1. Professor. Dr. Pogaku Ravindra Ms. Adriana Amaludin
“Oil and Gas Engineering- Key to a Sunrise Industry in Sabah from an Academic Perspective”
Professor. Dr. Pogaku Ravindra
Ms. Adriana Amaludin
Energizing Sustainable Future

2. Energizing Sustainable Future
Flow of Thoughts
Upstream, Midstream and Downstream Operations
Recent Trends in Oil and Gas Sector in Malaysia
NKRA in Oil and Gas – Sustain, Grow and Diversify
UMS Education Programmes and Research Projects
Collaboration with Stakeholders
Energizing Sustainable Future

3. The Scope of Energy Oil & Gasgk
Energizing Sustainable Future

4. Energizing Sustainable Future
Upstream Activities : Exploration, Drilling, Completion & Production
Exploration
Seismic
Exploratory Drilling
Appraisal
Appraisal Drilling
Well Testing
Field Development
Dev. Drilling
Reservoir
Production
Facilities
Work over / EOR/EGR
Energizing Sustainable Future

5. Refining/Processing/Treatments Petrol, diesel, kerosene, grease,
Downstream Activities : Processing, Treatment & Marketing
Refining/Processing/Treatments
Petrol, diesel, kerosene, grease,
bitumen
Gases: ethane, propane, butane
Petrochemicals
Plastics, synthetic rubber, solvents
Transmission/Distribution
Marketing
Consumer Products Manufacturing
Services
Others
Energizing Sustainable Future

6. Recent Trends in Oil and Gas Sector in Malaysia
Malaysia produces 2% of the world’s natural gas
Accounts for about 13% of the world's Liquefied Natural Gas (LNG) exports
Sold largely to Japan, South Korea and Taiwan
Malaysia : 3rd largest in the Asia Pacific region (After China & India)
As a net exporter of oil and gas, 40% of Malaysia’s total revenue derived from petroleum sources.
Energizing Sustainable Future

7. Energizing Sustainable Future
National Key Economic Areas(NKEA) Five major growth spots of Oil and Gas
Regional oil storage and trading hub
Innovative approaches in developing marginal fields
Intensifying domestic exploration activities
Enhanced Oil recovery (EOR) initiatives
Refinery And Petrochemicals Integrated Development Project (RAPID) in Pengerang, Johor and several major downstream petroleum and petrochemical projects.
Energizing Sustainable Future

8. Energizing Sustainable Future

9. NKEA OIL AND GAS SECTOR: SUSTAIN
Energizing Sustainable Future

10. New Oil and Gas Discoveries
Date
Resource
Quantity
Location JV
Jan 2013
Oil and Gas
Initial flows:
440 bbl./d crude oil,
11.5 MM cf./d natural gas
Adong Kecil West-1 well in Block SK333, onshore Sarawak
JX Nippon Oil & Gas Exploration (Onshore Sarawak) Limited and PETRONAS Carigali Sdn Bhd.
April 2013
Natural Gas
1.5-3 trillion cubic feet of gas (Est.)
B-14 well,
Block SK310, onshore Sarawak
Newfield Exploration Company, Partners Diamond Energy Sarawak and Petronas Carigali Sdn Bhd.
May 2013
Oil
200 million stock tank barrels (MMstb)
Cendor Graben-2, Block PM304, Offshore Peninsular Malaysia
Petrofac (Malaysia PM304) Ltd, Petronas Carigali Sdn Bhd, Kuwait Foreign Petroleum Exploration Company and
Petro Vietnam Exploration Production Corporation Ltd.
Nov 2013
Gas
247 metres of gas column
Pegaga-1 well, Offshore of Block SK320, NW of Bintulu, Sarawak
PETRONAS Carigali Sdn Bhd and Mubadala Petroleum
Dec 2013
292 metres of gas column
Sintok-1 well, Offshore of Block SK320, NW of Bintulu, Sarawak
Energizing Sustainable Future

11. Marginal Oil Fields Development
PETRONAS - Initiated Risk Sharing Contracts (RSC) for Marginal Oil Fields development
Marginal Oil Fields Development – Aims to rejuvenate the oil and gas industry, since majority of Malaysian oil fields are entering the mature phase
Mature phase: Declining oil and gas extraction, after 30 years of exploration and production (E&P)
Malaysia has around 106 marginal fields, with approx. 580 million barrels of oil.
Energizing Sustainable Future

