Enhanced PETRONAS-Academia Collaboration

Universities Reach-Out

PETRONAS-Academia Collaboration Dialogue 2023

© 2021 Petroliam Nasional Berhad (PETRONAS)

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 Presentation Outline

• Introduction to PETRONAS and MPM

• PETRONAS Business Pain Point
• PETRONAS Technology Focus Area
• Conversation and discussion
• PETRONAS - Academia Collaboration Dialogue

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 • Introduction to PETRONAS
and MPM

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 As the Custodian of National Resources, PETRONAS works Closely with the Relevant Ministries to
develop the National Petroleum Sector

© 2021 Petroliam Nasional Berhad (PETRONAS) |

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PETRONAS businesses covering Upstream, Downstream, Gas and Clean Energy Solution.

Upstream Downstream Gas Business Clean Energy Project Delivery

Solution & Technology
Malaysia Carbon
Petroleum Management Group Group
Management Division Project Technical
Malaysia Delivery Solutions
International
Assets Assets
Group Group
Center of Research and Digital
Exploration
Excellence Technology
© 2021 Petroliam Nasional Berhad (PETRONAS) |

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MPM/Upstream is entrusted as the custodian to manage Malaysia’s petroleum resources

MPM works closely with the Government to develop & grow the With progressive upstream investment (>RM650 Billion),
domestic Upstream sector while managing its Contractors MPM has successfully grown the O&G production sustainably
‘000 barrels of oil equivalent 2022: >100 RM Billion
per day (kboe/d)
Government active PSCs
of Malaysia PDA 1974 vested PETRONAS with the entire
ownership of, and exclusive rights to exploit 2,000 60

PDA 1974 Malaysia's petroleum resources. 1,800

~1,600 kboe/d
50
1,600

PETRONAS through MPM is responsible for the 1,400

40
overall management of Malaysia's petroleum 1,200

resources throughout the upstream lifecycle. 1,000 30

800 1976: First PSC

signed 20
600
PA PETRONAS through MPM enters into
Petroleum Arrangements (PAs) with other oil & 400 ~99 kboe/d 10
Oil & Gas gas companies. 200

Contractors 0 0

MPM’s Roles:
Shape business strategies,
Steward domestic E&P activities in Facilitate greater collaboration
champion industry culture &
compliance to Malaysian laws & with industry stakeholders and
behaviours and support the
regulations and contractual promote local capability
Regulator
adoption and adaptation of new
requirements Shaper Enabler development
technology

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 MPM is part of PETRONAS’ Upstream business segment to oversee exploration, development &
production activities in Malaysia.

© 2021 Petroliam Nasional Berhad (PETRONAS) |

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 MPM in uniquely positioned within PETRONAS as a One-Stop Center for investor on E&P activities in
Malaysia

© 2021 Petroliam Nasional Berhad (PETRONAS) |

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 Oil & Gas players, investors, researchers and academicians have greater access to Malaysia E&P data
enabling higher efficiency investment decision making and technical solutions
Malaysia Petroleum Resources Opportunities Data (PETRONAS myPROdata)

Visibility at all time &

anywhere

Ease of data request with

wider access

Self service data process

Customized data

https://myprodata.petronas.com/

SmartViewer SmartData Catalog Data Visualisation

Over 1,100 TB of data to explore Facilities and Infrastructure
 380 Offshore Platform

Seismic Wells  13 PLNG, FPSO &FSO

 495,000-line Km 2D  6000 Wells and Logs  15100 kms pipeline
 700,000 sq.Km 3D  >82,000 Technical  13 O&G Terminals
 292,000 sk Km FTG Reports View GIS data through an Search PETRONAS’ extensive Visualise 2D and 3D seismic
interactive spatial interface library of Malaysia E&P Data cross sections via Geocap

© 2022 Petroliam Nasional Berhad (PETRONAS) |

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 PETRONAS Business Pain Point

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 With healthy resources and wide available infrastructure; PETRONAS is focused on pursuing sustainable value driven
production growth in monetising Malaysia’s oil and gas resources and building niche competencies
Malaysia’s production has not peaked yet in comparison with UK and GOM. PETRONAS has set the aspiration to meet 2 MMboe/d by 2030 through the available resource
volume for monetization and its wide infrastructure.

