Ppgua Aug 2008 As Rolled Out Feb 2009

TABLE OF CONTENT
PETRONAS PROCEDURES AND GUIDELINES

FOR UPSTREAM ACTIVITIES (PPGUA)
Page I

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
PETROLEUM MANAGEMENT UNIT
REVISION 2
AUG 2008

SECTION 1 GUIDELINES FOR HEALTH, SAFETY AND ENVIRONMENT 1
Executive Summary 1
1.1 INTEGRATING HSE MS IN E&P LIFE CYCLE 2
1.2 HSE MS REQUIREMENTS AND EXPECTATIONS 2
1.2.1 Leadership & Commitment 3
1.2.2 Policy & Strategic Objectives 3
1.2.3 Organisational Structure, Resources & Documentation 4
1.2.4 Evaluation and Risk Management 5
1.2.4.1 Exploration Phase 6
1.2.4.2 Development Phase 6
1.2.4.3 Fabrication/Installation/HUC 7
1.2.4.4 Production Phase 8
1.2.4.5 Decommissioning Phase 9
1.2.5 Planning 9
1.2.5.1 Asset Integrity 10
1.2.5.2 Procedures and Work Instructions 10
1.2.5.3 Management of Change 11
1.2.5.4 Contingency and Emergency Planning 12
1.2.6 Implementation and Monitoring 12
1.2.6.1 Contractor HSE Management 13
1.2.7 Audit 15
1.2.8 Review 16
1.3 PETRONAS INSPECTION & AUDIT 16
1.4 REPORTING AND KEY PERFORMANCE INDICATOR (KPI) 16
1.5 INCIDENT REPORTING & INVESTIGATION 17
1.6 SAFETY PASSPORT 17
1.7 PROHIBITION OF DRUG AND ALCOHOL ABUSE 18
1.8 FACILITIES GAZZETTEMENT 18
1.9 OTHER RELATED PROCEDURES 19
SECTION 2 GUIDELINES FOR EXPLORATIONS SURVEY OPERATIONS 20
Executive Summary 20
2.1 FISH TRAP SURVEY OPERATIONS 21
2.1.1 Pre-Survey 21
2.1.2 Survey Operations 21
2.1.3 Post-Survey 22
2.2 MARINE SITE SURVEY OPERATIONS 23

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SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

2.2.1 Pre-Survey 23
2.3 MARINE SEISMIC SURVEY OPERATIONS 24
2.3.1 Pre-Survey 24
2.4 LAND SEISMIC SURVEY OPERATIONS 26
2.4.1 Pre-Survey 26
2.5 OCEAN BOTTOM CABLE AND SEABED LOGGING 27
2.5.1 Pre-Survey 27
SECTION 3 GUIDELINES FOR FDP REVIEW AND APPROVAL PROCESS 29
3.1 GENERAL APPROACH 30
3.2 RESPONSIBILITY 30
3.3 CONTENT AND SUBMISSION 31
3.4 THE OVERALL PROCESS 32
3.5 KEY FEATURES OF MILESTONE REVIEWS 33
3.6 GUIDELINES FOR MILESTONE REVIEWS 35
3.7 GOVERNMENT AND PETRONAS' OBJECTIVES 36
3.8 APPROVAL FROM PETRONAS 36
3.9 FDP EXECUTION PHASE 37
3.10 DIVERGENCE FROM APPROVED FDP 38
SECTION 4 GUIDELINES FOR PROJECT DEVELOPMENT MANAGEMENT 41
4.1 FIELD DEVELOPMENT PHASES 43
4.2 FIELD DEVELOPMENT PLAN (FDP) REVIEW AND APPROVAL PROCESS 44

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SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

4.3 SPECIAL CONSIDERATIONS 45
4.4 PROJECT IMPLEMENTATION PHASES AND ACTIVITIES 46
4.4.1 Feasibility Study 46
4.4.2 Conceptual Design / Front End Engineering Design (FEED) 47
4.4.3 Detailed Design 48
4.4.4 Fabrication and Construction 49
4.4.5 Transportation and Installation 50
4.4.6 Hook-up and Commissioning (HUC) 51
4.4.7 Development Drilling 51
4.4.8 Facilities Decommissioning 52
4.5 CONTRACTING AND PROCUREMENT 52
4.6 HEALTH, SAFETY AND ENVIRONMENT (HSE) 52
4.7 PROJECT QUALITY ASSURANCE (QA) 53
4.8 REPORTING AND DOCUMENTATION 53
4.9 PROJECT PERFORMANCE 55
4.10 WORK PROGRAMME AND BUDGET (WP&B) 56
4.11 REGULATORY REQUIREMENTS 56
SECTION 5 PROCEDURES FOR DRILLING OPERATIONS 57
5.1 DEFINITIONS 58
5.1.1 General 58
5.1.2 Specific 58
5.1.3 Abbreviations 61
5.1.4 Cross Reference Procedures 62
5.1.5 Official correspondence 62
5.2 DRILLING PROGRAMME APPROVAL 62
5.2.1 Notification 62
5.2.2 Wellsite Survey and Shallow Hazard Report 62
5.2.3 Well Positioning 63
5.2.3.1 Pre-survey Preparation 63
5.2.3.2 Positioning Operations 63
5.2.3.3 Post-positioning Works 63
5.2.4 Notice of Operations 63
5.2.5 Variations 64
5.2.6 Drilling Base or Drilling Unit Design 65
5.2.7 Support Craft 65
5.2.7.1 General 65
5.2.8 Equipment and Provision 66
5.2.8.1 General Requirements 66
5.2.8.2 Drilling Unit Ancillaries 66

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SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

5.2.8.2.1 Pollution Prevention 66
5.2.8.2.2 Pressure Systems 67
5.2.8.2.3 Helideck on Drilling Units 67
5.2.8.3 Drilling Rigs 67
5.2.8.3.1 General Arrangement Drawings 67
5.2.8.4 BOP Equipment 68
5.2.8.5 Weather Data Recordings 68
5.2.8.6 Protection against External Hazards 68
5.2.8.7 Personnel Safety and Welfare 69
5.2.8.7.1 Safety Guards and Exits 69
5.2.8.7.2 Derrick Escape 69
5.2.8.7.3 Rotary Tongs 70
5.2.8.7.4 Medical Facilities and Provisions 70
5.2.8.8 Electrical Installation 70
5.2.8.8.1 Equipment and Standards 70
5.2.8.8.2 Lighting 71
5.2.8.8.3 Emergency Electrical Power Supply 71
5.2.8.9 Forced Air System and Ventilation 72
5.2.8.9.1 Hazardous Area 72
5.2.8.9.2 Ventilation 72
5.2.8.9.3 Engines and Motors 72
5.2.8.9.4 Exhaust Pipes 73
5.2.8.10 Fire Protection 73
5.2.8.10.1 Fire fighting equipment 73
5.2.8.10.2 Fire Alarm Systems 74
5.2.8.11 Diving 74
5.2.8.12 Gas Detection System 74
5.2.9 Personnel 75
5.2.10 Emergency Shutdown (ESD) 75
5.3 TECHNICAL REQUIREMENTS FOR DAILY OPERATION 75
5.3.1 General Provisions 75
5.3.2 Moving and Positioning Drilling Units 75
5.3.2.1 General Provisions 75
5.3.2.2 Anchor Testing For Drilling Units 76
5.3.2.3 Bottom Supported Units 76
5.3.2.4 Diving Operations 76
5.3.3 Casing and Cementing 77
5.3.3.2 Drive or Structural Casing 77
5.3.3.3 Conductor Casing 77
5.3.3.4 Surface Casing 78
5.3.3.5 Intermediate Casing 79
5.3.3.6 Production Casing 80
5.3.3.7 Pressure - Testing of Casing 80
5.3.3.8 Records 81
5.3.3.9 Cementation 81
5.3.3.10 Excess Cement Volume 82
5.3.3.11 Inadequate Cement Job 82
5.3.4 Well Directional Survey 82
5.3.4.1 Vertical Wells (Inclination 5 ) 82
5.3.4.2 Directional Wells (Inclination 5 ) 83

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SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

5.3.5 Blowout Prevention 83
5.3.5.1 BOP Equipment 83
5.3.5.2 Auxiliary Equipment 84
5.3.5.3 Surface BOP 84
5.3.5.4 Subsea BOP 85
5.3.5.5 Subsea BOP Diversion 87
5.3.5.6 Testing of BOP 87
5.3.5.6.1 BOP Controls 87
5.3.5.6.2 Pressure Tests 87
5.3.5.6.3 Actuation 88
5.3.5.6.4 Inspection and Maintenance 88
5.3.6 Mud Programme 89
5.3.6.1 General Provisions 89
5.3.6.2 Mud Control 89
5.3.6.3 Mud Test Equipment 91
5.3.6.4 Mud Quantities 91
5.3.7 Formation Integrity Testing 92
5.3.8 Lost Circulation 92
5.3.9 Detection of Over-Pressure 93
5.3.10 Suspension of Operations 94
5.3.11 Floating Drilling Operations 95
5.3.12 Shallow Hazards or Hydrocarbons 95
5.3.13 Underbalanced Drilling 95
5.3.13.1 Defintion 95
5.3.13.2 General requirements 96
5.4 MATERIAL HANDLING AND DISPOSAL 96
5.4.1 Material Handling 96
5.4.1.1 Bulk Material 96
5.4.1.2 Other Materials 97
5.4.2 Disposal of Materials 97
5.4.2.1 Drilling Mud 98
5.4.2.2 Solid Waste 99
5.4.2.3 Fluid Waste 100
5.4.2.4 Sewage 100
5.4.3 Pollution Prevention 101
5.5 WELL EVALUATION 101
5.5.2 Drilling Cuttings 102
5.5.2.1 Sample Frequency 102
5.5.2.2 Sample Container 102
5.5.3 Cores 102
5.5.3.1 Conventional Cores 102
5.5.3.2 Side Wall Cores 102
5.5.4 Formation Evaluation Logging 103
5.5.5 Oil and Gas Flow Testing 103
5.6 RECORDING AND REPORTING 103
5.6.1 Priority Reports 103
5.6.1.1 General 103
5.6.1.2 Arrival and Rig Release Notice 104

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SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

5.6.2.1 Daily Drilling Report 104
5.6.2.2 Supporting Reports 105
5.6.3 Final Drilling/Well Completion Report 105
5.6.4 Company Press Release 106
5.7 PLUGGING AND ABANDONMENT OF WELLS 106
5.7.1 Responsibility to Abandon a Well 106
5.7.2 Application to Abandon a Well 107
5.7.3 Subsequent Report of Abandonment 107
5.7.4 Permanent Abandonment 107
5.7.4.1 Isolation of Zones in Open Hole 107
5.7.4.2 Isolation of Open Hole 108
5.7.4.3 Plugging or Isolation of Perforated Intervals 109
5.7.4.4 Plugging of Casing Stubs 109
5.7.4.4.1 Stub Terminating Inside Casing String 109
5.7.4.4.2 Stub Terminating Below Casing String 110
5.7.4.4.3 Liner Top or Screen 110
5.7.4.4.4 Plugging of Annular Space 110
5.7.4.4.5 Surface Plug 110
5.7.4.5 Testing of Plugs 111
5.7.4.6 Drilling Fluid 111
5.7.4.7 Clearance of Location 111
5.7.5 Well Suspension (Semi-Permanent Well Suspension) 112
5.7.6 Temporary Well Suspension 112
5.7.7 Suspended Well 112
5.8 COMPLETION OPERATION 113
5.8.1 General Provision 113
5.8.2 Wellhead Equipment 113
5.8.3 Tubing Requirements 113
5.8.4 Packer Requirements 113
5.8.5 Separation of Zones 114
5.8.6 Landing Nipple 114
5.8.7 Sub-surface Safety Valve 114
5.8.8 Completion Fluids 114
5.9 WORKOVER OPERATIONS 115
5.9.1 General Requirements 115
5.9.1.1 Operations 115
5.9.1.1.1 Workover Rigless definition 115
5.9.1.1.2 Workover Rig definition 115
5.9.1.2 Workover Structures 116
5.9.1.3 Pump-Down Operations 116
5.9.1.4 Travelling Block Safety Device 116
5.9.1.5 Well Control Fluids 116
5.9.1.6 Well Control 117
5.9.1.7 Well Unloading Operations 117
5.9.1.8 Pumping Operations 117
5.9.1.9 Emergency Shutdown (ESD) 118
5.9.2 Notification and Submittal Requirements 118
5.9.2.1 Notice of Workover Operations 118

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SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

5.9.2.2 Workover Report 119
5.9.2.3 Routine Operations 119
5.9.3 Pressure Control Requirements 120
5.9.3.1 Major Workover Operations 120
5.9.3.2 Minor Workover Operations (Excluding Wireline Operation) 120
5.9.3.3 Coiled-Tubing Operations 121
5.9.3.4 Snubbing Operations 121
5.9.3.5 Other Equipment 122
5.9.4 Testing and Actuation Requirements 122
5.9.4.1 Pressure Test 122
5.9.4.2 Actuation 122
5.9.4.3 Lubricators 123
5.9.5 Wireline Operations 123
5.9.5.2 Operations In Cased Hole 124
5.9.5.3 Operations In Open Hole 124
5.9.5.4 Swabbing Operations 125
5.9.6 Rigging Up or Down of Workover or Completion Equipment 125
5.10 HYDROGEN SULPHIDE (H
2
S) DRILLING OPERATIONS 126
5.10.2 Physical Properties and Toxicity of H
2
S 126
5.10.3 Breathing Equipment 126
5.10.4 H
2
S Gas Detection System 127
5.10.5 Wind Direction Equipment 127
5.10.6 Ventilation 127
5.10.7 Personnel Training 128
5.10.8 Contingency Plan 128
5.10.9 Rig Equipment 129
5.10.9.1 Drill Pipe 129
5.10.9.2 Tubulars 129
5.10.9.3 BOP and Related Equipment 129
5.10.9.4 Flare System 129
5.10.10 Drilling Operations 130
5.10.10.1 Pipe Trips and Stripping Operations 130
5.10.10.2 Well Control 130
5.10.10.3 Coring Operations 130
5.10.10.4 Mud Programme 130
5.10.11 Well Testing Operations 131
5.11 ONSHORE DRILLING OPERATION 131
5.11.1 General 131
5.11.2 Reference for Well Depth 131
5.11.3 Well Near Potential Hazardous Sites 132
5.11.4 Smoking 132
5.11.5 Fire Prevention and Safety 132
5.11.6 Engines 132
5.11.6.1 Internal Combustion Engines 132
5.11.6.2 Diesel Engines 133
5.11.7 Plug & Abandonment Requirements 133
5.11.8 Protection of Fresh Water Sands 134
5.11.9 Restoration of the Drill Site 134

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SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

5.11.10 BOP Requirements 134
5.11.11 BOP Pressure Test 135
5.11.12 Flare Pit and Vent/Bleed-Off Line 136
5.11.13 Casings 136
5.11.13.1 Stove Pipe 137
5.11.13.2 Conductor Casing 137
5.11.14 Drilling Liquid Waste 138
5.11.15 Well Near Water 138
5.12 ONSHORE COMPLETION AND WORKOVER OPERATIONS 139
5.12.1 General 139
5.12.2 Sub-surface Safety Valve 139
5.12.3 Well Stimulation 139
5.12.4 Disposal of Produced Fluids 139
5.12.5 Onshore Wellhead Valve Assembly (X'mas Tree) 140
5.12.6 Wells on Pump 141
5.12.7 Fencing and Well Security 141
SECTION 6 PROCEDURES FOR SUBSURFACE SAFETY DEVICES 142
6.1 INSTALLATION 143
6.2 SHUT-IN WELLS 143
6.3 INJECTION WELLS 143
6.4 VALVE SPECIFICATIONS 143
6.5 REINSTALLATION, TESTING AND MAINTENANCE 143
6.6 TUBING AND PLUG TESTING 144
6.7 ADDITIONAL PROTECTIVE EQUIPMENT 144
6.8 OTHER COMPLETION TECHNIQUES 144
6.9 RECORDS 144
SECTION 7 GUIDELINES FOR BARGES OPERATING OFFSHORE MALAYSIA 145
7.1 INTRODUCTION 146
7.1.1 Application 146
7.1.2 Requirements 147
7.1.3 Definitions 148
7.1.3.1 Steel or Other Equivalent Material 148
7.1.3.2 Non-Combustible Materials 148
7.1.3.3 A Standard Fire Test 149

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SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

7.1.3.4 A Class Divisions 149
7.1.3.5 B Class Divisions 150
7.1.3.6 C Class Divisions 150
7.1.3.7 Public Spaces 151
7.1.3.8 Control Stations 151
7.1.3.9 Corridors 151
7.1.3.10 Accommodation Spaces 151
7.1.3.11 Stairways 151
7.1.3.12 Service Spaces (low risk) 151
7.1.3.13 Machinery Spaces of Category A 152
7.1.3.14 Other Machinery Spaces 152
7.1.3.15 Hazardous Areas 152
7.1.3.16 Service Spaces (high risk) 152
7.1.3.17 Open Decks 152
7.2 ACCOMMODATION SPACES 153
7.2.1 Restrictions 153
7.2.2 Construction of Accommodation Spaces 153
7.2.3 Arrangement of Sleeping Spaces 154
7.2.4 Size of Sleeping Spaces 154
7.2.5 Berths and Lockers 154
7.2.6 Wash Spaces, Toilet Spaces and Shower Spaces 155
7.2.7 Mess Rooms 157
7.2.8 Hospital (Sick Bay) Space 157
7.2.9 Hospital (Sick Bay) Space Not Required 158
7.3 AUTOMATIC FIRE DETECTION AND ALARM SYSTEMS 159
7.4 LIFE SAVING APPLIANCES 161
7.5 FIRE FIGHTING EQUIPMENT 162
7.5.1 Fire Pump 162
7.5.2 Fire Main 162
7.5.3 Fire Hose 162
7.5.4 Hydrants 163
7.5.5 International Shore Connection 163
7.5.6 Portable Fire Extinguisher 163
7.5.7 Firemens Outfits 163
7.6 PROVISION FOR HELICOPTER FACILITIES 164
7.6.1 Helicopter Deck 164
7.6.2 Fire Extinguisher 165
7.7 OPERATING REQUIREMENTS 165
7.7.1 Operating Manual 165
7.8 STRUCTURAL FIRE INTEGRITY TABLES 166
SECTION 8 PROCEDURES FOR CRUDE OIL PRODUCTION ALLOWABLES 171

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SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

8.1 LONG TERM CRUDE OIL PRODUCTION FORECAST SUBMISSION BY PS CONTRACTOR 172
8.2 SHORT TERM APPROVED PRODUCTION LEVEL 172
8.3 PRODUCTION VARIATION 173
SECTION 9 PROCEDURES FOR GAS PRODUCTION & FLARING/VENTING LIMIT 175
9.1 LONG TERM NON-ASSOCIATED GAS PRODUCTION FORECAST SUBMISSION BY PS CONTRACTOR 176
9.2 LONG TERM ASSOCIATED GAS PRODUCTION FORECAST SUBMISSION BY PS CONTRACTOR 176
9.3 SHORT TERM NON-ASSOCIATED AND ASSOCIATED GAS PRODUCTION 176
9.4 GAS FLARING / VENTING 177
9.4.1 Non-associated gas 177
9.4.2 Associated gas 178
9.5 FLARING/VENTING PERMIT 179
SECTION 10 GUIDELINES FOR ONSHORE/OFFSHORE OPERATIONS 180
10.1 NOTICE OF INTENT 181
10.2 OPERATIONS MANUAL 181
10.3 SIMULTANEOUS OPERATIONS PROCEDURES 181
10.4 SHUTDOWN 182
10.4.1 Annual Shutdown Plan 182
10.4.2 Unplanned Shutdown 182
10.5 AS-BUILT DRAWINGS 183
10.6 DAILY PRODUCTION OPERATIONS REPORT 183
10.7 QUARTERLY PRODUCTION OPERATIONS REPORT 183
10.8 TERMINAL OPERATIONS 184
10.9 INSPECTION & OPERATIONS AUDIT 184
SECTION 11 GUIDELINES FOR FACILITIES RELIABILITY & INTEGRITY MANAGEMENT 185
Definitions 186

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SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

11.2 FULL LIFE CYCLE MANAGEMENT 187
11.3 MANAGEMENT SYSTEM 187
11.4 OPERATIONS OF FACILITIES 189
11.5 INSPECTION AND MAINTENANCE 190
11.5.1 Compliance to Legislative Requirements 190
11.5.2 Philosophy and Related Documents 190
11.5.3 Minimum Requirements for Inspection & Maintenance 191
11.5.3.1 Topsides / Onshore Terminals 191
11.5.3.2 Structures 194
11.5.3.3 Pipelines 194
11.5.3.4 Wellhead and Downhole System 196
11.5.3.5 Subsea Systems 196
11.5.4 Planning and Implementation 197
11.5.5 Materials Management 197
11.5.6 Contracting and Contractor Management 197
11.5.7 Reporting and Key Performance Indicator (KPI) 198
11.6 MAJOR FAILURES AND CORRECTIVE ACTIONS 198
11.7 MANAGEMENT OF CHANGE 198
11.8 INFORMATION AND KNOWLEDGE MANAGEMENT 199
11.9 PRESERVATION 199
11.10 FACILITIES MODIFICATION, UPGRADING OR REJUVENATION 199
SECTION 12 GUIDELINES FOR RESERVOIR MANAGEMENT 201
12.1 PREAMBLE 202
12.1.1 Reservoir Management 202
12.1.2 Full Field Reviews 202
12.2 EARLY DEPLETION STAGE 203
12.3 MIDDLE AND LATE STAGE 205
12.4 IMPROVED AND ENHANCED RECOVERY 205
12.5 RESERVOIR MANAGEMENT PLAN 207
12.6 WELL ABANDONMENT 207

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SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

SECTION 13 GUIDELINES FOR WELL TEST, PRODUCTION MEASUREMENT AND ALLOCATION208
13.1 OIL PRODUCING WELL 209
13.1.1 Production Rate Test 209
13.1.2 Bottom Hole Pressure Survey 210
13.1.2.1 Transient Pressure Survey 210
13.1.2.2 Static Bottom Hole Pressure (SBHP)Survey 210
13.1.2.3 Production Logging Tool (PLT) Survey 210
13.1.2.4 Flowing Survey 210
13.1.2.5 Fluid Contact Logging Survey 210
13.2 GAS PRODUCING WELL 211
13.2.1 Deliverability Test 211
13.2.2 Periodic Production Rate Test 211
13.2.3 Bottom Hole Pressure Survey 212
13.2.3.1 Transient Pressure Survey 212
13.2.3.2 Static Bottom Hole Pressure (SBHP)Survey 212
13.2.3.2.1 Production Logging Tool (PLT)Survey 212
13.2.3.2.2 Fluid Contact Logging Survey 212
13.3 INJECTION WELL 213
13.3.1 Injection Rate Measurement 213
13.3.2 Injectivity Test 213
13.3.3 Injection Profiling Survey 213
13.3.4 Injection Fall Off Survey 213
13.4 REQUIREMENT FOR WELL TESTING MEASUREMENT DEVICES. 214
13.5 EXCEPTION TO THE ABOVE REQUIREMENT 214
13.6 RECORD KEEPING 214
13.7 PRODUCTION MEASUREMENT AND ALLOCATION 214
13.7.1 Production to each Field and Platform/Production Station. 214
13.7.1.1 Measurement 214
13.7.1.2 Allocation 215
13.8 PRODUCTION ALLOCATION TO EACH PRODUCTION STRING 215
13.9 PRODUCTION ALLOCATION TO EACH PRODUCING INTERVAL 215
SECTION 14 GUIDELINES FOR DYNAMIC LIQUID HYDROCARBON MEASUREMENT 217
14.1.1 Scope 218
14.1.2 Distribution, Intended Use and Regulatory Considerations 218

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REVISION 2
AUG 2008

14.2 GENERAL REQUIREMENTS 224
14.2.1 Units of Measurement 224
14.2.2 Approval Requirements 224
14.2.2.1 Measurement and Allocation Concept 224
14.2.2.2 Metering Project Implementation 226
14.2.2.3 Government Regulatory Requirement 227
14.2.2.4 Deviations 227
14.2.3 Documentation 227
14.3 DESIGN 228
14.3.1 General Requirement 228
14.3.2 Meter Run Design / Pipe Work 230
14.3.2.1 Flowmeter Type 232
14.3.2.2 Prover Design 232
14.3.2.3 Displacement Prover 233
14.3.2.4 Master-Meter Provers 238
14.3.3 Instrument Requirement 239
14.3.3.1 Field Instrumentation 239
14.3.3.1.1 Location of Sensors 239
14.3.3.1.2 Installation of Instruments 239
14.3.3.1.3 Instrument Loops 240
14.3.3.1.4 Transmission of Pulse Signal 240
14.3.3.1.5 Conversion of Signals from Analog to Digital Form 241
14.3.3.1.6 Temperature Measurement 241
14.3.3.1.7 Pressure Measurement 241
14.3.3.1.8 Density Measurement 242
14.3.3.2 Control Room Instrumentation 242
14.3.3.2.1 Environmental 242
14.3.4 Computer Based Monitoring and Control Functions Requirement 243
14.3.4.1 General 243
14.3.4.2 Data Security 244
14.3.4.3 Calculation 245
14.3.4.4 Printouts and Hardcopies 246
14.3.4.5 Meter Proving Algorithm Routine 246
14.3.4.6 Power Supply 247
14.3.5 Sampling and Analysis Requirement 247
14.3.6 Metering Data 248
14.4 TESTING, CALIBRATION AND COMMISSIONING 249
14.4.2 Calibration 249
14.4.2.1 General 249
14.4.2.2 Instrument Calibration 250
14.4.2.3 Prover Calibration 250
14.4.2.3.1 Displacement Prover Calibration 250
14.4.2.3.2 Master-Meter Prover Calibration 252
14.4.2.4 Meter Calibration 253
14.4.3 Testing 253
14.4.3.1 General Testing 253
14.4.3.2 Factory Acceptance Test 254
14.4.3.2.1 General Check 254
14.4.3.2.2 Metering Panel and Instrumentation Equipment Tests 254

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ISSUED BY
REVISION 2
AUG 2008

14.4.3.2.3 Flow Testing Calibration 257
14.4.3.3 Site Acceptance Test 259
14.4.4 Commissioning 260
14.4.4.1 General 260
14.4.4.2 Installation Quality Assurance 260
14.4.4.3 Commissioning 260
14.4.4.4 Start-up 261
14.5 OPERATION, VALIDATION AND ACCOUNTING 261
14.5.2 System Operation 261
14.5.2.1 Operating Manual 263
14.5.3 System Validation 263
14.5.3.1 Validation Manual 264
14.5.4 System Maintenance 266
14.5.5 Security 266
14.5.6 Accounting / Allocation Manual 267
14.5.7 Metering Station Record Keeping 267
14.5.7.1 Log Books/Records 267
14.5.8 Direct Reporting 269
14.6 FINAL PROVISION 270
14.7 REFERENCES 271
SECTION 15 GUIDELINES FOR GAS MEASUREMENT 275
15.1.1 Scope 276
15.1.2 Distribution, Intended Use and Regulatory Considerations 276
15.1.3.1 General definitions 277
15.1.3.2 Specific definitions 277
15.2 GENERAL REQUIREMENTS 281
15.2.1 Units of Measurement 281
15.2.2 Approval Requirements 281
15.2.2.1 Measurement and Allocation Concept 282
15.2.2.2 Metering Project Implementation 283
15.2.2.3 Government regulatory requirement 284
15.2.2.4 Deviations 284
15.2.3 Documentation 284
15.3 DESIGN 285
15.3.2 Mechanical Requirement and Primary Element 286
15.3.2.1 Orifice Meter 286
15.3.2.1.1 Orifice plate and fitting 287
15.3.2.1.2 Meter Tubes 287

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15.3.2.1.3 Valves and Fittings 288
15.3.2.2 Gas Ultrasonic Flow Meter (Multipath) 289
15.3.2.2.1 General Requirements 289
15.3.2.2.2 Meter Tubes 290
15.3.2.3 Other Meters 290
15.3.3 Instrument Requirement 291
15.3.3.1 Field Instrumentation 291
15.3.3.1.1 Instrument loop 291
15.3.3.1.2 Differential Pressure Measurement 291
15.3.3.1.3 Density Measurement 292
15.3.3.1.4 Temperature Measurement 293
15.3.3.1.5 Pressure Measurement 294
15.3.3.1.6 Local Recorders 294
15.3.3.2 Control Room Instrumentation 295
15.3.4 Computer Based Monitoring and Control Functions Requirements 295
15.3.4.1 General 295
15.3.4.2 Data Security 297
15.3.4.3 Calculation 297
15.3.4.4 Printouts and Hardcopies 298
15.3.4.5 Power Supply 298
15.3.5 Sampling and Analytical Instrumentation 298
15.3.5.1 General Requirements Sampling 298
15.3.5.2 On-Line Gas Chromatograph 299
15.3.5.3 Gas Sampler Systems 300
15.4 TESTING, CALIBRATION AND COMMISSIONING 300
15.4.2 Calibration 301
15.4.2.1 General 301
15.4.2.2 Meter Calibration / Inspection 301
15.4.2.2.1 Orifice Meter 301
15.4.2.2.2 Ultrasonic Meter 302
15.4.2.3 Instrument Calibration 302
15.4.3 Testing 302
15.4.3.1 General Testing 302
15.4.3.2 Factory Acceptance Test 303
15.4.3.2.1 General Check 303
15.4.3.2.2 Metering Panel and Instrumentation Equipment Tests 303
15.4.3.3 Site Acceptance Test 305
15.4.4 Commissioning 306
15.4.4.1 General 306
15.4.4.2 Installation Quality Assurance 307
15.4.4.3 Commissioning 307
15.4.4.4 Start-up 307
15.5 OPERATION, VALIDATION AND ACCOUNTING 307
15.5.2 System Operation 308
15.5.2.1 Operating Manual 308
15.5.3 System Validation 308
15.5.3.1 Validation Manual 309
15.5.4 System Maintenance 311

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15.5.5 Security 311
15.5.6 Accounting / Allocation Manual 312
15.5.7 Metering Station Record Keeping 312
15.5.7.1 Log Books/Records 312
15.5.8 Direct Reporting 313
15.6 FINAL PROVISION 314
15.7 REFERENCE 315
SECTION 16 GUIDELINES FOR DECOMMISSIONING OF UPSTREAM INSTALLATION 316
16.2 OBJECTIVE OF THE GUIDELINES 318
16.3 DECOMMISSIONING PHILOSOPHY AND REQUIREMENT 318
16.3.1 PETRONAS Decommissioning Philosophy 318
16.3.2 General Decommissioning Requirement 319
16.3.2.1 Safe Operations of the Facilities towards Integrity, Health, Safety and Environment (HSE) 319
16.3.2.2 Field Review 320
16.3.2.3 Legislative Requirement 320
16.4 LEGAL FRAMEWORK 320
16.4.1 General 320
16.4.2 Environmental 322
16.4.3 International Obligations 323
16.5 ONSHORE (LAND AND TERRITORIAL SEA) 323
16.5.1 Pre-Decommissioning Process 323
16.5.1.1 Establishment of Decommissioning Options for Onshore Facilities 324
16.5.1.1.1 Land Installations 324
16.5.1.1.1.1 Structure 324
16.5.1.1.1.2 Total Removal and Reinstatement of Land 325
16.5.1.1.1.3 Pipeline 325
16.5.1.1.1.4 Well 325
16.5.1.1.2 Territorial Sea 325
16.5.1.1.2.1 Sub-Structures 325
16.5.1.1.2.1.1 Relocate / Reuse 325
16.5.1.1.2.1.2 Artificial Reef 326
16.5.1.1.2.1.3 Total Removal 326
16.5.1.1.2.2 Topsides 327
16.5.1.1.2.2.1 Mothball / Relocate / Reuse 327
16.5.1.1.2.3 Pipeline 327
16.5.1.1.2.4 Well Abandonment 328
16.5.1.1.2.5 Marine Facilities 328
16.5.1.1.2.5.1 Relocate / Reuse 328
16.5.1.2 Decommissioning Plan 328
16.5.1.2.1 Health, Safety and Environment (HSE) Requirement Health 329

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16.5.1.2.2 Consultation and Liaison 330
16.5.1.3 Incorporation in Work Programme and Budget (WP&B) 331
16.5.2 Decommissioning Execution 331
16.5.2.1 Project Execution Plan 331
16.5.2.2 Land Installation Decommissioning 332
16.5.2.2.1 Structure 332
16.5.2.2.1.1 Mothball / Relocate / Reuse 332
16.5.2.2.2 Pipeline 332
16.5.2.2.3 Well Abandonment 332
16.5.2.3 Territorial Sea 332
16.5.2.3.1 Sub-Structure 332
16.5.2.3.1.1 Total Removal 333
16.5.2.3.1.2 Relocate/Reuse 333
16.5.2.3.1.3 Artificial Reef 333
16.5.2.3.2 Topside 334
16.5.2.3.3 Pipeline 335
16.5.2.3.5 Marine Facilities 336
16.5.3 Post Decommissioning Process 336
16.5.3.1 Removal of Debris and Seabed Clearance 336
16.5.3.2 Verification 336
16.5.3.3 Post Environmental Assessment 337
16.5.3.4 Disposal 337
16.5.3.5 Post Decommissioning Reports 338
16.5.4 Report 338
16.5.5 Degazettement 338
16.5.6 Residual Liability 338
16.6 SHALLOW WATER 339
16.6.1.1 Establishment of Decommissioning Options 339
16.6.1.1.1 Sub-structures 339
16.6.1.1.1.1 Relocate / Reuse 339
16.6.1.1.1.4 Partial Removal 340
16.6.1.1.2 Topsides 341
16.6.1.1.3 Pipeline 341
16.6.1.1.4.1 Dry Wellhead 342
16.6.1.1.4.2 Subsea Wellhead 342
16.6.1.1.5 Mobile and Floating Facilities 342
16.6.1.3 Health, Safety and Environment (HSE) Requirement 342
16.6.1.4 Consultation and Liaison 344
16.6.2 Decommissioning Process 345
16.6.2.2 Sub-structures Decommissioning 345
16.6.2.2.1 Partial Removal 346
16.6.2.2.2 Total Removal 346
16.6.2.2.3 Topple 346

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16.6.2.3 Topside 346
16.6.2.4 Pipeline 347
16.6.2.5 Well Abandonment 348
16.6.2.6 Marine Facilities 348
16.6.3.4 Disposal 350
16.6.4 Report 350
16.7 DEEPWATER 351
16.7.1.1 Establishment of Decommissioning Options 352
16.7.1.1.1 Sub-structures 352
16.7.1.1.1.1 Relocate / Reuse 352
16.7.1.1.1.4 Partial Removal 353
16.7.1.1.2 Topsides 353
16.7.1.1.3 Pipeline 354
16.7.1.1.4.1 Dry Wellhead 354
16.7.1.1.4.2 Subsea Wellhead 354
16.7.1.1.5 Mobile and Floating Facilities 354
16.7.1.3 Health, Safety and Environment (HSE) Requirement 355
16.7.1.4 Consultation and Liaison 356
16.7.2 Decommissioning Process 357
16.7.2.2 Sub-structures Decommissioning 358
16.7.2.2.1 Partial Removal 358
16.7.2.2.2 Total Removal 358
16.7.2.2.3 Topple 358
16.7.2.3 Topside 359
16.7.2.4 Pipeline 360
16.7.2.5 Well Abandonment 360
16.7.2.6 Marine Facilities 360
16.7.3.4 Disposal 362
16.7.4 Report 363

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16.8 PS CONTRACTORS OBLIGATIONS DURING HAND-OVER 363
SECTION 17 GUIDELINES FOR DATA MANAGEMENT AND SUBMISSION 365
17.1 PREAMBLE 366
17.2 COMMITMENT AND ACCOUNTABILITY 366
17.3 DATA SUBMISSION GUIDELINE 366
17.4 DATA SUBMISSION CHECKLIST 367
17.5 DATA FORMAT STANDARD FOR SUBMISSION 367
SECTION 18 GUIDELINES FOR EMERGENCY COMMUNICATION PROCEDURE 368
18.2 SCOPE 369
18.3 DEFINITION 369
18.3.1 Incident 369
18.3.2 Emergency 370
18.3.3 Disaster & Crisis 370
18.3.4 Crisis 371
18.4 EMERGENCY RESPONSE PLAN 371
18.5 EMERGENCY CLASSIFICATION 373
18.5.1 TIER 1 - INCIDENT (Refer Figure 1) 373
18.5.2 TIER 2 - EMERGENCY (Refer Figure 2) 375
18.5.3 TIER 3- DISASTER & CRISIS SITUATION (Refer Figure 3) 378
18.6 NOTIFICATION OF EMERGENCIES AND RESPONSIBILITIES 380
18.6.1 PS Contractors 380
18.6.2 Petroleum Management Unit, PETRONAS 381
SECTION 19 GUIDELINES FOR OPERATING PERFORMANCE IMPROVEMENT (OPI) 382
19.1 OVERALL EQUIPMENT EFFICIENCY (OEE) AND DOWNTIME DATA 383
19.2 ROOT CAUSE PROBLEM SOLVING (RCPS) 384

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19.3 GAP SIZING ANALYSIS 385
19.4 STAGE GATE 386

LIST OF APPENDIX

Appendix 1 387
Appendix 2 396
Appendix 3 406
Appendix 4 419
Appendix 5 447
Appendix 6 451
Appendix 7 452
Appendix 8 454
Appendix 9 464
Appendix 10 465
Appendix 11 466
Appendix 12 467
Appendix 13 469
Appendix 14 470
Appendix 15 476
Appendix 16 478
Appendix 17 485
Appendix 18 519
Appendix 19 535
DEFINITION
ACKNOWLEDGEMENT

SECTION 1
GUIDELINES FOR HEALTH, SAFETY AND
ENVIRONMENT
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SECTION 1
GUIDELINES FOR HEALTH, SAFETY AND ENVIRONMENT
Executive Summary
This section provides guidelines and general requirements on managing Health, Safety and
Environment (HSE) aspects of upstream petroleum operations and activities of the Production
Sharing Contractor (PS Contractor) to ensure they are carried out prudently and effectively in
line with the best practices currently prevalent in the industry and provide a means by which
PETRONAS would be able to assess and steward the PS Contractors performance.
In this respect, the PS Contractor shall have in place a documented Health, Safety and
Environment Management System (HSE MS) or its equivalent system to ensure that the
operational integrity of its upstream operations is meeting the PETRONAS HSE requirements
inclusive of statutory requirements.
It is the PS Contractors obligation to ensure that the elements of HSE MS are imbedded into
their critical aspects of their exploration and production (E&P) life cycle from exploration
through decommissioning.
The system shall ensure continuous improvement in performance and provide evidence that
all risks and critical operations have been assessed to minimise the risks to as low as
reasonably practicable (ALARP).