12. Enhanced Oil Recovery (EOR)
Source:drillinginfo.com
Energizing Sustainable Future

13. Enhanced Oil Recovery (EOR)
50% of Malaysia’s producing oil fields have EOR potential (Estimated)
Currently, more than 10 EOR projects in the pipeline at various maturation stages.
Since Sept 2014, EOR implemented at Tapis oil field (Offshore Terengganu)
This project, worth RM10 billion – boost declining production between 25,000 to 35,000 barrels per day (bbl./d) in 2016 and between 3,000 to. 4,000 bbl./d in 2017.
Tapis is one of seven mature fields offshore Peninsular Malaysia, developed by ExxonMobil and PETRONAS via 25-years PSC
Work is being carried out on seven fields: Seligi, Guntong, Tapis, Semangkok, Irong Barat, Tebu and Palas
Energizing Sustainable Future

14. Energizing Sustainable Future
EOR cont.’
Shell and PETRONAS agreed to invest $12 billion over 30 years in two EOR projects offshore Sarawak and Sabah (Baram Delta and North Sabah) covering nine fields.
Expected to boost reserves by 750 million barrels and use the world’s first offshore, chemical injection process for resource recovery
Energizing Sustainable Future

15. Energizing Sustainable Future
Deepwater Projects
Source:
Frost and Sullivan
Energizing Sustainable Future

16. Energizing Sustainable Future
Deepwater Projects
Location JV
Status
Remark
Kikeh Oil Field
Murphy Oil and Petronas Carigali
In Operation
Recoverable reserve base: 400 to 700 million barrels of oil.
Production plateau: 120,000bpd for the first 8 years
Gumusut / Kakap
Shell (operator), ConocoPhillips,
Petronas Carigali,
Murphy Sabah Oil 
1st deep water floating production system - 19 subsea wells.
Came on stream : End of 2011, production of 25,000 bbl./d.
Production will increase to 120,000 bbl./d after new floating production system is commissioned
Natural gas produced along the oil is re-injected into the reservoir - improves oil recovery.
Malikai, Offshore Sabah
Shell and ConocoPhillips
Under Development
Holds a production capacity of 60,000 bbl./d.
Tied into the Kebabangan Northern Hub development project (KBB) via a liquid and dry gas pipeline after first gas is drawn from KBB. Expected to come online in the 3rd Quarter of 2015.
Ties together Gumusut/Kakap, Malikai and Kikeh oil fields.
Energizing Sustainable Future

17. Energizing Sustainable Future
Oil Pipelines
Malaysia – Relatively limited oil pipeline network, relies on tankers and trucks to distribute products onshore.
Malaysia’s main oil pipelines connect oil fields offshore Peninsular to onshore storage and terminal facilities.
Peninsular Malaysia: 124-mile Tapis pipeline runs from Tapis oil field, ends at the Kerteh plant in Terengganu, as does the 145-mile Jerneh condensate pipeline.
Energizing Sustainable Future

18. Energizing Sustainable Future
Oil Pipelines
Sabah: The oil pipeline connects offshore oil fields with the onshore Labuan oil terminal – this network will expand following the development of the Kebabangan cluster, Malikai, Gumusut / Kakap and Kikeh oil fields.
Sarawak : Several other oil pipelines connecting offshore fields with the onshore Bintulu oil terminal
Energizing Sustainable Future

19. Refining, Storage and Transit
Malaysia – Plans to become a regional oil trading and storage hub by increasing the country’s refining and storage capacity – due to rising regional and domestic demand for crude oil and oil products.
PETRONAS: Plans to build a RM60 billion Refinery And Petrochemicals Integrated Development (RAPID) complex in Pengerang, Johor (End of 2017). This project includes a 300,000 bbl./d refinery.
Malaysia’s expansion of its oil terminal and storage capacity : To meet the growth of oil storage and trading within Asia.
Energizing Sustainable Future

20. Refining, Storage and Transit Cont.’
Malaysia’s oil product and crude oil terminals: Located along the eastern coast of Peninsular Malaysia and offshore as floating storage and production facilities.
MISC Berhad and Vitol Group: Plans to double the storage capacity at Johor Terminal (the country’s largest oil terminal) by mid-2014
Pengerang oil storage terminal: Comes online on 2017
Sabah Oil and Gas Terminal (SOGT), Kimanis: Receive oil and gas starting 2014
SOGT – Central hub for hydrocarbon development in offshore Sabah with a design capacity to process
Crude Oil: 260,000 bbl./d,
Condensates: 77,000 bbl./d
Natural Gas: 1.3 billion cubic feet/day
Energizing Sustainable Future