Resource funnel

Snapshot of Upstream Malaysia’s facilities dimension, operated by 30 Petroleum Arrangement Contractors

(PACs) as at October 2020.
Sources:
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Malaysia – Internal Analysis on Historical Production
UK – OGA - https://data-ogauthority.opendata.arcgis.com/pages/production
Open GOM – US Energy Information Administration (STEO Data Browser - 0. No Standard Table (eia.gov))
 Malaysia has a wide variety of oil and gas assets at different maturity and production stages which offers
significant opportunities while needing to manage associated multi-dimensional complexities

125 149 219

Malaysia’s Oil Fields* Gas Fields* DROs**
resources

* STOIIP & GIIP: * 2C + 2P: ** 80 oil and 139 gas with

32 Bstb & 150.2 Tcf 3.3 Bstb & 47.6 Tcf >150 MMstb & >12 Tcf
Technology has proven and will
continue to be the key enabler
and game changer in finding

Technology
solutions for these challenges
leading to effective value
enhancement on Malaysia
Marginal and Deepwater Gas development Brown fields resources
Challenges
small fields

Small recoverable 6 Bboe remaining High CO2, high Ageing facilities and
resources resources to be contaminants high OPEX and
developed reliability challenges

Techno-commercial challenges to make the project Require storage sites to Mature fields with
economic deal with emissions multidimensional
challenges (i.e.,
subsurface,
production, operation,
* Producing and Development fields (ARPR 2020) cost, etc.) © 2021 Petroliam Nasional Berhad (PETRONAS) | 12
** Open field DROs (as of Q4 2020)
Source: Internal Analysis
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 Considering the status of the resources in Malaysia; PETRONAS has identified four key focus areas derived from
the identified challenges throughout full field lifecycle to effectively monetize and add value to the resources

CCUS & GHG related areas

(Electrification & Decarbonization, High CO2 field monetization, Carbon Capture Utilisation & Storage, Flare & Vent
reduction, Contaminants management)

Improved Recovery & Production/Sustainability

(Improved Hydrocarbon Recovery, Production attainability & sustainability, Hydrocarbon Recovery Technology,
Small/Stranded Fields monetization, Sand Management, Flow Assurance Production Enhancement )

Operational Efficiency, Automation & Digitalization

(Operational Excellence, Asset & Well Integrity & Innovative solutions i.e., Robotics, Field of the Future concepts,
Artificial Intelligence, Big Data, Process Automation & Optimization, Remote Operation )

Liability Management & Decommissioning

(Liability Management, Design-to-Decommission, HSSE, Rigs to Reefs)

© 2021 Petroliam Nasional Berhad (PETRONAS) |

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 PETRONAS is building the capacity to deal with emissions through the progressing
CCUS solutions as part of its long-term sustainability commitments

Upstream GR&T/Mid-Downstream
(focus on CCS) (Utilization)

CO2 solutions for producing CO2 storage as new Utilization Solutions that can turn the
and new gas fields revenue stream CO2 into re-usable and commercially
development viable products

• Innovative and cost-effective CO2 • Establish Integrated Local/Regional CCS • Understanding the business case for
capture, transport, storage and hubs (e.g. Tariff charging) utilization, scalability and potential market
utilization technologies to monetize high opportunities
CO2 fields • Carbon trading (tax, credit, offset) to be
considered as a new business model • Develop commercialization and potential
• Joint experience in active CC(U)S models for CO2 utilization
projects to build operational capabilities • Formulation of commercial model e.g.
sharing of cost for storage site
preparations

© 2019 Petroliam Nasional Berhad (PETRONAS) | 14

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 Carbon Capture and Storage is a critical enabler to develop high CO2 resources to support PETRONAS’ Net
Zero Carbon Emission Target by 2050

1st CO2
2nd CO2 Dev of High
offshore
PETRONAS CCS Framework & sequestration
offshore Malaysia as CO2 Fields
sequestration >45% CO2
Operating Model in offshore
nearshore
Regional CCS
Sarawak offshore
Sarawak Hub Terengganu

2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 &
beyond

46 Kasawari CCS
Lang Lebah CCS
Tcf Kasawari M1
OGP-2 Golok Lang Lebah
Storage Volume
Identified from
Hydrocarbon CO 2 to be
depleted gas fields extraction stored

Gas Field CO 2 to be Hydrocarbo

Storage Site stored n extraction
Gas
Storage
Field
Site

© 2021 Petroliam Nasional Berhad (PETRONAS) 15|

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 While we improve the 2C figures in ARPR, more focused efforts might be needed to
effectively convert the 2C Opportunities to 2P by Business

New Opportunity 5% 3% 0.5 % Revalidation

6.5% 6%
5.3% 6.2% 6.7%
2C 5% RF RF RF RF Np+2P+2C
31.4% 32.4%
of Benchmarking 35% RF >40%
Np+2P 30.8%
36% 31.3% 37% 38% 39%

2020 2021 2022 2025 2030

This roadmap will be regularly updated based on the commercial status and technical maturity of these opportunities

Value Creation for 2C Portfolio

✓ >2000 MMSTB opportunities identified in COB/OBO Fields with
Reservoir Benchmarking & RF Improvement Workflow