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1.1 INTEGRATING HSE MS IN E&P LIFE CYCLE
PS Contractor shall ensure that their HSE MS are integrated into the critical activities of
the following generic phases of E & P below:
Exploration
Development
Fabrication/Installation/HUC
Production
Decommissioning

All requirements mentioned and contained in this HSE guideline shall apply equally for all
PS Contractors activities and facilities related to E&P operations located both onshore
and offshore. In managing and integrating HSE into PS Contractors overall business
process and operations, adherence to PETRONAS guidelines and compliance to
Governmental regulatory requirements are required.
1.2 HSE MS REQUIREMENTS AND EXPECTATIONS
PS Contractor shall be guided by PETRONAS HSE MS requirements and expectation
with regard to each phases of the E&P life cycle. However, PS Contractors are required to
establish and document their own HSE MS which best suits their business and operations
needs.
PETRONAS envisages all their PS Contractor to be self-regulatory in all HSE aspects as
part of corporate governance role, assuring and verifying HSE MS elements and
complying with relevant HSE laws and regulations subscribed thereunder or in their
absence, with internationally recognised standards. As part of corporate assurance
process, PS Contractor HSE MS shall be independently verified via periodic audits.
PS Contractor shall ensure that the operational integrity of its upstream operations is
meeting PETRONAS HSE requirements inclusive of statutory requirements. A copy of PS
Contractor HSE MS Manual and revisions shall be submitted to PETRONAS PMU Kuala
Lumpur (KL) and Regional Offices for reference.

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PS Contractor HSE MS shall consist of at least, the following elements, basic
requirements and expectations.
1.2.1 Leadership & Commitment
PS Contractor Management shall demonstrate and be committed to HSE matters at all
levels in its operation by having strong, visible leadership and commitment and
accountability, and to make available the necessary resources to develop, operate and
maintain the HSE MS.

The PS Contractor Management shall visibly communicate their HSE MS to all staff
and contractors. Target setting in HSE shall include proactive and reactive Key
Performance Indicators (KPIs) instilling positive HSE culture through promotions,
awareness programmes, workshops and trainings.

PS Contractor Management shall conduct regular HSE meetings and visits to site
facilities, involve in the review of annual HSE Plan, incident investigations and audit
reports in order to demonstrate overall commitment and accountability.

Followings are the documentations and records that shall be in placed:-
Minutes of Management HSE meetings
Reports of Management site visits and inspections
Endorsement of HSE KPIs and targets, HSE Cases or its equivalent, and HSE
Plans
Minutes of Meetings with Contractors

1.2.2 Policy & Strategic Objectives
PS Contractor Management shall have HSE policies defined and documented. The
policies shall be initiated, developed, supported and endorsed by the highest level of
the PS Contractor Management. These policies shall also satisfy all applicable HSE
regulatory requirements.

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PS Contractor Management shall draw up strategic objectives to support these policies
and reflect the operational and business requirements, relevant HSE hazards and
effects system and the views of employees, contractors, customers and companies
engaged in similar activities. PS Contractor Management shall ensure that these
objectives are periodically reviewed to suit the current business needs and changes.
The PS Contractor shall ensure that only recently endorsed and dated HSE policy are
made publicly available and prominently displayed at work sites and office areas for
the views of all employees, contractors and visitors entering their premises or facilities.
The HSE policy or its reviews shall be communicated to all employees and contractors
in a language and format that is easily understood.

Followings are the documentations and records that shall be in placed:-
Endorsed HSE Policy
HSE Objectives and HSE Plans
Communication of HSE policy to employees and subcontractors
1.2.3 Organisational Structure, Resources & Documentation
In order to effectively implement the policy and meet the strategic objectives, PS
Contractor shall establish a clearly defined organisational structure with specific roles
and responsibilities relating to HSE MS.
PS Contractor shall make available adequate resources, including personnel, funds
and hardware necessary to ensure effective implementation of HSE MS programmes.
There shall be a process in place to provide assurance of competency of all relevant
personnel including appointed contractors involved in the aforementioned HSE critical
E&P phases.

There shall be an effective communication means to disseminate and assimilate HSE
information throughout the PS Contractors organisation. PS Contractor shall possess
all relevant reference documents and standards, including HSE legislations.
PS Contractor shall have a systematic control over their HSE MS documents to ensure
that they can be identified, easily retrievable and available at the point of use,

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periodically reviewed, versions are updated and when obsolete, they are promptly
removed from the system and from use and from point of use. PS Contractor shall
ensure the integrity of HSE records, establishing and recording retention times
according to their availability and confidentiality.

Followings are the documentations and records that shall be in placed:
HSE Organisation Chart
Job Descriptions including HSE responsibilities (non-HSE personnel)
HSE MS Documentation Register/Masterlist
Procedure on HSE MS Documentation Control
HSE Requirements for Contractors
HSE training matrix and records
1.2.4 Evaluation and Risk Management
PS Contractor shall ensure that there is a structured HSE risk management and
analysis in place to systematically identify and inventorise all health, safety and
environmental risks and hazards in all phases of its activities at all levels of the E&P
activities as part of its HSE MS.

A Hazard and Effects Management Process (HEMP) or its equivalent shall be applied
as part of the component to evaluate their severity, effects and probability of
occurrence. PS Contractor shall have in place a control mechanism to minimize or
eliminate non-compliances.

PS Contractor shall also ensure that compliance to the statutory HSE risk assessment
requirements (where applicable) are listed, but not limited to the followings:-
Chemical Health Risk Assessment (CHRA)
Control of Industrial Major Accident Hazards (CIMAH)

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ENVIRONMENT
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Radiation Protection Relating to TENORM in Oil and Gas Facilities
Environmental Impact Assessment (EIA)
All HSE risks shall be managed and reduced to ALARP, taking into account amongst
factors of local conditions and circumstances, the balance of cost and benefits and the
current state of technology availability and knowledge. The requirement for the PS
Contractor in implementing and managing HSE risk shall be guided according to the
stages of E&P below:

1.2.4.1 Exploration Phase

Prior to commencement of any exploration activities, the appropriate HSE
Risk Assessment and analysis shall be carried out in order to manage the
potential adverse impact in carrying out the related activity.

Followings are the documentations and records that shall be in place:

HSE Risk Assessment and Analysis

1.2.4.2 Development Phase

Field Development Plan (FDP)

Prior to commencement of any oil and gas field development or
construction of off-shore and on-shore pipelines in excess of 50 km in
length or construction of oil and gas separation, processing, handling
and storage facilities, the EIA shall be submitted for approval by DOE

During the above phase, PS Contractor shall develop HSE Philosophy
and incorporate the requirements as part of the overall field
development plan.

EIA proposal
HSE Philosophy as part of FDP.

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Conceptual and Detail Design

- During the commencement of the conceptual design stage, PS
Contractor shall ensure that there is a systematic approach for HSE
hazard identification (HAZID).

- In the following detail design stage, PS Contractor shall ensure that
the identified hazards aspects are systematically evaluated and
reviewed using technique(s) such as HAZOPS and/or QRA covering
health, safety and environment. All HSE risks identified shall be
managed to ensure that the control measures commensurate with the
levels of risks accordingly. PS Contractor shall also include hazard
recovery measures and plans in the event an HSE control fails or
deviation from the operating limits.

- Prior to actual construction work, PS Contractor shall ensure matters
pertaining to the approval of EIA condition resolved.

- Where applicable, an Environmental Management Plan (EMP) shall
be prepared and submitted to DOE for approval and implementation.

HAZID
Inventory/register of HSE hazards, effects and aspects
Hazards and Operability Study (HAZOP)
Quantitative/or Qualitative Risk Assessment (QRA)
EIA Report and approval conditions
EMP

1.2.4.3 Fabrication/Installation/HUC

- Prior to commencement of fabrication, installation and hook-up and
commissioning activities, the appropriate Health Risk Assessment (HRA)
and analysis shall be carried out at the worksite in order to manage the
potential adverse impact accordingly.

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- All risk control and recovery measures identified shall be documented in
CIMAH report (where applicable) and/ or health and safety risk
assessment, to be implemented appropriately in the respective activities.

- PS Contractor shall ensure that during this phase, all EIA and EMP
conditions are addressed and adhered to accordingly.

HSE Risk Assessment and Analysis
CIMAH Report
EMP

1.2.4.4 Production Phase

- During normal production and maintenance activity, PS Contractor shall
also ensure that the appropriate periodic health and safety risk
management are carried out.

- Prior to simultaneous operations (SIMOP) activity, PS Contractor shall
ensure that the appropriate health, safety and risk management and
analysis are carried out.

- All risk control and recovery measures identified shall be documented in a
HSE Case or its equivalent and/or CIMAH report (onshore facilities), to be
implemented appropriately in the respective facilities. The content of HSE
Case shall be guided by PETRONAS Technical Standard PTS 60.150
(Appendix 1.1): HSE Case Guidelines for Documentation, which is based
on PETRONAS Technical Standard PTS 60.150. In the context of
documenting HSE Case, flexibility is given to the PS Contractor with
regards to its exact structure and format as long as all the elements are
sufficiently addressed and covered in logical sequence.

- PS Contractor shall ensure that during this phase, all EIA and EMP
conditions are addressed and adhered to accordingly.

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ENVIRONMENT
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Following are the documentations and records that shall be in place:
HSE Case
CIMAH Report
EMP
SIMOP procedure and other related procedures such as Management
of Change (MOC)

1.2.4.5 Decommissioning Phase

- Refer to of Section 16.3 of Section 16: Guidelines for Decommissioning of
Upstream Installation.

1.2.5 Planning
PS Contractor shall ensure that their planning are developed strategically in line with
their Corporate Strategic Objectives. The use of HSE Plan is critical in improving HSE
performance, is often a long term process, requiring advance budgeting and allocation
of resources.
PS Contractor shall develop an annual and long term plan (preferably five-year) for
achieving HSE objectives which provides an overview of planned objectives and
detailed activities to be implemented for the respective year. PS Contractor shall also
develop a systematic tracking system in order to monitor the progress of its
implementation.
The requirement for a structured HSE Plan, and the integration of HSE planning into
the overall business process shall apply equally for activities carried out by PS
Contractor, as well as activities carried out by contractors engaged in work and
associated with the companys activities.

In case where a Division and/or Department HSE Plan has not address the HSE
planning associated with a specific project/ activity (e.g. in connection with a field
survey operations, drilling campaign) a Project/ Activity HSE Plan shall be prepared
specifically to cater for a project-type activity. The project/ activity HSE Plan is required

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as an HSE planning tools, to document the identified risk control and recovery
measures identified for implementation as part of the project execution.

The HSE plan shall be submitted to PETRONAS PMU KL and Regional Office by
December of the proceeding year for reference.
HSE Plan (annual and long term)
HSE Plan tracking system

1.2.5.1 Asset Integrity

For assurance of technical integrity of the assets, PS Contractor shall design
out the risk through the implementation of a structured systems and
documentation.
To ensure that the continued integrity of asset (facilities and equipments) is
safeguarded, the following shall be in placed:
A practical and widely understood facilities change control system
(management of change)
A transparent inspection and maintenance philosophy and programme
A programme where PS Contractor is able to improve through cross-
discipline/ cross-facility inspections.
Detail requirements and documentations required regarding the subject can
be referred to Section 11: Guidelines for Facilities Reliability and Integrity
Management.
1.2.5.2 Procedures and Work Instructions

The requirement for written procedures and work instructions shall apply
equally for all HSE critical activities carried out by PS Contractor, as well as

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by the contractors engaged in work and associated with the companys
activities.
All written work procedures and work instructions shall be clear, simple and
unambiguous, and shall indicate the person responsible, the methods to be
used and where appropriate, the performance standards and criteria to be
satisfied.
These standards shall be based on PETRONAS Technical Standards (PTS)
or acceptable international standard. PS Contractor shall also develop specific
procedures and work instructions for all its activities.
Written work procedures shall address potential adverse HSE consequences if
incorrectly performed. It shall also define the manner of conducting tasks at
the work-site level.
Following is the documentation and record that shall be in place:
Work Procedures & Instructions

1.2.5.3 Management of Change

There shall be procedures for the management of change, both permanent
and temporary, in people, plant or processes or deviation from the established
procedures and approval shall be sought in accordance with the requirements,
to avoid adverse HSE consequences.

The procedures shall also describe how PS Contractor interpret and assess
the implication of new or amended legislation and how revised regulatory
requirements are to be incorporated in the HSE MS. PS Contractor shall
ensure that changes which may be HSE -critical be reviewed prior to
implementation of the activities to ensure that their introduction does not
prejudice the HSE performance.

Following is the documentation and record that shall be in place:
Management of Change Procedures

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1.2.5.4 Contingency and Emergency Planning

PS Contractor shall develop, document and maintain appropriate Emergency
Response and Oil Spill Contingency Plan, both at the company level and at
the specific location. This would serve to prevent an incident from escalating
to a degree where people can be harmed or asset damaged or destroyed.
These emergency response procedures shall have clearly defined
communication linkages to the PETRONAS Upstream Emergency
Communication Procedure (ECP) and relevant government agencies as
stipulated in Section 18.
To assess the effectiveness of the emergency response system, PS
Contractor shall test their emergency procedures by scenario drills and
exercise, at appropriate intervals as stipulated in the annual HSE Plan. PS
Contractor shall also revise and update the procedure as and when necessary
in the light of the findings during the drill experience gained.
Emergency Response Plan
Emergency Drill and Exercise Schedule

1.2.6 Implementation and Monitoring
Activities and tasks shall be conducted according to procedures and work instructions
developed at the planning stage or earlier, covering broad areas of activities, in
accordance with HSE policy. The effective practical implementation of the planned
arrangements requires that the procedures and instructions are to be followed at all
levels.
PS Contractor and their contractors need to be familiar with relevant procedures and
instructions before commencement of any work.
Monitoring facilitates control of HSE critical activities and processes, and the detail and
frequency of measurement needs to reflect the nature and extent of the risks involved,
and concentrate on the areas where it produces the most benefit. Thus facilities that

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ISSUED BY
REVISION 2
AUG 2008

involve HSE critical activities require monitoring in more detail and at greater
frequency.
PS Contractor shall ensure that all tasks and activities are in compliance to the HSE
MS, guidelines, procedures, work instructions and legal requirements based on the
standards set and adopted.
PS Contractor shall have an effective performance monitoring system in place to
observe the performance of relevant aspects of HSE indicators and performance, as
well as for establishing and maintaining records of the results in ensuring targets are
met and continuous improvement is achieved. Relevant performance indicators shall
be adopted.
PS Contractors management shall ensure, and be responsible for, the conduct and
verification of activities and tasks according to the relevant procedures. This
responsibility and commitment of management to the implementation of policies and
plans includes, amongst other duties, ensuring that HSE objectives are met and
performance criteria and control limits are not breached. Management of PSC Ma shall
ensure the continuing adequacy of the HSE performance of the company through
monitoring activities.
PS Contractor shall maintain a system of records as required by the HSE MS,
procedures and guidelines to ensure integrity, accessibility and control of such
records. The retention times of records shall be established and recorded, and
procedures shall be maintained regarding their availability and confidentiality.
1.2.6.1 Contractor HSE Management

PS Contractors are responsible to ensure that their contractors main aspects
of HSE MS are being diligently monitored and soundly managed to ensure
compliance to their own HSE policy, guidelines, regulatory requirements and
standards adopted.
PS Contractors shall ensure that appointed contractors are capable and
financially viable to undertake the work safely and in an environmentally sound
manner.

SECTION 1
ENVIRONMENT
Page 14

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Interfacing arrangements (bridging documents) shall be made available
between the PS Contractor and their appointed contractors (where applicable)
to clearly define the roles and accountability of both parties.

Management of PS contractor shall pay particular attention to the following,
but not limited to:

Selection of contractors, including specific assessment of their HSE
policy, practices and performance. It shall also cover adequacy of their
HSE MS and commensurate with the risks associated with the services to
be provided.
Effective communication of the key elements of the contractors HSE MS,
and the standards of worker and environmental protection expected from
the contractor, including agreed HSE objectives and performance criteria
Sharing by company and contractor of relevant information which may
impact on the HSE performance of either.
The requirement that each contractor has an effective and relevant
training programme which includes records and procedures for assessing
the need for further training.
Methods for monitoring and assessing contractors performance against
agreed HSE objectives and performance criteria. For main contractors, an
HSE MS audit shall be conducted periodically while for minor contractors,
regular inspections and visits to contractors facilities shall be carried out.
HSE specification in Contracts
Contractor HSE Plans
Contractor HSE KPI
Minutes of HSE Meetings
Audit and Inspection Plan for Contractors
Bridging documents

SECTION 1
ENVIRONMENT
Page 15

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

1.2.7 Audit
PS Contractor shall develop the overall HSE audit programme and establish
procedures for audit to be carried out as part of business control, in order to ensure
that effective implementation of HSE management system in fulfilling the HSE policy,
objectives and performance criteria, compliance to statutory requirements and
identification of areas for improvement in leading to progressively better HSE
management.
PS Contractor shall conduct HSE MS auditing at a scheduled interval (preferably three
years) determined from the seriousness of the activity concerned or from the results of
previous audits by independent parties, to provide assurance that its activities are
adequately performed and if not, to highlight deficiencies and recommend appropriate
remedial action. PS Contractor shall have comprehensive audit protocols and
systematic procedure established and maintain.
PS Contractor is expected to conduct site specific HSE audit programme on activities
at site to further ensure excellent HSE practices on their operations. PS Contractor is
also responsible for the follow-up of the recommendations made. The audit shall cover
the operations of the HSE MS and the extent of its integration into line activities. PS
Contractors shall also carry out regular inspection and management visits at all
locations.

PS Contractor shall extend invitation to PETRONAS for participation at least one
month notice prior to the above HSE MS and HSE audit exercise. PS Contractor shall
also provide PETRONAS PMU KL and Regional Office a copy of the final HSE MS
audit report one month after completion of the audit exercise.

HSE MS & HSE Audit Plan & Procedures
HSE MS & HSE Audit Final Report
Audit Plan for Contractors
Tracking records on audit findings closure

SECTION 1
ENVIRONMENT
Page 16

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

1.2.8 Review
PS Contractor senior and/or appointed management representative shall, at
appropriate intervals (at least every five years), conduct regular reviews of the HSE
MS to ensure its continuing suitability, effectiveness and performance whilst identifying
gaps so that remedial actions can be undertaken.
Upon review, the revised HSE MS together with the basis of the changes shall be
submitted to PETRONAS one month after completion of the revision.


Revised HSE MS documents
Basis of changes

1.3 PETRONAS INSPECTION & AUDIT
PETRONAS reserves the rights to conduct HSE site visit, inspection or technical audit at
PS Contractors operational locations, wherever and whenever necessary. PS
Contractorsshall provide the necessary arrangements and cooperation throughout the
exercise. The inspection and audit team shall consists of officials from PMU KL and / or
PMU region or its appointed representative(s), and where applicable the PS Contractor
shareholder/equity partners.
For the purpose of paragraph 1.3 herein Appointed representative(s) means designated
individual(s) or company(ies) that shall have the authority to act on behalf of PMU, in all
matters connected with the performance of the site visit, inspection or technical audit.
1.4 REPORTING AND KEY PERFORMANCE INDICATOR (KPI)
a. HSE KPI
PS Contractor shall monitor and report the Health, Safety and Environment (HSE)
effectiveness using Key Performance Indicators (KPI), as stipulated in Appendix

SECTION 1
ENVIRONMENT
Page 17

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

1.2. PS Contractor HSE performance report is to be submitted to PETRONAS
PMU KL and Regional Offices on monthly basis (by the 15th of following month).
b. Documents submission
Appendix 1.3 stipulates the list of documents required for submission to
PETRONAS PMU KL and Regional Offices (where applicable).
1.5 INCIDENT REPORTING & INVESTIGATION
PS Contractor is responsible to immediately notify PETRONAS of any incidents or
accidents that are related to their operations. The detail incident notification procedures
are stipulated in Guidelines for Emergency Communication Procedure, Section 18.
PETRONAS reserves the right to participate in any or all investigations to be undertaken
by PS Contractor. A full report of the incident pertaining to fatality, loss time incidents or
that causes severe damage to asset, environment and reputation that require full
investigation by the PS Contractor shall be submitted to PETRONAS within a month from
the date of the incident.
1.6 SAFETY PASSPORT
Any person going to offshore facilities must possess valid safety passport issued from the
PS Contractor. For all employees and contractor personnel, the prerequisite trainings shall
be obtained from PETRONAS accepted Training Providers, and medical examination shall
be conducted by the Approved Medical Examiners or examining doctors as outlined in the
Offshore Medical Guidelines.
The followings are the minimum standards in BOSET (Basic Offshore Safety and
Emergency Training):
Basic Offshore Training
Basic Sea Survival Training

SECTION 1
ENVIRONMENT
Page 18

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Basic Fire Fighting
HUET (Helicopter Underwater Escape Training) & Emergency Breathing System
(EBS)

Provided the above trainings and medical requirements are met, a valid safety passport
issued by one PS Contractor, shall be accepted by another PS Contractor. Where there is
specific condition/risk involved and/or additional competencies required, the person is
obliged to adhere to the additional trainings outlined by the PS Contractor.

1.7 PROHIBITION OF DRUG AND ALCOHOL ABUSE
PETRONAS prohibits and view seriously the abuse of drug and alcohol consumption for
reasons that the acute and chronic use of both affects the judgement and mental alertness
of a person that are essential parameters for safe and productive work operations.

It is the PS Contractors obligation and responsibility to have a policy and procedure which
includes but not limited to systematic method of identification, screening, testing and
verification process that shall be implemented throughout their organisation and followed
by their employees and appointed contractors to ensure that its workplaces are alcohol
and drug free at all times.

Any form of possession, use and manufacture of drugs and alcohol for work related
purposes particularly involving PETRONAS processes and operations are strictly
prohibited and excluded.
1.8 FACILITIES GAZZETTEMENT
In accordance to the Protected Areas and Protected Places Act 1959, PS Contractor shall
apply to PETRONAS for gazzettement within six months after installation of the facilities by
submitting the information and documentations (Refer Appendix 1.4). Further details on
the application process can be referred to Appendix 1.5.

SECTION 1
ENVIRONMENT
Page 19

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

1.9 OTHER RELATED PROCEDURES

This guideline is to be read together with;
Malaysian statutory requirements as prescribed under EEZ, MARPOL, LEM/TEK,
OSHA, EQA, State Ordinance, Acts, etc.
Decommissioning Guidelines
Production and Operations Guidelines
Drilling Guidelines
Emergency Communication Procedures

- END OF SECTION 1 -

SECTION 2
GUIDELINES FOR EXPLORATIONS
SURVEY OPERATIONS
Page 20

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

SECTION 2
GUIDELINES FOR EXPLORATIONS SURVEY OPERATIONS
Executive Summary
This Section provides guidelines and general requirements in conducting the following operations
in Accordance to the Production Sharing Contract i.e.:
Fish Trap Survey Operations
Marine Site Survey Operations
Marine Seismic Survey Operations
Land Seismic Survey Operations; and
Ocean Bottom Cable and Seabed Logging Operations
PS Contractor shall observe and comply with the above guidelines prior to and during undertaking
the surveys. Nevertheless this guideline does not cover all aspects of the above survey operations
and shall be regarded as PETRONAS' general guidelines necessary for ensuring a safe and cause
minimal impact to the existing infrastructures and environment in the operating areas.
In cases where either equipment or scopes of the survey operations are not listed or specified in
these guidelines, PS Contractor shall derive the scope based on industry best practices,
internationally acceptable codes and standards, applicable Malaysian Laws and shall implement
the same accordingly.

SECTION 2
SURVEY OPERATIONS
Page 21

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

2.1 FISH TRAP SURVEY OPERATIONS
2.1.1 Pre-Survey
PS Contractor shall notify PETRONAS and Relevant Authorities (refer to Appendix
2.1) on the necessity to conduct the Fish Trap Survey, including area of operations,
timing, duration, vessel name, place of registration, call sign and specifications.
Notification of Fish Trap Survey to PETRONAS and Relevant Authorities shall be
submitted at least 14 days prior to the survey commencement.
The planned survey area shall not be conducted beyond Malaysian waters without
prior approval from the Relevant Authorities and authorities of the affected countries.
In all correspondences with Relevant Authorities, all surveys to be conducted by PS
Contractor shall be identified as PETRONAS and PS Contractors surveys.
2.1.2 Survey Operations
PS Contractor is to ensure representatives from both fishermen and Fisheries
Department are included as witnesses to the survey. These representatives are to be
appointed by the Fisheries Department and preferably had undergone basic sea
survival training and shall adhere to Guidelines for Health, Safety and Environment
(HSE) (refer to Section 1) prior to going onboard the vessel for the Fish Trap Survey.
PS Contractor is to ensure that a suitable vessel and equipment to be deployed for the
Fish Trap Survey comply to the Health, Safety and Environment (HSE) requirements.
PS Contractor is to include requirement of HALAL food and NO LIQUOR on the
vessel as part of Tender Documents.
PS Contractor shall prepare a list of focal point/ on duty personnel to be contacted for
emergency purposes.
PS Contractor and the Survey Contractor shall develop their in-house Project Safety
Plan for evacuation programme and all HSE requirements shall be based on
Guidelines for Health, Safety and Environment (HSE) (refer to Section 1).
PS Contractor shall ensure that all offshore personnel employed onboard the vessel is
to carry their personal identification.

SECTION 2
SURVEY OPERATIONS
Page 22

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

All fish traps observed within the survey area are to be identified and recorded
appropriately. Logging of observed devices to include date, location, time and to be
supported with photographs. It is recommended that PS Contractor engage an
experienced scouting company, equipped with proper positioning system for the
survey.
Some of the common types of Fish Trap and Fish Aggregating Devices are shown in
Appendix 2.2A to 2.2F.
2.1.3 Post-Survey
All data or maps to be submitted to PETRONAS and the Relevant Authorities shall be
treated and addressed as confidential matters.
Total compensations to fishermen are to be agreed prior to the seismic survey. If
under operational situation where negotiation may not take place prior to seismic
survey, PS Contractor is to notify the Fisheries Department to proceed with the seismic
survey. Representative from fishermen and Fisheries Department are both required to
support the actual negotiation on the compensations to be paid to the fishermen after
the seismic survey is completed.
All compensation shall be made through Fisheries Department.
PS Contractor shall submit close-out report to PETRONAS for any compensation
made.
PS Contractor shall report to Fisheries Department on all Fish Trap matters.
PS Contractor shall request PETRONAS assistance should any problem arises
between Fisheries Department, Fishermen, Federal Government or any other local
authorities.

SECTION 2
SURVEY OPERATIONS
Page 23

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

2.2 MARINE SITE SURVEY OPERATIONS
2.2.1 Pre-Survey

PS Contractor shall notify PETRONAS and Relevant Authorities prior to Marine Site
Survey commencement, including area of operations, timing, duration, vessel name,
place of registration, call sign and specifications. Notification of Marine Site Survey to
PETRONAS and Relevant Authorities shall be submitted at least 14 days prior to the
Marine Site Survey commencement.
Subject to statutory requirement especially for coastal areas, the authority may require
PS Contractor to conduct Environmental Impact Assessment (EIA) prior to Marine Site
Survey.
The operations of Marine Site Survey shall not be conducted beyond Malaysian waters
without prior approval from the Relevant Authorities and the authorities of the affected
countries.
PS Contractor shall ensure that all personnel onboard the survey vessel have
undergone a basic sea survival training and shall adhere to Guidelines for Health,
Safety and Environment (HSE) (refer to Section 1).
Marine Site Survey operations comply to Health, Safety and Environment (HSE)
requirements. Technical inspections to be carried out prior to mobilisation of the site
survey vessel.
PS Contractor is to include requirement of HALAL food and No LIQUOR on the
PS Contractor to prepare a list of focal point/on duty person to be contacted for
emergency purposes.

SECTION 2
SURVEY OPERATIONS
Page 24

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

2.2.3 Post-Survey
PS Contractor shall submit close-out report to PETRONAS. The report shall be both in
hard copy and acceptable electronic format.
PS Contractor shall submit all site survey data and maps to PETRONAS upon
completion and prior to expiry of the block as required by the Production Sharing
Contract.
between Fisheries Department and Relevant Authorities.
2.3 MARINE SEISMIC SURVEY OPERATIONS
2.3.1 Pre-Survey
PS Contractor shall prepare Marine Seismic Survey Proposal together with a
forecasted project schedule to PETRONAS and shall get Partners concurrence prior
to submission of technical approval to conduct Marine Seismic Survey.
PS Contractor shall notify PETRONAS and Relevant Authorities to conduct Marine
Seismic Survey including area of operations, timing, duration, vessel name, place of
registration, call sign and specifications. Notification of Marine Seismic Survey to
PETRONAS and Relevant Authorities shall be submitted at least 14 days prior to the
survey commencement.
Subject to statutory requirement especially for coastal areas, PS Contractor may
conduct Environmental Impact Assessment (EIA) prior to seismic survey.
The operations of Marine Seismic Survey shall not be conducted beyond Malaysian
waters without prior approval from the Relevant Authorities and authorities of the
affected countries.
PS Contractor shall ensure that all personnel employed onboard Marine Seismic
Survey vessel have undergone basic sea survival training and shall adhere to

SECTION 2
SURVEY OPERATIONS
Page 25

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Marine Seismic operations comply to Health Safety and Environment (HSE)
requirements. Technical inspections to be carried out prior to mobilisation of the
seismic and escort vessels.
PS Contractor to prepare a list of focal point/on duty personnel to be contacted for
emergency purposes.
PS Contractor shall submit a daily and weekly survey reports to PETRONAS for the
whole survey duration.
2.3.3 Post-Survey
PS Contractor shall submit to PETRONAS a full operation report. The report shall be
both in hard copy and acceptable electronic format.
PS Contractor shall also submit all seismic data and maps to PETRONAS upon
Contract.

SECTION 2
SURVEY OPERATIONS
Page 26

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

2.4 LAND SEISMIC SURVEY OPERATIONS
2.4.1 Pre-Survey

PS Contractor shall prepare Land Seismic Survey Proposal together with a forecasted
project schedule to PETRONAS and shall get Partners concurrence prior to
submission of technical approval to conduct Land Seismic Survey.

PS Contractor shall notify PETRONAS and Relevant Authorities to conduct Land
Seismic Survey including area of operations, timing and duration. Notification of Land
Seismic Survey to the Relevant Authorities shall be submitted 30 days prior to the
Land Seismic Survey commencement.

Subject to statutory requirement, PS Contractor may conduct Environmental Impact
Assessment (EIA) prior to survey.

PS Contractor shall ensure that all personnel have undergone through appropriate
HSE training and shall adhere to Guidelines for Health, Safety and Environment (HSE)
(refer to Section 1).


PS Contractor is to ensure that a suitable equipment to be deployed for the Land
Seismic Survey operations comply to Health Safety and Environment (HSE)
requirements. Technical Audit to be carried out on seismic crew prior to
commencement of Land Seismic operations.
PS Contractor is to include requirement of HALAL food and No LIQUOR as part of
Tender Documents.
PS Contractor to prepare a list of focal point/ on duty personnel to be contacted for
emergency purposes.
Plan for evacuation programme and all HSE requirement shall be based on Guidelines
for Health, Safety and Environment (HSE) (refer to Section 1).

SECTION 2
SURVEY OPERATIONS
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SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

PS Contractor shall ensure that all personnel employed possess a valid personal
identification.
2.4.3 Post-Survey
PS Contractor shall also submit all seismic data and maps to PETRONAS upon
completion and prior to expiry of the block as required by Production Sharing Contract.
between any Relevant Authorities.
2.5 OCEAN BOTTOM CABLE AND SEABED LOGGING
2.5.1 Pre-Survey

PS Contractor shall prepare Ocean Bottom Cable and Seabed Logging Proposal
together with a forecasted project schedule to PETRONAS and shall get Partners
concurrence prior to submission of technical approval to conduct the survey.
PS Contractor shall notify PETRONAS and Relevant Authorities to conduct Ocean
Bottom Cable and/or Seabed Logging, including area of operations, timing, duration,
vessel name, owner and specifications. Notification of Ocean Bottom Cable and
Seabed Logging to the Relevant Authorities shall be submitted 30 days prior to the
survey commencement.
Subject to statutory requirement especially for coastal and deepwater areas, PS
Contractor shall conduct Environmental Impact Assessment (EIA) prior to seismic
survey.
The operations of Ocean Bottom Cable and Seabed Logging Surveys shall not be
conducted beyond Malaysian waters without prior approval from the Relevant
Authorities and authorities of the affected countries.

