and the relevant
authorities. Upon acceptance of the Post Environmental Assessment,
Contractor must close out any action item(s) if required.

10.6.4 Disposal
Contractor shall comply with the approved PEP and PETRONAS
Upstream Surplus Material Management (USMM). Contractor shall
manage disposal until completion and submit the close out
report.
10.7 Report

During the execution of the decommissioning stage, Contractor is required

to regularly update PETRONAS on the projects progress.
Upon completion of decommissioning activities, Contractor must also

submit to PETRONAS the Final Closeout Report no later than six (6)
months after completion of decommissioning work. The report must cover
all pre-decommissioning, decommissioning and post decommissioning
activities. Refer to Appendix 8.4 for the Table Of Content. Hard and soft
copies of the report must be submitted.
10.8 De-gazetting and Admiralty Chart

Contractor must submit to PETRONAS, an application to de-gazette and

update the admiralty chart of the decommissioned upstream installation and
its relevant area within one (1) month after the submission of the
Final Closeut Report.
10.9 Residual Liability

Pending the issuance of a National Policy on the Restoration of Oil and Gas
Fields, any residual liability of all disused upstream installations shall be
decided by PETRONAS, in consultation with the relevant government
authorities.
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10.10 Contractors Obligations during Handover

If Contractor is to relinquish field(s) to PETRONAS, they must provide the

following information to the extent that such information is in the
Contractors possession in addition to any other information stipulated by
the Contract, which is required for decommissioning planning:

a) Estimated remaining field life at hand-over date

b) Operating costs for at least three (3) years preceding the hand-over
date

c) Statement on wells abandonment experience for the field

d) Recommended method for abandonment of remaining wells

e) Topside inventory and their remaining life where appropriate

f ) Underwater survey/inspection data/information for the year of

handover and all the previous inspection years

g) All as-built drawings, operating manuals and design documentation

h) Engineering evaluation of inspection and repair history for the
substructure

i ) The status and composition of the drill cutting pile where applicable

j ) Report on any settlement and soil properties up to five (5)

metres below the seabed (consistent with EIA requirements)

k) Structural integrity assessment supported by appropriate structural
analyses

l ) Recommendation for future use of the redundant installations

m) Estimated cost(s) for decommissioning based on recommended
option(s)

n) Latest report on anomalies and shallow gas within the vicinity of the
installation

196
All the handover processes shall be consistent with Section 9: Asset

Relinquishment in this volume.
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Section 11: Operating Performance Improvement
11.1 Introduction

Operating Performance Improvement is a continuous process of optimising

the producing assets potential and as such deliver the highest level of
production. This section provides Contractor with guidelines for
performance management and the explanation of various terminologies
relating to the conduct of performance management. It is important
that Contractor understands the detail explanation of the terminologies and
its methodology and ensure that the required reporting being executed with
integrity and clarity.
PETRONAS aspires for Contractor to drive operational excellence in the

upstream activities. Contractor may, at its own effort or upon instructed by
PETRONAS, conduct improvement initiatives on specific activities (i.e.
production operations or projects) or lessons learned from an incident, in
the event that performance of the activities is below than expected.
11.2 Performance Management

This section defines the KPI, reporting requirements and meeting frequency
in addressing Contractors performance.

11.2.1

Key Performance Indicators (KPI)

There are five (5) measurements used to benchmark Contractors
operational management performance in Malaysian upstream
environment, as follows:
KPI
UNIT OF MEASUREMENT
Overall Equipment Effectiveness (OEE)
Utilisation
Gas Delivery Reliability (GDR)
Unit Production Cost (UPC)
RM/boe
P1 Action Items
numbers
a)

Overall Equipment Effectiveness (OEE)

OEE is a key performance indicator that measures the
efficiency of the producing platform facilities to deliver
production as planned. It provides a standard methodology
to
measure
and
benchmark
platform
and
field
performance.
OEE calculation is as follows:

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Oil OEE:
Reconciled Production (excluding idle wells production)
(Oil Technical Availability)
Gas OEE:
Reconciled Sales Gas
(Gas Technical Availability)
x 100%
x 100%
Refer to Appendix 9 for both oil and gas OEE models and
the associated terms & definitions.

Special considerations for prolonged subsurface issues
Wells that are only affected by subsurface issues

which have been prolonged for a period of three (3)
consecutive months shall be allowed to revise their

Technical Potential (TP) calculation when executing the

calculation for the subsequent months. However such

revision shall be subjected to the reservoir or petroleum
engineers acceptance.

An illustration of the mechanism for TP revision

is as in Figure 2 below:

Figure 2: Illustration of OEE Reporting for prolonged subsurface issues

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TP1, TP2, TPX: Technical Potential for the month as defined in the

Quarterly Capacity Review

X1, X2, XX
: Well deferment due to subsurface issues (kb/d)
With assumption that the subsurface issues occurred

at Quarter 1 and extended above 90 days until
Quarter 3:

- For April reporting, OEE shall be based on TP4
- For May reporting, OEE shall be based on TP5X5

- For Jun reporting, OEE shall be based on TP6 (if the
subsurface issue is resolved in May)

After three (3) months of a prolonged subsurface issue,

Contractor must submit an additional copy of the Operating
Performance Report (OPR) for OEE reporting based on the
revised TP, as demonstrated by Figure 2: (Illustration of OEE
Reporting for prolonged subsurface issues).

Special considerations for surface facilities constraint

In cases where a platforms surface facilities constraint is

present, the forecasted technical potential must assume

the maximum allowable production that the facilities were
designed for.
b) Utilisation

Utilisation is a key performance indicator that compares actual

production against technical potential to gauge production
effectiveness.