✓ ~276 MMSTB Opportunities in COB Fields booked as CR in ARPR

1.1.2021 with estimated NPV7 of RM 2806 Million

© 2019 Petroliam Nasional Berhad (PETRONAS) |

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 Production Sustainability and Operational Excellence have been a high priority focus in PETRONAS
to assure our value delivery & enhancement as well as the sustainability agenda

Source: Internal Analysis © 2021 Petroliam Nasional Berhad (PETRONAS) | 17

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 As one of the key enablers; PETRONAS began its digital journey in 2017 with the aim to ultimately
become a data-driven organisation, adopting new ways of working to deliver value

Going digital is about improving human and machine performances by combining PETRONAS has been working with leading partners to develop sophisticated
information with technology in an innovative way. technologies for integration with daily operations, towards building Facilities of the
Future

We look forward to intensify external collaboration to mature more technologies

that can reduce cost, reduce HSSE risks and elimination of human errors in the
future
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Source: PETRONAS Activity Outlook 2021 - 2023

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 Fit-for-purpose and innovative decommissioning solutions are required to support cost
competitiveness that brings the best benefit to the environment

Petronas Assets Overview

© 2019 Petroliam Nasional Berhad (PETRONAS) | 19

Source: PETRONAS Activity Outlook 2022 - 2024
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 Petronas Technology Focus Areas

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 Moving Forward Together 50.30.0

Value Growth
50% improvement in 30% revenue by 2030 from
cash flow from operations new non-traditional business to
complement growth in existing
by 2025
core

Sustainability
Net Zero carbon emissions by
2050 with positive social impact and
adherence to business ethics and
corporate governance

Committed to pursue profitable growth

© 2019 Petroliam Nasional Berhad (PETRONAS) |

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 R&D activities aligning with refreshed PETRONAS’s Technology focus areas

Refreshed PETRONAS Technology

Focus Areas

• To provide solutions for business pain points

• As enable to PETRONAS MFT 50.3.:0

© 2021 Petroliam Nasional Berhad (PETRONAS) |

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 It is crucial for everyone within the ecosystem to work together and align our focus for the ecosystem
to remain healthy

ECOSYSTEM

Service Companies Industry Spin-Offs Community

Petroleum • Engineering Consultants • Power Industry • Society

Arrangement • Equipment Suppliers • Government
Exploitation of
LNG Business • Academia & Agencies
Contractors • Hook-up & • Petrochemical • Students
Resources
Commissioning • Rig/shipping
• O&M manufacturer
• Refineries

© 2021 Petroliam Nasional Berhad (PETRONAS) | 23

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 PETRONAS established collaborations with various local and international academia

• to support development of technologies under PETRONAS Technology Focused Areas

On-going collaborations

34%
Intl’
66% (12)
Local
(23)
© 2019 Petroliam Nasional Berhad (PETRONAS) | 24

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 Collaboration Strategies & Overview of the partnerships
• The academia offers a wealth of knowledge, expertise and talent that PETRONAS leverages on to pursue its technology
and sustainability goals.

• The collaboration strategies enable PETRONAS to tap into academic talents and executing R&D with pace

3+1

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 PETRONAS - Academia Collaboration

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 In 2021, MPM in collaboration with the key technology units in PETRONAS introduced
efforts to drive adoption of cutting-edge technologies in domestic Upstream O&G
activities through multi-pronged objectives.

Objective
• Foster collaboration and networking opportunities between Upstream
stakeholders & academic/research institutions, both local and foreign.
• Provide funding and upskilling opportunities to improve research and
Steer Technology Project development intensity and effectiveness of academia and research
Funding Steer Technology institutions.
To ma nage MPM WPB a nd P4R
Collaboration with
rel a ted governance process whilst Academia and Research
s teering utilization of a vailable
res earch funds for technology
Institutions Membership
project utilization • Resource Development and Management, MPM
• Production & Operations Management, MPM
• Technology Research, Group Research & Technology
Align and Approve Drive MPM Technology • Upstream Technology Management, Group Digital, COE
Technology Project Roadmap
Submissions Steer, monitor and drive MPM
Collaboration Partners
Ens ure a lignment i n planning and technology focus areas based on • Local and Foreign Universities & Research Institutions
feedback from domestic Upstream
execution of technology projects
opera tors, stakeholders and • Technology Solution Providers
a cros s all phases with multiple
s ta keholders while supporting pa rtners. • PA Contractors
deployment of technology pilot
projects.
Key Activities
• PETRONAS-Academia Dialogue Collaboration
• Universities and Research Center Reach Out.

© 2021 Petroliam Nasional Berhad (PETRONAS) |

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Significant value creations aligning with PETRONAS’s key focus areas are expected from the proposal
maturation

▪ Attractive alternative to CO2 carbon capture, ▪ Efficient production wells monitoring with
monetizing and utilization . potential deployment in Kasawari project and
Bokor field
▪ New technology energy storage system supporting
environmental sustainability. ▪ New technology to monitor gas movement in the
borehole/pipeline using fiber with potential cost
▪ H2S detection and quantification. efficiency.