SECTION 2
SURVEY OPERATIONS
Page 28

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

PS Contractor shall ensure that all personnel to be onboard Ocean Bottom Cable and
Seabed Logging vessel have undergone basic sea survival training and shall adhere
to Guidelines for Health, Safety and Environment (HSE) (refer to Section 1).
Ocean Bottom Cable and Seabed Logging operations comply to Health Safety and
Environment (HSE) requirement. Technical inspection to be carried out prior to
mobilisation of the seismic and escort vessels.
PS Contractor to prepare a list of focal point/on duty personnel to be contacted for
emergency purposes.
2.5.3 Post-Survey

PS Contractor shall also submit all survey data and maps to PETRONAS upon
Contract.

SECTION 3
GUIDELINES FOR FDP REVIEW AND
APPROVAL PROCESS
Page 29

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

SECTION 3
GUIDELINES FOR FDP REVIEW AND APPROVAL PROCESS
Executive Summary
This Section Provides guidelines and general requirements for Field Development Plan review
and approval process for PS Contractor to comply. The approach taken by PETRONAS to the
process of Field Development Plan (FDP) review and approval is to establish whether there
are any aspects of the proposed development which may conflict with Government and
PETRONAS' objectives and to focus attention on resolving those aspects before the formal
comprehensive FDP is submitted.

SECTION 3
APPROVAL PROCESS
Page 30

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

3.1 GENERAL APPROACH
3.1.1 The approach taken by PETRONAS to the process of Field Development Plan (FDP)
review and approval is to establish whether there are any aspects of the proposed
development which may conflict with Government and PETRONAS objectives and to
focus attention on resolving those aspects before the formal comprehensive FDP is
submitted.

3.1.2 In the event of any conflict inconsistency between this guideline and the Production
Sharing Contract (PSC), the PSC shall prevail.

3.2 RESPONSIBILITY
3.2.1 The Petroleum Management Unit (PMU) will coordinate the overall field development
process review involving milestone reviews, PETRONAS review and approval and FDP
execution.

3.2.2 PMU has established a Technical Review Committee (TRC) as a technical advisory
role to PMU Management in assessing field development plans proposed by PSCs,
during the milestone reviews. The main objectives of the TRC are:

a) To provide consistent quality assurance on all technical deliverables
conducted by PSC contractors or service providers to PMU as well as
providing critical challenges and constructive feedbacks to the project team to
ensure all technical objectives are being met.

b) To enhance PMU technical processes before, during and after project being
executed by capturing and disseminating lesson learnt from one project to the
other.

c) To contribute towards close co-operation and smooth execution of the project
by providing prompt and practical feedback to the PSCs and service providers.

3.2.3 Depending on the circumstances of each specific project, the scope of the TRC may
be a complete review of the entire program, including conforming to applicable
methods, technologies, standards, the appropriateness of the assumptions and input
data to support the design. Or it might just be limited to specific aspects of the design
program on specific tasks.

3.2.4 Endorsement of the Technical review committee must be received for each of the 4
milestones in the FDP approval processes:

SECTION 3
APPROVAL PROCESS
Page 31

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Planning (MR#1)
Static Model (MR#2)
Dynamic Model (MR#3)
Development Model (MR#4)
3.3 CONTENT AND SUBMISSION
3.3.1 The content of the FDP shall be as defined in the PSC. PETRONAS' requirement is
that any FDP submitted should be a comprehensive stand-alone document with a
complete set of information and/or references that would provide the evaluator with a
better and easier understanding and rationale for the field development proposed.

3.3.2 For FDP Revisions, the update specific to the scope where changes are required will
be sufficient for submission and approval by PETRONAS.

3.3.3 PS Contractor shall submit three copies of the final FDP for approval by PETRONAS
(PMU). There are four categories of projects that have been identified as requiring an
FDP. As a general guide, the categories of the projects are tabulated in Table 3.1A.

3.3.4 In Joint Venture PSCs, FDP can be submitted to PETRONAS prior to partners
endorsement but PETRONAS will only provide endorsement/approval upon partners
endorsement. PS Contractor is to ensure that endorsement from Partner(s) is timely
submitted to PETRONAS to avoid delay in FDP endorsement/approval.

Table 3.1A : Project Categories

Category Scope
Milestone
Reviews *
Approval By
Green Project Field development in a virgin
field or further development of
producing field from new
platforms
MR#1, MR#2,
MR#3,MR#4,
Petroleum
Resources
Development,
PMU
Brown Project Further development of
producing reservoirs or new
reservoirs from an existing
platform
MR#1, MR#2,
MR#3,MR#4
Petroleum
Resources
Development,
PMU

SECTION 3
APPROVAL PROCESS
Page 32

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Category Scope
Milestone
Reviews *
Approval By
Facilities Modification,
Upgrading or
Rejuvenation Project.
Project that involves
modifications/upgrading to the
existing surface facilities to
ensure facilities integrity and
sufficient capacity for continuing
operations.

*Note: Document to be
submitted is Facilities
Improvement Plan (FIP) /
Facilities Rejuvenation Plan
(FRP). Refer Section 11.
MR#1,MR#4, Petroleum
Operations
Management,
PMU

Enhanced Oil Recovery
(EOR) Project
Advanced recovery techniques
going beyond what are
considered conventional
methods at a given reference
point in time. Typical features of
advanced recovery techniques
are injection of substances other
than water and/or hydrocarbon
gas into the reservoir to enhance
oil recovery.
MR#1, MR#2,
MR#3,MR#4,
Petroleum
Resources
Development,
PMU
3.4 THE OVERALL PROCESS
3.4.1 The overall FDP Review, Approval and Implementation Process is illustrated in the
Figure 3.1 below. There are a total of eight steps; the first four steps are the
designated FDP Milestone Reviews with PS Contractor which are conducted before
the FDP is submitted, the next two are the internal approval process while the last two
are the FDP (project) implementation stages.
3.4.2 PS Contractors will be allowed some flexibility to decide on the number, content and
timing of the Milestone Reviews, as long as it does not deviate from the principle of
early PETRONAS' involvement from the planning stage of the prospective field to the
completion of the project.
3.4.3 There are times when PS Contractors may want to seek early guidance from PMU with
regard to specific FDP requirements and/or the Milestone Review process. In such
cases, a pre-MR1 meeting with relevant PMU contact person(s) can be requested.

SECTION 3
APPROVAL PROCESS
Page 33

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

The meeting can be used to clarify issues such as the types and scope of project,
approval requirements, timing expectation for approval, etc.

PLANNING MODEL PLANNING MODEL
MILESTONE REVIEW MILESTONE REVIEW
G & G MODEL G & G MODEL
RESERVOIR MODEL RESERVOIR MODEL
DEVELOPMENT MODEL DEVELOPMENT MODEL
Pre-MR MEETING
(if needed)
A
A
PETRONAS PETRONAS
EVALUATION EVALUATION
MANAGING FDP MANAGING FDP
EXECUTION BY EXECUTION BY
DEVIATION DEVIATION
PETRONAS PETRONAS
APPROVAL APPROVAL
FIRST FIRST
OIL/ GAS OIL/ GAS
PS CONTRACTOR
SUBMITS FDP
Y Y
N N
Pre-FDP Milestone Review
FDP Approval
Post FDP Implementation Stage
EXTERNAL
INTERNAL
Pre-MR MEETING
(if needed)
A
A
PETRONAS PETRONAS
PETRONAS PETRONAS
DEVIATION DEVIATION
DEVIATION DEVIATION
PETRONAS PETRONAS
APPROVAL APPROVAL
PETRONAS PETRONAS
APPROVAL APPROVAL
FIRST FIRST
OIL/ GAS OIL/ GAS
FIRST FIRST
OIL/ GAS OIL/ GAS
PS CONTRACTOR
SUBMITS FDP
Y Y
N N
Pre-FDP Milestone Review
FDP Approval
Post FDP Implementation Stage
EXTERNAL
INTERNAL

3.5 KEY FEATURES OF MILESTONE REVIEWS
3.5.1 The Milestone Review process is proposed in order to maintain a continuing dialogue
and technical reviews as the description of a field and options for its development
emerge during the development planning studies.
3.5.2 For a typical field development, the process will be guided by four Milestone Reviews
pre-FDP approval and post-FDP project implementation process. The definition and
the minimum key activities expected for each Milestone and government requirements
are given in Appendix 3.1 and Appendix 3.2 respectively. The Milestones are not
always applied in such an orderly way to all fields. It is recognized that there will most
likely be a maturation cycle before every aspects have been defined in sufficient detail
to enable the preparation of a FDP to be completed.
3.5.3 Following the definitions given, the timing of the Milestone Reviews will coincide with
the completion of each major engineering discipline. In general, this structured
process should assist the PS Contractors and PETRONAS in having an effective
process where at each milestone the agreed technical assessment will form the basis
of the next milestone discussion/evaluation. With the formation of the TRC, the issue
Figure 3.1: FDP Approval Process

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of discontinuity in the review team players for all milestones discussion can be
avoided. This will also avoid unnecessarily revisiting items that have been discussed
and agreed during the previous milestones.
3.5.4 From PETRONAS' perspective, the objective of the Milestone Reviews is not to have
the detailed review of every area of the development but rather the identification and
resolution of any aspects of the development which may contradict Government and
PETRONAS' objectives and on which the views of PETRONAS and PS Contractor
may diverge. These aspects will be examined more thoroughly with the PS Contractor
with the aim of reaching mutually satisfactory conclusions.
3.5.5 To expedite FDP endorsement/approval in meeting contractual obligation of field
development timing, PETRONAS may provide notification of any aspects of the
development where a conflict is expected and is likely to cause delay or prevent the
approval of the FDP. If substantive issues are identified, a more detailed investigation
of the elements of the development essential for the resolution of these issues will be
made, and PS Contractor will be expected to work and develop the necessary
rationale towards justifying the plans before the FDP is submitted.
3.5.6 While PETRONAS may tentatively agree on the technical aspects of the development
planning studies, this should not be construed as the final approval in the context of
the PSC. PS Contractor should be aware that any agreement during the Milestone
Reviews shall be without prejudice to the final decision of PETRONAS' Management
or other Government bodies which may have an interest in the development plan upon
submission of the final FDP.
3.5.7 The figure 3.2 below summarizes the format with respect to Milestone Reviews and
approval points and the expected benefit from the new process.

Figure 3.2

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3.6 GUIDELINES FOR MILESTONE REVIEWS
3.6.1 A meeting shall be held at the completion of each Milestone. Two (2) or more
Milestones may be combined depending on the size, complexity and schedule of the
project. The decision to combine various Milestones for discussion shall be mutually
agreed between PETRONAS and PS Contractor. This can be accomplished at the
pre-MR meeting discussed earlier.
3.6.2 The Milestone Review dates or schedules shall be mutually agreed between
PETRONAS and PS Contractor. With the establishment of the TRC to coordinate and
streamline the Milestone Reviews in PETRONAS, PS Contractor may choose to
integrate Milestone Reviews with PS Contractor specific internal reviews by inviting
relevant TRC members to sit in the internal reviews, where appropriate. Similarly, as
PCSB is a Joint Venture Partner in most of the PSCs, PETRONAS may elect to
integrate the Milestone Review with PCSB specific internal project reviews, where
appropriate.
3.6.3 Any Milestone Reviews with PETRONAS must be agreed by all its Joint Venture
partner(s) involved in the field of interest in accordance with their respective Joint
Operating Agreements (JOAs).
3.6.4 PETRONAS may at its discretion, call for a meeting to discuss matters of specific
interest or request an update of a particular project.
3.6.5 PS Contractor shall furnish to PETRONAS the discussion materials or any supporting
documentation, at least three (3) days before the proposed date of each meeting.
3.6.6 If substantive issues have been identified and cannot be resolved during the Milestone
Reviews, it may be necessary to refer the issues to the respective Parties'
Management for their consideration and direction. The resolution of the issues should
not in any way prevent the progress of the development planning studies.
3.6.7 Minutes of Meetings shall be taken by PS Contractor and submitted to PETRONAS
within one (1) week after the meeting.

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3.7 GOVERNMENT AND PETRONAS' OBJECTIVES
3.7.1 In principle, under a PSC, while PETRONAS and PS Contractor have similar
objectives i.e., the optimum development of the petroleum resources of the contract
area, PETRONAS with the interest of the Nation, naturally goes beyond purely
commercial considerations. As Custodian of all hydrocarbon resources in the country
and resource manager, PETRONAS is also interested in making sure that a given
development plan provides an optimum solution in the context of total development
balanced with cost effective solutions.
3.7.2 PETRONAS as a whole has the responsibility to ensure long-term protection and
development of domestic hydrocarbon resources. With this big responsibility,
PETRONAS would want to be fully conversant and be made aware of the assumptions
used in planning for field development process from the early stage of planning until
the development stage. This could help to clarify the key issues that need to be
tracked as the FDP process moves forward and potentially highlight unconventional
development options that may not necessarily be considered such as to include
different technology options, alternative facilities plans, and proper reservoir
management plan.
3.7.3 In addition to the current Government and PETRONAS' objectives of field
development objectives applicable to the majority of field developments
circumstances may arise where PETRONAS may need to take into account broader
issues or policies into consideration.
3.8 APPROVAL FROM PETRONAS
3.8.1 PETRONAS will endeavor to approve the FDP within two months from the official date
of receipt of fully endorsed FDP by all parties, provided that there are no unresolved
issues.
3.8.2 The early review of draft sections or whole FDP document as these become available
will help achieve this objective. PS Contractor may choose to extend copies of the
draft FDP sent to their JV Partners for parallel review by PETRONAS to help
expediting the approval process.

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3.9 FDP EXECUTION PHASE
3.9.1 The scope of the subsurface and surface development plan in the FDP shall cover but
not be limited to all subjects discussed in milestone reviews as per Appendix 3.3 of
this guideline.
3.9.2 The subsurface plan must also address potential applicability of enhanced and/or
improved recovery mechanisms including the potential for their current or future
integration with any secondary recovery gas and/or water injection) operations. In
particular it must address potential for improved recovery and geo-sequestration
through carbon dioxide injection into fields/reservoirs located in regions where gas
reservoirs with high carbon dioxide are known to occur.
3.9.3 One of the important aspects in the FDP shall be the definition of uncertainties,
possible subsurface alternative scenarios and the range of possible forecast
outcomes. It must address the full field life cycle and not be limited to the life of the
initial PSC.
3.9.4 PS Contractor is encouraged to address reservoir uncertainties when formulating well
objectives by providing contingency plans as secondary objectives, over and above
the primary objectives of the well.
3.9.5 The scope of FDP approval will be extended to cover the approval to drill development
wells (including contingency plans/strategy) as proposed in the approved FDP. The
Notice of Operation (NOP) for each well will be submitted to PETRONAS for
information only, if all drilling issues have been addressed prior to FDP approval.
Refer to Section 3.10.4 and Appendix 3.4.
3.9.6 The following information should be provided in the FDP w.r.t. drilling;
a) individual well objectives post historical offset well data, if any
b) contingency plan w.r.t. uncertainties in well location or objectives
c) typical casing depth and completion type and design, provide explanation on
concept selection and all drawing attached
d) general description of type of fluid/mud to be used including plot of pore
pressure and fracture gradient
e) describe all new technology application, if applicable

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f) describe abandonment programs for proposed well completion with
schematic diagrams (this will be discussed again when requesting for P&A
approval as completion may change with time due to wellbore intervention)
g) describe potential production problems
h) estimated overall drilling cost and time
i) type of drilling rig, schedule and implementation plan
j) expected Non-Productive Time(NPT)
k) drilling trajectory plan and Bottom Hole Assembly (BHA) design
l) description of selection of open hole (OH) logging program proposed
m) anticipated problems and drilling hazard
n) proposed completion program including the wellhead and x-tree
configuration
o) describe bit selection and hydraulics
3.10 DIVERGENCE FROM APPROVED FDP
3.10.1 Once a comprehensive FDP has been approved, PS Contractor shall proceed to
develop the field in accordance with the approved FDP.
3.10.2 As the understanding of the field develops, there may be a need to modify the FDP
accordingly. PS Contractor is therefore, responsible to inform PETRONAS as soon as
deviations from the approved FDP are foreseen. Milestone Reviews can be
reactivated if necessary, to discuss any propose revision to the field development.
Please refer to Appendix 3.4 for example of situations where FDP or/and NOP revision
is required.
3.10.3 A formal revision to the approved FDP shall be required if there are significant
deviations to the approved development scope. The changes could also be triggered
by the Full Field Review (FFR) which is required within 3- 5 years of initial
development. The deviations include;
a) development of new reservoirs or the need to further appraise the extent of
the field

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b) changes to depletion strategies (introducing pressure maintenance, gas
sales etc)
c) changes to drainage plan involving number and location of platforms and
wells
d) updating notional plans incorporating drilling results from Development While
Exploration (DWE) prospects
e) changes to the selected development concept (e.g. evacuation route,
integrated development, new facilities, stand-alone vs satellite etc) that has a
significant impact on cost, schedule and risk to availability.
3.10.4 PS Contractor is required to submit a revised NOP for PETRONAS' review and
approval if there are deviations from the individual well objectives as approved in the
FDP. In general, the area of deviation herein refers to reservoir targets, significant
revision in drainage location beyond initial drilling targets and well utility (e.g. producer
to injector) and outside of reasonable target tolerance (i.e less than 1 km) within the
same region/fault block.
3.10.5 During the development drilling phase, if there are anticipated changes to the well
objectives not captured under 3.9.4, PS Contractor shall submit a FDP Revision to
address specifically the required changes. If PETRONAS' approval is obtained on the
FDP Revision before the start of drilling of the affected wells, PS Contractor can
proceed without the need to submit individual revised NOP for the drilling of such
wells.
3.10.6 PS Contractor is required to submit a revised completion plan for PETRONAS review
and approval if there are deviations from the approved FDP/NOP well objectives upon
drilling the well. A Post-Drilling Review shall be submitted to PETRONAS no later than
six (6) months after the completion of the last well. The review shall incorporate all
new information and address its update on the geological model, impact on volumetric
and reserves, drainage plan, depletion strategies, production forecast and future
plans. In addition, it should also summarize the highlights / lowlights on drilling /
completion operations, key lessons learnt and recommendation for further work.

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3.10.7 It is envisaged that the FDP Revision in a form of an update to the specific scope that
require changes would be sufficient for submission and approval by PETRONAS.
Final FDP updates is required to capture all changes, however, PS Contractors shall
notify PETRONAS for changes in-between for approval prior to implementation.
3.10.8 Changes affecting optimization of design concept and operating philosophy in surface
facilities do not require an FDP Revision; these will be evaluated as part of the Project
Implementation Management process.

-END OF SECTION 3-

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SECTION 4
GUIDELINES FOR PROJECT DEVELOPMENT MANAGEMENT
Executive Summary
This document provides guidelines on project management of upstream petroleum operations and
activities of the Production Sharing Contract (PSC), of which PS Contractor shall refer to in
carrying out the project execution activities. The guidelines have been put in-place to provide
guidance to PS Contractor with regard to PETRONAS expectations on project execution activities
to ensure that they are carried out prudently and effectively as per the best practices currently
prevalent relating to Project Development Management. These guidelines also provide means by
which PETRONAS would be able to assess and steward performance.
In this respect the PS Contractor shall have their own Project Development Management system in
place, to ensure that the key project parameters i.e. Health, Safety & Environment (HSE), quality,
cost and schedule are better managed.
To meet the above objective, PS Contractor is encouraged to adopt integrated approach as much
as practicable, in implementing a project to: -
optimise design
capitalise on economy of scale benefits, where applicable
promote sharing of services
adopt Engineering, Procurement & Construction (EPC) or Engineering, Procurement,
Construction, Installation & Commissioning (EPCIC) or Engineering, Procurement,
Construction & Commissioning (EPCC) types of contracts, where applicable
fit for purpose equipment and process
off-the-shelf equipment / material, where applicable
use of functional specifications, where applicable
use of cost effective and proven technology
implement standardisation and variety control

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maximise local contents
form integrated project team
apply a new technology, where applicable
balance development CAPEX versus future operability, OPEX and reservoir management
requirements
optimise life-cycle cost
The guidelines set forward in this document are generic in nature and as such shall be applicable
for all types of projects as described in Section 3 Guidelines for FDP Review and Approval Process
Guidelines.
The guidelines provide traditional flow processes of Project Development starting from Field
Development Plan (FDP) and ending at the start-up of first oil or gas production, after which the
project is handed-over to the Production Operations. The guidelines also include approval
requirements at Project Implementation phases, the approval of Contracting and Procurement
Strategies, Work Programme and Budget (WP&B) submission and the project development related
matters.
The guidelines outlined are as follows:
1. Field Development Phases
2. Field Development Plan (FDP) Review and Approval Process
3. Special Considerations
4. Project Implementation Phases and Activities
5. Contracting and Procurement
6. Health, Safety and Environment (HSE)
7. Project Quality Assurance (QA)
8. Reporting and Documentation
9. Project Performance
10. Work Programme and Budget (WP&B)
11. Regulatory Requirements

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4.1 FIELD DEVELOPMENT PHASES
4.1.1 Field development is a phase of development activities, which occur before the start-
up, and after the exploration phase has been successfully completed and the field(s) is
recommended for development. Figure 4.1 shows a generic field development phases
and activities that are commonly practiced.

Figure 4.1 Generic Field Development Phases and Activities

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4.2 FIELD DEVELOPMENT PLAN (FDP) REVIEW AND APPROVAL
PROCESS

4.2.1 Under the Production Sharing Contract, PS Contractor is required to submit a Field
Development Plan (FDP) within reasonable cost estimate for PETRONAS review and
approval before proceeding to develop a particular field.

4.2.2 PETRONAS' requirement is that any FDP submitted should be a comprehensive
stand-alone document with a complete set of information and/or references that would
provide the evaluator with a better and easier understanding and rationale for the field
development proposed.

4.2.3 The FDP shall address at least the following subjects: exploration activities, geological
studies, depletion strategies, drainage plan, facilities, drilling program, operational
requirements, Health, Safety and Environment (HSE), production forecast, cost and
phasing, economics, and abandonment plan.

4.2.4 Current and/or future potential for enhanced/improved recovery applications together
with potential for surface facilities integration with existing and/or future potential
developments in the vicinity of the proposed development must be taken into account.
The latter is particularly important for small fields.

4.2.5 In reviewing the FDP, the approach taken by PETRONAS is to establish whether there
are any aspects of the proposed development, which may conflict with Government
and PETRONAS objectives, and to focus attention on resolving those aspects before
the formal FDP is submitted.

4.2.6 Under this process, Milestone Reviews are proposed in order to maintain a continuing
dialogue and technical reviews as the description of a field and options for its
development emerge during the development planning studies, until the execution
takes place.

4.2.7 The objective of the Milestone Reviews is not to have the detailed review of every area
of the development but rather the identification and resolution of any aspects of the

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development which may contradict Government and PETRONAS' objectives and on
which the views of PETRONAS and PS Contractors may diverge. These aspects will
be examined more thoroughly with the PS Contractor with the aim of reaching mutually
satisfactory conclusions. Please refer to Section 3 Guideline for FDP Review &
Appraisal Process on the details of MRs.

4.2.8 As the understanding of the field develops, there may be a need to modify the FDP
accordingly. PS Contractor is therefore, responsible to inform PETRONAS as soon as
deviations from the approved FDP are foreseen.

4.2.9 A formal revision to the approved FDP shall be required if there are significant
deviations to the approved development scope. This may include development of new
reservoirs or the need to further appraise the extent of the field, changes to drainage
plan involving number of platforms, wells and types of completion (conventional to
non-conventional) or changes to the selected development concept (e.g. evacuation
route, integrated development etc).

4.2.10 It is envisaged that the FDP Revision in the form of an update to the specific scope
that require changes would be sufficient for submission and approval by PETRONAS.

4.2.11 Changes affecting design concept, operating philosophy or new technology in surface
facilities that do not affect the sub-surface design, do not require an FDP Revision;
these will be evaluated as part of the Project Implementation Management process.

4.3 SPECIAL CONSIDERATIONS

4.3.1 PETRONAS recognizes and acknowledges that risked economics for certain projects,
i.e. small fields development, reservoirs with high CO2, EOR and deepwater
development projects, can often be marginal, requiring minimization of upfront
appraisal and development expenditures. PETRONAS therefore encourages PS
Contractor to consider potential for integrated area exploration and development
planning. Consideration of development integration with existing infrastructure, even if
operated by a different PS Contractor, through subsea wells and/or Floating

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Production Systems is also encouraged. PETRONAS will facilitate discussions
between PS Contractors, if required.

4.3.2 PETRONAS recognizes that Extended Production Testing of discovery/ appraisal wells
is often a valuable approach to reducing uncertainty and improving project economics
through reduced cycle time. PETRONAS will entertain requests for Extended
Production Testing utilizing floating production systems. Any associated gas flaring
requests, if necessary, will be considered.

4.3.3 Requests for Extended Production Testing should have a similar format and content to
a Field Development Plan as outlined in Section 3. In addition, it must provide
technical and economic justification as well as the planned duration of the extended
production test. Maximum rate and total volume of any gas proposed for flaring must
also be specified.

4.3.4 PETRONAS recognizes that upfront development CAPEX can sometimes be
minimized by utilizing leased floating production systems and thereby, minimizing
development economic risk. However, leased floating facilities are also generally
associated with high OPEX leading to lower reserves. PS Contractors are required to
evaluate the balance between CAPEX, OPEX and reserves and present their analysis
in the Field Development Plan for PETRONAS consideration.

4.4 PROJECT IMPLEMENTATION PHASES AND ACTIVITIES

4.4.1 Feasibility Study

4.4.1.1 Feasibility study is a screening process that analyses the technical (sub-
surface potential and surface capability) and field economics to assess the
overall viability of area and field development.

4.4.1.2 PS Contractor shall develop Pre-FDP Feasibility Study report and submit to
PETRONAS upon request.

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4.4.2 Conceptual Design / Front End Engineering Design (FEED)

4.4.2.1 PS Contractor shall develop a baseline document referred as the Basis for
Design (BFD) or Project Development Memorandum (PDM), which provides
the functional requirements for the facilities for the chosen concept, which
include but not limited to: -
Brief description of the facilities
Definition of the boundary conditions
Definition of the status of any existing facilities and the performance
characteristics of processes
Definition of the requirements for the new or modified facilities
Comparison of potential upfront and retrofit schemes together with
associated incremental costs to handle the range of possible
subsurface alternative scenarios and the range of possible forecast
outcomes.
Definition of any other constraints
References to any relevant study reports

4.4.2.2 PS Contractor shall develop Project Specification or Design Basis
Memorandum (DBM) based on the above BFD or PDM, which shall be further
defined for any remaining sub-options to determine the functional
specifications for the required facilities. The Project Specification or Design
Basis Memorandum is to provide a detailed description of the essential project
hardware, together with the project technical requirement such that it can be
used as part of the document for detailed engineering design.

4.4.2.3 PS Contractor shall develop Project Execution Plan (PEP) to manage the
project. It provides the basic parameters of the field development, a
description of the project scope and description of how the project will be
executed from the end of Conceptual design until hand-over of the project to
the Operations. Generally it covers the following topics:-

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Project definition
Project scope
Contracting and procurement plans
Organisation and resource plan
QA and HSE plans
Cost and schedule
Commissioning and hand-over strategy
Project management systems and procedures

4.4.2.4 PS Contractor shall conduct a Management Review or Independent Project
Review of the Conceptual Design to ensure readiness to proceed to the
detailed design phase. PS Contractor shall submit the BFD or PDM, Project
Specification or DBM and PEP to PETRONAS.

4.4.2.5 PS Contractor shall adhere to sub-section 4.0 of PETRONAS Tenders and
Contracts Administrative Procedure Manual for Upstream Procurement
Activities, when engaging Design Consultant services for the Conceptual
Design. The procedure is attached in Appendix 4.1 of this section, for
information only. PS Contractor shall ensure to always refer to the latest
version of the procedure.

4.4.3 Detailed Design

4.4.3.1 Detailed engineering design of the facilities is produced at this phase which
includes all specifications, Process & Instrumentation Diagrams (P&ID),
commissioning plans, 3D models, materials take off and spare parts lists.

4.4.3.2 The scope covers but not limited to: -
preparing preliminary detailed design
preparing data sheets, specifications and requisition packages

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analyse bids and review vendor data
prepare construction tender packages
prepare Approved For Construction (AFC) or Issue For Construction
(IFC) documents
prepare procedures and manuals for commissioning and operations
handle site queries and produce as-built drawings
conduct HAZOP and Risks assessments

4.4.3.3 PS Contractor shall conduct a Management Review or Independent Project
Review of the Detailed Design to ensure readiness to proceed to the
fabrication or construction phase.

4.4.3.4 PS Contractor shall invite PETRONAS participation in Management Review or
IPR before project proceed to fabrication or construction phase.

Activities, when engaging Design Consultant services for the Detailed Design.
The procedure is attached for information only in Appendix 4.1 of this section.
PS Contractor shall ensure to always refer to the latest version.

4.4.4 Fabrication and Construction

4.4.4.1 The scope of fabrication and construction varies greatly depending on whether
the development is onshore, offshore or subsea and whether it is a new facility
project or existing facility upgrading project.

4.4.4.2 The main activities include:
manage, plan and schedule the fabrication or construction activities
review design drawings and prepare shop drawings, weight control
and final documentation

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site survey, clearance and preparation for onshore construction
project
fabricate structural components at onshore fabrication yards for
offshore project
pre-fabricate process system packages at the vendor's work sites
install system packages at fabrication yards
maximise systems and equipment pre-commissioning at the onshore
fabrication yards
load out and fastening of fabricated components
line pipes coating at the onshore coating yards

Activities, when engaging the fabrication or construction and pipe coating
contracts. The procedure is included in Appendix 4.1 of this section, for
information only. PS Contractor shall ensure to always refer to the latest
version.

4.4.5 Transportation and Installation

4.4.5.1 Types of barges used depend on the weight and size of the structural
components and its availability. The main activities are to transport and install
the components at offshore site, and to lay offshore pipelines.

4.4.5.2 PS Contractor shall ensure that the barges used are meeting marine HSE
requirements in accordance with PETRONAS Guidelines for Barges Operating
Offshore Malaysia (PGBOOM). Refer to Section 7 for Barges Operations.

4.4.5.3 Types of offshore terminal and/or floating facilities to be installed depend on its
capability and availability. PS Contractor shall ensure that the floating

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installation meets the relevant standards and specifications for offshore
terminal and/or floating facilities installation.

Activities, when engaging transportation and installation; or pipelaying
contracts for the substructure, topsides and pipelines. The procedure is
included in Appendix 4.1 of this section, for information only. PS Contractor
shall ensure to always refer to the latest version.

4.4.6 Hook-up and Commissioning (HUC)

4.4.6.1 Hook-up and commissioning is the final completion of work, testing and
verification of system, in preparing for the start-up.

4.4.6.2 PS Contractor shall carry out pre start-up HSE Audit and/or Independent
Project Review to ensure the facilities and operations are fit for start-up.

4.4.6.3 PS Contractor shall invite PETRONAS participation in the audit and/or review
exercise as a full-time member. PS Contractor shall give written invitation to
PETRONAS two (2) weeks before the audit and/or review exercise.

Activities, when engaging the HUC contract. The procedure is included in
Appendix 4.1 of this section, for information only. PS Contractor shall ensure
to always refer to the latest version.
4.4.7 Development Drilling

4.4.7.1 PS Contractor shall carry out the development drilling activities in accordance
with the Procedures for Drilling Operations (PDO), Section 5.

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4.4.8 Facilities Decommissioning

4.4.8.1 PS Contractors shall carry out facilities decommissioning activities that include
the preparation of facilities for abandonment, which typically consists of the
crafting of recommendations for operational, regulatory and HSE issues.

4.4.8.2 Refer to Guidelines for Decommissioning of Upstream Installation, Section 16
for detail procedure on facilities abandonment.

4.5 CONTRACTING AND PROCUREMENT

4.5.1 PS Contractor shall adhere to the PETRONAS procedures for the contracting of
services and purchasing of material and equipment packages in accordance to
PETRONAS Tenders and Contracts Administrative Procedure Manual for Upstream
Procurement Activities.

4.5.2 PS Contractor shall prepare and review the overall contracting strategy with
PETRONAS at the earliest opportunity and submit to PETRONAS Central Tender
Committee for approval, prior to executing other contracting activities.

4.6 HEALTH, SAFETY AND ENVIRONMENT (HSE)

4.6.1 HSE management system is required to ensure project activities are undertaken in a
safe risk-controlled environment. This HSE management system is to complement
other project management systems and to focus on key safety and project risks.

4.6.2 PS Contractor shall establish the project HSE management system in full compliance
with Malaysian law and regulations as per Volume 2 and be consistent with
PETRONAS HSE requirements.

4.6.3 In accordance to the Protected Areas and Protected Places Act 1959, PS Contractor
shall apply for facilities gazzettement within six months after installation of the facilities
by submitting the required information and documentations as per Appendix 1.4 of
PPGUA Section 1: Guidelines for Health, Safety and Environment. This gazzettement

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also applies to floating storage facilities i.e. FSO and FPSO. Further details on the
application process shall be referred to Appendix 1.4 and Appendix 1.5 of the Section
1: Guidelines for Health, Safety and Environment.

4.7 PROJECT QUALITY ASSURANCE (QA)

4.7.1 QA management system is required to achieve project quality. The system should be
consistent with ISO 9000 standards or equivalent.

4.7.2 PS Contractor shall develop Project Quality Plan to drive the QA aspects for all phases
of the project. As a minimum it should: -
identify the critical systems and activities
define the standards, control, performance indicators and documentation, and
schedule of audits and reviews

4.7.3 PS Contractor shall invite PETRONAS participation in the audit and/or review exercise
as a full-time member. PS Contractor shall give a written notification to PETRONAS
two (2) weeks before the audit and/or review exercise.

4.8 REPORTING AND DOCUMENTATION

4.8.1 PS Contractor shall submit the project progress status reports to PETRONAS on
weekly or fortnightly and monthly basis with the following objectives but not limited to:
identify the current status of work
compare actual achievement vs. plan
highlight critical issues and major areas of concern
facilitate effective management control and corrective action
S-curves for cost and schedule comparing actual achievement vs. plan
(monthly report only)

SECTION 4
MANAGEMENT
Page 54

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

4.8.2 PS Contractor shall submit the following reports and documents to PETRONAS as and
when available as per Table 4.8.2 below:

Table 4.8.2: Reports and Documents Submission to PETRONAS

No Documents Information Review Approval
Submitted
to
1
FDP Feasibility study
report (as request)
X GM-PRD
2
Field Development Plan
(FDP)
X X GM-PRD
3
Basis for Design (BFD) /
Project Development
Memorandum (PDM)
X X GM-PRD
4
Project Specification
(Conceptual Design
Report Summary) /
Design Basis
Memorandum (DBM)
X X GM-PRD
5
Project Execution Plan
(PEP) (including
updates)
X X GM-PRD
6
Management Review
Report / Independent
Project Review Report
for Conceptual Design
(executive summary
only)
X GM-PRD
7
Management Review
Report / Independent
Project Review Report
for Detailed Design
(executive summary
only)
X GM-PRD
8
Pre start-up HSE Audit /
Independent Project
Review Report
(executive summary
only)
X

GM-PRD

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MANAGEMENT
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SUPERSEDE ISSUE:
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ISSUED BY
REVISION 2
AUG 2008

No Documents Information Review Approval
Submitted
to
9
Project Close Out
Reports (Final report and
drilling report submission
is three months after
project completion and
90 days after drilling
completion, respectively)
X
GM-PRD

10
HSE / Technical Audit
Reports (on request)
X POM
11
HAZOP, Special Studies
Reports (on request)
X POM
12
As built drawing (as part
of Project Close Out
Report)
X POM

Note: 1) For items currently identified under review column, with exception of FDP, the works can
progress unless otherwise directed by PETRONAS.