The utilisation calculation is as follows:
Reconciled Production (excluding idle wells production)

x 100%
Technical Potential
Refer to Appendix 9 for associated terms & definitions.
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c)

Gas Delivery Reliability (GDR)

GDR is a key performance indicator that measures Contractors
ability to meet gas nomination. There are two (2) measurements
of GDR :
GDR (days): the percentage of days meeting 95% of daily nomination
in one particular month;
number of days meeting 95% of daily nomination in the month
x 100%
number of days in the month

GDR (vol.): the percentage of monthly average sales gas over monthly
average sales gas nomination in one particular month;
monthly average sales gas
montlhy average sales gas nomination
x 100%
Special considerations for planned shutdown

In event of a planned shutdown, whenever there is zero
nomination or downstream issues that are affecting
upstream production, the respective number of days shall
therefore be excluded from the number of days calculated
or that particular month
d)

Unit Production Cost (UPC)

UPC is defined as the cost incurred to produce, process and
transport one barrel of oil or the equivalent of
sellable hydrocarbon products.
The UPC (RM/boe) calculation is as follows:

Total production OPEX (RM)
Total production (boe)
x 100%
Total production is inclusive of total liquid (oil and condensate)

and total gas sales.
e)

Priority 1 (P1) Action Item

A P1 Action Item is defined as action items that may impact the
organisation against HSE, image and economic consequences if
the items are not effectively reported and attended to.
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Classification of P1 follows the following :

Figure 3: Risk Matrix
This matrix serves as a guideline to Contractor in determining P1

Action Items. Any Contractor who has already established
its own risk matrix shall map it to this matrix for
standardisation and report the outstanding P1 action items to
PETRONAS accordingly. Additionally, outstanding P1 action
items whose risks have been mitigated and fall into P2 still need
to be reported until completion.
Note that P2 and P3 action items might change to P1 status if

they are left unattended. Contractor is therefore expected to
execute P2 and P3 action items as well as the P1 action items.

11.2.2 Performance Reporting
Contractor must submit the following reports to PETRONAS :
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REPORT
Operating Performance
Report
CONTENT
a)
b)
c)
d)
e)
f)
g)
h)
FREQUENCY
TP
Actual Production
Unplanned Deferment
Planned Deferment
OEE
Utilisation
GDR
UPC
Monthly (no later

than 16th of the
following month)
Outstanding P1 Action Items

Report
Status of outstanding P1 action items

Monthly (no later
(including action items which risk have
than 16th of the
been mitigated and fall into P2), stating
following month)
how long the items have been overdue:
a) Less than 3 months
b) More than 3 months
c) More than 6 months
d) More than 9 months
Bad Actor Initiatives Update
Status updates for each initiative/action

item.
Quarterly (no later

than 16th in the
first month of
following quarter)

11.2.3 Management Meeting
All Contractor of producing fields is required to attend regular
performance management meetings with PETRONAS as follows:
MEETING
ATTENDEES
Quarterly
Head of
Contractor
PSC-OPI Meeting
Review Malaysia
production performance
and track gap closure
initiatives
Quarterly
PETRONAS OPI
and Contractors
Focal Point
Bad Actor Management

Bad Actor Management is a process of managing fields which are
consistently low in OEE performance as such to overcome their challenges
and shortfalls and improve their performance.

11.3.1

202
FREQUENCY
Drive domestic upstream

OPI activities across all
producing Contractor
towards operational
excellence

11.3

OBJECTIVE
Upstream Working Group

Meeting (UWGM)
Identification of Bad Actor field

At the end of every year, bad actor fields will be identified. A field is
identified as a Bad Actor when it meets the following criteria:
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TYPE
OF
FIELD
BAD ACTOR CRITERIA
Oil
a) Fields WPB target is more than 5 kb/d

b) Fields annual average OEE is below 90%
c) Field is not affected by cascaded deferment due to interruption at other
facilities within Contractors operatorship
Gas
a) Fields WPB target is more than 10% of total Contractors gas target
b) Fields annual average OEE is below 90%
c) Field is not affected by cascaded deferment due to interruption at other
facilities within Contractors operatorship

11.3.2 Action Item for Bad Actor field

Upon identification of Bad Actor field, Contractor should submit

to PETRONAS the following, by the end of February of each year:

a) Root Cause Problem Solving (RCPS) report for the field
performance

b) Action Items/Initiatives to resolve issues affecting fields
OEE

Progress of the action items/initiatives are to be reported to

PETRONAS on a quarterly basis as mentioned in Section 11.2.2.

11.3.3 Criteria to Graduate

A field is considered out of Bad Actor list when it meets following
criteria:
TYPE OF FIELD
GRADUATION CRITERIA
Oil
Monthly OEE is 90% or above for 6 consecutive months; or

fields annual average OEE is more than 90%
Gas
Monthly OEE is 90% or above for 6 consecutive months; or

