Deepwater Oil and Gas Malaysia

Bergen

24 April 2007
Contents

1. PETRONAS – What it is
2. Activities & Opportunities in Deepwater Oil & Gas Malaysia
3. Planned events during 2007
4. Business Culture

2
PETRONAS – National Oil Company

• 100% government owned

• Holds exclusive ownership and control over

all petroleum resources in Malaysia

• Regulates E & P activities through Production

Sharing Contract. To date 62 PSCs awarded.

• All companies providing services/ products

in upstream sector need to be licenced by PETRONAS

3
PETRONAS – International oil company

• A fully integrated & International oil company with more than 63

international ventures in 33 countries

• Involves in upstream sector in 24 countries with recoverable

reserves of 5.94 BBOE

• Ranked as one of Fortune 500 largest corporations & recorded a

profit of USD11.566 billion as at 31/03/06 on turnover of
USD44.282 billion

4
Major Deepwater Opportunities in SEA
Deepwater areas
India: Active E&P activity, Thailand: Several
70% of offshore acreage is significant offshore
deepwater discoveries in the Gulf
of Thailand recently
Vietnam: Considerable
deepwater potential

Malaysia: Offshore Sabah

is the region’s exploration
hot spot, 20 PSCs in
deepwater & 16
discoveries
Indonesia: Major natural gas
discoveries in the deepwater Kutei
Basin, deepwater exploration in
the Tarakan and Papalang Basin

5
Exploration acreages – 565,500 km2

• 71 Exploration Blocks – 44 awarded and 27 still open

• 22 Deepwater/ Ultra DW blocks – 20 awarded to 8 PSC contractors
• 146 oil & 195 gas fields discovered – only 53 oil & 23 gas fields
producing
• Oil reserves incl. condensate 5.25 bb and gas 87.95 tscf, Jan 2006
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Malaysia has 5.25 billion barrels of oil reserves and
87.95 trillion cubic ft of gas reserves
5.25 billion barrels of oil and
condensate Deepwater oil
26%
Shelfal oil
74%

87.95 trillion cubic feet of gas

Deepwater
gas
4%

Shefal gas
96%
Source: Petronas

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Deepwater/Ultra Deepwater to contribute major portion
of undiscovered resources – 10 billion boe

Shelfal Oil,
35%

Deepwater
Oil, 65%

Deepwater
Gas, 43%

Shelfal Gas,
57%

Source: Petronas

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Positive results in Malaysia deepwater the past years

First Kikeh Oil

Deepwater Deepwater Discovery Ubah, Pisangan
PSC Exploration Limbayong Gas and Jangas Oil &
Introduced Well (1170m) Discovery Gas Discoveries

Malaysia as
Deepwater
1993 1994 1995 1998 2002 2003 2004 2005 Regional
Hub

Kebabangan Kamunsu East Gumusut/Kakap Kikeh FDP Approved

Gas (Gas) Oil Discovery First SPAR in Malaysia
Discovered Discovery First GAP Application in
the World
Malikai Oil Discovery
First SBL Application in
Malikai

Source: Petronas

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Deepwater/ Ultra Deepwater Discoveries
Field name Recoverable Water Depth Onstream Operator
Date
Kikeh 536 mmboe 1,300 m Q2/Q3 2007 Murphy Oil

Gumusut/ 620 mmboe 1,100 m Q4 2010/ Shell

Kakap Q1 2011
Malikai 108 mmboe 480 m Q2 2011 Shell
Kebabangan 2.2 tscf > 200 m Q3 2011 ConocoPhillips
Jangas 81 mmboe >1000 m Q4 2011 Murphy Oil
Ubah Crest 215 mmboe >1000 m Q2 2012 Shell
Pisangan 56 mmboe >1000 m Q3 2012 Shell
Kamunsu 2.2 tscf >1000 m Q2 2013 Shell

10
 Fast Track Implementation of Deepwater Projects
2007 2008 2009 2010 2011 2012 2013

Kikeh
Gumusut/Kakap

Malikai

Kebabangan

Jangas
Legend
Indicative
first oil
Ubah Crest
Exploration
Strategy
Exploration Pisangan
Appraisal & Reservoir
Evaluation
Kamunsu
Field Development Studies

Preliminary Engineering

Project Implementation
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43 Deepwater Exploration Wells Planned 2007-
2010

15

11 11 11
10 10
10

0
2006 2007 2008 2009 2010

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 Malaysia: Total expenditure: USD35,683 million
Expenditure Breakdown 2007-2010

Decommissioning 438
Downhole & Well Services 2,110

Operations 8,558

Modifications 10,053

Maintenance 5,868
91
Marine Systems & Equipment
E, I & T 83
Platform Design & Project Management 289
656
Floating Platforms
Fixed Platforms 2,953
972
Subsea Technologies and Equipment
Offshore Drilling 6,299

Reservoir Management 113

Seismic Data Acquisition 430

- 2,000 4,000 6,000 8,000 10,000 12,000

US$ million

Source: Infield/INTSOK
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Malaysia is looking for companies to establish
strong bases in Malaysia
Key Areas Key Activities
Development Concept FEED & Feasibility Studies

Topside Design
Support Structure Engineering
Hull Design – Dry Tree units (DTU)

Hull Design – Floating Vessels/Wet Tree

Units
Support Structure Fabrication Fabrication – Topside & Hull

Flowline & Risers

Design, Engineering &
Umbilical/Fluid Transfer Lines (FTL)
Manufacturing
Subsea Modules

Installation Pipeline installation

Source: Petronas
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Other Areas of Opportunities/ challenges

• Strategic alliance with Petronas – capacity building

• Small or marginal fields Development
• Brown Fields development
• High CO2 content
• Enhanced Oil Recovery in matured fields
• Demand for rigs/ semi-sub
• Marine vessels

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Norwegian companies in O&G sector

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Planned Events 2007
• Jan: Resource Management by Petronas/Petrad

• June 6-7: Pipeline Integrity workshop by Petronas/Intsok/

Petrad
• June 13-15: Norwegian Pavilion at Oil & Gas Asia Exhibition

• June 25-29: PETRONAS Delegation to Norway by IN KL/Intsok

• Nov 26-28: Deepwater Technology workshop by Petronas/

Intsok/ Petrad

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Malaysia: Business Culture
• Multi-racial & multi-cultural society - 3 major distinct
races. Advantage to differentiate races for business and
social reasons
• Personal relations are important for business. Building
trust takes time
• Consciousness in social hierarchy
• Reflected in hierarchical structures of Malaysian companies

• Honorific Titles- Datuk, Dato, Datuk Seri, Tan Sri & Tun.

• Importance of Designation
• Face Value – has a lot of significance in workplace and
business relations. Once a person loses face, he/she may
withdraw from the interactions of business negotiation
altogether.

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Malaysia: Business Culture

• Respect for elders by the way one

speaks, addresses or behaves
towards one’s elder.
• Managers or leaders are
considered “elders” and wise.
Decisions of leaders hardly
challenged.
• Understand the Decision Making
Process of the organization you
are dealing with – crucial for
business success

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