4.8.3 Refer to the PPGUA Section 17: Guidelines for Data Management and Submission
Requirement for detailed documents submission requirements.
4.9 PROJECT PERFORMANCE

4.9.1 PS Contractor shall submit to PETRONAS on the relevant Key Performance Indicators
(KPIs) for the development project in accordance with PETRONAS Work Procedure or
Guidelines For Processing WP&B. The relevant Key Performance Indicators (KPIs)
shall be submitted as part of WP&B submission.

4.9.2 PS Contractor shall present the project progress performance of the development
project during the quarterly Operations Committee Meeting (OCM).

SECTION 4
MANAGEMENT
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SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

4.10 WORK PROGRAMME AND BUDGET (WP&B)

4.10.1 PS Contractor shall submit to PETRONAS for approval of the annual Work Program &
Budget (WP&B) and revisions for the development projects and upgrading projects in
accordance with the PETRONAS Work Procedure or Guidelines for Processing
WP&B.

4.11 REGULATORY REQUIREMENTS

4.11.1 For all development projects within the Exclusive Economic Zone (EEZ), PS
Contractor shall ensure compliance with the relevant regulatory requirements as
details in Appendix 4.2 of the PPGUA: List of Governmental Permits, Approvals and
Notifications for Offshore Facilities for Development projects (By Phases).

4.11.2 PS Contractor shall comply with the relevant local authorities requirements. These
regulatory requirements do not apply to cross-border pipelines.

4.11.3 PS Contractor shall adhere to all the Malaysian law and regulatory requirements that
are applicable to the project development.


SECTION 5
PROCEDURES FOR DRILLING OPERATIONS
Page 57

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

SECTION 5

Executive Summary
PS Contractor shall comply with the following procedures in conducting Drilling Operations in
accordance to the Production Sharing Contract. These procedures may be added to or amended
from time to time upon written notice by PETRONAS and provided such additions or amendments
are consistent with the provisions of the Production Sharing Contract. In adding to or amending the
procedures, PETRONAS shall consider the incremental expenditures which may be required to be
incurred by PS Contractor in complying with the amended procedures
PS Contractor may request exception of exemption to these procedures and exception or
exemption may be granted when PETRONAS and PS Contractor agree that safety, efficiency and
prudent practice are nevertheless served.

SECTION 5
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SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

5.1 DEFINITIONS
5.1.1 General
The terms defined in Production Sharing Contract dated shall have the same meaning
in these procedures.

5.1.2 Specific
In these procedures, terms and expressions not specifically defined below shall have
the sense and meaning commonly attributed to them in the oil and gas exploration and
production industry unless the context requires otherwise:-
1. Conductor Casing means the first casing string set in the order of normal
installation to support unconsolidated deposits and to provide hole stability for
initial drilling operations which shall also include stove pipe, marine conductor
and foundation pile. (Refer to 5.3.3.2 and 5.3.3.3)
2. 'Surface Casing' means casing that is installed in a well to facilitate well
control during drilling of the hole. The casing string is set in the order of normal
installation in a competent bed based upon engineering and geological
factors, including the presence or absence of hydrocarbons, other potential
hazards, and water depths. (Refer to 5.3.3.4).
3. 'Surface Casing' means casing string set in the order of normal installation in a
competent bed based upon engineering and geological factors, including the
presence or absence of hydrocarbons, other potential hazards, and water
depths. (Refer to 5.3.3.4)
4. 'Intermediate Casing' means the string or strings of casing set after the
surface casing in the order of normal installation to protect against anticipated
pressures, mud weight, sediment, and other well conditions. The setting
depth for this casing is normally based on the pressure test of the exposed
formation below the surface casing shoe. (Refer to 5.3.3.5)

SECTION 5
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SUPERSEDE ISSUE:
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ISSUED BY
REVISION 2
AUG 2008

5. 'Production Casing' means a string of casing which is set for the purpose of
completing the well for production. (Refer to 5.3.3.6)
6. 'Coiled-Tubing Operations' means operations using spooled non-jointed pipe
through the wellhead and well tubing.
7. 'Conventional Core' means a formation core that is cut by rotary coring
techniques.
8. 'Diverter' means a device for the purpose of diverting the uncontrolled flow of
fluid from the well bore.
9. 'Drilling Base' means a stable foundation that may be the ground surface or an
artificial island upon which the drilling rig is installed in order to conduct drilling
and related operations. A fixed production platform on which there are no
drilling operations shall be excluded.
10. 'Drilling Programme' means the programme for the drilling of one
specific well.
11. 'Drilling Sequence' means a programme for the drilling of one or more wells as
presented in the annual Work Programme and Budget and its subsequent
revisions.
12. 'Drill Stem Test' means a test that is performed by allowing formation fluids to
flow to the surface through the drill pipe or test string. It is normally used for
determination of well productivity.
13. 'Drilling Unit' means a drill ship, submersible, semi-submersible, barge, jack-
up, land rig or other vessels used in a drilling programme and includes a
drilling rig and other related facilities installed on a vessel.
14. 'External Hazard' means environmental conditions occuring on the drilling unit
or drilling base which threaten the safety of the operation.

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ISSUED BY
REVISION 2
AUG 2008

15. 'Kick' means influx of wellbore fluid into the wellbore and possible loss of
primary control of the well which can be controlled by secondary control
(BOP's).
16. 'Liner' means a string of casing installed inside a casing string or another liner
and lapped back inside the previous casing or liner for at least 30 meters. A
liner may be used as a drilling liner or production liner. A liner may also be
tied back to surface if required in which it will be regarded as a production
string.
17. 'Lubricator assembly' means a setup consisting of wireline BOP, a riser
assembly with a bleed valve, and a wireline packoff.
18. 'Major Workover Operations' mean remedial operations performed with the
X'mas Tree removed and blowout preventers installed.
19. 'Minor workover Operations' mean remedial operations performed with the
wellhead valve assembly installed.
20. 'Offshore Well' means a well drilled from offshore drilling base or drilling unit.
21. 'Oil Spill' means any unexpected loss of crude oil, condensate or hydrocarbon
containment that reaches the environment, i.e water or land irrespective of
quantity recovered.
22. 'Open Hole' means a well bore or portion of a wellbore that is not protected by
casing.
23. 'Small-Tubing Operations' means operations using jointed pipes through the
wellhead and well tubing.
24. 'Snubbing Operations' mean operations using jointed tubing or drill
pipe and a snubbing unit under pressure conditions, either through the
wellhead valve assembly and well tubing of a completed well or through the
blowout preventers and wellbore of a conventional operation.

SECTION 5
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SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

25. 'Shooting Nipple Assembly' means wireline packoff and a riser assembly held
in place by blowout preventers.
26. 'Spud-In' means the initial penetration of the ground or sea floor for the
purpose of drilling a well.
27. 'Stripping Operations' mean operations which require manipulation of the drill
string or workstring through blowout preventers, under low or moderate
pressure, without the use of a snubbing unit.
28. 'Waste Material' means refuse, non-biodegradble garbage or any other
useless material generated during drilling and related operations excluding
fluid and drill cuttings.
29. 'Well Material' means any formation or reservoir material obtained from a well
and includes cuttings, cores or fluids.
30. 'Well Suspension' means the temporary cessation of drilling/completion
activities (waiting for final completion or abandonment).
31. Non FDP wells are those wells which are not included in the original
approved FDP and require additional approval from PETRONAS. A minimum
of 14 days notice should be given prior to spudding the well.
5.1.3 Abbreviations

1. API - American Petroleum Institute
2. BOP - Blowout Preventer
3. ESD - Emergency Shutdown
4. H
2
S - Hydrogen Sulphide
5. PETRONAS - Petroleum Nasional Berhad
6. ppm - part-per-million
7. RP - Recommended Practices
8. SCSSV - Surface Controlled Subsurface Safety Valve

SECTION 5
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SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

9. SSSV - Subsurface Safety Valve
10. SSV - Surface Safety Valve
11. FDP - Field Development Plan

5.1.4 Cross Reference Procedures

These procedure need to be cross referenced with other relevant sections i.e.
Guidelines for Health, Safety and Environment (Section 1), , Guideline for
Decommissioning of Upstream Installation (Section 16) and Guideline for Data
Management and Submission (Section 17)

5.1.5 Official correspondence

Please refer to Appendix 5.1, 5.2 and 5.3

5.2 DRILLING PROGRAMME APPROVAL

5.2.1 Notification

PS Contractor shall notify PETRONAS in the Work Programme and Budget and
subsequent revisions of its intention to undertake any particular Drilling Campaign.

5.2.2 Wellsite Survey and Shallow Hazard Report

PS Contractor shall conduct high-resolution geophysical site surveys to determine the
existence of shallow gas, near-surface faulting, slumping, unusual bottom features,
and other potential shallow hazards prior to the commencement of drilling operations.
Remote sensing tools normally utilised in conducting such surveys shall include side-
scan sonar, sea-bottom profiler and other shallow seismic instrument. Survey line
spacings shall be a maximum of 250 meters apart in a 1-square-kilometer area
centered on the wellsite. If in the opinion of the PS Contractor, surveys exist for a
location nearby to the proposed location which can be taken as representative of the
new location, or if extensive experience in a local area has shown that such surveys

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SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

are not required, then additional surveys will not be required. As and when requested
such geophysical site surveys and shallow hazards reports shall be submitted to
PETRONAS.

For deepwater operations, hazards such as shallow gas, shallow water flows,
hydrates, and expulsion features should be evaluated. 3D seismic or other imaging
methods may be used in lieu of conventional shallow seismic, as appropriate.

5.2.3 Well Positioning

5.2.3.1 Pre-survey Preparation

PS Contractor shall notify PETRONAS on the proposed well location as per
PSC requirement.

5.2.3.2 Positioning Operations

PS Contractor to ensure the safety of pipelines and cables underlying subsea
and perform pre-spud and final post-spud verifications

5.2.3.3 Post-positioning Works

PS Contractor shall submit to PETRONAS a full operation report when
available. The report shall be in hard copy or acceptable electronic format.

5.2.4 Notice of Operations

For Non FDP wells the Notice of Operations' shall be submitted in advance for
approval at least 14 calendar days prior to spud in date. Pre spud meeting/drill on
paper shall be conducted prior to drilling execution. For FDP wells, the 'Notice of
Operations' shall be submitted for information in hard copy and acceptable electronic
format. The 'Notice of Operations' shall contain but not limited to the following
information:-
a) Objectives of the well;
b) Location map;

SECTION 5
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SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

c) Prognosis cross-section;
d) Depth of well and proposed completion target;
e) Directional drilling plan;
f) Casing programme and Casing design criteria;
g) Mud and cement plan;
h) Bit selection and hydraulic programme (for each hole size);
i) Well logging, coring and other formation evaluation programme;
j) Estimated formation pressure and fracture gradient;
k) Anticipated problems and drilling hazards;
l) Estimated detailed cost breakdown (refer Appendix 5.4);
m) Estimated depth vs days and depth vs cost chart.
n) Name and type of drilling unit
o) Contingency plan (for operational problem)
p) Propose full P&A with drawing for exploration, appraisal wells and
suspended well
q) Well Schedule
During the execution phase, if PS Contractor anticipates there will be a potential cost
overrun of 10% from the approved cost or NPT more than 50 hours, PS Contractor
shall give notice to PETRONAS. In addition, if the above well has been completed, PS
Contractor shall submit and present the case to PETRONAS.

5.2.5 Variations

PS Contractor may implement variations or deviation to the drilling programme as he
deems operationally necessary or desirable to achieve the agreed objectives of the
well in an efficient and safe manner, however prior PETRONAS approval is required.
PETRONAS may require PS Contractor to show that specific equipment or procedures
are consistent with the interests of safe and efficient operations. Contractor shall

SECTION 5
Page 65

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

modify or replace any equipment or alter any procedure that cannot be shown to be
safe. PS Contractor shall install new equipment or initiate new procedures if
necessary to conduct safe operations.

Notwithstanding the above, during an emergency or contingency, procedures or
equipment may be altered without prior consent of PETRONAS and in such cases,
PETRONAS shall be notified forthwith of the alterations and of the underlying
circumstances. For Emergency cases within 24 hours refer to operations (all cases,
notification shall be done within the next working day).

5.2.6 Drilling Base or Drilling Unit Design

PS Contractor shall submit, upon the request of PETRONAS, copies of valid approvals
or certificates from a recognised certification body to demonstrate that the proposed
drilling programme can be safely executed by the drilling unit with a view to stability,
operating limits, structural strength, fatique, etc., during the course of all anticipated
combinations of environmental and functional loading operations.

In the event that weather forecasts predict conditions during which normal drilling
operations could not continue, PS Contractor shall take necessary actions to interrupt
drilling operations in time, so that the safety of the well and drilling unit shall not be
affected.

5.2.7 Support Craft

5.2.7.1 General

Service, supply and survey craft participating in a drilling programme,
including vehicles, aircraft, standby craft and vessels, shall be designed and
constructed to operate safely and to provide safe and efficient support for all
drilling and related operations for which the craft are engaged, and the PS
Contractor shall, upon request, demonstrate to the satisfaction of PETRONAS,
that support craft are capable of safely operating in the environmental

SECTION 5
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SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

conditions prevailing in the area of drilling operations.(PS Contractor shall
make reference to its own internal guideline wrt technical specification)
5.2.8 Equipment and Provision

5.2.8.1 General Requirements

The drilling rig and support craft shall be properly equipped to safely and
efficiently conduct all operations involved in carrying out the proposed drilling
programme. Provision shall be made to provide adequate support for the
drilling programme and such support shall include transportation facilities,
supplies, accommodation for personnel, first aid facilities, storage and repair
facilities and communication systems.

PS Contractor shall, upon request by PETRONAS, submit sufficient
information to demonstrate that the drilling rig is properly equipped and that
adequate provisions have been made to assure compliance with Section
5.2.8.2.

5.2.8.2 Drilling Unit Ancillaries

5.2.8.2.1 Pollution Prevention

The drilling unit shall be adequately equipped with facilities to prevent,
reduce and control pollution of the marine environment in accordance and
compliance with the regulations as stipulated in the applicable Malaysian
laws. All decks or equipment containing contaminants which are
associated with drilling operations shall be equipped with curbs, gutters,
drip pans and drains which shall be installed, where possible, to collect all
contaminants and piped to a collecting tank or sump, with safeguards for
overflow, to be disposed of later in a manner not in contravention to the
applicable Malaysian laws.

SECTION 5
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SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

5.2.8.2.2 Pressure Systems

Steam systems, pressure vessels, hot water boilers and steam generators
shall be designed, constructed and inspected in accordance and
compliance with widely recognised industry codes.
5.2.8.2.3 Helideck on Drilling Units

If the drilling unit is equipped or required to have a helicopter deck, it shall
be:-

a) of adequate size and structural strength to accommodate the sizes
and types of helicopters to be used;
b) located so as to provide an approach/departure sector of at least 180
degrees or higher free of obstruction;
c) equipped with operable lights commonly used on heliports;
d) equipped with a non-skid deck surface and safety nets around the
perimeter;
e) provided with access gangways; and
f) provided with a coaming which shall contain any fuel spill from a leak
in the helicopter fuel tanks if such tanks are installed above decks and
with a drainage system which shall conduct such a spill away from the
drilling unit.
g) Helicopter crash box shall be provided at the access to the helideck.

5.2.8.3 Drilling Rigs

5.2.8.3.1 General Arrangement Drawings

Upon request by PETRONAS, PS Contractor shall submit dimensional
layouts and drawings of the drilling rig and camp. Upon request by

SECTION 5
Page 68

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

PETRONAS, PS Contractor general arrangement drawings for all surface
and subsea equipment on the drilling unit which shall include:-
a) arrangements of drill floor, cellar deck, spider deck, moonpool areas
and their associated equipment;
b) arrangements of drilling fluid tanks, high and low pressure drilling fluid
and cement slurry systems and bulk transfer system
c) arrangement of all surface and subsea well control systems including
arrangement of choke manifold, testing and flaring systems;
d) arrangement of other pressure systems; and
e) the position and type of all life-saving appliances, fire extinguishing
and protection systems, fire stations and appliances, navigational
safety appliances and alarm systems.
5.2.8.4 BOP Equipment

Appropriate well control equipment shall be installed, maintained and tested to
ensure well control in the course of normal safety drilling. The working
pressure of such equipment shall exceed the maximum anticipated surface
pressure to which it may be subjected. (refer to Sec 5.3.5.1 BOP Equipment
for detail).

5.2.8.5 Weather Data Recordings

If a Master Weather Station is not available to support any drilling operations,
the drilling location shall have facilities, equipment or knowledgeable
personnel to observe, measure and record the weather and sea conditions
within the accuracy of the available equipment or observation techniques.

5.2.8.6 Protection against External Hazards

PS Contractor shall take precautions necessary to protect personnel and
equipment from the external hazards of air and marine navigation and
weather.

SECTION 5
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AUG 2000
ISSUED BY
REVISION 2
AUG 2008

A red aircraft warning light of at least 50 candelas shall be mounted at the top
of the derrick so as to be visible from all directions.

Drilling units and support craft shall have navigational safety and marine aids
which shall meet, as a minimum, the requirements of the classification bureau;
and for aircraft, the civil aviation regulatory authority.

Drilling units shall have emergency equipment and life-saving devices
sufficient to permit the escape of all personnel under all conditions. The
classification bureau shall be applied as minimum requirements.

5.2.8.7 Personnel Safety and Welfare

5.2.8.7.1 Safety Guards and Exits

The drilling unit shall be equipped with safety guards on all potentially
dangerous or moving parts of machinery and with guard rails around
the perimeter of the drill floor, deck areas, walk-ways, stairs and any
other working area where persons may fall more than 1 meter. The
derrick floor shall have at least two exits and preferably one each on
opposite sides of the drill floor.

5.2.8.7.2 Derrick Escape

When a person is required to work in the derrick as part of normal
drilling operations, an escape device acceptable by general industry
practices, shall be provided from the working platform in the derrick.
Persons required to work on the derrick or at a height of 2 meters or
higher, shall wear safety belts complete with tail rope having adequate
length and strength. PS Contractor shall ensure that such safety belts
are provided at all times on the derrick.

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SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

5.2.8.7.3 Rotary Tongs

All make-up and breakout rotary tongs shall have suitable back-up
lines made from flexible wire rope and tied down to a post having the
rigidity to withstand maximum tong line pull.

5.2.8.7.4 Medical Facilities and Provisions

An adequately equipped and supplied first aid room shall be provided
at the rig site.
A drilling unit shall have a sick bay which is easily accessible and is
equipped and supplied to handle all minor industrial accidents. The
facilities in the sick bay shall include first aid and resuscitation
equipment and shall have at least one bed for every 50 person or
portion thereof. Detailed requirements are as per PETRONAS
Guidelines for Barges Operating Offshore Malaysia (Section 7)

5.2.8.8 Electrical Installation

5.2.8.8.1 Equipment and Standards

Electrical equipment on drilling unit shall conform at least to API RP
500B. 'Recommended Practice for Classification of Areas for
Electrical Installations at Drilling Rigs and Production Facilities on
Land and on Marine Fixed and Mobile Platforms'.

All electrical systems so designed and installed shall be grounded and
shall be able to operate safely under hazardous conditions that may
occur in the vicinity of the equipment.

Electrical equipment on a drilling unit which is installed in drilling areas
defined as Division I and Division II containing atmosphere listed
under Class I, Group D, classification of the API RP 500B shall be
explosion proof.

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AUG 2000
ISSUED BY
REVISION 2
AUG 2008

An emergency shutdown switch, capable of shutting down all
electrical equipment and power plants shall be provided at a minimum
of two control stations on the drilling unit.

5.2.8.8.2 Lighting

Adequate lighting shall be provided in all working areas inside and
outside of the drilling rig and emergency lighting shall be provided for
the proper illumination of vital areas such as control stations, drilling
rig and well control equipment, stairways, exits, machinery areas,
emergency generator area; and in the case of an offshore drilling unit;
boat stations, passage ways and navigation control area.

5.2.8.8.3 Emergency Electrical Power Supply

An independent emergency electrical power supply system capable of
supplying sufficient power in the event of failure in the primary power
supply shall be available to the drilling rig:-

a) to secure well; and
b) for the operation of warning, lighting (in areas identified in
Section 5.2.8.8.2), alarm, communication and fire
extinguishing systems.
A drilling unit shall be equipped with an independent emergency
electrical power supply system consisting of:-

i) a prime mover and generator complete with a fuel supply for
a minimum of 24 hours and capable of supplying sufficient
power for navigation lighting and warning systems;
emergency lighting in areas identified in Section 5.2.8.8.2;
alarm and communication systems; pumps that are essential
for maintaining the trim of the vessel; abandonment systems

SECTION 5
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SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

when dependent on electrical power; and fire extinguishing
systems; and
ii) Storage batteries capable of supplying sufficient power to
operate for 3 hours the communication system, the navigation
and obstruction lights, aircraft warning lights and emergency
lighting in areas identified in Section 5.2.8.8.2.
5.2.8.9 Forced Air System and Ventilation

5.2.8.9.1 Hazardous Area

The hazardous areas on the drilling unit shall be in accordance with
API RP 500B.

5.2.8.9.2 Ventilation

Enclosed areas in the vicinity of the BOP stack and mud tanks and all
enclosed working and living areas on the drilling base or drilling unit
shall be properly ventilated or pressurized.

5.2.8.9.3 Engines and Motors

Engines, generators and motors located within any area as
designated in Section 5.2.8.9.1 shall have their air intakes located in a
non-hazardous area or the intakes shall be equipped with device to
automatically or manually shutdown the diesel engine in the event of
run away.

All fans and blowers located inside rooms containing engines, boilers,
mud pumps or mud tanks and all fans used for ventilating such rooms
shall be equipped with remote shut-off switches. Air intakes and
exhausts for machinery spaces shall be capable of being closed.

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ISSUED BY
REVISION 2
AUG 2008

5.2.8.9.4 Exhaust Pipes

Exhaust pipes from internal combustion engines and gas turbine
plants shall be provided with proper flame and/or spark arrestors and
shall be equipped with water cooled exhaust manifold or be insulated
to prevent ignition of combustible gases and be safely vented to the
atmosphere in a non-hazardous area.
5.2.8.10 Fire Protection

5.2.8.10.1 Fire fighting equipment

Fire fighting equipment shall be provided and maintained at every drill
site to combat all classes of fires.
Each drilling unit shall:-

a) have appliances whereby at least two jets of water, each of
200 litres/minute (53 gal/min.) at a minimum pressure 275
kPa (40 psi) can be rapidly and simultaneously directed into
any part of the unit's sub structure at least one of which shall
be from a single length of hose; such appliances shall include
at least two power driven pumps located separately and at
least three fire hoses; in any case at least one fire hose shall
be provided for every 30 meters in length of the unit or
fraction thereof.

b) be readily accessible :-
i) at least two proximity fire fighting suits;
ii) Four self-contained portable breathing devices; a suitable
water supply source of sufficient capacity to assure a
supply of water adequate for a minimum of 15 minutes
with two jets in operation simultaneously at the rate
specified in (a) and that is connected to two fire pumps; is

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ISSUED BY
REVISION 2
AUG 2008

equipped with a low level alarm and an adequate and
reliable means of replenishing water at a greater rate than
the minimum rate of fire pumping capacity.
Notwithstanding the above, PETRONAS may require additional fire
fighting equipment to be installed if such equipment is considered
necessary.

5.2.8.10.2 Fire Alarm Systems

A drilling unit shall be equipped with a fire alarm system that includes
detectors located:-
a) in engine rooms;
b) in the boiler rooms;
c) in paint lockers;
d) in pump and mud tank rooms; and
e) in the accommodation
and which is capable of automatically sounding an alarm and
indicating on a panel the location of the fire.

5.2.8.11 Diving

An offshore drilling unit if required shall be equipped with diving apparatus
suitable for the working depths, whenever it is anticipated that the drilling
operations shall require assistance by divers based on the rig and in
accordance with Guidelines for Health, Safety and Environment (refer to
Section 1)

5.2.8.12 Gas Detection System

A drilling unit shall be equipped with gas detection systems of approved type
that can monitor continuously at locations where there can be an accumulation

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of combustible vapors or gas and in accordance with Section 5.11.5 of this
procedure.

5.2.9 Personnel

PS Contractor shall require that a crew of sufficient number as determined by general
industry manning levels and with adequate training is available for the operation of all
equipment prior to activation of that equipment and that all crew members have or are
receiving training relevant to their duties.

5.2.10 Emergency Shutdown (ESD)

One ESD control station, at a minimum shall be located at the drillers console during
all well operations. Units without drillers console shall have readily accessible ESD
stations.

5.3 TECHNICAL REQUIREMENTS FOR DAILY OPERATION

5.3.1 General Provisions

All wells drilled under the provisions of these procedures shall have been included in
the Original Work Programme and Budget or its subsequent Revision. PS Contractor
shall comply with the following requirements:-

5.3.2 Moving and Positioning Drilling Units

5.3.2.1 General Provisions

A drilling unit shall not be moved to a different well location and anchors shall
not be set or retrieved, if weather or sea conditions are such as to threaten the
safety of operations or personnel. Drill pipe, drill collars, marine risers and
other equipment stored on deck, which may shift during a move, shall be
securely tied down before commencing the move. Anchor buoy and pennant
lines shall be securely fastened to the bulwark or deck railings.

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5.3.2.2 Anchor Testing For Drilling Units

When anchors are used for holding the unit on position at the wellsite, the
anchor lines and anchors shall be tested to the maximum anticipated tension
prior to drilling out of the structural casing. If this tension cannot be obtained,
PS Contractor shall take the necessary remedial action.
5.3.2.3 Bottom Supported Units

In areas of known scouring due to bottom current or tide actions and where
the drilling unit is bottom-supported, the mat, the legs, faulting, hull or piles,
surrounding sea floor shall be inspected regularly. If scour or fill of sea floor
sediments or any other condition, likely to threaten the stability of the drilling
unit, is evident, measures shall be taken without delay to protect the safety of
the unit and the personnel onboard.

When the drilling unit is bottom-supported, the unit shall not be raised or
lowered, if weather or sea conditions are such in the mutual opinion of the
barge engineer, rig mover and insurance representative, as to cause undue
risk for the safety of the personnel, operations and drilling unit.

5.3.2.4 Diving Operations

Diving operations shall be undertaken only when in the opinion of the diving
supervisor, sea and weather conditions permit these operations to be
conducted safely and while they are being conducted, no other operations
which may adversely affect the safety of the operations shall be conducted.
Diving equipment shall be properly maintained and checked at the surface
before commencing any diving operations and each diver shall maintain a
personal log book detailing his dives and medical history.

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5.3.3 Casing and Cementing

For the purposes of this procedure, the casing strings in order of normal installation
are: drive pipe or structural casing, stove pipe or marine conductor, foundation pile,
surface casing, intermediate casing and production casing.


All casings shall meet API or ISO quality standards.

5.3.3.2 Drive or Structural Casing

This casing shall be set in a competent bed, with the objective of obtaining
drilling fluid returns to surface. Normally such setting depth will be 30 meters
or more below the sea floor.

However, the presence of abnormally strong formations may permit the setting
of the this casing at a depth shallower than theoretically required.

If this portion of the hole drilled, it shall be cemented with a quantity of cement
sufficient to fill the calculated annular space back to the sea floor.

5.3.3.3 Conductor Casing

The initial conductor casing string shall be set in a competent formation
(normally between 150 meters and 300 meters TVD below the sea floor) and
shall be based upon relevant engineering and geologic factors including the
presence or absence of shallow gas, potential hazards and water depth. In
cases where the conductor casing is set deeper than 300 meters below sea-
bed and BOP pressure control is considered while drilling below the conductor
casing shoe, a formation pressure integrity test shall be performed as required
under Section 5.3.7, Formation Intergrity Testing.

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The initial casing string shall be cemented with a quantity of cement sufficient
to fill the calculated annular space back to the sea floor. If cement returns
cannot be verified or confirmed, an excess volume of cement shall be used to
ensure fill to the sea floor or surface.

The excess volume shall be as specified in Section 5.3.3.10 or based on field
experience. The cement may be washed out to a depth not exceeding the
depth of the structural casing shoe to facilitate casing removal upon well
abandonment.

Conductor casing may be eliminated at specific well locations if at least one
well has been drilled adjacent to the specified well location and well logs and
mud monitoring procedures demonstrate the absence of shallow
hydrocarbons or hazards. If shallow hydrocarbons are present and PS
Contractor can exhibit that the well can be safely drilled without a conductor
casing being set, then the conductor casing may be eliminated with prior
approval from PETRONAS.

For deepwater operations, conductor casing may be eliminated if geological
factors, shallow hazards, and well structural integrity are maintained.

5.3.3.4 Surface Casing

Surface casing setting depths shall be based upon relevant engineering and
geologic factors, potential hazard, presence and absence of shallow gas
(normally between 450 meters TVD and 1400 meters TVD below the sea
floor). Surface casing may be set at a depth where the formation strength is
sufficient to support the programmed mud gradients for the next section of the
hole and here the well control integrity can be provided until the next string of
casing is set.

Surface casing shall be cemented with a calculated volume of cement
sufficient to fill the annular space to 150 meters above the highest
hydrocarbon sand in the open hole, or if none are present, then to at least 150

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meters above the surface casing shoe. In the absence of a conductor casing
string, the surface casing shall be cemented to surface.

After drilling out the surface casing shoe, a formation pressure Integrity test
shall be performed as required under Section 5.3.7, Formation Pressure
Testing.

5.3.3.5 Intermediate Casing

One or more strings of intermediate casing shall be set when required by
anticipated pressures, mud weight, sediment, and other well conditions. The
proposed setting depth for intermediate casing shall be based on the
formation strength below the surface casing shoe or previous intermediate
casing string.

Intermediate casing shall be cemented with a calculated volume of cement
sufficient to fill the annular space in the open hole to 150 meters above the
highest hydrocarbon or freshwater bearing sand, or if no hydrocarbon are
present, then to at least 100 meters above the previous casing shoe.

If the intermediate casing is a liner, a minimum liner lap of 30 meters above
the previous casing string shoe shall be applied. The liner lap shall be tested
to determine whether a seal between the liner top and the next larger string
has been achieved. This requirement may be waived if the completion interval
is above top of cement (TOC).

For deepwater wells where no hydrocarbon are present, the Top of Cement
can be kept below the surface casing shoe to prevent excessive annular
pressure (due to thermal expansion) from causing failure to the surface or
intermediate casing strings.

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5.3.3.6 Production Casing

This string shall be set before completing the well for production. A calculated
volume of cement sufficient to fill the annular space at least 150 meters above
the uppermost hydrocarbon zone shall be used. When a liner is used as
production, it shall be lapped a minimum of 30 meters into the previous casing
string, and the seal between the liner top and the next larger string shall be
tested.

A float collar or other means of preventing backflow of the cement plug during
cementing shall be inserted in the casing string at a distance at least 10
meters above the float shoe. The lowest two joints of the casing shall be
properly centralised and made up with thread locking compound.

5.3.3.7 Pressure - Testing of Casing

After cementing, all casing strings shall be tested to the minimum pressures
shown below :

Cemented Conductor.................. 1400kPa(200psi)
Surface........................................ 6900kPa(1000psi)
Intermediate, liner ....................... 5kPa/meter(0.73psi/m)TVD,
and production ............................ 10300 kPa(1500 psi)
whichever is greater

However, the test pressure should not exceed 85% of the internal yield
pressure of the casing. The casing shall be pressure tested for 15 minutes,
and if the pressure declines more than 10% remedial action shall be
performed prior to drilling ahead, unless prior approval is obtained from
PETRONAS.

Note: Conductor casing pressure test is waived for deepwater operations

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After cementing any casing string, pressure testing of the casing can be
conducted either upon bumping of the plug or one of the conditions below has
been satisfied :

a) 12 hours have lapsed from the time the cement slurry was in
place, or
b) the tail slurry samples obtained at surface have fully set (rock
hard).

In case of back flow at the end of cementing operations, back pressure should
be applied until cement has set.

Before drilling out of the casing shoe, sufficient time must elapse to allow tail
slurry to attain a compressive strength of at least 3450 kPa (500 psi). The
typical performance data for the particular cement mix used in the well shall be
used to determine the setting time required.

5.3.3.8 Records

The result of all casing pressure tests shall be witnessed by Contractors
Representatives and recorded on the Driller's log. This data shall be made
available upon request by PETRONAS.

5.3.3.9 Cementation

The cementation of surface casing, intermediate casing, production casing
and liner shall be performed by displacement method. Cementation reports
for all individual primary casing cementing operations shall be submitted to
PETRONAS upon request.

For deepwater operations, other industry acceptable cementing methods may
be used such as inner string cementing or simply cementing without the use of
wiper plugs where appropriate

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5.3.3.10 Excess Cement Volume

The volume of cement slurry to be placed in the open hole annulus interval
shall be based on the calculated annular volume using an estimated hole size
plus and excess of cement slurry based on similar field experience or best
practices (debate to include or not), or the following percentages of excess
slurry :-
Structural ..................................... 100% excess
Conductor .................................... 50% excess
Surface......................................... 30% excess
Intermediate or production............ most accurate hole
caliper available + 10% excess
5.3.3.11 Inadequate Cement Job

Where indications exist that cementation quality is such that well safety or
objectives are jeopardized, PS Contractor shall ensure that remedial action is
taken without any delay.

5.3.4 Well Directional Survey

5.3.4.1 Vertical Wells (Inclination 5 )

First surveys shall be taken at depth not greater than 150 m below surface or
mudline. Subsequent surveys shall be taken at 150m intervals but will not
exceed 300m.

Copies of all surveys regardless of their status shall be filed with PETRONAS.
The report shall include but not limited to all tabulation of accumulated
inclination angles, the TVD and vertical section.

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5.3.4.2 Directional Wells (Inclination 5 )

First survey shall be taken at a depth not greater than 60 m below conductor
shoe. Subsequent surveys giving both inclination and azimuth shall be
obtained on all directional wells at intervals not exceeding 150 meters during
the normal course of drilling, i.e tangent sections. Two successive directional
survey readings shall not exceed 30 meters in all programmed angle change
portions of the hole. Anti collision must be taken into consideration.
PETRONAS may require PS Contractor to submit the anti collision guideline
upon request.

However, a survey is not required for open whole sections which shall be
immediately abandoned after evaluation when collision risk does not exist.
Copies of directional surveys report shall be submitted to PETRONAS. The
reports shall include but not limited to the tabulation of the accumulative drift
angles, direction, TVD, vertical section and the rectangular coordinates of
each shot point.

In calculating all surveys, a correction from true north to Universal Transverse
Mercator Grid North shall be made after making the magnetic to true north
correction.

5.3.5 Blowout Prevention

5.3.5.1 BOP Equipment

BOP equipment shall consist of an annular and the specified number of ram-
type preventers. The pipe rams shall be of proper size to fit the pipe in use,
except as provided in Section 5.3.5.4 (b).The working pressure rating of any
BOP component shall exceed the maximum anticipated surface pressure to
which it may be subjected. All BOP systems shall at least conform to API RP
53 (Latest Edition) specification as a minimum requirement.