21. Energizing Sustainable Future
Source: Facts Global Energy, IHS Global Insight, OGJ, IEA, Petronas, Shell (2013)
Energizing Sustainable Future

22. Outlook for the Oil and Gas Industry
Oil and Gas Industry: Continues an important role in Malaysian economy
PETRONAS: Has a 5-years RM300 billion capital expenditure (CAPEX) plan to reverse declining production
There is much catch up to do after having spent only RM72 billion (24% of the amount) between 2011 and January 2013.
Private Investment:
RM189 billion
Public Investment:
RM106 billion
Energizing Sustainable Future

23. Energizing Sustainable Future
Outlook cont.’
PETRONAS started the year with a five-years umbrella contract awarded to four engineering services contractors
Contract scope: Domestic upstream oil and gas engineering services (front end engineering design and detailed design works)
Growth for oil production is set to outpace consumption due to positive demand for oil within the Asian region.
Technip Consultant (M) Sdn Bhd,
Perunding Ranhill Worley Sdn Bhd, RNZ
Integrated (M) Sdn Bhd and MMC Oil &
Gas Engineering Sdn Bhd.
Energizing Sustainable Future

24. NKEA OIL AND GAS SECTOR: GROW
Energizing Sustainable Future

25. GAS – THE RISING SUN OF ENERGY
Globally, conventional recoverable gas resources:
More than 120 years of current global consumption
Total recoverable resources: Can sustain current production level (for more than 250 years)
In the Southeast Asia Energy Outlook 2013 report:
Gas production in SE Asia will rise from 203 to 260 billion m (from 2011 to 2035)
Main Contributors: Indonesia, Malaysia and Myanmar.
Energizing Sustainable Future

26. GAS – THE RISING SUN OF ENERGY (Contd.)
Malaysian gas production (2011): 56 billion m3 (2nd largest in ASEAN region)
Offshore Peninsular Malaysia Production: To satisfy domestic demand;
Offshore Sarawak Production: 33 billion m3 feeds the Malaysia LNG (Bintulu) liquefaction terminal
Strong prospects of continued exports of gas in the medium term:
Backed by recent discoveries and new developments, the gas terminal will operate at full capacity (through at least 2018).
The country’s gas production is projected:
Will reach 70 billion m3 in 2020, before declining slightly to 65 billion m3 in
Energizing Sustainable Future

27. Energizing Sustainable Future
LNG Prospectus
LNG : Meet the growing demand for efficient, cleaner and greener energy from environmentally conscious energy consumers in Asia.
LNG currently contributes about 10% of the energy requirements in Asia and the share is expected to rise to 14% by 2035 (Source: IEA)
The Oil & Gas industry: Responding to this new challenge by aiming to supply more LNG to energy hungry countries in Asia.
Energizing Sustainable Future

28. Energizing Sustainable Future
LNG Prospectus Cont.
PETRONAS: Embarking on new projects to increase its LNG output in the coming years through project expansion and acquisition.
The company will build new LNG production facilities including
PETRONAS LNG 9 (Train 9) project within the PETRONAS LNG Complex in Bintulu;
Floating LNG projects offshore Bintulu.
Energizing Sustainable Future

29. Energizing Sustainable Future
LNG Prospectus Cont.
PETRONAS’ subsidiary company, Malaysia LNG Sdn Bhd. (MLNG) and which operates the PETRONAS LNG Complex: working on 8 new capital projects to increase the plant’s production capacity and reliability.
These projects include
MARLIN project (MLNG boil off gas re-liquefaction project)
MLNG Boiler Rejuvenation project (MBR)
MLNG Dua Rejuvenation project
CO2 Removal Capacity Restoration project
MLNG New Boiler project
ROSE project and Industrial Effluent Treatment System Upgrade
Energizing Sustainable Future

30. Energizing Sustainable Future
LNG prospectus Cont.
MLNG:
Production of 29.8 Million Tonnes Per Annum (MTPA) of LNG by (increase of 4.1 MTPA - current production of 25.7 MTPA)
Additional output: Train 9 (3.6 MTPA) and MARLIN project (0.5 MTPA), estimated completion in 2016.
MLNG Dua Rejuvenation project: Ensuring continued safe operation and sustain the reliability and integrity of MLNG Dua plant for another 15 years, after 2015.
MBR: Rejuvenation of 8 boilers after 30 yrs. of operation (To improve their reliability and restore their capacity of 380 tonnes each boiler)
Energizing Sustainable Future