fields annual average OEE is more than 90%
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Abbreviations
TERM
IN FULL
degrees Celcius
degrees Fahrenheit
Beta
Ohm
AC
Alternating Current
A/D
Analogue to Digital
AG
Associated Gas
AELB
Atomic Energy Licensing Board
AGA
American Gas Association
AL
Artificial Lift
ALARP
As Low as Reasonably Practicable
ALIR
Flow in English
Amd
Amendment
ANSI
American National Standards Institute
ASME
American Society of Mechanical Engineers
API
American Petroleum Institute
ASTM
American Society for Testing and Materials
ASD
Airport Standard Directives
ASCOPE
ASEAN Council on Petroleum
BIPM
Bureau International des Poids et Mesures
BS
British Standards
BS&W
Base Sediment and Water
BPEOA
Best Practicable Environmental Option Assessment
CAPEX
Capital Expenditure
CP
Cathodic Protection
CTL
Correction for the Effect of Temperature on Liquid
CPL
Correction for the Effect of Pressure on Liquid
CTS
Correction for the Effect of Temperature on Steel
CPS
Correction for the Effect of Pressure on Steel
CO2
Carbon Dioxide
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TERM
IN FULL
CR
Capacity Review
CUI
Corrosion Under Insulation
CTLm
Correction for the Effect of Temperature on Liquid in Meter
CPLm
Correction for the Effect of Pressure on Liquid in Meter
CTLp
Correction for the Effect of Temperature on Liquid in Prover
CPLp
Correction for the Effect of Pressure on Liquid in Prover
CTSp
Correction for the Effect of Temperature on Steel Prover
CPSp
Correction for the Effect of Pressure on Steel Prover
DC
Direct Current
DCA
Department of Civil Aviation
DDA
Due Diligence Audit
DD
Drawdown
DIFFS
Deck Integrated Fire Fighting System
DP
Differential Pressure
E/F
English/French
EI
Energy Institute
EIA
Environmental Impact Assessment
ECR
Enhanced Capacity Review
EN
European Standard
EUR
Estimated Ultimate Recovery
EMP
Environmental Management Plan
EOR
Enhanced Oil Recovery
FAC
Facilities
FAT
Factory Acceptance Test
FDP
Field Development Plan
FFR
Full Field Reviews
FFS
Fitness For Service
FIP
Facilities Improvement Plan
FPSO
Floating Production, Storage and Offloading
FRMR
Field Reservoir Management Review
FRW
Field Review Workshop
FRP
Facilities Rejuvenation Plan
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TERM
206
IN FULL
FSO
Floating Storage and Offloading
FWAP
Flow Weighted Average Pressure
FWAT
Flow Weighted Average Temperature
GDR
Gas Delivery Reliability
GHV
Gross Heating Value
GOR
Gas-Oil-Ratio
GSA
Gas Sales Agreement
HART
Highway Addressable Remote Transducer
HIPPS
High-Integrity Pressure Protection system
HM
Hydrocarbon Measurement
HSE
Health, Safety and Environment
ICT
Information and Communication Technology
IEC
International Electrotechnical Commission
IMO
International Maritime Organization
IP
Institute of Petroleum
IOR
Improved Oil Recovery
ISA
Instrument Society of America
ISO
International Organization for Standardization
JAKIM
Jabatan Kemajuan Islam Malaysia
JCGM
Joint Committee for Guides in Metrology
kg/m3
kilogrammes per cubic metre
kPa
kilopascals
KPI
Key Performance Indicator
LIMIT
Facilities Limit
LOS
Limited Obstacle Sector
LSA
Life Saving Appliance
LOS
Limited Obstacle Sector
mA
milliamperes
MAOP
Maximum Allowable Operating Pressure
MARPOL
International Convention for Prevention of Pollution from Ships
MECH
Mechanical
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TERM
IN FULL
MES
Minimum Environmental Specifications
MJ/kg
megajoules per kilogramme
MODU
Mobile Offshore Drilling Unit
MOPU
Mobile Offshore Production Unit
MPMS
Manual of Petroleum Measurement Standards
MSL
Mean Sea Level
NAG
Non-Associated Gas
NEC
National Electrical Code
NDP
National Depletion Policy
NDT
Non-Destructive Test
NIST
National Institute of Standards and Technology
NML
National Metrology Laboratory
ns
nanoseconds
OEE
Overall Equipment Effectiveness
OEM
Original Equipment Manufacturer
OFS
Obstacle Free Sector
OPEX
Operating Expenditure
OPNS
Operations
OPR
Operating Performance Report
OSR-MS
Offshore Self-Regulation Management System
P1
Priority 1
PBU
Pressure Build Up
PEP
Project Execution Plan
PGBOOM
PETRONAS Guidelines for Barges Operating Offshore Malaysia
PLEM
Pipeline End Manifold
PLET
Pipeline End Termination
PIPeM
Pipeline Integrity Performance Monitoring
P&ID
Piping and Instrumentation Diagram
PLT
Production Logging Tool
PMM
Petroleum Measurement Manual
PMU
POM
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TERM
208
IN FULL
PRD
Petroleum Resource Development
PREX
Petroleum Resource Exploration
PSC
Production Sharing Contract
PTW
Permit To Work
PTS
PETRONAS Technical Standard
Q1
Quarter One (1)
Q2
Quarter Two (2)
PIMS
Pipeline Integrity Management System
RCFA
Root Cause Failure Analysis
RCPS
Root Cause Problem Solving
RES
Reservoir
RM
Reservoir Management
RMD
Remedial
RMP
Reservoir Management Plan
RSC
Risk Service Contract
ROV
Remote Operated Vehicle
ROT
Remote Operated Tool
RTD
Resistance Thermal Detector
SALM
Single Anchor Leg Mooring
SAT
Site Acceptance Test
SBHP
Static Bottom Hole Pressure
SBM
Single Buoy Mooring
SC
Steering Committee
SCSSSV
Surface-Controlled Subsurface Safety Valve
SI
International System of Units
SIRIM
Standards and Industrial Research Institute of Malaysia
SLBM
Single-Leg Buoy Mooring
SOLAS
Safety of Life at Sea
SPAR
Single Point Anchor Reservoir
TD/PM
Touchdown/Positioning Marking
TEMPSC
Totally Enclosed Motor Propelled Survival Craft
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TERM
IN FULL
TLP
Tension Leg Platform
TP
Technical Potential
UNCLOS
United Nations Convention on the Law of the Sea
UPC
Unit Production Cost
UR
Ultimate Recovery
USMM
Upstream Surplus Material Management
UWGM
Upstream Working Group Meeting
VIM
International Vocabulary of Metrology - Basic and General Concepts

and Associated Terms
WC
Working Committee
WPB
Work Programme & Budget
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Appendix 1
List of Technical Proposals which require PETRONAS Approval
NO.
210
TECHNICAL PROPOSAL
DOCUMENT
PETRONAS
APPROVAL
AUTHORITIES/
TIMING
Any new wells not included in the

approved FDP
a) FDP revision, or
b) Notice of
Operations
Any workover wells of the following

objectives:
a) Recomplete/deepen to new zone not
developed, addressed in the FDP,
b) Sidetrack new zone not developed,
addressed in the FDP
a) FDP Revision
b) Technical
Proposal
Any wells intervention/workover with the

following objectives:
a) Recompletion/Adding perforation
b) Thru-tubing reperforation
c) Sidetrack existing zones
d) Squeeze/plug job
e) Sand control installation
f) Mechanical repair
g) Stimulation/fracturing
h) Change in well utility
i) Change of lift mechanism
Technical Proposal
POM, PMU/Two
(2) weeks
FDP revision:
a) Development of new reservoirs, wells,
platform
b) Appraisal of new area
c) Changes to drainage plan i.e.:
Platforms
Wells
Type of completions
d) Changes to development concept for
example waterflood, gas injection,
EOR, evacuation route, integrated
development, FPSO. etc.
FDP Revision
PRD, PMU/One
(1) month
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PRD, PMU/One
(1) month
PRD, PMU/One
(1) month
VOLUME 7
NO.
TECHNICAL PROPOSAL
DOCUMENT
PETRONAS
APPROVAL
AUTHORITIES/
TIMING
Reservoir Management Plan Revisions:

a) GOR limit revision/relaxation
b) Gas/Water injection revision
c) EOR application
d) Production policy i.e.:
Offtake by well/reservoir
Commingle/decommingle zone
e) Change in depletion strategy and well
utility i.e.:
Oils producer to gas/water injection
Gas injection to gas producer
Technical Proposal
POM, PMU/One
(1) Month
Facilities Improvement Plan (FIP) Revision/