▪ CO2 utilization to support non-traditional growth

▪ Mitigating Pipeline corrosion especially in SKG ▪ Improve detection of radiation emission of

&PMA with potential cost avoidance of more than facilities to be decommissioned in near future
RM 12 Mill through fiber optic technology

▪ Efficient operational monitoring via digital

transformation

▪ Efficient energy management system

Tangible value creations of the selected proposals are subjected to finalization and subsequently PETRONAS’
Technology Readiness Level Committee (TRLC) process
© 2022 Petroliam Nasional Berhad (PETRONAS) |
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General process workflow has been established for the management of research portfolio by
academia
PETRONAS Technology Management System is the key element in identifying the readiness of each technology proposal to match the funding allocation

1 START 100 proposals submitted by Academia during PETRONAS-ACADEMIA dialogue

2 #1st proposal screening

45 out of 100 proposal been selected
✓ Email sent out to academia (25th June 2021)
✓ Request details proposals (due date: 23 rd July 2021)
3 Committee approval #1

4 #2nd proposal screening Evaluator's workshop to finalized screening ,followed by mapping of proposals

5 Proposals Mapping & Categorization

Selected proposals to be map based on indicative TRL, Focus Area, and budget allocation
for funding purposes and to be approved by MTex
6 Comitteee approval #2

7 Signing of Funding Agreement through MRA Master Research Agreement between PETRONAS and selected academia –project
specific / collaboration with respective universities

8 Forward plan as per established PTMS process TRL 1-4 = GR&T ; TRL 5-7 = Business Unit

Research agreement shall be established prior to expose the universities to PETRONAS’ internal process
© 2021 Petroliam Nasional Berhad (PETRONAS) |
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 Recap of Petronas Academia Dialogue 2021
Shortlisted Universities from 2021

Monash University
PETRONAS-Academia
Collaboration Dialogue 2021 Final Approval of shortlisted
proposals Multimedia University

Universiti Malaya

IIUM
Invitation to PETRONAS- Final Technical proposal
Academia Dialogue 2021 were submission by Academia UiTM
sent.

UPM

UKM

PETRONAS-Academia MRA signed between USM

Collaboration Dialogue Petronas and 11
appreciation Day Universities.
Swinburne University

UTAR

Briefing on TRLC process Universities Reach Out

UTM
and requirement

© 2022 Petroliam Nasional Berhad (PETRONAS) |

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Petronas Academia Dialogue 2021 brought together 16 local Universities to submit 100 proposals, of which 23
proposals from 11 universities from various focus areas were selected

Selection Criteria

Evaluators
GR&T
MPM
Lead : Dr M Faizal b Sedaralit
Lead : Dr Rahim Masoudi

GTS
COE
Lead : Ir Azril Hisham Abu Hassan
Lead : Dr Sekhar Sathyamoorthy

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Signing of Master Research Agreement between Petronas and Selected Academia is a major milestone, from this
point onwards the imperative is for both parties to maintain high level collaboration and for Academia to ensure
adherence to PRSB Quality Management System

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Upon reaching technology maturity, support & facilitation of technology deployment and promotion to potential
Assets and Petroleum Assets Contractors PACs through various platforms.

Technical Conferences

TAR Dialogues

Direct Negotiations

Technology application
incentives

© 2019 Petroliam Nasional Berhad (PETRONAS) |

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PETRONAS – Academia collaboration 2023 is a continuation of the collaboration aimed for a
two-way sharing to ensure continuous momentum to meet business pain points and long-
term capability building

PETRONAS-
Academia
Dialogue Briefing Dialogue Kick Off Proposals preparation Proposal Submission Dialogue
(August-Sept 2022) Meeting (Oct 2022) (Now-Dec 2022) (31st Dec 2022)
Collaboration
(Q1 2023)

Post Dialogue General Selection Criteria

1. Selected proposals will be contacted for acceptance. 1. Identification of technology focus areas based on business pain points.
2. Signing of MRA* and Project Agreement. (Q2 2023) 2. Selection of Universities:
3. Research proposal Maturation by PRSB through TRL ✓ Top-notch and reputable.
sittings (as per negotiated project schedule) ✓ Technical expertise:
• Facility readiness – for laboratory activities & study facilities.
• Manpower – reputable or renown lecturer in the identified
area of focus.
✓ Commercial aspects:
• Reasonable pricing term & timeline.
• IP positioning.
✓ Location.

© 2021 Petroliam Nasional Berhad (PETRONAS) |

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 Conversation and discussion

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 “Coming together is a beginning, staying together is
progress, and working together is success”.
– Henry Ford

Thank you for your passion!

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