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5.3.5.2 Auxiliary Equipment

The following auxiliary equipment shall also be provided :-
a) A top kelly cock shall be installed below the swivel and an essentially
full-opening kelly cock, of such design that it can be run through
BOPs, shall be installed at the bottom of the kelly or stand of working
drill pipe. For a manually operated kelly cock, a wrench to fit each
valve shall be stored in a location readily accessible to the drilling
crew ;
b) An inside BOP and an essentially full-opening drill string safety valve
in the open position shall be maintained on the rig floor at all times
while drilling operations are being conducted ; and
c) A safety valve (circulating head) shall be available on the rig floor,
assembled with the proper connection to fit the casing that is being
run in the hole at the time.

5.3.5.3 Surface BOP

The minimum requirements for drilling below the casing strings for
conventional surface BOP stacks are tabulated below :-

Surface BOP Stacks
Drive or structural ............................ 1 - *Diverter
Conductor ............................ 1 - *Diverter
Surface ............................. 1 - Annular
............................. 1 - Pipe Rams
............................. 1 - Blind or Shear Ram
Intermediate ............................. 1 Annular
2 - **Pipe Rams
............................. 1 - Blind or Shear Rams
* The diverter system shall provide as a minimum, an annular preventer,

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with a spool below having two 8-inch or larger diameter lines equipped
with full opening remote control valves in the main and diverter flowlines.
Alternative design employing a single 8 - inch or larger outlet off the
diverter spool may be used for development drilling on platforms. The
diverter lines shall have smooth bends and shall vent in different
directions to permit downwind diversion.
In known areas, for second and subsequent wells from a platform where
electrical logs have proven no hdyrocarbons are present in the hole drilled
below the structural casing, drilling without a diverter may be acceptable.
Similarly after logging in pilot hole has proven no hydrocarbons present,
the diverter may be removed prior to opening hole.
** When a tapered drill string is in use, the following alternatives shall apply:-
a) A set of pipe rams to fit the smaller string of drill pipe and a set of
blind shear rams in lieu of blind rams, installed in the existing BOP
stack ; or
b) Variable bore rams may be fitted in place of one set of pipe rams; or
c) An additional set of BOP equipped with a set of pipe rams to fit the
smaller string of drill pipe.
If repair or replacement of the BOP stack is necessary after its installation,
this work shall be performed after the well has been secured as per PDO
Section 5.7.6.

5.3.5.4 Subsea BOP

The minimum requirements for drilling below the casing strings for subsea
BOP stacks are tabulated below :-

Subsea BOP Stacks
* Riserless
Conductor* ...................... 1 - Diverter on top of riser
Surface ...................... 1 - Annular
...................... 2 - Pipe Rams

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...................... 1 - Blind Shear Rams
Intermediate ...................... 1 - Annular
...................... 2 - Pipe Rams
...................... 1 - Blind Shear Rams

Note:
* Riserless drilling may be considered if no known shallow oil bearing
formations are present or water depth is sufficient to do so, subject to
PETRONAS approval

When a tapered drill string is in use, the following alternatives shall apply:-

a) Variable bore rams may be fitted in place of one set of pipe rams ; or
b) A second annular preventer may be used in lieu of pipe rams to seal the
smaller strings ; or
c) An additional set of BOP equipped with a set of pipe rams to fit the smaller
string of drill pipe.

Subsea BOP stacks shall be equipped with blind shear rams. A subsea
accumulator system or suitable alternate is required to provide fast closure of
the preventers and for cycling all critical functions in case of loss of power fluid
connection to the surface. A fail-safe design shall be incorporated into the
BOP system and shall include dual pod control systems and fail-safe valving
on critical lines and outlets. Prior to the removal of the marine riser for
installing casing, the riser shall be displaced with sea water. PS Contractor
shall ensure that sufficient hydrostatic head exists within the well bore to
compensate for the reduction in head and maintain a safe well condition,
where possible.

If repair or replacement of the BOP stack is necessary after its installation, this
work shall be performed after the well has been secured as per Section 5.7.6.

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5.3.5.5 Subsea BOP Diversion

When the BOP system is on the sea floor, the choke and kill lines or
equivalent vent lines, equipped with necessary connections and fittings, may
be used for diversion in exceptional cases if approved by PETRONAS, or an
annular preventer or pressure rotating pack-off type head, equipped with
suitable diversion lines shall be installed on top of the marine riser. The
diverter shall be equipped with automatic, remotely controlled full opening
valves which open, prior to shutting in the well. 8-inch or larger diameter lines
venting in two different directions to permit downwind diversion shall be
provided.
5.3.5.6 Testing of BOP

5.3.5.6.1 BOP Controls
A minimum of one operable readily accessible remote BOP control station
shall be provided, in addition to the primary BOP control station on the
drilling floor. Accumulators or pumps shall maintain a pressure capacity
reserve at all times to provide for repeated operations of hydraulic BOPs.
The control panel shall be fitted with alarms for low accumulator pressure
as well as for low level in the control fluid reservoir.

5.3.5.6.2 Pressure Tests

Each component of the BOP stack assembly and related control
equipment shall be initially pressure tested to 70% of their rated working
pressure or at least to the maximum anticipated service pressure
whichever is higher. Subsequent pressure test shall be to the maximum
anticipated wellhead pressure. A 500 psi low pressure BOP test shall be
conducted prior to full pressure test. The annular preventer however will
be tested to 10300 kPa(1495 psi) when closed around drill pipe. All
pressure test shall be conducted for at least 15 minutes. All test records
shall be made available upon request by PETRONAS. The annular
preventer shall be tested according to the following guidelines :-

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a) When installed or stump tested prior to installation;
b) Not less than once in 14 days. However, the blind shear rams
may not be tested ; and
c) Before drilling out after each string of casing has been set
and cemented or relevant element and connection to be
tested provided not exceeding 14 days between tests.
d) Following repairs that require disconnecting a pressure seal
in the assembly.
5.3.5.6.3 Actuation

While drill pipe is in use, the following actuation procedures shall be
performed, as a minimum, to determine proper functioning of the BOPs
and control stations:-
a) Pipe rams: Actuated weekly, and after nippling up;
b) Blind shear rams : Actuated whilst drill pipe is out of the hole,
after stack is nippled up, once each trip but not more than
once each day (except for subsea BOPs);
c) Tapered drill string pipe rams: Actuated weekly, and after
nippling up;
d) Annular-type preventer : Actuated on the drill pipe, in
connection with the pressure test, once each week;
e) Actuation of control station shall be alternating between
primary and remote BOP control stations; and
f) Subsea BOPs shall be actuated at least on weekly basis.
5.3.5.6.4 Inspection and Maintenance

All BOP systems and marine risers and associated equipment shall be
inspected and maintained in accordance with the manufacturer's

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recommended maintenance procedures. Inspection of subsea
installations shall be accomplished by the use of ROV, rig camera or
divers. This requirement will be waived for a period not to exceed 4 days
in the event of a ROV or rig camera breakdown.
All supervisory drilling personnel shall be fully familiar with BOP
procedures and the BOP equipment before starting work on the well.

All BOP tests, maintenance and inspection shall be recorded on the
Driller's log.

In all areas where shallow hazards or hydrocarbons are known, seismic
data shall be obtained and a small diameter initial pilot hole of 12-1/4 inch
or smaller size from the bottom of the conductor casing to the proposed
surface casing seat shall be drilled to aid in determining the presence or
absence of these hazards. All seismic data relating to shallow hazards
shall be submitted to PETRONAS.

5.3.6 Mud Programme

5.3.6.1 General Provisions

The characteristics used, testing of drilling mud and the implementation of
related drilling procedures shall be designed to prevent the loss of well control.
Quantities of mud materials sufficient to provide well control shall be
maintained readily accessible for use at all times.

5.3.6.2 Mud Control

Before starting pulling out of the hole with drill pipe, the mud shall be properly
conditioned. Proper conditioning means that :-
a) There is no indication of influx of formation fluids prior to pulling the
drill pipe out of the hole ;

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b) The weight of the returning mud is essentially the same as the mud
entering the hole ; and
c) Other mud properties recorded on the daily drilling log are within the
specified ranges required to drill the hole.
When the mud in the hole is circulated, the Driller's log shall be so noted.
When coming out of the hole with the drill pipe, the annulus shall be filled with
mud to ensure sufficient over balance (at least 0.3 lbs/gal or 100 psi) which
ever is less is maintained at all time.
For deepwater operations where narrow margins prevent a 0.3 lb/gal or 100
psi overbalance, other methods, such as pumping out of hole, reduced tripping
speeds and increased frequency of flow checks should be employed to
maintain well control.
A device for measuring the amount of mud to fill the hole shall be used. If
there is at any time an indication of swabbing or influx of formation fluids, the
necessary safety devices and action shall be employed to control the well.
The mud in the hole shall be circulated or reverse circulated prior to pulling
drill-stem test tools from the hole.
The hole shall be filled by accurately measured volumes of mud. The
following information shall be posted near the driller :-
d) The number of stands of drill pipe and drill collars that may be pulled
between the times of filling the hole.
e) The number of barrels and pump strokes required to fill the hole for
the designated number of stands of drill pipe and drill collars.
f) For each casing string, the maximum pressure that can be contained
under the BOPs before controlled bleeding off excess pressure
through the choke. Drill pipe pressure shall be monitored when
bleeding off pressure for well control.
g) Where continuous fill trip tank equipment is used only the number of
barrels required to fill the hole per stand of drill pipe or drill collars and
the maximum allowable casing pressure need be posted.

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An operable degasser shall be installed in the mud system prior to
commencement of drilling operations. It shall be maintained for use
throughout the drilling and completion of the well.

5.3.6.3 Mud Test Equipment

Mud testing equipment shall be maintained on the drilling rig at all times, and
mud tests shall be performed once every 12 hours or more frequently as
conditions warrant.

Such tests shall be conducted in accordance with procedures outlined in API
RP 13B, latest revision, or other relevant codes and the results recorded and
maintained at the drill site. The following mud system monitoring equipment
shall be installed with derrick floor indicators and used at the point in the
drilling operations when mud returns are established and throughout
subsequent drilling operations.
a) Recording mud pit level indicator to determine mud pit volume gains
and losses. This indicator shall include a visual and audio warning
device ;
b) Mud-volume measuring device for accurately determining mud
volumes required to fill the hole on trips ;
c) Mud-return indicator to determine that returns essentially equal the
pump discharge rate; and
d) Gas-detecting equipment to monitor the drilling mud returns.

5.3.6.4 Mud Quantities

Sufficient drilling mud materials shall be stored at the drilling base or drilling
unit to meet any normal and foreseeable emergency conditions.

Subject to the above, and taking into account the availability of the mud
storage capacity of the drilling base or drilling unit, the minimum quantities of
mud materials required shall be based on the following :-

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a) The quantity of the mud materials shall be based on renewing a
volume of the calculated capacity of the active mud system.
b) The quantity of the weighting material shall be based on the amount
required to increase the mud density of the active mud volume to
overcome the highest anticipated formation pressure.
When the mud quantity required exceeds the storage capacity of the drilling
base or drilling unit, the Contractor must demonstrate that the mud inventories
on hand are sufficient to maintain well control until additional quantities can
be delivered to the well site.

Drilling operations shall be suspended in the absence of minimum quantities
of mud material as specified above.

5.3.7 Formation Integrity Testing

Before drilling to a maximum of 15 meters of new hole below the surface casing (if set
below 300 meters below seabed) and intermediate casing shoe, a pressure test shall
be performed to obtain data to be used in estimating the formation fracture gradient.
This test can be stopped when sufficient knowledge of the field has been gathered.
Pressure data shall be obtained by either testing to formation leak-off or to a controlled
formation capability test. The results of this test shall be recorded in the driller's log
and used to determine the depth and maximum mud weight to be used in drilling the
next interval of open hole. If during the course of drilling the hole, the mud weight
approaches within 0.5 ppg (0.026psi/ft) of the formation fracture gradient or the
formation capability test, Contractor shall exercise prudent drilling practice to ensure
well integrity.

5.3.8 Lost Circulation

During all normal drilling operations below the conductor, drilling shall cease
immediately whenever the drilling fluid pumped down the drill pipe is not returning to

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the surface and drilling shall not be continued until adequate circulation has been
established.

In case of known areas or zones of loss circulation, it may be permissible to drill ahead
with continuing losses and Contractor shall exercise prudent drilling practices to
ensure well integrity and safety of the operations.

5.3.9 Detection of Over-Pressure

Characteristics of the formation lithology and the formation fluid content shall be
monitored continuously after setting structural casing during exploration drilling to
detect the transition from normally pressured formations to abnormally high pressured
formations which normally include but not limited to monitoring of :-

a) Shale gas in the drilling fluid returns;
b) The shape of shale chips in drill cuttings;
c) The normalised drill ability trend of the shale and in conjunction the plotting
of 'dc' exponent values derived from the rate of penetration or subsequent
modification of it on a graph paper with a suitable scale ;
d) The change in temperature and in salinity of the drilling fluid returns; and
e) Indications of hole squeezing due to bore hole instability, torque and drag.

If a transition into an over-pressured formation is indicated the Contractor shall take
steps to attempt to verify the pressure of the transition zone using recognised
techniques when prudent to do so, and to maintain control of the well as drilling
proceeds into the over-pressured formation, including modifying the drilling programme
and equipment as required.

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5.3.10 Suspension of Operations
In the event of a fatal accident, those operations associated with the fatality shall be
suspended as soon as safely possible and shall not be resumed without the approval
of the Police or other relevant authority.

An operation shall be suspended as soon as possible if the continuation of the
operation causes, or is likely to cause an oil spill onto the environment; or endangers,
or is likely to endanger, the safety of personnel, the security of the well, the safety of
the drilling rig or the drilling unit and the operation shall remain suspended until it can
resume safely. Conditions under which drilling shall be suspended in the case of a
drilling unit :-

a) Inability to maintain well control;
b) Failure of any major component of the BOP system, casing or drilling
fluid system;
c) Uncontrolled fire at the drilling site;
d) Failure of a significant portion of the primary power source ;
e) Inability to maintain adequate stability and buoyancy of the drilling unit;
f) Inability to satisfactorily maintain the position of the drilling unit over the
well;
g) Excessive motions of the drilling unit caused by sea-state or weather
conditions ; and
h) While diving operations are being conducted at or near any part of the
subsea drilling system.
A written report shall be submitted to PETRONAS on all fatal accidents. This report
shall include but not be limited to the following information; name, age, nationality,
address, etc. It shall also include the cause of the accident and the precautions to be
initiated to prevent the recurrence of the incident in the future.

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All large scale incidents or accidents causing damage to equipment shall be
immediately reported to PETRONAS in writing giving estimated cost of damage,
downtime and cause.

5.3.11 Floating Drilling Operations

In drilling operations where a floating or semi-submersible type of drilling vessel is
used and if formation competency at the structural casing setting depth is not
adequate to permit circulation of drilling fluids to the vessel while drilling conductor
hole, a programme which addresses the safety, precautions and contingency plan for
the operations shall be submitted to PETRONAS for approval. This programme shall
include all known pertinent and relevant information, including seismic and geological
data, water depth, drilling fluid, hydrostatic pressure, schematic diagram from rotary
table to proposed surface casing seat and contingency plan for moving the drilling
vessel off location.

5.3.12 Shallow Hazards or Hydrocarbons

In all areas where shallow hazards or hydrocarbons are known, seismic data shall be
obtained. An appropriate shallow hazard contingency plan shall also be in place for
deepwater operations. All seismic data relating to shallow hazards shall be submitted
to PETRONAS.

5.3.13 Underbalanced Drilling

5.3.13.1 Definition:
Underbalanced drilling is defined as deliberately drilling where the pore
pressure of the formation being drilled is greater than the hydrostatic pressure
exerted by column of drilling fluid. In this respect, balanced pressure drilling is
a subcategory of underbalanced drilling because the annular pressure is
expected to fall below the formation pressure during pipe movement. As a
broad generalization, underbalanced drilling aimed to improve drilling rate, to
limit lost circulation and to protect reservoir formation.

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5.3.13.2 General requirements:
Underbalanced drilling shall be conducted only when the minimum
requirements below are followed and subject to further discussion / approve
approval by PETRONAS upon execution:
1. Risk and benefit to perform underbalanced drilling (economic and
technical reason to change from conventional drilling).
2. Evaluation criteria.
3. Fluid type used assessment (gas, mist, foam, gasified liquid and liquid).
4. Equipment used assessment that covers both surface and sub-surface
(gas compression, gas generation, separation, foam, pressure control,
downhole tools, BOP stack, rotating head etc).
5. Underbalanced design program (fluid design, expected ROP, wellbore
model, fluid velocity, cutting transport, cost analysis etc).
6. Environmental and safety concerns associated with underbalanced
drilling should be addressed such as the primary consideration of
environmental protection should relate to handle returning fluid from
wellbore.
5.4 MATERIAL HANDLING AND DISPOSAL

All waste materials from the drilling and related operations shall be handled and disposed of
in a manner that does not create a hazard to safety, health and environment and is in
compliance with the applicable Malaysian laws.

5.4.1 Material Handling

5.4.1.1 Bulk Material

All material handled in bulk such as barite, bentonite and cement shall be
stored in properly designed containers to minimize contamination of the

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material from chemical and high humidity. Each container shall be properly
labelled. Extreme care shall be utilised during loading, transporting and
unloading bulk material to minimize contamination. All handling equipment
and tanks shall be inspected on a regular basis for foreign substances that
cause contamination. Air dryers and condensation tanks shall also be
inspected on a regular basis to assure that they are functioning properly.
5.4.1.2 Other Materials

Drilling fluid additives, not handled in bulk, shall be packaged in properly
labelled containers and pallets and shall be water-proof to minimise
deterioration and other precautions taken where damage or loss could create
a hazard to personnel or the environment.

Liquid fuel and oil shall be transported, transferred and stored in closed
systems. Liquid fuel stored at or above deck level or ground surface shall be
contained in closed, properly vented containers located at least 25 meters
from the well for land drilling and 5 meters from the well for offshore drilling.
For well unloading operations during workover, flammable liquids, including
condensate, and crude oil may be placed in an open vessel as specified under
Section 5.9.1.7.

Every precaution shall be taken to avoid spillage while transferring fuel from
supply vessel to the drilling site. After discharging fuel, the pumps shall be
shut-off, the pressure released, the transfer hoses drained into the supply
vessel and both hose ends securely plugged.

5.4.2 Disposal of Materials

Wastes generated during drilling operations including used oil based mud and
chemical residues/wastes resulting from drilling must be managed in an
environmentally safe and prudent manner in accordance with statutory and acceptable
industrial practices. Wastes are not allowed to be discharged into the sea and must be

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brought to shore for further handling if they cannot be properly processed and
disposed at the rig site.

Storage and disposal of these wastes including information on waste generated ,
stored, treated or disposed at the rig including wastes transported to shore base must
be recorded, tracked and in compliance with the requirements of the Environmental
Quality (Scheduled Wastes) Regulations 2005 and Environmental Quality (Prescribed
Conveyance) (Scheduled Wastes) Order 2005 P.U.(A) 293.

Disposal of materials, wastes and equipments that are contaminated with
Technologically Enhanced Naturally Occurring Radioactive Material (TENORM), shall
comply with all applicable laws and regulations in Malaysia, but not limited to the
followings:-
Atomic Energy Licensing Act, 1984
Radiation Protection (Licensing) Regulations, 1986
Radiation Protection (Basic Safety Standards) Regulations, 1988
Radiation Protection (Transport) Regulations, 1989
LEM/TEK/30 SEM.2 , 1996- Guidelines on Radiological Monitoreing for Oil
and Gas Facilities Operators Associated with TENORM.

Any TENORM disposal proposal has to be submitted to the Malaysian Atomic Energy
Licensing Board (AELB) for approval, before license is applied and in general, a
radiological impact assessment (RIA) study needs to be performed first.

5.4.2.1 Drilling Mud

Only water-based-mud/fluids and synthetic based muds/fluids of low toxicity is
permitted for use of drilling. Low Toxicity Oil-Based Mud and Synthetic
Based Mud shall be minimised and used only when necessary (based on
geological formation). The situation under which it may be necessary to use
these muds, the types and the mud specification itself shall be provided by PS

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Contractor to DOE for information prior to starting of drilling operations. The
use of any other drilling mud requires prior approval from the DOE.

Spent oil/synthetic based mud and other remnants toxic materials are not
allowed to be dumped into the sea water. These materials shall be recovered,
inventorised, properly labelled, contained and transported safely to shore or to
a safe area designated for disposal in accordance to applicable Malaysian
laws. Drilling muds and other hazardous/toxic remnants that are categorised
as scheduled waste under First Schedule of the Environmental Quality
(Scheduled Wastes Regulations) 2005, are not allowed to be dumped into the
seawater due to the adverse environmental impact it creates to the marine
water quality and benthic organisms.

Cuttings from water base mud and from environmentally acceptable oil base
mud may be disposed of into the sea. Cuttings drilled with low toxicity oil
based mud and/or synthetic based mud shall be properly washed and treated
before disposing of into the sea.

5.4.2.2 Solid Waste

PS Contractor shall not, unless licensed by DOE, burn or incinerate solid
combustible waste on any premises from such operation. All wastes, residues
or ashes produced shall be collected, recovered and transported back to
shore for proper disposal in accordance to the approval from the Local
Authorities or to a safe area designated for disposal in accordance to
applicable Malaysian laws.

Solid non-combustible waste shall be divided into three (3) principle type,
Domestic Waste, Industrial Waste and Schedule Waste, and transported to
shore in appropriate containers for safe disposal at a site approved by DOE
and/or the state or Local authorities.

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The disposal of solid wastes (besides drilling disposal materials) into sea
water is prohibited. Solid wastes shall be disposed at a site approved by the
Local Authorities.
5.4.2.3 Fluid Waste

PS Contractor shall not, unless licensed by DOE, discharge or spill any oil,
mixture containing oil or environmentally hazardous substances, pollutants or
fluid wastes into the Malaysian waters. Discharge of oil and any liquid
containing oil shall be in accordance with all applicable Malaysian laws.

Oil and gas produced while formation flow testing shall be properly stored in
suitable containers and either transferred to shore or flared in a proper manner
using an appropriate burner.

For offshore operations, waste engine lube oil, fuel oil, lubricants and other
fluid mixtures containing oil shall be collected in a closed drain system labelled
and transferred to shore for safe disposal or recycling. If production facilities
are available at the worksite, for example when drilling in an existing field,
arrangement with the facility operator shall be sought to dispose of the fluid
waste into the effluent treatment sump.

Excess acids shall be collected and stored in suitable containers for
transportation to shore to be disposed of in a proper manner.

Surface discharge shall only be allowed with approval from local authorities
and pretreatment for e.g. neutralization is essential prior to the disposal.

5.4.2.4 Sewage

PS Contractor shall not discharge or cause or permit the discharge of any
refuse, garbage into the Malaysian waters. Sanitary and galley waste shall be
disposed of in accordance with all applicable Malaysian laws.

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5.4.3 Pollution Prevention
Offshore oil and water production separation facilities shall contain safeguards to
prevent discharge of pollutants into the sea. Any oil spill from drilling operations shall
be recorded and reported to PETRONAS immediately noting size, type of pollutants,
location and weather conditions. The detail incident notification procedures is
stipulated in Guidelines for Emergency Communication Procedure (Section 18).
Appropriate action shall be taken immediately by the responsible party and the costs
for such action shall be at its expense.
Oil companies involved in drilling, extracting, producing, processing, transporting and
marketing of oil and gas in offshore waters of Malaysia shall individually or jointly with
two or more operators, maintain, organize and coordinate oil spill contingency plans
which encompass all its facilities offshore.
Such oil spill contingency plan or plans to be submitted to PETRONAS shall have the
following objectives:-
a) To design, fabricate and maintain all facilities offshore in such manner to
prevent and minimize the frequency of spills, through the use of automatic
controls, valves and other methods;
b) To respond quickly, effectively and with proper knowledge to contain,
clean up oil or other spills; and
c) To evaluate the damage resulting from the spill and take steps, where
necessary to assist the rehabilitation of the affected area.

5.5 WELL EVALUATION
The Contractor shall obtain sufficient well information and samples during the drilling of
a well to permit a geological and reservoir evaluation of the well.

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5.5.2 Drilling Cuttings
5.5.2.1 Sample Frequency
The frequency of sampling drill cuttings for geological purpose shall be one
sample each for every 5 meters drilled in objective zones and for every 10
meters drilled in other part of the hole in exploration and appraisal wells and
one sample each for every 10 meters drilled in production hole in development
wells. Samples prior to setting surface casing on platform development wells
need be obtained on only the first four wells. Sampling frequency shall be
indicated in the Notice of Operations.
5.5.2.2 Sample Container
Each container of drill cuttings shall be accurately and durably labelled when
filled, with the name of the well and the interval depth. Where samples cannot
be obtained, the interval and the reasons shall be recorded.
5.5.3 Cores
Proposals for coring shall be indicated in the Notice of Operations to include but not
limited to the depth interval of coring, objectives and reservoirs to be cored.
5.5.3.1 Conventional Cores
The core recovered from the core barrels shall be properly extracted, oriented,
marked and described immediately and properly placed and vertically oriented
in core containers. The cores shall be accurately and durably labelled with the
name of the well, the depth interval of the core, and the sequential number of
the container, if more than one.
5.5.3.2 Side Wall Cores
Side wall cores shall be described as soon as practical or in the case of side
wall cores that are to be preserved for future analysis, a chip taken from the
core prior to preservation shall be described. The cores shall be placed in

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suitable containers that are accurately and durably labelled with the name of
the well and the depth of the core.
5.5.4 Formation Evaluation Logging
The applicable reports and logs shall be properly and timely submitted to PETRONAS.
Field prints of individual runs of all electrical, radioactive, or other formation evaluation
logging operations, directional and other surveys shall be submitted to PERTRONAS.
Final prints of formation evaluation log, directional and other surveys shall be
submitted to PETRONAS through Well Completion Report.
All occurrences of oil, gas and other minerals of potential geological interest shall be
noted on the formation evaluation log to include all important zones of porosity and
interpreted contents thereof, cased intervals and complete details on drill-stem or
wireline formation tests.
5.5.5 Oil and Gas Flow Testing

Flow assurance issues, such as hydrate formation and waxing at cold temperatures
should be considered & handle appropriately prior to flow testing a deepwater well
Refer to Section 13 of Guidelines for Well Test, Production Measurement and
Allocation.

5.6 RECORDING AND REPORTING
5.6.1 Priority Reports
5.6.1.1 General
The Contractor shall inform PETRONAS immediately by the most rapid and
practical means of every significant situation, event or accident, including but
not limited to the loss of life, missing persons, serious injury, fire, loss of well
control, imminent threat to safety of drilling unit, drilling rig or personnel, oil or
toxic chemical spill, or the confirmed discovery of oil and gas.

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The Contractor shall submit to PETRONAS, as soon as practicable, a
comprehensive written report of the situation, event or accident, and shall
notify other persons or authorities as circumstances require.
5.6.1.2 Arrival and Rig Release Notice
The Contractor shall inform PETRONAS within 24 hours by fax, e-mail or
equivalent means :-
a) Of the date that the drilling unit arrives at the drilling location;
b) Of the actual hour and date that the drilling rig or drilling unit is
released from the drilling location.

The contractor shall also notify Government related departments i.e. Marine
Department and Custom & Immigration at least 2 months prior to rig arrival
and rig departure.
5.6.2.1 Daily Drilling Report
Contractor shall submit the Daily Drilling Report to PETRONAS but not limited
to the following information:-
a) Well number
b) Rig name
c) Plan TD (meter or feet)
d) Current TD
e) Plan Cost (USD or RM)
f) Actual Cost
g) Plan Days
h) Actual Days
i) Days ahead/behind

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j) Summary of operations for last 24 hours
k) NPT-Hour (daily and cumulative NPT)

In addition to the above, Contractor shall submit to PETRONAS the Monthly
Well Completed Report by the end of the month consisting the following
information :-
a) Well Name
b) Well Cost (USD or RM)
c) Number of Days
d) Non Productive Time (NPT - hour)
5.6.2.2 Supporting Reports
Reports obtained or compiled by the Contractor regarding applied research
work or studies, that contain information which is relevant to the safety of
drilling operations in the programme area, shall be submitted to PETRONAS
as soon as they are available.
5.6.3 Final Drilling/Well Completion Report
The Contractor shall submit to PETRONAS a final drilling/well completion report and
electronic copy within 60 days after a well has been drilled and completed, suspended
or abandoned. PETRONAS may also request additional information when the need
arises.
The report shall include, but not limited to the following information :-
a) Well number and type ;
b) Rig name and type ;
c) Surface and sub-surface location grid and geographical coordinates of the
well;
d) Well depth (measured depth and TVD) ;
e) Maximum angle reached ;
f) Total days spent on the well ;

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g) Summary of drilling operations ;
h) Reservoir/geological details ;
i) Final wellbore sketch or Completion diagram showing all downhole
components (with their I.D., O.D., length, depth of installation) and
description of wellhead and christmas tree ;
j) Type and density of fluid left in the hole ;
k) Perforated intervals;
l) Initial production test results including registered pressure, fluid/gas flow
rates and duration of test ;
m) List of wireline logs and its interpretation (cored intervals should also be
shown) ;
n) Casing size, type, grades, weights, depth set in measured depth and TVD ;
o) Mud composition and amount used ;
p) Cement density, composition, volume of cement used and their estimated
top in annulus ;
q) Depth-time chart, actual vs proposed ;
r) Operational-time breakdown ;
s) Directional drilling results and wellbore trace ;
t) Final estimated well cost ;
u) Detailed NPT breakdown in tabular format (data to be segregrated based
on NPT due to drilling contractor, service contractor and well problem).
5.6.4 Company Press Release
The Contractor shall obtain prior written approval from PETRONAS for all press
releases issued regarding wells drilled under these procedures.

5.7 PLUGGING AND ABANDONMENT OF WELLS

5.7.1 Responsibility to Abandon a Well
Contractor shall ensure that :-
a) A well or a portion of a well that is not suspended or completed is
abandoned, and

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b) Where a well is abandoned, it shall be abandoned in accordance with
applicable provisions under Section 5.7.
When a well or a portion of a well has not been abandoned in accordance with
applicable provisions under Section 5.7, it shall be the responsibility of the Contractor,
when required by PETRONAS, to properly re-abandon the well.
5.7.2 Application to Abandon a Well
The Contractor shall submit to PETRONAS a request for approval of the intent to
abandon any well, together with a programme outlining the procedures of the
operations and plug and abandonment schematic diagram. The notification for any
producible well shall include reasons for abandonment.
5.7.3 Subsequent Report of Abandonment
The Contractor shall produce a detailed report of the manner in which the
abandonment or plugging work was accomplished, including the nature and quantities
of materials used in the plugging and the location and extend, by depth, of casing left
in the well and the volume of mud fluid used. If an attempt was made to cut and pull
any casing string, a description of the methods used and results obtained must be
included. This report shall be submitted to PETRONAS in accordance with Section
5.6.3.

5.7.4 Permanent Abandonment

5.7.4.1 Isolation of Zones in Open Hole

In uncased portions of wells, cement plugs shall be spaced to extend 30
meters below the bottom to 30 meters above the top of any Hydrocarbon
zones and fresh water zones shallower than 300m, to isolate all hydrocarbon
bearing zones from one another and from water bearing formations and to
prevent any fluids migrating to the surface.

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A cement plug is not supported by a plug or by the bottom of the well and that
is located above or against an abnormally pressured zone or a hydrocarbon
bearing zone, shall after WOC to harden be tagged with 66700 Newtons
(15,000 lbs), or the maximum safe tagging weight that can be applied with the
string in use.

After an unsuccessful fishing operation for stuck pipe, where possible, the fish
shall be perforated and cement shall be pumped through the perforations to
cement the annulus between the fish and the hole to isolate any open sands
that are present. If any hydrocarbon bearing sands are exposed below the
fish, the Contractor shall consider taking remedial action to prevent cross flow
between them. Where this is not possible, a cement plug shall be positioned
above the fish to isolate the fish from the open hole above the fish.

In the event that any of the above wells carry a radioactive fish, Department of
Environment (DOE) approval shall be sought before any decision is made to
abandon the well.
5.7.4.2 Isolation of Open Hole
Where there is an open hole below the casing, a cement plug shall be placed
in the deepest casing string in accordance with (a) below. In the event lost
circulation conditions have been experienced or are anticipated, a permanent-
type bridge plug (or equivalent) may be placed in accordance with (b) below :
a) A cement plug set by the displacement method so as to extend a
minimum of 30 meters above and 30 meters below the casing
shoe.
b) A permanent-type bridge plug (or equivalent) set within 45 meters
above the casing shoe. This bridge plug shall be tested in
accordance with Section 5.7.4.5 prior to placing subsequent
plugs. Before setting the plug attempts should be made to cure
losses.

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c) For deepwater operations, either set a mechanical plug or leave
adequate mud weight (required to account for riser margin) in last
casing string to surface.
5.7.4.3 Plugging or Isolation of Perforated Intervals
A balanced cement plug shall be set by the displacement method opposite all
open perforations (not squeezed with cement) extending a minimum of 30
meters above and 30 meters below the perforated interval or down to a casing
plug, whichever is less. In lieu of setting a cement plug by the displacement
method, one of the following method is acceptable.
a) A cement retainer with effective back pressure control or a
permanent packer set not less than 15 meters and not more than
30 meters above the top of the perforated interval with a cement
plug calculated to extend at least to the top of the perforated
interval and 15 meters above the retainer or packer.
b) A permanent-type bridge plug set not more than 45 meters above
the top of the perforated interval.
c) Such other method as may be approved by PETRONAS for a
specific situation.
5.7.4.4 Plugging of Casing Stubs
If casing is cut and recovered leaving a stub, one of the following methods
shall be used to plug the casing stub except conductor casing.
5.7.4.4.1 Stub Terminating Inside Casing String

A stub terminating below a conductor casing shall be plugged by one of
the following methods:-
a) A cement plug set so as to extend 30 meters above and 30
meters below the stub.

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b) A cement retainer set approximately 15 meters above the
stub with a volume of cement equivalent to 45 meters
squeezed below the retainer and 15 meters above the
retainer.
c) A permanent bridge plug set approximately 15 meters above
the stub.
d) Such other method as may be approved by PETRONAS for a
specific situation.
5.7.4.4.2 Stub Terminating Below Casing String

If the stub is below the next larger string, plugging shall be accomplished
in accordance with either Section 5.7.4.1 or Section 5.7.4.2.
5.7.4.4.3 Liner Top or Screen

Liner or screen that is impractical to be removed shall be plugged in
accordance with Section 5.7.4.4.1
5.7.4.4.4 Plugging of Annular Space

Any annular space communicating with any open hole and extending to
the ocean floor shall be plugged with cement.
This requirement is waived for deepwater operations.

5.7.4.4.5 Surface Plug

A cement plug at least 45 meters in length, with the top of the plug 45
meters or less below the sea floor, shall be placed in the smallest string of
casing which extends to the sea floor.

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For Subsea wellhead, the top of the plug may be set within 100 m to the
sea floor.

5.7.4.5 Testing of Plugs

The setting and location of the first plug below the surface plug shall be
verified by one of the following methods:
a) By placing a minimum pipe weight of 66700 Newton (15,000 psi)
on the cement plug or bridge plug. The cement placed above the
bridge plug need not be tested.
b) By testing the casing against the plug with a minimum pump
pressure of 6900 kPa (1000 psi) with no more than a 10 percent
pressure drop during a 15-minute period.
5.7.4.6 Drilling Fluid

Each of the respective intervals of the hole between the various plugs shall be
filled with drilling fluid of sufficient density to exert hydrostatic pressure exceeding
the greatest formation pressure encountered while drilling the intervals between
the plugs. In addition to the above the hole shall be circulated so that the drilling
fluid is gas-free and of uniform fluid weight.

