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Tuesday, 23 September 2014

Petronas implements 10 EOR projects

National oil and gas company Petronas is now actively implementing enhanced oil recovery (EOR) programmes to enhance crude oil production in maturing fileds, with more than 10 EOR projects in the pipeline.

Executive director Datuk Mohamad Idris Mansor said the entire programme will be rolled out in phases over the next decade.

"We believe that a substantial number of the current producing oil fields have EOR potential," he said.

He said the first application of EOR technology, at the Tapis oil field offshore Terengganu at a cost of nearly RM10 billion, has the potential to boost production (from Tapis) by up to 35,000 barrels of oil per day from the present three to four thousand barrels per day.

"The implementation of the EOR will increase the economic value of the field, extending its life of by more than 25 years," he said before officiating the Malaysia Oil and Gas Exhibition and Conference (MOGSEC) 2014 here today.

In addition to EOR, Mohamad Idris said Petronas has also introduced Risk Service Contracts (RSCs) featuring a sharing of risks and rewards, with niche exploration and production (E&P) companies and selected local oil and gas service contractors as partners.

"The RSCs provide exposure for domestic contractors to enhance their capabilities and capacities, not only as effcient and cost-effective service providers but also as oil and gas reserves holders and E&P operators.

"To date, Petronas has awarded six RSCs. Three now in production are Berantai, Balai Cluster and Kapal Banang Meranti, while three others, Tg Baram, Tembikai Chenang and Ophir, are under development," he said.

He said Petronas, as the custodian of the country's hydrocarbon resources, is well aware of the challenges to extend the lifecycle, arrest the decline and enhance the production of the existing fields.

As Petronas has developed clear strategies to conduct aggressive exploration, optimise oil and gas field development and grow and maximise production, he said events like MOGSEC 2014 play a critical and effective role, bringing together various industry players to converge and develop strategy towards a more dynamic and sustainable oil, gas and energy sector.

Nearly 500 Malaysian oil and gas companies, along with key players Petronas, MMC Oil and Gas, Muhibbah Engineering, SapuraKencana Petroleum, UMW Oil and Gas, PBJV Group, Bumi Armada, Technip and ExxonMobil, are taking part in MOGSEC 2014, themed "Showcasing Malaysia as the Region's Oil and Gas Hub" and held on September 23-25.-- Bernama