Facilities Rejuvenation Plan (FRP):
Any changes of:
a) Objective
b) Concept/Scheme
c) Technology
d) Operations & Maintenance Philosophy
FIP Revision
POM, PMU/One
(1) Month
Notes:
a) Other activities not listed above do not require PETRONAS technical approval.
b) Contractor may apply for exception to the above approval timing i.e. when

good opportunity arises with justification for PETRONAS approval.
c) The PETRONAS approval timing is based on best endeavour basis and
subject to issues being resolved.
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Appendix 2
Idle String Classification and Definition
IDLE STRING CLASSIFICATION
212
Effective idle
Capacity shut in from existing zones within current facilities

handling constraints, with definitive short term action plans and
economical to realize
Non-effective idle
Capacity shut in from existing zones which will not provide net
production gain due to facilities constraint or reservoir
Depleted idle
Capacity shut in from existing zones in which the reserve is

uneconomical to realize
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IDLE STRING CODES DEFINITION
Effective
Idle
NonEffective
Idle
Depleted
Mechanical
(MECH)
Strings that are shut-in due to mechanical problems, i.e. the

strings are waiting for christmas tree or down hole tubing/
completion servicing/repair (such as tubing patch, pull plug/
SCSSV problems, insert valve etc.)
Artificial Lift
(AL)
Strings that are shut-in due to artificial lift equipment problems,

while waiting on gas lift valve installation, gas lift valve or down
hole pump repair
Facilities
(FAC)
Strings that are shut-in due to facilities related problem. Includes

strings that are waiting on surface facilities repair and planned
upgrade or production/injection flow line (includes gas lift flow
line)
Operation
(OPNS)
Strings that are shut-in due to operational reasons i.e. emulsion,

water quality problem, sand production, etc
Remedial
(RMD)
Strings that are shut-in and require remedial work at perforation/

near wellbore zone for reactivation. Includes additional
perforation job, stimulation, gravel packing, etc
Facilities
Limit
(LIMIT)
Strings that are shut-in due to facilities constraints, i.e.

compressor, water handling limits, insufficient gas lift gas,
platform allowable/offtake limit or not economic to revive
Reservoir
Management
(RM)
Strings that are shut-in due to reservoir management guidelines,

i.e. GOR limit
Reservoir
(RES)
Strings that have depleted in existing zone and have no behind

casing potential
Ultimate
Recovery
(UR)
Strings that have depleted in existing zone and have behind

casing potential (i.e. additional perforation, recompletion
opportunities, etc.)
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Appendix 3
List of KPIs for Facilities Reliability and Integrity
KPI ELEMENT
DEFINITION
UNIT OF MEASURE
Compliance to overall
planned maintenance
Number of PMs completed

Number of PMs planned x 100%
Compliance of critical
safety devices and systems
preventive maintenance
Number of PMs completed

x 100%
Number of PMs planned
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Appendix 4
Typical Liquid Hydrocarbon Metering System
Figure 5: Typical Liquid Hydrocarbon Custody Transfer Metering System Schematic
Diagram
4.1 Metering Data

The following metering data, including but not limited to, shall be made
available and printed automatically or on demand:

4.1.1

Continuous Flow Measurement

The metering data for continuous flow measurement should consist
of Hourly Report, Sale Report and Production Report.
a) Hourly Report

date/time of report

gross/standard/net volume and mass (if applicable) start
(cumulative)

gross/standard/net volume and mass (if applicable)
finish (cumulative)
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gross/standard/net volume and mass (if applicable)

(gross volume start gross volume finish)

flow rate

Flow Weighted Average Temperature (FWAT)

Flow Weighted Average Pressure (FWAP)

density

calculated Correction for the Effect of Temperature on
Liquid (CTL)

calculated Correction for the Effect of Temperature on
Liquid (CPL)

base oil and water density settings

calculated water-cut
b) Sale Report (for example 00:00 00:00)
c) Production Report (for example 06:00 06:00)
216

4.1.2

Batch Measurement
The metering data for batch measurement i.e. tanker loading should
consist of Batch Start Report, Batch Hourly Report, Batch End Report
and Meter Proving Record.
a)

b)

c)

Batch Start Report

batch number

batch start date/time

gross volume start (cumulative)

gross volume finish (cumulative)

gross volume (gross volume start gross volume finish)

flow rate

meter factor

temperature

pressure

prover and meter runs settings and constants log
Batch Hourly Report

batch number

report date/hour




flow rate

meter factor

temperature

pressure
Batch End Report

batch number

batch start date/time
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batch end date/time




FWAT

FWAP

meter factor

calculated CTL

calculated CPL

standard volume
d) Meter Proving Report

batch number

prover volume identification/volume

meter tag no.

proving start date/time

proving end date/time

trial run number

For each trial run:

- volume flow rate
-
pulse count
-
flight time
-
density
-
line temperature
-
line pressure
-
prover temperature
-
prover pressure

- Correction for the Effect of Temperature on Liquid in

Meter (CTLm)

- Correction for the Effect of Pressure on Liquidcin Meter

(CPLm)

- Correction for the Effect of Temperature on Liquid in

Prover (CTLp)

- Correction for the Effect of Pressure on Liquid in Prover

(CPLp)

- Correction for the Effect of Temperature on Steel Prover

(CTSp)

- Correction for the Effect of Pressure on Steel Prover

(CPSp)
-
Meter Factor

every final average of five (5) consecutive trial runs resulting

to successful meter proving:

- volume flow rate
-
pulse count
-
flight time
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-
density
-
line temperature
-
line pressure
-
prover temperature
-
prover pressure

- CTLm, CPLm, CTLp, CPLp, CTSp, CPSp
-
meter factor

- meter factor repeatability %

- previous in use meter factor

- difference between the new and previous in use meter

factor
218
PPGUA/3.0/042/2013
VOLUME 7
4.2 Figure 6: Typical Allocation Work Process Flow Liquid
Hydrocarbon
STAGE
ROLES & RESPONSIBILITIES

Once the metering arrangement/
concept has been agreed by
stakeholders and approved by
PETRONAS
Term in commercial agreement i.e.
GSA/UGSA finalised and agreed by all
parties
Measurement Concept
& Commercial
Agreement Finalised
Independent
Independent or
tie-in to
existing
network
Tie-in
To identify type of enhancement
For tie-in to the existing system, need to
develop new MAP
To develop new MAP or revamp the

allocation concept to accommodate
existing arrangement or tie-in
New Measurement
Allocation Procedures
(MAP)
Revamp Current
Allocation Concept &
Develop Detailed
Algorithm
Develop Allocation
Algorithm
Algorithm Cross Check

& Acceptance Test
Perform algorithm cross check and

testing prior acceptance

& Acceptance Test
Algorithm Manual/
Procedure Revision
To revise current allocation manual/

procedure to accommodate the
enhancement
Monthly Closing
Closing meeting will be done within 30

day of following month end to finalise
the production figures
th
Reporting
PPGUA/3.0/042/2013
219
VOLUME 7
Appendix 5
Typical Gas Metering System
Figure 7: Typical Gas Custody Transfer Metering System Schematic Diagram
5.1
Metering Data
The following metering data, including but not limited to, shall be made
available and printed automatically or on demand:

5.1.1

Continuous Flow Measurement

The metering data for continuous flow measurement should consist
of Hourly Report, Sale Report and Production Report.
a) Hourly Report

date/time of report

gross/standard/net volume, ghv and mass (if applicable)
start (cumulative)

gross/standard/net volume, ghv and mass (if applicable)
220
PPGUA/3.0/042/2013
VOLUME 7
finish (cumulative)

gross/std/net volume, ghv and mass (if

(gross volume start gross volume finish)

flow rate

FWAT

FWAP

density
b) Sale Report (for example 00:00 00:00)
c) Production Report (for example 06:00 06:00)
applicable)
5.2 Figure 8: Typical Allocation Work Process Flow - Gas

STAGE
ROLES & RESPONSIBILITIES

Once the metering arrangement/
concept has been agreed by
stakeholders and approved by
PETRONAS
Term in commercial agreement i.e.
GSA/UGSA finalised and agreed by all
parties
Measurement Concept
& Commercial
Agreement Finalised
Independent
Independent or
tie-in to
existing
network
Tie-in
To identify type of enhancement
For tie-in to the existing system, need to
develop new MAP
To develop new MAP or revamp the

allocation concept to accommodate
existing arrangement or tie-in
New Measurement
Allocation Procedures
(MAP)
Revamp Current
Allocation Concept &
Develop Detailed
Algorithm
Develop Allocation
Algorithm

& Acceptance Test
Perform algorithm cross check and

testing prior acceptance

& Acceptance Test
Algorithm Manual/
Procedure Revision
To revise current allocation manual/

procedure to accommodate the
enhancement
Monthly Closing
Closing meeting will be done within 30

day of following month end to finalise
the production figures
th
Reporting
PPGUA/3.0/042/2013
221
VOLUME 7
Appendix 6
Format of the 24 Hours Notification Report
MAJOR UNSCHEDULED PRODUCTION SHUTDOWN
INITIAL NOTIFICATION FORM
TO
FROM
Senior General Manager, POM, PMU
Fax No.: 03 2331 2770
General Manager, Production Operations,

POM, PMU
Fax No.: 03 2331 3168 / 69
Senior Manager, Production Operations,

POM, PMU
Fax No.: 03 2331 3168
Contractors Operations Manager
Date of Report :
SHUTDOWN INCIDENT
Description of the incident
IMMEDIATE CAUSE OF SHUTDOWN

Description of failure/reason(s) of shutdown (preliminary findings acceptable)
IMPACT OF SHUTDOWN
Estimated volume of production impacted
Impact on flaring and re-injection (if applicable)
MITIGATION ACTION TAKEN & FORWARD PLANS

Immediate action taken

Estimated time for normalisation
CONTACT PERSON
* For immediate notification via sms/call, contact PMU Duty personnel at: 019-223 0979.
222
PPGUA/3.0/042/2013
VOLUME 7
Appendix 7
Table 7A Fire integrity of bulkheads separating adjacent spaces
SPACES
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
Control Stations
(1)
A-0
(c)
A-0
A-60
A-0
A-15
A-60
A-15
A-60
(d)
A-60
A-0
B-0
B-0
A-0
(b)
B-0
A-60
A-0
A-0
(d)
A-0
B-0
B-0
A-0
(b)
B-0
A-60
A-0
A-0
(d)
A-0
B-0
A-0
(b)
B-0
A-0
(b)
A-60
A-0
A-0
(d)
A-0
B-0
A-0
(b)
A-60
A-0
A-0
A-0
B-0
*(a)
A-0
(a)
A-60
A-60
A-0
A-0
(a)
(d)
A-0
A-0
A-0
A-0
A-0
Service spaces
(high risk)
(9)
A-0
Open decks (10)
Corridors
(2)
Accommodation
Spaces
(3)
Stairways
(4)
Service spaces
(low risk)
(5)
Machinery
spaces of
category
(6)
Other machinery
spaces
(7)
Hazardous areas
(8)
Sanitary and
similar
spaces
(11)
PPGUA/3.0/042/2013
223
VOLUME 7
Table 7B Fire integrity of decks separating adjacent spaces
SPACE
ABOVE
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
A-0
A-0
A-0
A-0
A-0
A-60
A-0
A-0
(d)
A-0
A-0
Corridors (2)
A-0
A-0
A-60
A-0
A-0
(d)
A-0
Accommodation
Spaces
(3)
A-60
A-0
A-0
A-60
A-0
A-0
(d)
A-0
Stairways (4)
A-0
A-0
A-0
A-0
A-60
A-0
A-0
(d)
A-0
A-0
Service
spaces
(low risk) (5)
A-15
A-0
A-0
A-0
A-60
A-0
A-0
A-0
A-0
Machinery
spaces of
category (6)
A-60
A-60
A-60
A-60
A-60
*(a)
A-60
A-60
A-60
A-0
Other
machinery
spaces
(7)
A-15
A-0
A-0
A-0
A-0
A-0
(a)
*(a)
A-0
A-0
A-0
Hazardous
areas
(8)
A-60
(d)
A-0
(d)
A-0
(d)
A-0
(d)
A-0
A-60
A-0
A-0
A-0
Service
spaces
(high risk) (9)
A-60
A-0
A-0
A-0
A-0
A-60
A-0
A-0
A-0
(d)
A-0
Open decks
(10)
Sanitary
and similar
spaces (11)
A-0
A-0
A-0
A-0
A-0
A-0
A-0
SPACE
BELOW
Control
Stations
(1)
224
PPGUA/3.0/042/2013
VOLUME 7