5.7.4.7 Clearance of Location

All casing, wellhead equipment, and piling shall be removed as deep as practically
possible (minimum of 1 m.) below the sea floor. The Contractor shall provide
written verification that the location has been cleared of all obstructions.
The wellhead does not require removal in water depths greater than 1000 ft.
Please refer to Section 16, Guidelines for Decommissioning of Upstream
Installation.

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5.7.5 Well Suspension (Semi-Permanent Well Suspension)
Any well which is to be suspended with no immediate intention to return to the well for
further operations shall be filled with drilling fluid and cemented as required for
permanent abandonment in accordance with Section 5.7.4.
5.7.6 Temporary Well Suspension
Any well which is to be temporarily suspended prior to drilling ahead, completion or
abandonment shall be filled with appropriate weighted fluid and cemented in
accordance with Section 5.7.4.1, 5.7.4.2 and 5.7.4.3 and shall be equipped with a
'dual safety' feature in the form of kill fluid together with one of the following:-
a) Pressure tested casing or cement plug or liner lap or;
b) Other pressure testing mechanical barrier

In all cases wellhead valve assembly tree or wellhead cap or BOP shall be employed
to give pumping access to the well.
5.7.7 Suspended Well
Contractor shall ensure any well that is suspended and that has not been completed
within 5 (five) years from the date of suspension shall be either completed or
abandoned.
Every well that is completed and or inactive suspended shall be inspected at least
once each year and reported to PETRONAS and shall be placed on production or
abandoned within a period 3 (three) years from the date of suspension unless prior
approval has been given by PETRONAS for the extension of the period.

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5.8 COMPLETION OPERATION
5.8.1 General Provision
Well completion operations shall be conducted in safe efficient manner to protect
against harm or damage to life, property, environment and natural resources including
hydrocarbon resources.
5.8.2 Wellhead Equipment
All completed wells shall be equipped with wellhead valve assemblies with a rated
working pressure which equals or exceeds the maximum-anticipated pressure to which
the wellhead may be subjected.
Connections and valves shall be designed and installed to permit fluid to be pumped
between any two strings of casing not cemented to the ocean floor. In subsea
completions, access to other than the production casing is not required, provided that
a unitized wellhead system is used which has a working pressure rating in excess of
the maximum anticipated pressure.
Wellhead valve equipment shall consist of a minimum of the crown or swab valve, one
SSV, and one master valve, in the Christmas tree. The SSV shall be the second valve
in the flow stream from the wellbore.
5.8.3 Tubing Requirements
All tubings shall have a rated minimum internal yield pressure greater than the
maximum anticipated pressure.
Only new tubing or used tubing which has been tested or inspected and found to be
suitable for well conditions shall be installed in wells. All tubings and connections that
are internally coated must be suitable for the temperature and well-fluid characteristic.
5.8.4 Packer Requirements
All completions open to hydrocarbon bearing zones(s) shall be completed with the
tubing-casing annulus packed off above the upper-most open casing perforations

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unless it is a monobore (tubingless) completion. A packer leakage test (if packer is
utilised) shall be performed upon initial installation of the packer to ensure isolation of
the tubing-casing annulus.
5.8.5 Separation of Zones
Multiple completions in the same wellbore require the separation of each completion
either through packers or cement or a combination of the two. When feasible, a packer
leakage test shall be conducted to check isolation of the producing zone.
5.8.6 Landing Nipple
Tubing hanger(s) shall be equipped with landing nipples or plug bushings to receive
pump-through tubing plugs or back-pressure valves.
5.8.7 Sub-surface Safety Valve
All tubing installations open to a hydrocarbon bearing zone shall be equipped with a
SCSSV located at least 30 meters below the sea floor. An injection valve capable of
preventing backflow may be installed in lieu of a SCSSV in an injection well with
PETRONAS approval. Such valve shall be located at least 30 meters below the sea
floor. Any other method/replacement of sub-surface safety valve need PETRONAS
approval.
5.8.8 Completion Fluids
The fluids used during well completion operations shall be designed to minimise
adverse effects on metal surfaces and formation damage, and shall be of sufficient
density to control anticipated formation pressure if direct communication exists with the
formation.

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5.9 WORKOVER OPERATIONS
5.9.1 General Requirements

5.9.1.1 Operations

Workover and testing operations whereby rig assistance is required shall not
be undertaken, nor operations other than emergency well control be
conducted unless rig crews and supporting service units are properly manned
and supervised.
5.9.1.1.1 Workover Rigless definition

A well intervention operation conducted with equipment and support
facilities that precludes requirement for a rig over the wellbore such as
coiled tubing, slickline and snubbing activities. It also possible that
activities were combined with supporting vessel/boat utilization in offshore
environment
Rigless operation shall be conducted only when the minimum
requirements below are followed:
1. Ensuring safety concerns are being addressed properly (lifting
equipment, platform integrity, well control etc)
2. Risk and benefit to perform the operations.
3. Cost analysis.
4. Assess the environmental impact.
Further discussion is required for any complicated operation that was not
covered in this document and subject to approval by PETRONAS.
5.9.1.1.2 Workover Rig definition

A well intervention operation conducted with equipment and support
facilities that include requirement for workover rig over well bore.

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Further discussions required for any complicated operations that was not
covered in this document and subject to approval from PETRONAS.
5.9.1.2 Workover Structures

Masts, derricks, substructures, and related equipment shall be selected,
installed, utilised, and maintained with consideration given to the potential
loads and conditions of loading that may be encountered by the operations.
The conditions affecting loading include wind, setbacks, pulling and running
tubular goods, and subsurface equipment, fishing, drilling and jarring
operations.

5.9.1.3 Pump-Down Operations

The flowlines from the pump manifold to the wellhead valve assembly shall
have a rated working pressure equal to that of the wellhead equipment or to
the maximum-anticipated well or pumping pressure, whichever is less.
A lubricator assembly with the necessary shut-off valves, bleed valves, and
pump connections to permit the safe installation and removal of the
pumpdown tools shall be connected to the flowlines downstream of the pump
manifold. Any polluting fluids bled from the lubricator shall be properly
contained.

5.9.1.4 Travelling Block Safety Device
All workover and completion rigs shall be equipped with a travelling block
safety-control device. The device shall be checked for proper operation after
each drill-line slipping operation. The operational check shall be recorded in
the daily well log.

5.9.1.5 Well Control Fluids

The characteristics, use, and testing of well control fluids shall be designed
and maintained to minimize formation damage and assure well control.
Quantities of materials sufficient to assure well control shall be maintained at
the wellsite.

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5.9.1.6 Well Control

Prior to pulling the production tubing from the well, tubing strings and casing
annulus shall be circulated with well-control fluids. The hole shall be filled by
accurately measured volumes of well-control fluids; wells which will not
maintain a full column of fluid shall maintain the maximum fluid level. Fill-up
operations shall be monitored by use of a mechanical, volumetric, or electronic
device during all trips in and out of the hole.

A back-pressure valve or wireline type plug, shall be installed and tested if
possible in each tubing string before removing BOPs or wellhead valve
assembly. The work shall be organised to minimise the time between the
removal of the wellhead valve assembly and the installation of the BOPs.

The well shall be continuously monitored during workover or completion
operations and shall not be left unattended at any time unless shut-in with
assurance of complete well control.

5.9.1.7 Well Unloading Operations

Operations which involve unloading or cleaning up a well shall use piping or
equivalent armored flexible pipes, vessels, and other control equipment in
order to safely contain, handle, and dispose of any flammable, hazardous, or
polluting material.

Flammable liquids, including condensate, and crude oil, shall not be placed in
vessels having open tops. However, such liquids may be temporarily placed
in vessels having open tops for on-going operations. A flammable liquid is
defined as any liquid with a flash point below 37.8C (100F).
5.9.1.8 Pumping Operations
Prior to pumping operations, the flowline from the pumping unit to the well
connection shall be properly secured and pressure tested to the maximum-
anticipated pressure. Appropriate high pressure shut-off, and bleed valves

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shall be installed as a part of the pump manifold, permitting disconnection of
the pump, if needed. Well fluids and gas returning from the well during
pumping operations shall be safely handled and properly contained.
5.9.1.9 Emergency Shutdown (ESD)
An ESD control station shall be located at the drillers console during all well
operations. Units without drillers console shall have readily accessible ESD
stations. PS Contractor shall have procedure for Simultaneous Production and
Drilling Operation (SIPROD).
5.9.2 Notification and Submittal Requirements
5.9.2.1 Notice of Workover Operations
Workover operations, multiple completions, and reentries to complete require
prior approval from PETRONAS through the submittal of a "Notice of
Workover Operation" and acceptable electronic format. The document shall
be submitted 14 calendar days prior to the date when approval is required.
Information including, but not limited to the following is required:-
a) Objective and justification of proposed workover ;
b) Present well status ;
c) The name of all intervals proposed for completion or alternative
completion;
d) Accumulative oil, gas and water production;
e) Shut-in surface and bottom hole pressure ;
f) A well schematic drawing showing the present and proposed
zones and the completion equipment to be used;
g) Proposed procedures outline ;
h) Estimated duration and expenditures.
i) Estimated reserve, incremental production including estimation
methodology

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j) Risk and mitigation plan.
k) Cost analysis and detailed breakdown.
l) Safety and environmental assessment

Detailed workover procedures shall be submitted to PETRONAS for
information purposes upon request 5 calendar days prior to commencement of
workover operations. The summary of work progress shall be submitted daily.
5.9.2.2 Workover Report
After the workover operation is completed, all available information shall be
submitted in a Workover Report to PETRONAS not later than 60 calendar
days after the workover is completed. The report shall include but not limited
to the following information:-
a) History of the well;
b) Description of work performed;
c) Dates the work was performed;
d) A well schematic drawing with tubing details before and after
workover;
e) Results of well test, before and after workover;
f) Detailed expenditure summary.

5.9.2.3 Routine Operations

Certain routine operations, such as, pump-down or through-tubing non-rig
operations are considered maintenance operations and do not require
approval by PETRONAS. The operations include the following:-
a) Paraffin cutting ;
b) Moving and setting tubing plugs, gaslift valves, and SSSVs by
wireline techniques ;
c) Opening and closing circulation ports ;

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d) Bailling sand or sand cleanout ;
e) Pressure and temperature surveys ;
f) Swabbing ;
g) Scale removal ;
h) Measurement survey (caliper, gauge, depth and flowmeters,
electric logs, etc.)
i) Fishing operations ;
j) Wellhead repairs which do not require the installation of a BOP
stack.
However, prior to removing the wellhead valve assembly, well control shall be
maintained by well control fluids and by a downhole sealed off pressure tested
annulus and tubing. In this condition wellhead repair may be carried out
involving removal of the wellhead valve assembly and tubing-casing annulus
pack-off.
5.9.3 Pressure Control Requirements
BOPs and other surface pressure control equipment shall have a rated working
pressure which equals or exceeds the maximum-anticipated surface pressure.
5.9.3.1 Major Workover Operations
For any operation involving movement of the tubing string the minimum BOP
shall be installed as defined in Section 5.3.5.3.
5.9.3.2 Minor Workover Operations (Excluding Wireline Operation)
For shut-in tubing pressures in excess of 34500 kPa (5000 psi) the minimum
BOPs shall consist of :-
a) Two sets of pipe rams and one set of blind rams, or
b) Two sets of pipe rams and one set of shear rams.

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For shut-in tubing pressures of 34500 kPa (5000 psi) or less, minimum
requirements are:-
a) One set of pipe rams and one set of blind rams, or
b) One set of pipe rams and one set of shear rams.
5.9.3.3 Coiled-Tubing Operations
The minimum BOPs shall consist of the following :-
a) One set of pipe-rams, hydraulically operated ;
b) One two-way slip assembly hydraulically operated ;
c) One pipe cutter assembly, hydraulically operated ;
d) One set of blind rams, hydraulically operated ;
e) One pipe stripper assembly ; and
f) One spool with side outlets (if no side outlets are provided in the
wellhead valve assembly).
g) The arrangement of the BOPs shall be suitable for the service
intended.
5.9.3.4 Snubbing Operations
The minimum BOPs shall consist of the following :-
a) One set of pipe-rams hydraulically operated;
b) Two sets of stripper type pipe-rams BOPs, hydraulically operated
with spacer spool ;
c) One pipe stripper assembly ; and
d) Hydraulically operated, or in exceptional cases mechanically
operated, snubber slip and seal assembly; if the surface pressure
is above 34500 kPa (5000 psi), hydraulically operated blind rams
shall be used.

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Upon installation of the snubbing unit, it shall be pressure tested for operation
to the maximum-anticipated surface pressure. Snubbing operations under
pressure shall be performed with sufficient lighting. With the wellhead valve
assembly installed, a work or swab valve or a blind ram-type BOP shall be
mounted above the wing line to serve as a base for the BOP stack.
The workstring shall include a back pressure device near or at the bottom of
the workstring, and a landing nipple installed above the back pressure device
to receive a blanking plug or check valve.
5.9.3.5 Other Equipment
An operable inside BOP (back pressure valve) and a safety valve in the open
position with proper end connections for tubing or workstring being used shall
be maintained and be readily available on the rig floor (unless coiled tubing is
being used).
The valve shall have a pressure rating which exceeds the maximum-
anticipated surface pressure, and shall be of such design that it can be run
through the BOPs. The safety valve shall be pressure tested not less than
once every 14 days. The pressure test shall be recorded in the relevant field
log. If necessary, a manifold and choke line shall be provide and tested with
water to the rated working pressure of the BOPs or of the wellhead valve
assembly, whichever is less.
5.9.4 Testing and Actuation Requirements
5.9.4.1 Pressure Test
Each component of the BOP stack assembly and related control equipment
shall be individually tested in accordance with Section 5.3.5.6.2.
5.9.4.2 Actuation
The actuation of the BOP shall be carried out as defined in accordance with
section 5.3.5.6.3.

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5.9.4.3 Lubricators

Lubricator assemblies shall be pressure tested each time they are installed to
the maximum anticipated wellhead pressure, and at least annually to their
rated working pressure. The test date and test pressure of the former shall be
recorded on the daily log, and that of the latter shall be indicated by a metal
tag or band.

5.9.5 Wireline Operations


For the purpose of these requirements wireline operations include all cased-
hole or open hole operations, utilizing either a solid or stranded line.

The wireline packoff shall be monitored and maintained during wireline
operations and the elements shall be replaced, when necessary, to assure a
proper seal under pressure conditions. Operations under pressure conditions
shall not allow fluids to flow through the wireline packoff, other than minor
leakage necessary to permit free movement of the wireline. Minor leakage
from packoff assemblies shall be properly contained and disposed of.

Before commencing the wireline work, all equipment shall be checked for
compliance with all applicable safety standards, including the use of explosion
proof motors on all power equipment.

When operations are temporarily suspended, the well shall be monitored or
completely shut-in until operations resume. Wireline or conductor line
operations during hours of darkness shall only be performed in the presence
of proper lighting.

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5.9.5.2 Operations In Cased Hole

When perforating or logging in a cased hole without the wellhead valve
assembly installed, and where communication exists from the wellbore to the
formation, well control shall be maintained by well control fluid and the BOP.
The well shall be monitored continuously on the trip tank.

When logging in a cased hole without the wellhead valve assembly installed,
where no communication exists from the wellbore to the formation, well control
shall be maintained by the BOPs or well control fluids.

When running and perforating with tubing conveyed guns, well control shall be
maintained by well control fluids and the BOPs. If the perforation assembly
includes a packer above the guns, it is permitted to displace the workstring to
underbalanced fluids to enable perforation under drawdown conditions.

5.9.5.3 Operations In Open Hole

Open-hole operations such as induction-electrical, density, and acoustic
logging that are performed without the wellhead valve assembly installed shall
maintained well control by the use of well control fluids and BOPs.

A lubricator assembly/or shooting nipple assembly shall also be used if
necessary in order to safely run and retrieve wireline tools.

All personnel not directly associated with the operations which utilize explosive
devices or hazardous radioactive materials shall vacate the rig floor and sub-
structure prior to device arming, entry, and retrieval from the wellbore.
Knowledgeable personnel shall verify that all explosive device systems,
wireline units, and BOPs are grounded to the basic rig structure and that no
unsafe electric potential exists (e.g electric welding, exposed rig wiring near
the cable etc). PS Contractor shall require that safe operating procedures and
test are used when handling any explosive devices.

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All primary charges and secondary charges shall be stored and transported
exclusively in separated metal containers, marked with internationally
recognised explosives signs. This also applies to defective detonators which
have been removed from a misfired gun. Transfer of loaded gun without
detonators is only allowed if properly identified and manifested with detonators
stored in separate metal containers.

Radio silence shall be observed just prior to arming any explosive device and
at all times while the device is at the surface or less than 60 meters down the
hole. The observation of radio silence shall be observed depending on the
type of explosives and tools used. Electrical welding machines and Top Drive
System shall be isolated.

The impressed current cathodic protection equipment shall be switched OFF
on offshore platforms prior to arming any explosive device and at all times,
while the device is at the surface or less than 60 meters down the hole.
5.9.5.4 Swabbing Operations
The swabbing of wells shall be performed with a lubricator assembly, whether
carried out with a small slick line or large braded line. Flow rates shall be
controlled by the use of choke restrictions in the flowline. Swabbing of tubing
strings capable of flowing hydrocarbons shall not be performed during hours of
darkness unless approved by PETRONAS.
5.9.6 Rigging Up or Down of Workover or Completion Equipment
The movement of workover or completion rigs and related equipment on and off an
offshore facility, rigging up and rigging down, shall be conducted during daylight hours
only unless adequate lighting is provided. Those wellheads, flowlines, production and
other equipment which could be damaged by heavy lifting operations shall be shut in
and bled down or otherwise protected (well with tubing/casing annulus pressure which
cannot be bled down shall be killed) prior to commencing heavy lift.

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A tubing plug or back-pressure valve shall be installed and tested if possible in each
tubing string of wells that are exposed to possible damage in moving operations.
Closure of a SCSSV will suffice as a tubing plug.

5.10 HYDROGEN SULPHIDE (H
2
S) DRILLING OPERATIONS


When operations are undertaken involving formations or reservoirs known or expected
to contain H
2
S or, if unknown, upon encountering H
2
S, the following preventive
measures shall be taken to control the effects of the toxicity, flammability and corrosive
characteristics of the H
2
S gas.

5.10.2 Physical Properties and Toxicity of H
2
S
H
2
S is a highly toxic gas, rapidly causing death when inhaled in high concentration. Its
toxicity is almost the same as hydrogen cyanide and is between five and six times
more toxic than carbon monoxide. H
2
S is heavier than air with specific gravity of 1.189
and it is colourless. It forms an explosive mixture with air between 4.3 and 46.0
percent by volume. The acceptable maximum concentration for a continuous eight
hours exposure of personnel is 10 ppm in air, which is 0.001% by volume.
5.10.3 Breathing Equipment
The number of breathing masks shall cover the total number of personnel in the rig
location plus an adequate amount for visitors. The masks which neutralise toxic gas
do not provide the necessary protection and shall never be used in continuous drilling
operation when H
2
S environment is encountered.
An adequate number of self-contained positive pressure breathing equipment shall be
made available at all times on the rig floor, shale shaker, mud pit area, pump area and
other areas where H
2
S might accumulate in hazardous quantities and all essential
personnel in drilling operation shall be required to use this equipment.
Resuscitators with spare oxygen bottle shall be provided at each emergency centre.

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A cascade air-bottle system shall be provided to refill the self-contained breathing
equipment bottles.

At any time and in the vicinity where the concentration of H
2
S in the atmosphere
exceeds 20 ppm, breathing equipment must be worn.

5.10.4 H
2
S Gas Detection System

A number of automatic continuous H
2
S sensors shall be installed, be in working
condition and routinely function tested according to API RP14C to cover as minimum
the areas of bell nipple, flowline and shale shaker, mud pits, sack room, motor room
and living quarters.

These sensors should activate audible and visual alarms when sensing a minimum of
5 ppm of H
2
S in atmosphere.

In addition, portable hand operated type H
2
S gas detectors shall be made available to
all essential personnel during drilling operation in H
2
S environment.
5.10.5 Wind Direction Equipment

Wind direction equipment (such as wind sock and wind streamers) shall be installed in
sufficient quantity at prominent locations to indicate to all personnel on or in the
immediate vicinity of the facility the wind direction at all times for determining safe
upwind areas in the event that H
2
S is present in the atmosphere.

5.10.6 Ventilation

Ventilation devices shall be explosion proof and situated in areas where H
2
S may
accumulate. Movable ventilation devices shall be provided in work areas and be multi-
directional and capable of dispersing H
2
S away from working personnel.

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5.10.7 Personnel Training

All personnel shall be informed as to the hazards of H
2
S. They shall be trained in the
use of H
2
S safety equipment, informed of H
2
S detectors and alarms, ventilation
equipment, prevailing winds, briefing areas, warning systems and evacuation
procedures.
All crew members shall be familiar with basic first-aid procedure applicable to victims
of H
2
S exposure. Emphasis shall be placed upon rescue and first-aid for H
2
S victims.

5.10.8 Contingency Plan

A contingency plan shall be developed and a copy shall be submitted to PETRONAS
prior to the commencement of drilling operation in H
2
S environment.
The plan shall include but not be limited to the following :-
a) Physical property, toxicity level and physical effect of H
2
S;
b) Safety procedures, equipment and training;
c) Operating procedures during,
d) Conditions with less than, 10 ppm H
2
S in the atmosphere.
e) Conditions with more than 10 ppm but less than 20 ppm H
2
S in the
atmosphere (limited danger to life).
f) Conditions with more than 20 ppm H
2
S in the atmosphere (high danger to
life).
g) Responsibility and duty of personnel for each operating condition;
h) Evacuation plan; and
i) Agencies to be notified during emergency.
Information on emergency procedures shall be posted in Bahasa Malaysia and English
at prominent locations on the operations facilities.

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5.10.9 Rig Equipment

H
2
S gas is highly corrosive to steel and at high stress levels extreme metal
embrittlement may occur in a very short time. All tubulars, wellhead equipment, and
other drilling related equipment which may be exposed to H
2
S conditions conductive to
metal embrittlement shall be selected in accordance with the guideline presented in
NACE MR-01-75. (National Assc. Corrosion Engineers considering metallurgical
properties and/or environment in contact with the tubulars and equipment in order to
reduce the chances of failure from H
2
S metal embrittlement.

5.10.9.1 Drill Pipe

To reduce potential H
2
S embrittlement steel drill pipe should have a yield
strength of 655,000 kPa (95,000 psi) or less, unless it is heat treated by
quenching and tempering. Alternatively control of the environment in contact
with the drill pipe shall be considered.

5.10.9.2 Tubulars

Tubulars including casing, tubing, coupling, flange and related equipment shall
be designed for H
2
S service. Field welding on casing, except conductor and
surface casing strings, is prohibited, unless the Contractor can prove it is safe
to do otherwise.
5.10.9.3 BOP and Related Equipment

BOP, choke line, choke manifold and valves shall be designed and fabricated
for H
2
S service utilizing the most advanced technology. Elastomer, packing
and other non-ferrous part exposed to H
2
S shall be resistant at the maximum
anticipated temperature of exposure.

5.10.9.4 Flare System

The flare system shall be designed to safely collect and burn H
2
S gas. Flare
lines shall be located as far away from the operating facilities as feasible in the

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manner to compensate for wind changes. The flare shall be equipped with a
pilot and an automatic ignitor.

5.10.10 Drilling Operations

5.10.10.1 Pipe Trips and Stripping Operations

Ever effort shall be made to pull drill string dry while maintaining well control.
If it is necessary to pull the drill string wet after penetration of H
2
S bearing
zones, monitoring of H
2
S of the working areas shall be increased. The
monitoring of H
2
S in the vicinity of the displaced mud returned shall also be
increased.

5.10.10.2 Well Control

If gas cutting of drilling fluids beyond 0.2 ppg is encountered BOP shall be
closed while maintaining drilling fluid circulation through the choke line to the
mud-gas separator. The mud-gas separator shall be connected into the flare
system. The degasser shall be used until the drilling fluid is free of entrained
gas.

5.10.10.3 Coring Operations

When coming out of the hole with a core barrel under suspected H
2
S
condition, the drilling crew shall wear protective equipment while pulling the
last twenty stands or at any time H
2
S reaches the surface. "Mask on" shall
continue while opening the core barrel and examining the cores. Cores to be
transported shall be sealed and marked for the presence of H
2
S.

5.10.10.4 Mud Programme

Suitable water or oil base mud shall be used in drilling formations containing
H
2
S gas. A Ph of 10.0 and above shall be maintained in a water base mud to
control corrosion and prevent sulphide stress cracking. Consideration shall
also be given the use of H
2
S scavengers in both water and oil base mud

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systems. Sufficient quantities of additives shall be maintained at wellsite for
addition to neutralize H
2
S picked up by the mud system. Drilling mud
containing H
2
S shall be degassed and the gases removed shall be burned
with the flare system and must be continuously monitored for H2S
concentration.

5.10.11 Well Testing Operations

During well test, the level of H
2
S concentration shall be monitored at first
hydocarbons to surface and at regular intervals subsequent to 1st. hydrocarbons.
All produced gases shall be burned with the flare system if the gases are
flammable.

All well test equipment, well head equipment and tubular goods shall meet the H
2
S
service requirement. Drill pipe shall not be used for testing well with H
2
S. The
water cushion shall be inhibited in order to prevent H
2
S corrosion. The test
equipment shall be flushed with treated fluid for the same purpose at the end of the
test.

5.11 ONSHORE DRILLING OPERATION

5.11.1 General

In addition to the foregoing sections, Contractor shall comply with the following
procedures in conducting onshore drilling operations.

5.11.2 Reference for Well Depth

The measurement of any depth in a well during drilling or on the abandonment of the
well shall be the rotary table of the drilling rig. For a well onshore, this height shall be
measured from the elevation (reference mean sea level) of the natural ground surface
prior to spud-in and it shall be from the elevation of the casing head flange after
installation of the conductor or the surface casing.

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5.11.3 Well Near Potential Hazardous Sites

Any PS Contractor intending to drill a well within 3 kilometers from Potential
Hazardous Sites shall obtain written approval from relevant authorities prior to carrying
out site preparation work.

5.11.4 Smoking

Smoking shall be permitted only within safe and designated areas. PS Contractor shall
ensure that proper signs and notices prohibiting smoking are posted at all designated
no smoking areas at a drill site.

5.11.5 Fire Prevention and Safety

Any rubbish or debris that might constitute a fire hazard shall be removed to a distance
of at least 50 meters from the vicinity of any well and the flare pit. All waste shall be
burned or disposed of in a manner to avoid creating a fire hazard.

Every drilling rig together with every camp located within 50 meters of the well shall be
installed with an interconnected fire alarm system that is capable of automatically
sound an alarm and also indicate on a panel the location of the fire.

Every room that is used as a sleeping accommodation for drill crew shall be equipped
with a smoke detector and alarm.

5.11.6 Engines

5.11.6.1 Internal Combustion Engines

Any fixed internal combustion engine that is located within 25 meters of a
drilling well onshore shall have the exhaust pipe of the engine in accordance
to MEC 1 standard:-
Equipped with a spark arrester.

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Insulated or sufficiently cooled to prevent ignition of combustible gases.
Directed away from the wellbore or other sources of combustible gases and
terminated at least 6 meters from the vertical centre line of the wellbore. Only
diesel driven engine are allowed for onshore drilling operation. For fixed
installation, it must meet MEC1 standard.

5.11.6.2 Diesel Engines

Any fixed diesel engine that is located within 25 meters of a drilling well
onshore shall be equipped with:-

a) Air intake shut-off valve that can be activated by a remote control
device that is easily accessible from the driller's location and
b) A system of injecting inert gas into the cylinders or an air duct that
conveys air to the engine from a source that is located 25 meters
from the well.
5.11.7 Plug & Abandonment Requirements

All wells onshore shall be plugged and cemented for abandonment as required
under Section 5.7.4. In addition, the Contractor shall ensure that:-
a) All casings shall be cut at a point at least one meter below the natural
ground level with a minimum of 10 meters of cement plug placed in the
inner most casing and
b) A steel plate of at least 7 mm thick shall be welded over the top of the
largest casing in a manner that completely closes the well bore and the
annulus between all strings of casing exposed at the cut point.
c) In the event a nuclear source equipment is left in hole after several
unsuccessful attempt has been made, the abandoned well shall marked
with appropriate signs as per the TENORM requirement.

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5.11.8 Protection of Fresh Water Sands

Fresh water sands are to be protected with surface casing which has been
cemented and such casing shall not be removed from the well at abandonment. In
wells, where a short string of surface casing is set and cemented, deeper fresh
water zone(s) shall be protected by setting cement plug(s) covering the water
zone(s) and extending at least 3015 meters above and below the zones.

5.11.9 Restoration of the Drill Site

All refuse shall be cleared from the drill-site on removal of the rig from the well and
the area shall be restored to its original condition. Both the rat-hole and the mouse-
hole shall be filled up and where applicable with cement plug at the surface.

5.11.10 BOP Requirements

For the purpose of determining the minimum well control system to be used, all
onshore wells can be classified as follows:-
Class 1 : A well in which no surface casing is set.
Class II : A well in which a surface casing is set and hole
maximum anticipated shut-in well head pressure does not exceed 34500kPa
(5000psi) and
Class III : A well in which a surface casing is set and the
Maximum anticipated shut-in well head pressure exceeds 34500 kPa (5000 psi).
The minimum requirements for drilling below each casing string for a conventional
surface BOP system for each classification of onshore well are given below :-
Class I Well
Conductor Casing ............................................ 1*-diverter
Class II Well
Conductor ........................................................ 1*- diverter

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Surface & Intermediate Casing ........................ 1- annular BOP
2**-Single pipe rams BOP (with a
spool in between) (one to be blind
rams)
Class III Well
Conductor Casing ............................................ 1*-diverter
Surface & Intermediate Casing ........................ 1 - annular BOP
2-** pipe rams + 1 blind or shear ram
Note:

* The diverter system shall provide as a minimum, an annular preventer with
one 10 - inch diameter diverter line equipped with a remote controlled full
opening valve near the well. The diverter line shall extend to a flare pit located
at least 50 meters away from the well. The diverter system shall be operated
by an automatic hydraulic accumulator system which could provide without
recharging, fluid of sufficient volume and pressure to effect full closure of the
annular preventer and open the remote controlled line valve(s).
** A double ram type BOP provided with appropriate side outlets for connecting
kill or choke lines may be used for wells that are drilled not deeper than 600
meters TVD below the ground level.

*** To comply with Section 5.3.5.3 "Surface BOP".

All ram type BOP used for onshore operations without automatic ram-lock facilities
shall be installed with manual hand wheels with extension for locking the rams in
closed position.

5.11.11 BOP Pressure Test

Each component of the BOP stack assembly and related control equipment shall be
pressure tested to their rated working pressure or to the maximum anticipated
wellhead pressure whichever is lower. The BOP stack assembly shall be pressure
tested for at least 15 minutes.

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The annular preventer may be tested to 6900 kPa (1000 psi) or 50% of the rated
working pressure. All BOPs and related control equipment shall be tested:-

a) When installed on a well or stump-tested prior to installation. Such stump
testing shall be recorded on the respective daily drilling report submitted to
PETRONAS.
b) Before drilling out, after each string of casing has been set and cemented.
c) Not less than once every forthnight but not exceeding (14) days between
tests and;
d) Following repairs that require disconnecting a pressure seal in the
assembly.

5.11.12 Flare Pit and Vent/Bleed-Off Line

All bleed/off/vent-line from the choke manifold direct to or through a mud gas
separator shall be securely tied down and extended to the flare pit in a slightly
downward direction.
Flare pit shall be located at least 50 meters away from the well, have raised walls
and excavated to contain any liquid that might be bled-off without overflowing.
Every effort shall be made to clear the area around the flare pit to be free of grass,
debris, logs and flammable materials to reduce the hazards of fire. The flare pit on
cessation of operations shall be back-filled and compacted.

5.11.13 Casings

Supplementary to the Casing and Cementing Requirements in the foregoing
Section 5.3.3, the casings to be installed in an onshore well in the order of
operations are:-

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5.11.13.1 Stove Pipe

Stove pipe shall be set in a competent bed to ensure mud returns to the
shaker whilst drilling for the next casing. Normally, such setting depth will be
30 metres or more below the natural ground level.

However, the presence of abnormally strong formations may permit the setting
of this casing at a depth shallower than that required.

If this portion of the hole is drilled, it shall be cemented with a quantity of
cement sufficient to fill the calculated space back to the bottom of the cellar.

5.11.13.2 Conductor Casing

The initial conductor casing string shall be set in a competent bed or through
formations determined desirable to be isolated from the well by pipe for safer
operations. Such setting depth shall be sufficient to allow safe use of diverter
equipment as per Section 5.11.10.

Any variations to such depth or where more than one conductor casing is to
be set, prior approval from PETRONAS is required as part of the Notice of
Operations, so as to permit safe drilling to the next casing setting depth. In
cases where the conductor casing is set deeper than 300 metres TVD, a
formation integrity test shall be performed as required under Section 5.3.7
"Formation Integrity Testing".
If not driven, the conductor casing shall be cemented with a sufficient amount
of cement to fill the annular space from the shoe of the casing to the surface.
Surface Casing

The surface casing shall be set at a depth where the formation strength is
sufficient to support the programmed mud gradients for the next section of the
hole and to provide well control until the next casing is set. Such setting depth
for an onshore well is normally between 150 to 1400 meters TVD below the

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ground level. Variations to such depth may be made with prior approval from
PETRONAS as part of the Notice of Operations.

Surface casing shall be cemented sufficiently to protect all fresh water zones
with a sufficient volume of cement to fill the calculated annular space at least
15 meters inside the conductor casing or to the stove pipe/structural casing in
the event that conductor casing is not set.

After drilling a maximum of 15 meters of new hole below the surface casing
shoe, a leak-off test shall be performed to obtain data to be used in estimating
the formation fracture gradient. The leak-off test shall be performed either by
testing to formation leak-off test or by testing to a pre-determined equivalent
mud weight. The result of this test and any other subsequent tests shall be
recorded on the driller's report and used to determine the depth and the
maximum mud weight for the next portion of the hole section.

5.11.14 Drilling Liquid Waste

Liquid waste comprising of waste drilling mud, oily waste or other liquid products
from a well shall be contained at all times and dispose of in a manner that shall not
pollute any surface water or underground source of potable water. Such liquids
produced may be stored in an earthen pit at the well site, provided that such pit is
excavated to a depth which shall contain all the waste fluid and be so constructed
that it shall not collect natural run-off water.

Where the surface topography does not allow construction of such pits, all liquid
waste shall be collected in tanks and transported to an area approved for storing
or disposal of liquid waste. Upon cessation operations, such pits shall be back-
filled and compacted.

5.11.15 Well Near Water

When a drilling site is located near to the normal high water mark of a body of
water or a stream and is in such situation that pollutants from the well may reach

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the water, PS Contractor shall construct dikes or trenches around the area and
take other necessary measures as may be required to contain the pollutants. All
land operations must have a suitable collecting pit & skimmer to collect the liquid
waste product and water run-off.

5.12 ONSHORE COMPLETION AND WORKOVER OPERATIONS

5.12.1 General

Supplementary to the foregoing Section 5.8 and Section 5.9, Contractor shall comply
with the following procedures in conducting onshore completion and workover
activities.

5.12.2 Sub-surface Safety Valve

Any onshore well that is located within a 5 kilometer radius of a village, town or city
and that is not on pump and is capable of producing gas in excess of 5 million cubic
feet a day shall be installed with a SCSSV. This valve shall installed in the tubing at
least 30 meters below the ground level and such well will have a sealed casing-tubing
annulus.