31. Energizing Sustainable Future
LNG prospectus Cont.
PETRONAS: Also embarking on a new LNG production facility called the Floating LNG (FLNG) offshore Bintulu – further monetization of small and stranded gas fields.
PETRONAS FLNG1 project : Contribute additional 1.2 MTPA to the LNG production capacity when completed and commissioned in 2015.
The second Floating LNG project (FLNG2) will come on stream in 2016, and will add another 1.5 MTPA.
As of 2012, the largest importer of MLNG’s production:
Japan (62%)
Korea (17%)
Taiwan (12%)
China (9%)
Energizing Sustainable Future

32. Oil and Gas Industry Shining in Sabah
Kinabalu Non Associated Gas (KNNAG)
ConocoPhillips
Sipitang Oil and Gas Development Corporation
Petronas Carigali Sdn. Bhd,
Sabah Shell Berhad
Talisman Energy
Murphy Sabah Oil .Co.Ltd.
Kebabangan Petroleum Operating Company Sdn Bhd (KPOC)
PETRONAS Carigali Sdn Bhd
ConocoPhillips, Sabah Gas Ltd
Shell Energy Asia Ltd.
M3NERGY
Energizing Sustainable Future

33. NKEA OIL AND GAS SECTOR: DIVERSIFY
Energizing Sustainable Future

34. Energizing Sustainable Future
Biofuel Technology
Renewable fuel sector such as ethanol and biomass based fuels can expand production activities
Implementation of Green Technology for sustainable society
To complement the conventional oil and gas resource supply
Biodiesel production
Energizing Sustainable Future

35. Challenges with Drop in Oil Prices
Analysts forecast: Oil prices may not go up to 100 $ per barrel.
Malaysian Oil and Gas sector:
Major income generator for Malaysia.
Resources, assets, projects should be managed effectively – reduce the unit production cost to be smaller than market price of crude oil for better profit margins
Sanctioned projects – Need to be revisited for redesign, re-negotiated up to re-bid (if necessary) to save lot of unnecessary cost.
However, we cannot compromise with items related to safety.
Energizing Sustainable Future

36. Energizing Sustainable Future

37. Energizing Sustainable Future
Upstream Challenges
Management and Information
Increasing the production of liquid fuels
Sources of Crude Oil
Operational Challenges
Energy Demand and Supply
Environmental Pollution
Fluctuating Crude Prices
Economic Uncertainty
The People Shortage
Marketing
Energizing Sustainable Future

38. Energizing Sustainable Future
Downstream Challenges
Business Joint Ventures
Global Refining Capacity
Corporate communication
Distribution Activities for Oil Products
Crude Supply Mechanism
Health, Safety and Environmental Security
Manpower and Economy
Refinery incapability and the Need for Expansion
Pricing
The cost of Services
Energizing Sustainable Future

39. Energizing Sustainable Future
Moving Forward
Information Technology (IT) & automatic devices (includes robotics): Needed to solve challenges in the oil and gas industry.
The latest technologies for data management, analysis, relaying and dissemination – ensuring effectiveness in the various value chains of the oil and gas industry.
The text based format of XML as well as the structured format of DBMS – effective documentation of the processes to ensure appropriate data management.
Energizing Sustainable Future

40. Energizing Sustainable Future
Moving Forward Contd.
NKRL (Narrative Knowledge Representation Language):
Express information and set up knowledge base – e.g. monitoring gas leakages in processing plants by setting up alarm systems and notifications.
Other IT state of the art technologies can be used to monitor rig activities at real time – ensure all round efficiency and overcome challenges.
The good news: Many key players in the oil industry have begun leveraging the benefits of IT, but this is not enough.
Integrated Oil and Gas Companies (IOCs) need to cooperate in upstream and the downstream sector to ensure efficiency in the entire processes. 
Energizing Sustainable Future

41. Petroleum Data Integration, Information and Data Management
IT industry in oil and gas industry: Developed by the World Wide Web Consortium (W3C) about a decade ago.
This technology is called XML (Extensible Markup Language):
It uses tags and unstructured patterns in developing requisite data for information dissemination
Structured so that the information would be readable by both machines and humans
XML is the most beneficial method information dissemination
Energizing Sustainable Future

42. Energizing Sustainable Future
UMS OIL AND GAS CORPORATION: EDUCATION PROGRAMMES AND RESEARCH COLLABORATIONS
Energizing Sustainable Future