Notes for Table 7A and 7B:

a) Where the space contains an emergency power source or
components of an emergency power source adjoining a space
containing a ships service generator or the components of a ships
service generator, the boundary bulkhead or deck between those

spaces should be a A-60 class division.

b) Where spaces are of the same numerical category, the bulkhead or
deck rating, shown in the tables, is only required when the adjacent
spaces are being used for a different purpose. For example, in
category 9, a galley next to a galley does not require a bulkhead but a

galley next to a paint room requires an A-O bulkhead.

c) Bulkheads separating the navigation bridge, chartroom and radio

room from each other may be B-O rating.

d) Where an asterisk (*) appears in the tables, the division is required to
be made of steel or equivalent material but is not required to be of
A Class standard. However, where a deck is penetrated for the
passage of electric cable, pipes and vent duct such penetrator should

be made tight to prevent the passage of flame and smoke.
PPGUA/3.0/042/2013
225
VOLUME 7
Appendix 8
8.1 Figure 9: Process Flowchart for Decommissioning of Upstream
Installations
8.2 Decommissioning Plan Requirement

1.

2.

3.

4.

226
Executive Summary
Decommissioning Plan
a) Objective
b) Decommissioning Base-Plan
c) Decommissioning Process
d) Planning
e) Contracting Strategy
f) Assessment of Risk
g) Legal Framework
h) Stakeholder Engagement
Petroleum Engineering
a) Summary of Subsurface Review
b) Prospect (G&G)
c) Further Development (Reservoir Status)
d) Conclusion
e) Recommendation to decommission field
Operations
a) Background
PPGUA/3.0/042/2013
VOLUME 7

b) Development History
c)
Production
History
(operations
maintenance,
operating expenditures, production)

5. Decommissioning Engineering

a) Facilities (Platform/Pipeline) Description

b) Pre-decommissioning Study

c) Well Decommissioning

d) Facilities Decommissioning

6. Health, Safety & Environment

a) Health Issues

b) Safety Issues

c) Environmental Issues

7. Decommissioning Project Schedule

8. Cost

a) Cost Estimate

b) Taxation Clause

c) Custom/Excise Duty

9. Decommissioning Project Planning
a) Team
b) Contracting

10. Reference

11. Appendices
inspections,
8.3 Project Execution Plan

1. Executive Summary

2. Project Background

a) Project Description

b) Scope of Activities

3. Organisation and Resources

a) Project Team

b) Resources Plan and Responsibilities

4. Contracting Strategy

5. Planning & Scheduling

a) Baseline Schedule

b) Schedule Control
c) Reporting

6. Cost

a) Cost Estimate

b) Cost Monitoring and Control

c) Taxation Clause

d) Custom/Excise Duty

7. Execution (by Activities)
a) Engineering

b) Disposal Plan
PPGUA/3.0/042/2013
227
VOLUME 7

c) Authorities Involved

8. Health, Safety & Environment

a) HSE Management Plan

b) Environmental Assessment Plan

9. Reference

10. Appendices
8.4 Final Closeout Report

1. Executive Summary
a) Background

b) Organisation Chart/Project Team

Schedule Plan vs. Actual

Main Chronological Events
c) Cost

Pre-Decommissioning

Decommissioning

Post Decommissioning

2. Project Execution Plan

3. Pre-Decommissioning

a) Organisation Chart

b) Detail Schedule



c) Detail Execution

4. Decommissioning


b) Detail Schedule



c) Detail Execution

5. Post Decommissioning


b) Detail Schedule



c) Detail Execution

6. Lessons Learnt and Recommendation
a) Pre-Decommissioning
b) Decommissioning

c) Post Decommissioning

7. Conclusion

8. Reference

9. Appendices

a) Survey Verification Report
228
PPGUA/3.0/042/2013
VOLUME 7

b) Disposal Report
c) Post Environmental Assessment Report
d) As-Built Drawings/Documents
8.5 Figure 10: Upstream installation beyond the official coastal line

Territorial Sea
LAND
LIMIT OF
TERRITORIAL SEA
(12 NAUTICAL MILES)
TERRITORIAL SEA
Fixed
Platform
Port/Jetty
SALM/SBM
CONTI
TERRITORIAL
SEA
NEN
SHEL TAL
F
Seabed
CONTI
NEN
SLOPE TAL
Seabed
CONTI
Seabed
NENTA
L
RISE
EEZ ACT
Decorate Guideline - PPGUA Sect 14
Per UNCLOS 1982

United Nation Convention on the Law of the Sea
(200m Shallow Water)

(>200m Deep Water)
PPGUA/3.0/042/2013
229
VOLUME 7
8.6 Figure 11: Upstream installation beyond the official coastal

line Shallow Water
LAND
TERRITORIAL SEA
LIMIT OF
TERRITORIAL SEA
(12 NAUTICALMILES)
SHALLOW WATER
Fixed
Platform
Turret
ESO
SHIP
SALM/SBM
Gas
pipeline
Seabed
CON
TINE
TERRITORIAL
SEA
NTIA
L
SHEL
F
Anchor
chain
Sub sea
facility
pile
TINE
well
EEZ ACT
Decorate Guideline PPGUA Sect 14
230
PPGUA/3.0/042/2013
Seabed
CON
NTIA
L
SLOPE
Per UNCLOS 1982