5.12.3 Well Stimulation
In onshore wells where stimulation treatments employing maximum pressures in
excess of 75% of the minimum internal yield pressure of the production casing shall be
carried out only through the tubing and below a packer set as near to the production
formation(s) as practicable.
5.12.4 Disposal of Produced Fluids
Oilfield brines or other mineralized produced waters shall not be stored or evaporated
using salt water disposal pits.

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Impervious collecting pits constructed of clay or other suitable impermeable materials
may be used for produced fluid disposal provided approval has been obtained from
PETRONAS. Such pits in use when abandoned, shall be back-filled and compacted.
Discharge of oilfield brines and other mineralized water into a surface drainage water
course whether it be a dry of flowing creek or a stream or a river is prohibited unless
approved by relevant authorities.

Such fluid may be disposed of upon approval by PETRONAS by injecting into porous
formations or zones that by nature contains connate water compatible with the
injecting fluid and that such zones are separated by impermeable beds that shall
prevent polluting the fresh water sands.

Oilfield brines or other mineralized water which has been treated as necessary to
remove constituents which may be harmful to aquatic life may be disposed of into the
Malaysian Offshore and adjacent estuarine zones with approval from relevant
Department Of Environment (DOE)

For any waste/hazardous material generated during operations shall be disposed in
accordance to Section 5.4 - Material Handling and Disposal with reference to Section
1 Guidelines for Health, Safety and Environment.

5.12.5 Onshore Wellhead Valve Assembly (X'mas Tree)

All completed wells onshore which are capable of natural flow shall be equipped with
wellhead valve assembly having fittings and connections with a rated working
pressure greater than the maximum anticipated shut-in surface pressure of the well.
Wells with surface pressures in excess of 20700 kPa (1500 psi) shall have two
master valves.

When a well located near to the normal high water mark of a body of water or a
stream or a river is in such a situation that the oil spill or leak may reach the water,
PS Contractor shall ensure that, when a well is not on pump, the wellhead valve
assembly shall contain a surface safety valve (SSV) that shall automatically shut-off

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an uncontrolled flow of oil from the well in the event of a wellhead failure or leak.
Such valve shall be the second valve from bottom to top arrangement.

5.12.6 Wells on Pump

Wells which are incapable of natural flow and which require pumping by sucker rods or
submersible downhole pumps or any other mechanical lifting methods to produce that
well may be exempted from requirements under Section 5.9.1.5 to 5.9.1.9, Section
5.9.3 to 5.9.6 and Section 5.10.1 to 5.10.7.

5.12.7 Fencing and Well Security
Where a producing well, or a tank battery or a process facility is located within 5
kilometer of an occupied dwelling, a rural school, residential area or where conditions
can cause exposure to the public shall be fenced as a security measure.
Such fencing shall be of adequately strong construction with a lockable gate and
posted with clearly visible warning sign against unauthorized entry and tempering.
When a producing well, or a tank battery or a process facility is located elsewhere, a
cattle type fencing with barbed wire shall be constructed around the area.


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GUIDELINES FOR BARGES OPERATING
OFFSHORE MALAYSIA (PGBOOM)
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SECTION 6
PROCEDURES FOR SUBSURFACE SAFETY DEVICES
Executive Summary
This section provides procedures and requirement of subsurface safety devices on all tubing
installation with regard to flowing, shut-in wells or injection wells, the subsurface safety valve
specification, testing and additional protective equipment.

SECTION 6
PROCEDURES FOR SUBSURFACE SAFETY
DEVICES

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6.1 INSTALLATION
All tubing installation in wells shall be equipped with surface-controlled subsurface safety
devices.
Notwithstanding the above, during emergency, alternative safety devices e.g sub surface
control devices may be temporarily installed without prior consent of PETRONAS.
PETRONAS shall be notified of the situation and circumstances.
6.2 SHUT-IN WELLS
Unless a well is equipped with a functioning subsurface safety valve (SSSV) (i.e valves are
able to open or close, not jammed, able to withstand holding pressure and not leak) the
well has to be shut-in and a tubing plug shall be installed.
6.3 INJECTION WELLS
Subsurface safety devices as described under sub-section 6.1 shall be installed at all
injection wells unless it is determined that the well is incapable of naturally flowing oil or
gas.
6.4 VALVE SPECIFICATIONS
PS Contractor shall use subsurface safety devices that comply with the minimum
standards set forth in API Specification 14A i.e "Subsurface Safety Valves equipment" for
quality assurance including design, material, and functional test requirements and for
verification of independent party performance testing and manufacturer functional testing
of such valves.
6.5 REINSTALLATION, TESTING AND MAINTENANCE
PS Contractor shall install, test and maintain the SSSV Systems based on their operating
and inspection maintenance philosophy.

SECTION 6
DEVICES

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6.6 TUBING AND PLUG TESTING
A shut-in well equipped with a tubing plug or other device shall be inspected for leakage of
not less than once in six months. If leakage is detected, the plug shall be removed,
repaired and reinstalled, or an additional tubing plug may be installed in lieu of removal
and repair.
6.7 ADDITIONAL PROTECTIVE EQUIPMENT
All tubing installations in which a wireline or pumpdown retrievable Subsurface Safety
device is to be installed shall be equipped with a landing nipple come with flow couplings,
or other protective equipment above the landing nipple to provide for sitting of the
subsurface safety devices.
Any subsurface controlled SSSV installation shall require PETRONAS prior approval.
However, during emergency, the installation of the subsurface controlled SSSV can be
carried out prior PETRONAS approval but the request has to be submitted within thirty (30)
days limit after the installation.
6.8 OTHER COMPLETION TECHNIQUES
PS Contractor may apply exception for SSSV requirements for wells which have other
completion technique that prevent SSSV installation e.g. Sucker Rod Pump.
6.9 RECORDS
PS Contractor shall maintain records which include design specifications, verification of
assembly, setting depth, removal date, reason for removal, reinstallation date, and all
mechanical failures or malfunctions with notations as to the cause. Such records shall be
made available upon request by PETRONAS.

SECTION 6
DEVICES

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SECTION 7
GUIDELINES FOR BARGES OPERATING OFFSHORE MALAYSIA
(PGBOOM)

Executive Summary

This section provides guidelines and requirements of barges operating offshore Malaysia. The
guidelines shall apply 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 it has its own motive
power.

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7.1 INTRODUCTION

The adoption of the PETRONAS GUIDELINES FOR BARGES OPERATING OFFSHORE
MALAYSIA will result in achieving the desired standardisation as well as upgrading the
safety requirement of the barges.

7.1.1 Application

7.1.1.1 The units include but not limited to the following types

a) Mobile Offshore Drilling Units (MODUs) maintained for underwater
exploitation or exploration of resources beneath the sea-bed.
b) Drilling Tender Barges maintained as of (a) above
c) Accommodation Barges, Jack-ups and Semi-submersibles used to
accommodate offshore personnel.
d) Construction and Pipe Laying Barges or Semi-submersibles used for
offshore related construction operations.
e) Engineering Work Barges or semi-submersibles used for hook-up and
commissioning of offshore installations.
f) Engineering Work Barges or semi-submersibles used for the topside and
underwater maintenance of offshore installations
g) Well Stimulation Barges or Semi-submersibles used for oil well stimulation
exercises.
h) Floating Storage and Offloading Unit (FSO) and Floating Production,
Storage and Offloading Unit (FPSO).
7.1.1.2 The provision of section 7.2 in the Guideline will apply to 7.1.1.1 (a) to (h)
above.

7.1.1.3 The provision of Section 7.3 to 7.8 will apply to 7.1.1.1 (c) to (h) above.

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7.1.2 Requirements

Specifically the requirements are as follows :-

7.1.2.1 Accommodation Spaces

a) All accommodation spaces shall be constructed and to comply with
Section 7.2 of the Guidelines.
b) Accommodation spaces shall be constructed of steel or other
equivalent material. Applicable fire integrity standards to be applied to
divisions between adjacent spaces shall be as per Table 7A and
Table 7B of Appendix 7.

7.1.2.2 Automatic Fire Detection and Alarm System

An automatic fire detection and alarm systems shall be provided in all
accommodation and service spaces. The system shall comply with the

7.1.2.3 Life Saving Appliances

a) Life Saving Appliances are to comply with Section 7.4 of the
Guidelines.
b) In addition, all barges involved with maintenance activities that are
either producing hydrocarbons or are shut-in and semi-submersibles
shall be provided with rigid totally enclosed motor propelled survival
craft (TEMPSC) of such capacity as will accommodate all persons
onboard. In lieu of non availability of TEMPSC, contractor shall
demonstrate alternative to meet objective of having TEMPSC.

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7.1.2.4 Fire Fighting Equipment

a) Fire Fighting Equipment is to comply with Section 7.5 of the
Guidelines.
b) In addition, fixed Fire Extinguishing System (CO2 or equivalent that
do not contravene with IMO requirements) shall be provided in the
machinery spaces.

7.1.2.5 Provisions for Helicopter Facilities

Adequate provisions for helicopter facilities when provided shall comply with

7.1.2.6 Operating Requirements

An Operating Manual, for safe operation of the unit shall be made available on
board and shall comply with Section 7.7 of the Guidelines.

7.1.3 Definitions

7.1.3.1 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 structural and integrity properties equivalent to steel
at the end of the applicable fire exposure to the standard fire test (e.g.
Aluminum Alloy with appropriate insulation).

7.1.3.2 Non-Combustible Materials

Non-combustible materials are materials which neither burn nor give off
flammable vapours in sufficient quantity for self-ignition when heated to
approximately 750
o
C.

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7.1.3.3 A Standard Fire Test

A Standard Fire Test is one in which specimens of the relevant bulkheads or
decks are exposed in a test furnace to temperature corresponding
approximately to the standard time-temperature curve. The specimen shall
have an exposed surface of not less than 4.65 square metres (50 square feet)
and height (or length of deck) of 2.44 metres (8 feet) resembling as closely as
possible the intended construction and includes 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:-

at the end of the first 5 minutes 556
o
C
o
C
o
C
o
C
o
C

7.1.3.4 A Class Divisions

A class divisions are those divisions formed by bulkheads and decks which
comply with the following :-

a) They shall be constructed of steel or other equivalent material;
b) They shall be suitably stiffened;
c) They shall be so constructed as to be capable of preventing the passage
of smoke and flame to the end of the one-hour standard fire test;
d) They shall be insulated with non-combustible materials such that the
average temperature of the unexposed side will not rise more than
139
o
C above the original temperature, nor will the temperature, at any

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one point including any joint, rise more than 180
o
C above the original
temperature, within the time listed below :-
Class A - 60 60 minutes
Class A - 0 0 minute

7.1.3.5 B Class Divisions

B class divisions are those divisions formed by bulkheads, decks, ceilings or
linings which comply with the following :-

a) They shall 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 139
o
C above the original
temperature, nor will the temperature at any one point, including any
joint, rise more than 225
o
C above the original temperature, within the
time listed below:-
class B - 5 15minutes
class B - 0 0 minute
c) They shall be constructed of approved non-combustible materials and all
materials entering into the construction and erection of B class
divisions shall be non-combustible
7.1.3.6 C Class Divisions

C class divisions are divisions constructed of approved non-combustible
materials. They need to meet neither requirements relative to the passage of
smoke and flame nor limitations relative to the temperature rise.

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7.1.3.7 Public Spaces

Public spaces are those portions of the accommodation which are used for
halls, dining rooms, lounges and similar permanently enclosed spaces.
7.1.3.8 Control Stations

Control stations are spaces containing emergency sources of power and
lighting, spaces containing barge radio equipment, fire control and recording
stations, spaces containing centralised fire alarm equipment, and spaces
containing centralised emergency public address system stations and
equipment.

7.1.3.9 Corridors

Corridors mean corridors and lobbies.

7.1.3.10 Accommodation Spaces

Accommodation spaces are those used for public spaces, corridors,
lavatories, cabins, offices, hospitals, cinemas, games, hobbies rooms, and
pantries containing non-cooking appliances or similar permanently enclosed
spaces.

7.1.3.11 Stairways

Stairways are interior stairways, lifts, escalators (other than those wholly
contained within the machinery spaces) and enclosures thereto. In this
connection a stairway which is enclosed only at one level should be regarded
as part of the space from which it is not separated by a fire door.

7.1.3.12 Service Spaces (low risk)

Service spaces (low risk) are lockers and store-rooms having areas of less
than 2 square metres, drying rooms and laundries.

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7.1.3.13 Machinery Spaces of Category A

Machinery spaces of category A are all spaces which contain internal
combustion type machinery used either for other purposes where such
machinery has in the aggregate a total power of not less than 375 kilowatts or
which contain any oil fired boiler or oil fuel unit; and trunks to such spaces.

7.1.3.14 Other Machinery Spaces

Other machinery spaces are all machinery spaces other than machinery
spaces of category A described in (7.1.3.13) above.

7.1.3.15 Hazardous Areas

Hazardous areas are all those areas where, due to possible presence of a
flammable atmosphere due to operations, the use without proper
consideration of machinery or electrical equipment may lead to a fire hazard or
explosion.

7.1.3.16 Service Spaces (high risk)

Service spaces (high risk) are galleys, pantries containing cooking appliances,
paint rooms, lockers and store rooms having areas of 2 square metres or
more and workshops other than those forming part of the machinery spaces.

7.1.3.17 Open Decks

Open decks are open deck spaces, excluding hazardous areas.

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7.2 ACCOMMODATION SPACES

7.2.1 Restrictions

7.2.1.1 There must be no direct communication between the accommodation spaces
and any chain locker, cargo stowage or machinery spaces, except through
solid, close-fitted doors or hatches.

7.2.1.2 No access, vent, or sounding tube from a fuel or cargo oil tank into
accommodation spaces except that access openings and sounding tubes may
be located in corridors, provided they are air tight sealed closed, when not in
use.

7.2.2 Construction of Accommodation Spaces

7.2.2.1 Each sleeping, mess, recreational, or hospital (sick bay) space that is adjacent
to or immediately above a stowage or machinery space, paint locker, drying
room, washroom, toilet space, or other odour source must be made odour-
proof.

7.2.2.2 Each accommodation space must be protected from the heat and noise.

7.2.2.3 Where the shell or an unsheathed weather deck forms a boundary of an
accommodation space, the shell of deck must have a covering that prevents
the formation of moisture.

7.2.2.4 The deck heads of each accommodation space must be of light colour.

7.2.2.5 Each accommodation space in which water may accumulate must have a
drain scupper located in the lowest part of the space, considering the average
trim of the unit.

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7.2.2.6 Each public toilet space must be constructed and located so that its odour do
not readily enter any sleeping spaces, mess, recreational, or hospital (sick
bay) space.

7.2.3 Arrangement of Sleeping Spaces

7.2.3.1 To the extent practicable, crew from the same shift should be berthed together
in sleeping spaces arranged to minimise disturbance created by personnel
leaving for or arriving from a working period.

7.2.4 Size of Sleeping Spaces

7.2.4.1 No sleeping space may berth more than four persons, except that a sleeping
space for personnel not regularly employed on a unit may berth up to six
persons if the space meets Section (7.2.3), (7.2.4.2) and (7.2.5) and berthing
of six persons in that space is authorised by PETRONAS.

7.2.4.2 Without deducting any equipment used by the occupants, each sleeping
space must have for each occupant :-
a) 2.8 square metres (approximately 30 square feet) of deck area; and
b) 5 cubic metres (approximately 210 cubic feet) of volume.

7.2.4.3 Each sleeping space must have at least 191 centimetres (approximately 6 feet
3 inches) of headroom over clear deck areas.

7.2.5 Berths and Lockers

7.2.5.1 Each sleeping space must have a separate berth for each occupant.

7.2.5.2 No more than one berth may be placed over another.

7.2.5.3 Each berth must have a framework of hard, smooth material that is not likely
to corrode or harbour vermin.

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7.2.5.4 Each berth must be arranged to provide ample room for easy occupancy.

7.2.5.5 Each berth must be at least 76 centimetres (approximately 30 inches) wide by
193 centimetres (approximately 76 inches) long.

7.2.5.6 Adjacent berths must be separated by a partition that extends at least 46
centimetres (approximately 18 inches) above the sleeping surface.

7.2.5.7 The bottom of a lower berth must be at least 30 centimetres (approximately 12
inches) above the deck.

7.2.5.8 The bottom of an upper berth must be at least 76 centimetres (approximately
2 feet 6 inches) from the bottom of the berth below it and from the deck or any
pipe, ventilating duct, or other overhead installation.

7.2.5.9 Each berth must have a berth light.

7.2.5.10 Each occupant of a sleeping space must have a readily accessible locker of
hard, smooth material.

7.2.5.11 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.

7.2.6 Wash Spaces, Toilet Spaces and Shower Spaces

7.2.6.1 For the purposes of this section :-

a) Private Facility means a toilet, washing, or shower space that is
accessible only from one 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

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c) Public Facility means a toilet, washing or shower space that is not
private or semi-private.
7.2.6.2 Each private facility must have one toilet, one shower and one wash-basin, all
of which may be in a single space.

7.2.6.3 Each semi-private facility must have at least one toilet and one shower, which
may be in a single space.

7.2.6.4 Each room adjoining a semi-private facility must have a wash-basin if a wash
basin is not installed in a semi-private facility.

7.2.6.5 Each unit must have enough public facilities to provide at least one toilet, one
shower and one wash basin for each eight persons who occupy sleeping
space that do not have private or semi-private facilities.

7.2.6.6 Urinals may be installed in toilet rooms, but no toilet required in this section
may be replaced by a urinal.

7.2.6.7 Each public toilet space and washing space must be convenient to the
sleeping space that it serves.

7.2.6.8 No public facility may open into any sleeping space.

7.2.6.9 Each wash basin, shower and bathtub must have hot and cold running water.

7.2.6.10 Adjacent toilets must be separated by a partition that is open at the top and
bottom for ventilation and cleaning.

7.2.6.11 Public toilet facilities and shower facilities must be separated.

7.2.6.12 Each public facility that is a toilet space must have at least one wash basin
unless the only access to the toilet space is through a washing space.

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7.2.6.13 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.

7.2.6.14 Wash basin may be located in sleeping space.

7.2.7 Mess Rooms

7.2.7.1 Each mess room must seat the number of persons expected to eat in the
mess room at one time.

7.2.7.2 There must be a mess room for serving halal food for Muslim workers.

7.2.8 Hospital (Sick Bay) Space

7.2.8.1 Each unit carrying twelve or more persons on a voyage of more than three
days must have a hospital (sick bay) space.

7.2.8.2 Each hospital (sick bay) space must be suitably separated from other spaces.

7.2.8.3 No hospital (sick bay) space may be used for any other purpose, when used
for care of the sick.

7.2.8.4 An entrance to each hospital (sick bay) space must be wide enough and
arranged to readily admit a person on a stretcher.

7.2.8.5 Each berth in a hospital (sick bay) space must be made of metal.

7.2.8.6 Each upper berth must be hinged and arranged so that it can be secured clear
of the lower berth.

7.2.8.7 Each hospital (sick bay) space must have at least one berth that is accessible
from both sides.

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7.2.8.8 Each hospital (sick bay) space must have one berth for every 50 persons or
portion thereof onboard, who are not berthed in single occupancy rooms, but
the number of berths need not exceed 2.

7.2.8.9 Each hospital (sick bay) space must have a toilet, wash basin and bath-tub or
shower accessible from the hospital (sick bay) space.

7.2.8.10 Each hospital (sick bay) space must have clothes lockers, a table and seats.

7.2.9 Hospital (Sick Bay) Space Not Required

7.2.9.1 The hospital space required under Section 7.2.8 above is not required on a
unit if one single or double occupancy sleeping space, designated and
equipped as a treatment or isolation room or both is available for immediate
medical use, and has:-

a) An entrance that is wide enough and arranged to readily admit a
person on a stretcher.
b) A single berth or examination table that is accessible from both
sides; and
c) A wash basin in or immediately adjacent to it.

7.2.10 Miscellaneous Accommodation Spaces

7.2.10.1 Each unit must have enough facilities to provide 24-hour laundry service (i.e.
return clothes in 24 hours).

7.2.10.2 Each unit must have enough equipment or space to provide 24-hour clothes
drying service for all personnel on board.
7.2.10.3 Each unit must have an accommodation space that can be used for
recreation.

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7.2.10.4 Each unit must have an accommodation space that can be used for Muslim
workers to perform their prayers.

7.3 AUTOMATIC FIRE DETECTION AND ALARM SYSTEMS

7.3.1 The system shall be capable of immediate automatic activation with no manual
activation by the crew.

7.3.2 The system shall include :-

a) Means for giving a visual and audible alarm signal automatically at one
or more indicating units whenever any detector comes into operation.
b) When activated, the indicating units show the location where the fire is
detected in any space served by the system.
c) indicating units shall be centralised on the navigating bridge or in the
Main Fire Control station which shall be so manned or equipped as to
ensure that any alarm from the system is immediately received by a
responsible member of the crew.
d) constructed so as to indicate if any fault occurs in the system.

7.3.3 The detection system shall be operated by an abnormal air temperature, by an
abnormal concentration of smoke or by other factors indication of incipient fire in
any of one of the spaces to be protected.

7.3.4 The detection system shall not be used for any purpose other than fire detection.

7.3.5 The detectors may be arranged to operate the alarm by the opening or closing of
contacts or by other appropriate methods. Detectors operated by the closing of
contact shall be of the sealed contact type and the circuit shall be continuously
monitored to indicate fault conditions.

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7.3.6 The detectors shall be :-

a) Fitted in an appropriate position and suitably protected against impact and
physical damage.
b) Suitable for use in a marine environment.
c) 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.

7.3.7 At least one detector shall be installed in each space where detection facilities are
required and there shall be not less than one detector for each 37 square metres
(400 square feet) of deck area or as per the approved ships safety plan. In large
spaces the detector shall be arranged in a regular pattern 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.

7.3.8 There shall be not less than two independent sources of power supply for the
electrical equipment in the operation of the fire alarm and fire detection system, one
of which shall be an emergency source. The supply shall be provided by separate
feeders reserved solely for that purpose. Such feeders shall run to a change-over
switch situated in the control station for the fire detection system.

7.3.9 A list or plan shall be displayed adjacent to each indicating unit showing the spaces
covered.

7.3.10 Provision shall be made for testing the correct operation of the detectors and the
indicating units by supplying means for applying hot air or smoke at detector
positions as recommended by the operation manual.

7.3.11 Adequate spare detector head shall be provided on board to replace every fifth
detector.

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7.4 LIFE SAVING APPLIANCES

7.4.1 All barges shall carry :-

7.4.1.1 Life rafts of sufficient aggregate capacity to accommodate twice the total
number of persons onboard.

7.4.1.2 For barges involved in maintenance activities and all semi-submersibles are to
carry :-

a) Rigid totally enclosed motor propelled survival craft (TEMPSC) of such
capacity as will accommodate all persons on board, and
b) Life rafts of such capacity as will accommodate all persons on board.

7.4.2 Lifejackets of 1.5 times the complement of the barge. Each lifejacket is to be fitted
with a whistle and a light powered by a water activated battery. Each person shall
be provided with a lifejacket stowed in his accommodation. Additional lifejackets
should be stowed at or near the normal embarkation positions, in a suitable dry
stowage position unlocked and clearly marked.

7.4.3 At least eight lifebuoys, shall be stowed so that they can be quickly thrown
overboard in an emergency. At least half of the lifebuoys shall have self-igniting
lights attached and at least one on each side with a buoyant lifeline not less than
27.5metres in length. Also self-activating smoke signal is to be provided to at least
two of the lifebuoys attached with self-igniting lights.

7.4.4 A Line Throwing Appliance 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 projectiles and four lines.

7.4.5 A Muster List showing special duties to be undertaken by the crew in the event of an
emergency shall be allotted to each member of the crew. It shall also specify

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definite signals for calling all the crew to their survival craft, life raft and fire stations
and shall give full particulars of those signals.

7.4.6 All survival craft, life rafts, lifejackets and lifebuoys are to be fitted with retro-
reflective material.

7.5 FIRE FIGHTING EQUIPMENT

All barges shall be provided with :-

7.5.1 Fire Pump

7.5.1.1 At least two independently driven fire pumps.

7.5.1.2 If a fire in any one compartment could put all the fire pumps out of action, there
must be an alternative means of providing water for fire fighting. This
alternative means shall be a fixed pump independently driven which shall be
capable of supplying two jets of water.

7.5.2 Fire Main

7.5.2.1 The diameter of the Fire Main pipes shall be sufficient for the effective
distribution of the maximum required discharge from two fire pumps operating
simultaneously.

7.5.3 Fire Hose

7.5.3.1 The number of Fire Hoses to be provided on deck each complete with
couplings and nozzles shall be one for each 30 metres (100 feet) length of the
ship and one spare. In no case shall the number be less than five in all on
deck. Machinery spaces shall also be provided with Fire Hoses.

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7.5.4 Hydrants

7.5.4.1 The number and position of hydrants shall be such that at least two jets of
water not emanating from the same hydrant, one of which shall be from a single
length of hose, may reach any part of the barge normally accessible to the
crew.

7.5.5 International Shore Connection

7.5.5.1 At least one international shore connection. Facilities shall be available
enabling such a connection to be used on either side of the barge.

7.5.6 Portable Fire Extinguisher

7.5.6.1 Sufficient number of portable fire extinguishers to ensure that at least one such
extinguisher will be readily available for use in any part of the accommodation
or service spaces. The number of such extinguishers shall not be less than
five.

7.5.7 Firemens Outfits

7.5.7.1 At least two sets, or additional, as per the approved safety plan of Firemens
Outfits stored so as to be easily accessible and ready for use. The Firemens
Outfit as a minimum, or as required by the approved safety plan, shall consist
of:-

a) Protective clothing of material to protect the skin from the heat radiating
from the fire and from burns and scalding by steam. The outer surface
shall be water-resistant.
b) Boots and gloves of rubber or other electrically non-conducting
material.
c) A rigid helmet providing effective protection against impact.

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d) An electrical safety lamp of an approved type with a maximum burning
period of three hours.
e) An axe.
f) A self-contained breathing apparatus of an approved type.
g) Fireproof lifeline of sufficient length and strength capable of being
attached by means of a snap hook to harness of the apparatus to a
separate belt in order to prevent the breathing apparatus becoming
detached when the lifeline is operated.
h) At least two fire control plans permanently exhibited in all barges for
the guidance of the crew. It should consist of General Arrangement
Plan showing clearly for each deck the Control Stations, particulars of
the Fire Alarms, Detecting System, the Fire Extinguishing Appliances,
means of access to different compartments, decks etc.

7.6 PROVISION FOR HELICOPTER FACILITIES
7.6.1 Helicopter Deck
7.6.1.1 In general, the helicopter deck should be designed to receive the largest
helicopter intended to use the facility and be of sufficient size to contain a circle
of a diameter equal to at least the rotor of such helicopter. The helicopter deck
should have an approach/departure sector of at least 180 degree-free of
obstructions.
7.6.1.2 The helicopter deck shall :-
a) Have recessed tie down points for securing a helicopter.
b) Have coamings and drainage facilities to prevent the collection of
liquids from spreading to or falling on other parts of the barge having
regard to the use of fuel.
c) Have a non-skid surface.

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d) Be protected by a safety net at least 1.5 metres wide.
e) Have both a main and an emergency personnel access route located
as far apart from each other as practicable.

7.6.2 Fire Extinguisher

7.6.2.1 For any helicopter deck there should be provided and stored near to the means
of access to that deck:-

a) Dry powder extinguisher of a total capacity of not less than 45
kilograms;
b) A suitable foam application system consisting of monitors or foam
making branch pipes capable of delivering foam solution;
c) Carbon dioxide extinguishers of a total capacity of not less than 18
kilograms or equivalent, one of these extinguishers being so equipped
as to enable it to reach the engine area of any helicopter using the
deck; and
d) At least 2 dual-purpose nozzles and hoses sufficient to reach any part
of the helicopter deck.

7.7 OPERATING REQUIREMENTS

7.7.1 Operating Manual

7.7.1.1 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.

7.7.1.2 The Operating Manual should include but not limited to the following
information, where applicable :-

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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, centre of gravity and free surface
correction for each tank
e) Stability information setting forth the allowable maximum height of the
centre of gravity in relation to draught data or other parameters
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 fire fighting 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; and
k) Procedures for adverse weather conditions
l) Procedures for management of waste discharges, inclusive of
hydrocarbon and effluent discharges and sewage, garbage, etc. in
compliance with all relevant maritime laws and regulations.

7.8 STRUCTURAL FIRE INTEGRITY TABLES

The fire integrity of bulkheads and deck should comply with the minimum fire integrity of
bulkheads and decks as prescribed in Table 7A and 7B in Appendix 7.

7.8.1 The following requirements should govern application of the tables :-
7.8.1.1 Table 7A and 7B in Appendix 7 should apply respectively to the bulkheads and
decks separating adjacent spaces.

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7.8.1.2 For determining the appropriate fire integrity standards to be applied to
divisions between adjacent spaces, such spaces are classified according to
their fire risk as shown in Categories [1] to [10] below. The title of each
category is intended to be typical rather than restrictive.
The number in parenthesis preceding each category refers to the applicable
column or row in the tables :-
1) Control Stations
2) Corridors
3) Accommodation Spaces
4) Stairways
5) Service Spaces (low risk)
6) Machinery Spaces of Category A
7) Other Machinery Spaces
8) Hazardous Areas
9) Service Spaces (high risk)
10) Open Decks

* Notes : To be applied to both Tables 7A and 7B in Appendix 7, as
appropriate.

a/ Where the space contains an emergency power source or components
of an emergency power source that adjoins a space containing a
barges service generator the boundary bulkhead or deck between
those spaces should be an A-60 class divisions.
b/ For clarification as to which note applies see paragraphs 7.8.5.1 and
7.8.5.3
c/ Where spaces are of the same numerical category and superscript (c)
appears, a bulkhead or deck of the rating shown in the tables is only

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required when the adjacent spaces are for a different purpose, e.g. 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.
d/ Bulkheads separating the navigating bridge chartroom and radio room
from each other may be B-O rating.
* Where an asterisk appears in the tables, the division is required to be of
steel or equivalent material but is not required to be of A Class standard.

7.8.1.3 Windows and sidecuttles, with the exception of navigating bridge windows,
should be of the non-opening type. Navigating bridge windows may be of the
opening type provided the design of such windows would permit rapid closure.
PETRONAS may permit windows and sidecuttles outside hazardous areas to
be of the opening type.

7.8.1.4 External doors in superstructures and deckhouses shall be constructed to A-O
Class divisions and be self-closing, where practicable.
7.8.1.5 Protection of accommodation spaces, services spaces and control stations.
7.8.1.5.1 Corridor bulkheads, including doors, should be A or B Class divisions
extending from deck to deck. Where continuous B Class ceiling 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. Such
openings should not be provided in a door in an A or B Class division
forming a stairway enclosure.
7.8.1.5.2 Stairs should be constructed of steel or other equivalent material.
7.8.1.5.3 Stairways which penetrate only 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. Personnel lift trunks
should be protected by A Class divisions. Stairways and lift trunks which
penetrate more than a single deck should be surrounded by A Class

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divisions and protected by self-closing doors at all levels. Self-closing
doors should not be fitted with hold-back hooks. However, hold-back
arrangements incorporating remote release fittings of the fail-safe type may
be utilised.
7.8.1.5.4 Air spaces enclosed behind ceilings, panellings or linings should be divided
by close fitting draught stops spaced not more than 14 metres apart.
7.8.1.5.5 Ceilings, linings, bulkheads and insulation except for insulation in
refrigerated compartments should be of non- combustible material. Vapour
barriers and adhesives used in conjunction with insulation, as well as
insulation of pipe fittings for cold service systems need not be non-
combustible, but they should be kept to a minimum and their exposed
surfaces should have resistance to propagation of flame.
7.8.1.5.6 The framing, including grounds and the joint pieces of bulkheads, linings,
ceilings and draught stops should be of non-combustible material.
7.8.1.5.7 All exposed surfaces in corridors and stairway enclosures and surfaces in
concealed or inaccessible spaces in accommodation spaces and control
stations should have low flame-spread characteristics.
7.8.1.5.8 Bulkheads, linings and ceilings may have combustible veneers provided
that the thickness of such veneers should not exceed 2 millimetres within
any space other than corridors, stairway enclosures and control stations
where the thickness of such veneers should not exceed 1.5 millimetres.
7.8.1.5.9 Primary deck coverings, if applied, should be of approved materials which
will not readily ignite.
7.8.1.5.10 Paints, varnishes and other finishes used on exposed interior surfaces
should not be of a nature to offer an undue fire hazard and should not be
capable of producing excessive quantities of smoke or toxic fumes.
7.8.1.5.11 Ducts provided for ventilation of machinery spaces of Category A and
hazardous areas should not pass through accommodation and service

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spaces or control stations. However, this requirement may be waived
provided that :-
a) The ducts are constructed of steel and insulated to A-60 standard;
or
b) The ducts are constructed of steel and fitted with an automatic fire
damper close to the boundary penetrated and insulated to A-60
standard from the machinery space of Category A to a point at least 5
metres beyond the fire damper.
7.8.1.5.12 Ducts provided for ventilation of accommodation and service spaces or
control stations should not pass through machinery spaces of Category A
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 penetrated.


SECTION 8
PROCEDURES FOR CRUDE OIL PRODUCTION
ALLOWABLES
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SECTION 8
PROCEDURES FOR CRUDE OIL PRODUCTION ALLOWABLES

Executive Summary
This section provides procedures on long and short term crude oil production approved level
process. PETRONAS shall be responsible for establishing the approved production rate of crude
oil in each Petroleum Field as provided for in the Production Sharing Contract.
In this respect PS Contractor is requested to provide the crude oil production forecast based on the
latest reservoir engineering study and approved reservoir management policy consistent with safe
operating conditions and a realistic development scheduling taking into considerations the need for
efficient and economic exploitation of hydrocarbon resources.

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8.1 LONG TERM CRUDE OIL PRODUCTION FORECAST
SUBMISSION BY PS CONTRACTOR

By October 1st of every Calendar Year, in submitting the annual Work Programme and
Budget, PS Contractor shall submit the remaining life cycle of crude oil production potential
and availability forecasts and condensate availability forecasts (if applicable) for each
petroleum field.

The potential and availability production forecasts shall be based on latest reservoir
engineering study and approved reservoir management policy (refer to Sec 12), well test
requirement (refer to Sec 13), established Inspection & Maintenance Philosophy (refer to
Sec 11) consistent with safe operating conditions (refer to Sec 1), and a realistic
development scheduling i.e. Field Development Plan or Area Oil Development Plan
approval (refer to Sec 3).

These production potential and availability forecasts shall be shown as follows:-
first Calendar Year on monthly and quarterly basis,
succeeding four Calendar Years on quarterly basis,
remaining Calendar Years on annual basis.

8.2 SHORT TERM APPROVED PRODUCTION LEVEL

PETRONAS shall advise PS Contractor on the subsequent quarterly Crude Oil Production
approved level of the year prior to the commencement of that quarter. In this respect, PS
Contractor is required to submit to PETRONAS in the middle of each quarter, the following
information:-
i. Average expected production potential and availability by field for each month of
the year plus the first quarter of the subsequent year.
ii. Breakdown of expected production availability i.e base production,
infill/sidetracking, workover, well services and debottlenecking for each month of

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iii. Monthly gas production, utilisation and flaring/venting for each month of the year
plus the first quarter of the subsequent year.
iv. Where applicable the average monthly condensate production for each month of
v. The update of the year major planned shutdowns and its barrels deferred for each
month of the year plus the first quarter of the subsequent year.