43. Education Programs
UMS Oil and Gas Corporation offers a whole range of Oil and Gas Engineering Programmes:
Master of Engineering in Oil and Gas Engineering
Master of Science in Safety, Health, Environment and Quality Technology
Bachelor of Engineering Oil and Gas Engineering
Diploma in Oil and Gas Engineering (Instruments)
Diploma in Oil and Gas Engineering (Mechanical)
Diploma in Oil and Gas Engineering (Process)
Diploma in Oil and Gas Engineering (Utility Management)
Executive Bachelor Degree and Diploma Programme
Professional / Competency courses for the Oil and Gas Industry
Seminars, conference, workshops
Energizing Sustainable Future

44. UMS COLLABORATION WITH OIL AND GAS INDUSTRY
Sabah State Government
Malaysian Public Works Department
Policymakers
Herriot -Watt University, Scotland
Riam Institute of Technology
Universidae Nacioal Timor Lorosa’e (UNTL)
Meta Skills Training Service
Academic Collaborators
Talisman Malaysia Limited (TML)
Kudat Offshore Oil and Gas Sdn. Bhd.
PETRONAS Chemicals Methanol Labuan Yayasan Sabah
Tokyo Econet Limited Company (TELC)
Centro Ecotech Energy Technology (Dongguan) Co.Ltd
Forever Sabah
MIMOS Bhd.
UMS Link-Silver Kris Sdn.Bhd.
Labuan Financial Service Authority
Oil and Gas Industry Collaborators
Energizing Sustainable Future

45. COLLABORATION PROPOSED
Faculty of Engineering UMS is actively doing research in oil and gas and biofuel technology. UMS offers collaborations in the following niche areas:
Oil and Gas Engineering
Deepwater Engineering
Safety and Environment
Integration studies of Pipelines
Enhanced Oil and Gas Recovery
Downstream Processing
Energizing Sustainable Future

46. Energizing Sustainable Future
EOR Projects at UMS
Comparative and hybrid methods study between different methods of EOR by using Prototype EOR model and simulation.
Experimental studies to optimize the CO2 injection mobility for increasing the volumetric sweep efficiency percentage of oil recovery.
RSM, Minitab, Matlab, Hysis, Super Pro, LCA software shall be used for modeling and simulation of EOR projects.
Energizing Sustainable Future

47. Energizing Sustainable Future
MEOR Projects at UMS
RSM, Minitab, Matlab, Hysis, Super Pro, LCA software shall be used for modeling and simulation of MEOR projects.
Laboratory investigation of pH, electrical conductivity, and temperature relationships in Sabah shallow and deep water
Energizing Sustainable Future

48. Energizing Sustainable Future
MEOR advantages
Highly economical,
Low toxicity,
biodegradability and biocompatibility,
selectivity and specificity .
MEOR therefore, offers good alternative in improving the recovery of crude oil from reservoir utilizing microorganisms and their metabolic products
Energizing Sustainable Future

49. Energizing Sustainable Future
MEOR Schematic
Figure: Schematic of MEOR (
Energizing Sustainable Future

50. Energizing Sustainable Future
MEOR Schematic
Figure: Schematic of Microbial flooding recovery. (
Energizing Sustainable Future

51. Natural Gas Projects at UMS contd.
REMOVAL OF CARBON DIOXIDE FROM NATURAL GAS FOR LNG PRODUCTION
RSM, Minitab, Matlab, Hysis, Super Pro, LCA software shall be used for modeling and simulation of MEOR projects.
Energizing Sustainable Future

52. Collaboration can be proposed through:
Industry attachment to the students
Employment opportunities for the graduates and post graduates of UMS
Research Collaboration with Industry
Consultancy in Upstream and Downstream-Based Industries
Tailor-made Academic and Training Courses relevant to Industry
Incubation Centre for Technology Development with Industry
Energizing Sustainable Future

53. New Discoveries of Oil and Gas Reserves (Offshore and Onshore)
Final Thoughts
Sun shining future in Malaysia for Oil and Gas Operations
UMS: A premier human resource development destination for generating the quality human capital with the involvement of all the stakeholders for sustainable society.
Sustain –
New Discoveries of Oil and Gas Reserves (Offshore and Onshore)
Enhanced Oil Recovery (Increasing Efficiency of Oil Production from Mature Wells)
Grow –
Information Technology Development (Overcome Upstream and Downstream Challenges)
Diversify –
Developing Biofuel Technology to Complement Conventional Oil and Gas Resources

54. Thanks for your kind attention
Sabah is Shining
Keep Smiling
Thanks for your kind attention
Energizing Sustainable Future