Seabed
CON
TINE
NTIA
L
RISE

(>200m Deep Water)
VOLUME 7
8.7 Figure 12: Upstream installation beyond the official coastal

line Deepwater
DEEPWATER (>200 meters water depth)
SEA
TERRITORIAL SEA (12TERRITORIAL
NAUTICALMILES)SHALLOW WATER
DEEPWATER
LIMIT OF
Fixed
platform
Fixed
platform
Turret
Sub sea
facility
Seabed
Gas
pipeline
SHIP
Bridge
FPSO/FSO
pile
ENTAL
SHELF
Anchor
chain
Seabed
CONTIN
Gas
pipeline
well
ENTAL
SLOPE
Per UNCLOS 1982

Turret
SHIP
FSO
SALM/SBM
Anchor
system
Achor
system
CONTIN
EEZ ACT
Decorate Guideline PPGUA Sect 14
MOPU
Storage
facilities
Buoy
system
Anchor
chain
CONTIN
well
ENTAL
RISE
Seabed
Sub sea
facility

(>200m Deep Water)
PPGUA/3.0/042/2013
231
VOLUME 7
Appendix 9
OEE MODEL
Figure 13 : Oil OEE Model
Actual Production (excluding idle wells production)
Actual Production (excluding idle wells production)
Planned
Deferment
as per
Q1 CR
Submission
232
PPGUA/3.0/042/2013
Planned
Deferment
NOT as per
Q1 CR
Submission
Excluding Unplanned Idle

Wells Production
Utilisation
VOLUME 7
Figure 14: Gas OEE Model
Utilisation
Planned
Deferment
as per
Q1 CR
Submission
Planned
Deferment
NOT as per
Q1 CR
Submission
OEE MODEL TERMS & DEFINITIONS

TERM
DEFINITION
Actual Production
Amount of production that is reconciled to the volume

received by terminal.
Unplanned Deferment
Amount of deferment due to activities/events that is

inevitable due to safety or reasonable causes that result
in wells being shut-in for temporary period until the
interruption is rectified.
Planned Deferment NOT as

per Q1 CR submission
Amount of deferment due to planned shutdown that is not

included in Q1 CR; or planned as per Q1 CR but exceeding
the planned duration
Oil Technical Availability
Equivalent to:
Forecasted Technical Potential External Deferment
Planned Deferment as per Q1 CR submission
Gas Technical Availability
Equivalent to:
Forecasted Technical Potential External Deferment
Operational Usage Planned Deferment as per Q1 CR
submission
PPGUA/3.0/042/2013
233
VOLUME 7
TERM
DEFINITION
Planned Deferment as per Q1

CR submission
Amount of deferment due to planned shutdown per

specified period as approved by PETRONAS as per Q1 CR, so
long as it is carried out within the year and does not exceed
the planned duration.
Operational Usage
Amount of gas used onboard the facilities governed by the

same GSA, i.e. fuel gas, gas lift, gas injection, blanket gas,
utility/instrument gas and operational venting & flaring.
External Deferment
Amount of deferment due to matters out of Contractors

control, i.e. governments directive not stated in existing
regulations, PETRONAS directive other than stated in
PPGUA, void of export means, cascaded effects due to
interruption at other facilities not within Contractors
operatorship, bad weather, catastrophic events etc.
Forecasted Technical
Potential
Forecasted well technical potential based on latest quarterly

Capacity Review submission (e.g. for April, May and June,
the TPs will be based on Q2 CR submission).
Unaccounted Loss/Gain
Amount of production loss or gain mostly due to unrealised

or overestimated technical potential.

For purpose of deferment analysis and gap sizing, unplanned deferment
is further categorised according to its direct causes. For detailed list of
deferment category, refer to the appended Deferment Categorisation below.
Notes:

a) All figures are based on monthly average figures.

b) In lieu of reconciled production, metered production will be deemed

acceptable as actual production.
DEFERMENT CATEGORISATION
Level 1
CODE
W
234
CATEGORIES
Well & Reservoir
PPGUA/3.0/042/2013
DEFINITION
Production deferment attributed to well equipment, subsurface
devices and reservoir conditions that relate to the well-bore
itself.
VOLUME 7
CODE
CATEGORIES
DEFINITION
Operations
Production deferment attributed to production operations

activities itself or caused by drilling, workover, construction,
storage constraints, logistic, etc. It covers mainly planned
activities and human related deficiencies such as unnecessary
delay, no materials, logistic etc
Process &
Utilities
Production deferment attributed to design related issues of the

process equipment and piping, instrumentation and control, and
metering
Rotating
Equipment
Production deferment attributed to systems with rotating

equipment such as compressors, turbo machineries, pumps,
motors and generators
External
Production deferment attributed to:

PETRONAS requirements (other than stipulated in PPGUA)
Governments requirements (other than stipulated in
regulations)
Cascaded effects due to interruption at other facilities not
within Contractors operatorship
Uncontrolled events such as bad weather, permit issue or
catastrophic events
Level 2
W-WELL & RESERVOIR
CODE
CATEGORIES
DEFINITION
W1
Reservoir
conditions
Deferment due to reservoir or fluid conditions/characteristics
W2
Well condition
Deferment due to abnormal operations or failure of wellbore,

tubing or wellhead including all auxiliary systems and associated
components
W3
Artificial lift
Deferment due to abnormal operations or failure of artificial

systems including all auxiliary systems and associated
components
W4
Reservoir
management
Deferment incurred to maintain optimal field performance and

maximize hydrocarbon recovery as per Reservoir Management
Plan (RMP)
PPGUA/3.0/042/2013
235
VOLUME 7
O-OPERATIONS
CODE
CATEGORIES
DEFINITION
O1
Drilling &
workover
Deferment due to drilling and workover activities
O2
Wireline
Deferment due to wireline activities
O3
Offloading
operations
Deferment due to crude oil offloading/lifting activities
O4
Production
operations
Deferment resulting from error in human intervention during

normal operations or lack of resources (including manpower
and logistics) to resume production (back-online) following a
shutdown
O5
Inspection &
maintenance
Deferment necessitated by inspection and preventive

maintenance activities for surface facilities and wells
O6
Construction
Deferment due to construction activities including installation,

hook-up/tie-in, repair and commissioning activities
R-ROTATING EQUIPMENT
CODE
236
CATEGORIES
DEFINITION
R1
Export
compression
Deferment due to abnormal operations or failure of compression

systems related to export gas including all booster compression
systems. It includes major components (prime movers and gas
compressors) and all auxiliary systems and associated
components not limited to skid limits.
R2
Gas lift
compression
Deferment due to abnormal operations or failure of compression

systems related to gas lift including major components (prime
movers and gas compressors) and all auxiliary systems and
associated components not limited to skid limits.
R3
Power
generation
Deferment due to abnormal operations or failure of electrical

power generation systems including major components (prime
movers and alternators) and all auxiliary systems and associated
components not limited to skid limits. It excludes electrical
power distribution systems
R4
Export pumps
Deferment due to abnormal operations or failure of pumping

systems related to crude oil and condensate export including
all booster -pumping systems. It includes major components
(prime movers and pumps) and all auxiliary system and
associated components not limited to skid limits.
PPGUA/3.0/042/2013
VOLUME 7
P-PROCESS & UTILITIES
CODE
CATEGORIES
DEFINITION
P1
Separation
Deferment due to abnormal operations or failure of process fluid

separation system including all auxiliary systems and associated
components
P2
Gas dehydration
Deferment due to abnormal operations or failure of gas

dehydration system including all auxiliary systems and associated
components
P3
Safeguarding &
control system
Deferment due to failure or abnormal operations of main

safeguarding and control systems (Distributed Control System
(DCS), Fire & Gas System (FGS) and Alarm & Shutdown System
or functionally equivalent) including all auxiliary systems and
associated components. It does not include local/on-skid
equipment/system safeguarding and control functions. Also
includes firewater system and all auxiliary systems and associated
components
P4
Metering
Deferment due to abnormal operations or failure of hydrocarbon

measurement system including all auxiliary systems and
associated components
P5
Produced water
Deferment due to abnormal operations or failure of treatment

and disposal system for produced water including all auxiliary
systems and associated components
P6
Pipeline
Deferment due to abnormal operations or failure of pipeline

(including all associated components) used for evacuation of
production or gas lifting
P7
Storage &
Offloading
Deferment due to abnormal operations or failure of storage

and offloading system for produced hydrocarbon including all
auxiliary systems and associated components
P8
Utilities
Deferment due to abnormal operations or failure of general

(excluding power generation) or process utilities system
including all auxiliary systems and associated components.
Include fuel gas, instrument air/gas and power distribution
system
E-EXTERNAL
CODE
CATEGORIES
DEFINITION
E1
Government
Deferment arising from governments requirements other than

what is stated in existing or new regulations
E2
PETRONAS
Deferment arising from PETRONAS requirements other than

what is stated in PPGUA. It includes changes to approved
production allowable and flaring limit
PPGUA/3.0/042/2013
237
VOLUME 7
CODE
238
CATEGORIES
DEFINITION
E3
Transportation
Deferment related to means to deliver produced hydrocarbon to

customers
E4
Others
Deferment due to cascading effects of activities or events

at other facilities not within the same operatorship and
uncontrolled events such as bad weather, permit issue or
catastrophic events.
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What are the different stages of reservoir management discussed in the document?

What are the different stages of reservoir management discussed in the document?

What are the minimum requirements for inspection and maintenance of different facility components discussed in the document?

What are the minimum requirements for inspection and maintenance of different facility components discussed in the document?

PETRONAS Procedures

and Guidelines for Upstream

2013 PETROLIAM NASIONAL BERHAD (PETRONAS)

Well and Reservoir Management

Well Test and Surveillance

Facilities Reliability and Integrity Management

Liquid Hydrocarbon Measurement

Gas Flaring/Venting Limit

PETRONAS Guidelines for Barges Operating Offshore Malaysia

Decommissioning of Upstream Installations

Operating Performance Improvement

Well and Reservoir

Well Test and Surveillance

Facilities Reliability and

Gas Flaring/Venting Limit

PETRONAS Guidelines for

For Exploration Phase:

An equipment inventory comprising pressure vessels, boilers,

Infrastructure related to the production and processing of

Allowed, permitted by Islamic Law and certified by local Islamic

The ability of the asset to perform the required function(s)

Facilities failure that leads to prolonged production deferment

Any upstream installation beyond the official coastal line

Any upstream installation that includes: land production topside

Types of contractual arrangements entered into between

The physical facilities use to transport the product (liquid or

The ability of the asset to perform the required function(s) under

This refers to a duration during which the new Contractor learns

Contractor must operate in a manner that is consistent with principles of

An ever-changing and ongoing process, which must be conducted at

Reservoir management must be a multidisciplinary process aimed at

A systematic approach to maintaining a conduit to and from the

A well must serve its purpose, namely: to support reservoir

Annual Review (FRMR/FRW)

Contractor should supply visuals and other documentation relevant

The annual review refers to the Field Reservoir Management Review

Full Field Review (FFR)

Different Stages of Reservoir Management

During the course of production operations, Contractor is required

Due to the uncertain drive mechanism and in accordance with

However, if no studies have been conducted, the reservoir GOR shall

Nevertheless, Contractor may request PETRONAS approval for a

Some fields may be subjected to the National Depletion Policy (NDP).

Full Field Review (FFR)

FFR must examine interfaces and mutual optimization of the

While some existing evaluation of data sets such as seismic,

Improved and Enhanced Recovery

Examples of improved recovery methods include but are not limited

For fields with water injection or gas injection, Contractor shall

At any stage of depletion, Contractor may seek PETRONAS approval

Examples of enhanced recovery techniques include, but are not

immiscible or miscible gas injection

In particular, Contractor must examine the potential for reserves

1.3 Well and Reservoir Management Plan

Contractor shall submit a Reservoir Management Plan (RMP) to PETRONAS

Reservoir Management Strategy and Plan