For item i iv, please refer to Appendix 8 for reference. PS Contractor shall also submit
brief explanation (in presentation format), information including but not limited to the
following:
basis/assumption used to derive the crude production forecast.
reasons for variance of actual versus production approved level.
unplanned shutdown and its barrels impact.
issues and mitigation/production enhancement plan.
PETRONAS may request for a meeting with PS Contractor for clarification.

Towards achieving the said quarterly approved production PS Contractor shall update and
propose relevant monthly production levels at the monthly crude oil lifting/programming
meeting. The monthly target production shall be in line with the quarterly approved
production and PETRONAS will decide the monthly target which shall then be
implemented by PS Contractor.

8.3 PRODUCTION VARIATION

PS Contractor must first take all possible steps to comply with the quarterly and annual
approved levels with minimal production fluctuation. However, to cater for unexpected
operational requirements, PS Contractor must take all efforts to make-up the deferred
production i.e. through production enhancement initiatives, etc.

In the event that there is over or under production, PS Contractor shall then make-up the
over or under production in the next succeeding quarter. The make-up or cut back

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production shall be agreed by PETRONAS. In any event, over-production or under-
production shall be minimized towards achieving the annual approved level by year end.

For field that fall under the National Depletion Policy (NDP), the production shall be
governed by the latest NDP guidelines. The NDP states that any major fields which are
having total Oil Initially Inplace (OIIP) equal to or more than 400 MMstb, the production will
be limited to a ceiling of 3.0% of OIIP in any one year.

-END OF SECTION 8-

SECTION 9
PROCEDURES FOR GAS PRODUCTION &
FLARING/VENTING LIMIT
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SECTION 9
PROCEDURES FOR GAS PRODUCTION & FLARING/VENTING
LIMIT
Executive Summary
This section provides procedures on non-associated and associated gas disposal and approval
processes on flaring/venting of the gas.
PS Contractor shall seek PETRONAS' approval for flaring or venting of non-associated and
associated gas from any Petroleum Field.
In this respect PS Contractor is requested to provide the non-associated and associated gas
forecast based on the latest reservoir engineering study and approved reservoir management
policy consistent with safe operating conditions and a realistic development scheduling taking into
considerations the need for efficient and economic exploitation of hydrocarbon resources.

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9.1 LONG TERM NON-ASSOCIATED GAS PRODUCTION
FORECAST SUBMISSION BY PS CONTRACTOR
Budget, PS Contractor shall submit the remaining life cycle of gas production and
disposition forecast based on supply capacity (availability) including the condensate
forecast for each non-associated gas field.
These production potential and availability forecasts shall be shown as follows:-
first Calendar Year on monthly and quarterly basis,
succeeding four Calendar Years on quarterly basis,
remaining Calendar Years on annual basis.

PS Contractor shall not produce non-associated gas, other than for the purpose of gas
sales and gas related operational requirements, without prior approval of PETRONAS.
9.2 LONG TERM ASSOCIATED GAS PRODUCTION FORECAST
SUBMISSION BY PS CONTRACTOR
Budget, PS Contractor shall submit the remaining life cycle of associated gas production
availability forecasts for each petroleum field. Such forecast shall be consistent and in
accordance with the considerations as stipulated in Section 8.1 of Procedures For Crude
Oil Production Allowable.

9.3 SHORT TERM NON-ASSOCIATED AND ASSOCIATED GAS
PRODUCTION

PETRONAS shall advise its gas customers on the latest gas supply outlook on quarterly
basis. In this respect, PS Contractor is required to submit to PETRONAS in middle quarter,
following information:-
i. Average expected gas supply capacity outlook by field for each month of the year

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ii. Breakdown of expected production capacity i.e base production, infill/sidetracking,
workover, well services and debottlenecking for each month of the year plus the
first quarter of the subsequent year.
iii. Monthly gas production, utilisation and flaring/venting for each month of the year
iv. Where applicable the average monthly condensate production for each month of
v. Update of the year major planned shutdowns for each month of the year plus the
first quarter of the subsequent year.
For item i iv, please refer to Appendix 8 for reference. PS Contractor shall also submit
brief explanation (in presentation format), information including but not limited to the
following:
basis/assumption used to derive the gas capacity forecast.
reasons for variance of actual and forecast versus WP&B and/or Overall Area
Development Plan (OADP) gas supply capacity forecast.
unplanned shutdown and its volume impact.
issues and mitigation/production enhancement plan.
PETRONAS may request for a meeting with PS Contractor for clarification.
PS Contractor must first take all possible steps to comply with the WP&B and/or Overall
Area Development Plan (OADP) gas supply capacity forecast with minimal production
fluctuation. However, to cater for unexpected operational requirements, PS Contractor
must take all efforts to mitigate the shortfall i.e. through production enhancement initiatives
etc.
9.4 GAS FLARING / VENTING

9.4.1 Non-associated gas

Non-associated gas shall NOT be flared or vented without prior approval of
PETRONAS, except as provided herein:-

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a) when gas is released from condensate stabilization units and the utilization 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 48 hours;
c) when gas is released during emergencies, or as part of normal production
operations; and
d) during regular schedule facilities maintenance and inspection of gas related
equipment not exceeding 1 week
e) during commissioning of gas related equipment not exceeding 2 weeks.

9.4.2 Associated gas

PS Contractor shall seek PETRONAS' approval for flaring or venting of associated gas
from any Petroleum Field.
In this respect, PS Contractor shall submit the corresponding associated gas
production and utilisation forecast based on crude oil availability forecast and shall
provide justification for the flaring or venting level. The forecast shall be submitted
together during the 1st Quarter crude oil production forecast submission.
PETRONAS shall convey the annual flaring/venting limit of associated gas from any
Petroleum Field for PS Contractor to comply.
Associated gas shall not be flared or vented without prior approval of PETRONAS,
except as provided herein:-
a) when gas vapours are released from storage vessel including tanks,
specifically surge tanks and Free Water Knock-out Vessels, and if such gas
vapours cannot be economically utilised;
b) during temporary equipment failure, e.g. compressor but not exceeding 72
hours;
c) during cleaning up of a well, production test or any other well evaluation tests
not exceeding a continuous period of 48 hours;

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d) when regular scheduled preventive maintenance, inspections and testing are
conducted;
e) when gas is released during emergencies, e.g. emergency shutdowns,
blanketing or pressure relief operations, or as part of normal production
operations (e.g. instrument gas); and
f) during commissioning of gas related equipment not exceeding 2 weeks.

9.5 FLARING/VENTING PERMIT
In the event that flaring/venting exceeds the specific period as stipulated in Sections 9.4.1
and 9.4.2, PS Contractor shall seek flaring/venting permit from PETRONAS Regional
Office.
PS Contractor must comply with the flaring or venting limit set for the year. In line with
PETRONAS towards zero flaring policy PS Contractor must take all steps to minimise the
flaring or venting.


SECTION 10
GUIDELINES FOR ONSHORE/OFFSHORE
OPERATIONS
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ISSUED BY
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AUG 2008

SECTION 10
GUIDELINES FOR ONSHORE/OFFSHORE OPERATIONS
Executive Summary
This section provides the basic guidelines on the operations of offshore and onshore facilities,
inclusive of Floating Production & Storage Offloading (FPSOs)/ Floating Storage Offloading
(FSOs)/Mobile Operating Drilling Units (MODUs)/Work Barge/Platforms/onshore Crude Oil,
Condensate and Gas Terminals and other locations, such as supply bases and warehouses,
notwithstanding all other associated facilities and equipment therein, e.g., accommodation barge,
pipelines, export facilities, pumps and compressors, etc.
PS Contractor shall operate these offshore and onshore facilities, structures and pipelines safely,
in accordance with best industry practices and in compliance with PETRONAS HSE and regulatory
requirements as well as the applicable Malaysian laws.
PS Contractor is required to develop, update and maintain the operating manuals, operating
procedures, shutdown programmes, as-built drawings for all the offshore and onshore facilities.
PS Contractor shall also ensure the operations and activities undertaken by its contractor(s) at all
locations and work sites are in line with the PS Contractors operating philosophies and HSE
policies.

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10.1 NOTICE OF INTENT
PS Contractor shall submit a notice of intent to PETRONAS, advising at least thirty (30)
days before commencement of operations for any newly constructed offshore and onshore
facilities, structures and pipelines. However, PS Contractor shall advise PETRONAS
should there be any changes to the commencement date immediately.
The commencement of operations shall refer to the introduction of first hydrocarbon
through the systems, i.e., the production phase.
10.2 OPERATIONS MANUAL
PS Contractor shall prepare an operation manual consisting of starting, operating and
shutdown procedures which shall outline preventive measures and systems checks
required to ensure proper functioning of all shutdown, control and alarm system for
production facilities.
PS Contractor shall provide a copy of the operation manual to PETRONAS when
requested.
10.3 SIMULTANEOUS OPERATIONS PROCEDURES
PS Contractor shall prepare and update a general operating procedure for conducting
activities simultaneously with production operations, which could increase the possibility of
occurrence of undesirable events such as harm to personnel and / or environment or
damage to properties.
The general operating procedures shall include but not limited to a detailed description of
operations and procedures for mitigation of potential undesirable events.
Activities requiring the simultaneous operations procedures shall among others cover
drilling, rig workover, diving and major construction operations and maintenance activities.
PS Contractor shall prepare specific / dedicated simultaneous operations procedures for
each activity and location prior to execution.

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PS Contractor shall provide a copy of the simultaneous operations procedures to
PETRONAS when requested.
10.4 SHUTDOWN
10.4.1 Annual Shutdown Plan
PS Contractor shall advise PETRONAS KL and PMU Regional Office of the annual
shutdown plan, as per its original Work Programme & Budget submission, stating the
reasons for and the duration of the shutdowns and shall update PETRONAS KL and
PMU Regional Office on quarterly basis, as specified in Section 8: Procedures for
Crude Oil Production Allowable.
10.4.2 Unplanned Shutdown
PS Contractor shall notify PETRONAS PMU Regional Office promptly of any major
unplanned crude oil production shutdown. Major unplanned crude oil production
shutdown shall refer to any shutdown events which are not planned in the PS
Contractors original Work Programme & Budget submission, and which may impact
the agreed tanker lifting programme, and as well as the monthly crude oil production
target for the specific PS Contract area.
PS Contractor shall also notify PETRONAS PMU Regional Office promptly of any
shutdown of its crude oil/condensate/gas terminals and/or export facilities, either due
to weather or technical integrity concerns of its associated equipment, such as, loading
hoses, SALM/SBM, export pumps, etc. which warrant the said facilities being
unavailable or unsafe for any loading operations to be performed.
PS Contractor shall notify PETRONAS PMU Regional Office promptly of any
unplanned gas production shutdown events which are not planned in the PS
Contractors original Work Programme & Budget submission, and which has an impact
on downstream gas customers.
The prompt notification of the above shall be made within 24 hours through telephone
calls and to be followed in writing via e-mails or telefax, stating at least the description
of failure/reason(s) of shutdown, volume shortfalls, impact on flaring or re-injection
(where applicable), actions taken and estimated time for normalization. This is in

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addition to the normal PS Contractors reporting via the daily production operations
report as described in sub-section 10.6.
10.5 AS-BUILT DRAWINGS
PS Contractor shall revise all as-built drawings for facilities, structures and pipelines
whenever significant modifications are carried out to ensure that the as-built drawings are
as per current status. The said drawings shall be made available to PETRONAS when
requested.
PS Contractor shall make available all latest as-built drawings for hand-over to
PETRONAS prior to field relinquishment as required under Production Sharing Contract.
PS Contractor shall also submit to PETRONAS as-built drawings for all new projects.
10.6 DAILY PRODUCTION OPERATIONS REPORT
PS Contractor shall submit or make accessible to PETRONAS PMU Regional Office the
daily operations report, including crude, associated and non-associated gas production per
platform and field, crude sales and stocks, flaring, gas sales and condensate production
and sales, if applicable, and reasons for any abnormalities in the performance, such as,
production shortfalls and/or excessive gas flaring. The submission can be made via
electronic mailing system.
PS Contractor shall also ensure that daily operations log is maintained and updated to
record significant daily operational activities at all work locations.
10.7 QUARTERLY PRODUCTION OPERATIONS REPORT
PS Contractor shall submit to PETRONAS quarterly production operations report including
crude, associated and non-associated gas production per platform and field, gas flaring
per platform and field, including at other facilities such as crude oil terminals, crude sales
and stocks, flaring, gas sales and condensate production and sales, if applicable.

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AUG 2008

10.8 TERMINAL OPERATIONS
In addition to the above, the Terminal Operations, inclusive of both the onshore and
offshore crude oil/condensate and gas terminals, i.e., receiving, processing, stabilization,
storage, offloading and export/transfer facilities, shall comply with the following
requirements, namely :-
PETRONAS Measurement & Allocation Procedures that consist of the
hydrocarbon inventory, loading, metering, validation, custody transfer and
accounting procedures;
PETRONAS HSE requirements;
PETRONAS Emergency Communication / Notifications Procedures; and
PETRONAS Marine Safety Practices;
Malaysian Statutory requirements or any international instruments to which
Malaysia is a signatory and/or a party. versus upstream procedures by
PETRONAS and PS Contractors own operations requirements).
10.9 INSPECTION & OPERATIONS AUDIT
PETRONAS reserves the right to conduct any operations inspection or audit at PS
Contractors and/or its contractors operational locations, whenever and wherever
necessary. This may be conducted either as a separate exercise or together with the
HSE, facilities and/or other activities inspection and audit.


SECTION 11
GUIDELINES FOR FACILITIES RELIABILITY &
INTEGRITY MANAGEMENT
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AUG 2008

SECTION 11
GUIDELINES FOR FACILITIES RELIABILITY & INTEGRITY
MANAGEMENT

Executive Summary

This section provides a structured framework for managing reliability and integrity aspects of PS
Contractors production facilities. The objective of the document is to establish, sustain and
assure the reliability and integrity of facilities throughout their lifecycle. All management
systems, standards, procedures and practices developed by PS Contractor shall comply and be
consistent with the requirements stipulated in this section. The requirements contained in this
document shall be applicable to both PS Contractor-operated and lease facilities.

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Definitions

Facilities is defined as infrastructures concerned with the production and processing of
hydrocarbons and should be read to include wells, structures, sub-structures, pipelines and sub-sea
systems.

Integrity is defined as 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.

Reliability is defined as the ability of the asset to perform the required function(s) under specified
operating conditions for a stated period of time.

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11.1 INTRODUCTION

Safe and efficient operations of facilities are essential to both PS Contractors and
PETRONAS business and HSE performance. Apart from enabling achievement of the
desired quantity (production target) and quality of produced hydrocarbon, assured facilities
integrity and reliability preclude any undesirable HSE impacts resulting from functional
failures of facilities. All facilities are to perform their functions as intended and when
facilities performance falls below intended level, effective corrective actions need to be
promptly implemented.

11.2 FULL LIFE CYCLE MANAGEMENT

In managing reliability and integrity of facilities, PS Contractor shall adopt the full life cycle
management concept encompassing all phases in facilities life cycle - from
conceptualization to decommissioning.
In the field development phase, reliability and integrity shall be incorporated into FDP and
design of facilities. During construction, installation and commissioning of facilities,
reliability and integrity are to be addressed as part of assurance program for development
projects. Throughout the production phase, reliability and integrity shall be sustained and
safeguarded through prudent operations and proper inspection and maintenance of
facilities.
Due considerations shall also be given to reliability and integrity of facilities prior to field
relinquishment to PETRONAS. PS Contractor shall ensure that integrity of facilities is in
the state that enables safe and reliable continued operations after the handover.
Throughout the lifecycle of facilities, the risks associated with their operations are to be
reduced based on the As Low as Reasonably Practicable (ALARP) principle.

11.3 MANAGEMENT SYSTEM

Management of facilities reliability and integrity shall be strongly inter-related with HSE and
quality management. To provide a structured framework for effective management of
facilities, PS Contractor shall incorporate key elements of facilities reliability and integrity
management into its management system(s).

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The elements shall include, as a minimum, the following:
Leadership and Commitment
PS Contractors management shall demonstrate visible leadership and commitment
by placing high priority and playing active roles in activities related to facilities
reliability and integrity. Apart from allocating necessary financial and human
resources, the management shall put in place mechanism to measure and monitor
performance related to facilities reliability and integrity.
In addition, PS Contractors management shall inspire, motivate and empower the
employees to deliver target performance relating to facilities reliability and integrity
and take accountability of facilities reliability and integrity impact to business
performance.
Policy and Strategic Objectives
The policy shall clearly outline the principles, objectives, strategies and performance
targets related to facilities reliability and integrity. PS Contractor shall ensure
dissemination of the policy and strategic objectives to all employees and, whenever
necessary, to other relevant parties.
Organization, Roles and Responsibilities
PS Contractor shall establish a functional structure and allocate resources to reflect
reliability and integrity management is a line responsibility. The roles, responsibilities
and accountabilities of relevant personnel shall be clearly defined.
PS Contractor shall institute communication means to disseminate information on
facilities reliability and integrity management across its organization,
Reliability and Integrity Management Processes
PS Contractor shall identify and clearly define methodologies to assure reliability and
integrity of facilities. As a minimum, the methodologies shall include the following:
risk assessment to estimate the magnitude and decide the tolerability of risks
risk and reliability management to determine facilities maintenance
requirements
criticality assessment to determine relative importance of equipment to overall
facilities operations
incident investigation and failure analysis

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bad actor management to identify and rank issues relating to facilities
reliability and integrity and work towards elimination of the problems
remnant life assessment to ensure safe operation of critical equipment and
those nearing end of design life
assessment of operational performance, process effectiveness and personnel
competencies
Improvement Plan and Implementation
PS Contractor shall review and assess its facilities reliability and integrity
performance to identify areas that need improvement. Corrective or improvement
efforts shall be prioritized based on criticality and risks.
Assurance / Audit
PS Contractor shall conduct assurance / audit to verify compliance to and assess
effectiveness of the management system. PETRONAS, at its discretion, may
participate in the assurance / audit or conduct a similar exercise.
Management Review
PS Contractors management shall review performance and remedial plans related
to facilities reliability and integrity. Improvement objectives and targets shall
incorporate PETRONAS aspirations and requirements.
Apart from assuring performance, the review shall assess to establish optimal use of
resources, competency of personnel or contractor and application of 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. The
management system shall be supported by relevant guidelines, standards and procedures.
11.4 OPERATIONS OF FACILITIES
PS 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. PS Contractor shall employ adequate
number of competent personnel for its production operations. The operating procedures

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and others 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, PS Contractor is to undertake necessary corrective measures to
ensure safety, reliability and efficiency of facilities operations. In addition PS Contractor
shall monitor the quality of produced hydrocarbon and effluent to ensure there is no
presence of elements which will be detrimental to integrity and reliability of facilities.
11.5 INSPECTION AND MAINTENANCE
Inspection and maintenance shall be integral and essential parts of PS Contractors overall
production operations. The activities ensure functional fitness of all facilities. PS Contractor
shall ensure that the activities are undertaken effectively to realize the desired
performance of facilities.

11.5.1 Compliance to Legislative Requirements

All inspection and maintenance activities undertaken by PS Contractor shall be, as a
minimum, in full compliance to relevant legislations.

11.5.2 Philosophy and Related Documents

PS Contractor shall develop and establish its own inspection and maintenance
philosophy outlining the objectives, policies and principles governing inspection and
maintenance of facilities. In addition, the document shall include strategies to address
or mitigate potential threats to reliability and integrity of facilities. Cost effectiveness, as
much as possible, should be a primary consideration.

As deemed necessary by changes in legislations, revision in company standards,
assessment of maintenance effectiveness, advances in technology or enhancement in
industry best practices, PS Contractor shall review and update its system and all
documents related to inspection and maintenance of facilities.

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PS Contractor shall submit one (1) copy of documents related to facilities reliability and
integrity management, including those for inspection and maintenance to PETRONAS.
Should there be any revision to any of the documents, PS Contractor is to provide
PETRONAS with the updated revision within 6 months of such change.

11.5.3 Minimum Requirements for Inspection & Maintenance

11.5.3.1 Topsides / Onshore Terminals

Mechanical Static Equipment

Mechanical static equipment includes pressure vessels, piping, boilers, heat
exchangers, launchers & receivers, tanks, etc.

PS Contractor shall establish appropriate corrosion management program
including chemical applications, microbiological monitoring and appropriate
analysis to ensure sustained integrity of static equipment.

A baseline survey, before equipment is put into service, shall be conducted to
obtain reference which future surveys will be compared against. Periodic
inspection consisting of both external visual checks for coating degradation
and 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, suitable alternative
method shall be used. Appropriate technique shall be employed to perform
Corrosion Under Insulation (CUI) and heat exchanger tubes inspection.

PS 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 PS Contractor must be able to reduce the

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associated residual risks to an acceptable level to ensure safe operations of
equipment.

The maintenance or replacement of the equipment shall be determined based
on the inspection findings.

Major Rotating Equipment

Major rotating equipment includes gas turbines, internal combustion engines
(gas & diesel), gas compressors (reciprocating & centrifugal) and pumps.
PS Contractor, as much as possible, shall adopt risk and reliability
management methodology to determine the appropriate inspection and
maintenance strategies, tasks and intervals.

Planned preventive maintenance shall be performed based on OEM
recommendations and if applicable, improved practices acquired through PS
Contractors operational experience. PS Contractors, whenever feasible, shall
periodically or continuously conduct condition monitoring to establish basis for
predictive or condition-based maintenance of equipment. The condition
monitoring shall include vibration and temperature monitoring, operating
parameters trending, lube oil analysis and boroscope inspection.

Functional test to address dormant failures shall be conducted on a defined
frequency for emergency (e.g. firewater pumps, emergency diesel generator
etc.) and standby equipment as well as machinery safeguarding / protective
system.

Major inspection and overhaul shall be performed based on the combination of
OEM recommendations and condition monitoring data taking into
considerations the operating parameters and mode of operation.

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Safeguarding Devices and Systems

The devices and systems are safety-critical items which 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 instrumentations (sensors, transmitters,
switches, pilot etc.), detectors, initiating devices (breakglasses, pushbuttons,
kill knobs, fusible plugs etc.), fire and gas systems, shutdown systems,
HIPPS, shutdown & blowdown valves and pressure relief devices (relief
valves, rupture discs etc.).

PS Contractors shall conduct periodic functional test of all safety-critical /
protective devices and systems at a defined frequency to address dormant
failures within devices and systems. The testing shall establish that the Cause
& Effect Matrix implemented in the systems remains correct and intact /
unchanged. Pressure relief devices shall be subjected to periodic non-
destructive functional test.

However, impact to production resulting from such testing needs to be taken
into considerations and minimized. Where possible, PS Contractor shall
employ technologies and practices that allow on-line testing of devices and
systems.

Shutdown & blowdown valves and pressure relief valves (where applicable)
shall be inspected for leakage, damage and corrosion.

Fire Fighting and Life Saving Equipment

PS Contractors shall conduct periodic inspection and functional test of all fire
fighting (fire water pumps, monitors, deluge, sprinklers, portable extinguishers

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etc.) and life saving equipment (lifeboat, life raft, escape capsule etc.) to
ensure functionality during emergency situations.

11.5.3.2 Structures
PS Contractor shall conduct baseline survey to include visual inspection of the
entire structure (including appurtenances) and NDT on selected structural
members and nodes.

In addition, PS Contractor is to develop and implement a periodic survey
program to cover structural members at above MSL, splash zone and below
MSL area. The survey shall assess if there is any damage, anomaly,
corrosion, marine growth, debris or coating deterioration. Visual inspection,
NDT and CP reading shall be part of the periodic survey program.

PS Contractor may adopt a risk-based methodology for inspection of
structures in lieu of the time-based approach. However, the risk-based
methodology selected by PS Contractor must be able to reduce the residual
risks associated with the structures to an acceptable level.

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 findings during the
survey.

11.5.3.3 Pipelines

Pipelines include subsea pipelines, risers, onshore (buried & above ground)
pipelines and associated facilities.

PS Contractor shall develop and implement appropriate corrosion
management program to sustain integrity of pipelines. Wherever applicable,

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AUG 2008

the corrosion management program shall include chemical inhibition,
dissolved gas analysis, microbiological monitoring and cathodic protection.

All pipelines, except for those of maintenance-free type e.g. CRA, shall be
equipped with facilities for internal cleaning through pigging. Frequency of
pigging shall be determined based on both technical and operational
considerations. Cleaning pigs shall be properly selected to ensure
effectiveness of pigging in maintaining efficiency of fluid transport and
mitigating corrosion in the pipeline.

PS Contractor shall conduct baseline survey for pipeline internal and external
within the first two (2) years of service. At a frequency defined by PS
Contractor, pipelines, risers and appurtenances shall be externally inspected.
As a minimum, all pipelines transporting process fluid from wells (FWS) and
hydrocarbon export line (inter-field pipeline or trunkline to shore) transporting
processed / stabilized medium for sales shall be able to be internally inspected
using intelligent pigging tools with capability to detect both internal and
external defects.

Rectification of items identified during survey / inspection of pipelines and
risers shall be promptly taken by PS Contractor to avoid failures.

PS Contractor may adopt risk-based methodology for inspection of pipelines in
lieu of the time-based approach. However, the RBI methodology selected by
PS Contractor must be able to reduce the associated residual risks to an
acceptable level to ensure safe operations of the pipeline.

To mitigate environmental impacts due to pipeline failure, PS Contractors
operating trunk lines, subject to feasibility, are to install early leak detection
system.

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AUG 2008

11.5.3.4 Wellhead and Downhole System
PS Contractor shall establish and implement a system to comprehensively
manage well integrity.
The inspection program for wellheads and Christmas trees (including
assemblies) shall include visual check for physical damage, corrosion and
leaks. Christmas tree valves shall be subjected to leak and functional test at a
frequency to be determined by PS Contractor. PS Contractor shall monitor
corrosion and erosion in downhole system, particularly production tubings
using appropriate means.

Functionality of all SCSSSV and wellhead valves is to be assured through
regular testing. To establish integrity of downhole system, PS Contractor shall
also perform bleed down and monitoring of annulus pressure build up.
Monitoring of sand production from wells shall also form part of inspection
program for downhole system.

Preventive maintenance for wellheads and Christmas tree (including
assemblies) shall include regular greasing / lubricating of and injection of
sealing compound into valves. Depending on functional test results, SCSSSV
may need a change-out or servicing.

11.5.3.5 Subsea Systems

The entire subsea production system shall be ideally designed to be
maintenance-free. All valves, fitting and connectors shall be maintenance-free
units for the whole design life. Based on manufacturers recommendations, PS
Contractor shall also develop and implement inspection program for subsea
systems using appropriate methods (ROV, ROT and/or diver.)

Due to high cost of intervention, particularly for deepwater facilities, subsea
systems shall, as much as possible, be designed for no scheduled / preventive
maintenance.

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11.5.4 Planning and Implementation

To ensure effectiveness in terms of both performance and cost, PS Contractor shall
properly plan and schedule its inspection and maintenance program. Appropriate
computerized management system is to be employed by PS Contractor for planning
and scheduling of activities.

All inspection and maintenance activities resulting in partial or total production impact
shall be clearly stated in WP & B. Timely and consistent execution is essential in
ensuring effectiveness of planned inspection and maintenance activities. PS
Contractor shall endeavor to fully comply with its inspection and maintenance plan.
Deviations from the plan shall be managed systematically. To minimize production
impact, PS Contractor shall maximize opportunistic maintenance by capitalizing on any
facilities shutdown.

As in any other activities related to production operations, full compliance to HSE
requirements during inspection and maintenance activities is non-negotiable and
supersedes economic considerations.

11.5.5 Materials Management
Whilst PS 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 should be integrated with the maintenance
management system employing appropriate computer system.

11.5.6 Contracting and Contractor Management
In the event of insufficient in-house resources or capability or due to specialized nature
of certain works or purely for cost effectiveness reasons, PS Contractor may contract

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out inspection and maintenance works. However, PS Contractor shall ensure that all
contractors are technically competent to perform the works. All tendering and
contracting shall be undertaken in full compliance to PETRONAS procurement
procedures.

PS Contractor shall be responsible to manage cost, schedule and quality aspects of
the works whilst ensuring strict adherence to HSE requirements by contractors
employed for inspection and maintenance of facilities.

11.5.7 Reporting and Key Performance Indicator (KPI)
PS Contractor shall measure and report to PETRONAS compliance and effectiveness
of reliability and integrity using KPI listed in Appendix 11.
11.6 MAJOR FAILURES AND CORRECTIVE ACTIONS
PS Contractor shall inform PETRONAS of any findings that could potentially lead to HSE
issues, major failure of facility and production reliability.
PS Contractor shall promptly report to PETRONAS all major facilities failures as described
in Section 10.
To minimize production impact, PS Contractor shall immediately take necessary corrective
action(s) to safely resume production at desired level and work out long term measure(s)
to prevent recurrence.
11.7 MANAGEMENT OF CHANGE
PS contractor shall develop and maintain a system to properly manage permanent and
temporary changes and deviations including those of physical or functional aspects of
facilities, operating procedures and inspection and maintenance plan that may impact
reliability and integrity of facilities.
The principal elements of the change control system shall include, but not limited to,
definition, justification, technical review, risk assessment approving authority and
documentation. PS Contractor shall periodically review the list and status of changes and
institute necessary measures to counteract any adverse effects. Care must be taken,

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however, to ensure that the system does not degenerate such that expediency takes
precedence over thorough review.
11.8 INFORMATION AND KNOWLEDGE MANAGEMENT
All data, information, documents and technical drawings of facilities are to be properly
maintained and updated. Data on reliability and integrity of facilities are to be properly
collected, validated, processed, analyzed and documented. PS Contractor shall maintain
proper and auditable record of inspection and maintenance activities.
History of failures, root cause(s) and remedial actions are to be properly documented.
Documents containing information on reliability and integrity of facilities are to be
systematically managed by having in place a document management system. For ease of
storage and longevity of documents electronic copies are preferred over hard copies.
Lessons learned and best practices are to be captured, documented and disseminated in a
systematic manner. If deemed beneficial, PETRONAS may request PS Contractor to
share lessons learned with others.
11.9 PRESERVATION
In the event that any facilities need to be put out of service, partially or totally, for a period
exceeding three (3) months, PS Contractor shall develop the procedure(s) to properly and
cost effectively preserve the facilities or part of facilities throughout the duration in
accordance with equipment manufacturers recommendations or good industry practices.
11.10 FACILITIES MODIFICATION, UPGRADING OR REJUVENATION
Modification, upgrading or rejuvenation of facilities may be necessary due to the following
reasons:
To enhance processing capacity (excluding requirements for new reserve
development)
To sustain/improve integrity or reliability
To address obsolescence of system or its component(s)
To suit changed operating envelope

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To improve quality of processed hydrocarbon
To ensure effluent meet environmental regulatory specifications
If the total estimated value of the project exceeds the threshold limit of RM10 million or if
the project is deemed critical by PETRONAS, PS Contractor shall submit for PETRONAS
approval the Facilities Improvement Plan (FIP) / Facilities Rejuvenation Plan (FRP) prior to
undertaking the project. The FIP/FRP approval process shall adopt the FDP review and
approval processes as described in Section 3. In addition, the FIP should combine key
activities as prescribed for Milestone Review 1 (MR#1) and Milestone Review 4 (MR#4).
The document shall contain the following information:
Objectives
Project Definition
Scope Of Work
Operations & Maintenance Philosophy
Cost & Economics
Schedule
Project Organization
Contracting Strategy
Technology
HSE
Quality Management
In the event of any change as described in Appendix 12, PS Contractor is to submit a
revision of the FIP/FRP. During the project implementation, PS Contractor shall furnish
PETRONAS with monthly progress report highlighting the progress, achievements, look
ahead plan, and issues of the project.

-END OF SECTION 11-

SECTION 12
GUIDELINES FOR RESERVOIR MANAGEMENT
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SECTION 12
Executive Summary
This section provides the basic framework of reservoir management guidelines for PS Contractor:-
a) on continuous reservoir data acquisition, the monitoring and analysis of reservoir
performance with reasonable accuracy and as appropriate through the field life cycle;
and
b) to carry out periodic Full Field Reviews and other studies for further development for
ongoing reserves and production optimisation.
c) on maintaining/keeping accurate records of all reservoir related data for submission in
accordance to Section 17. An accurate welltest, other reservoir & production related
data must be obtained in accordance to other relevant sections.
The objective is to promote optimum field development by economically optimizing hydrocarbon
recovery and maintain optimal field performance.
For the purpose of this section, reservoir may also include reference to fault block or
compartment where the unit is being managed.
Other sections to be referred together with this section are ;
Section 4- Guidelines for Project Development Management
Section 5- Procedures for Drilling Operations
Section 8 - Procedures for Crude Oil Production Allowables
Section 9- Procedures for Gas Production & Flaring/Venting Limit
Appendix 12 - List of Well Proposal Requiring PETRONAS Approval
Section 13 - Procedures for Well Test, Production Measurement & Allocation
Section 14- Dynamic Liquid Hydrocarbon Measurement
Section 17 - Data Submission Requirement

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12.1 PREAMBLE

The PS contractor shall operate in a manner that is consistent with sound reservoir
management principles at all stages of the reservoirs life cycle.

12.1.1 Reservoir Management

In the context of these guidelines reservoir management is defined as:
An ever-changing and ongoing process which must be conducted at all stages of the
life cycle of a petroleum reservoir system from discovery to abandonment to ensure
optimum development and depletion of the reservoirs.

It must be a multidisciplinary process aimed at cost effectively enhancing the
knowledge and understanding of the reservoir system and translating the enhanced
understanding into operational plans for ongoing development to optimise production
and reserves. The reservoir system includes any associated aquifer, gas cap, wells
and surface facilities.

12.1.2 Full Field Reviews

Full Field Reviews (FFR) are a comprehensive multi-disciplinary re-evaluation of all
basic reservoir characterisation data, dynamic reservoir and well performance data as
well as relevant surface facilities considerations pertaining to an oil or gas field. These
re-evaluations must use the most relevant current interpretation techniques to
maximise knowledge distillation from the data. Such re-evaluations include (but not
limited to) seismic reprocessing, sequence stratigraphic correlations, petrophysical re-
evaluation, re-evaluation of reservoir and fluid properties and fit for purpose 3-D static
and dynamic reservoir modelling. Full Field Reviews must examine interfaces and
mutual optimisation of the reservoirs, wells and the surface facilities, and seek
production and reserves optimisation opportunities including (but not limited to)
examining the potential for:
1. Workovers
2. Infill drilling

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3. Artificial lift
4. Secondary recovery
5. Enhanced/improved recovery
6. Surface facilities debottlenecking and optimisation
While it is acceptable for some existing evaluations of data sets such as seismic,
petrophysical interpretations, reservoir and fluid properties or transient well test
analyses to 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.
12.2 EARLY DEPLETION STAGE
PS Contractor shall operate in a manner that is consistent with the optimum reservoir
management strategy of the field as approved in the field Field Development Plan (FDP),
regarded to be pre-development FFR. PS Contractor shall ensure that prudent reservoir
management policies/strategies are being implemented. The reservoir management
strategy may need to be revised or modified in light of the new data being acquired during
the initial development stage. Depending upon the variations of the new data from the FDP
data, a revised Full Field Review may be required.

During the course of production operations PS Contractor shall maintain database of
production, pressure, reservoir performance and reservoir geological description data.
With the new data, PS Contractor shall update models and/or performance forecast, when
necessary. PS Contractor shall submit a proposal for PETRONAS review and approval if
reservoir performance and other data show that a different reservoir management strategy
than that approved in the FDP is required for optimum reservoir management. Prior to
submitting the proposal for PETRONAS approval, PS Contractor shall have technical
review upfront with PETRONAS.

Due to uncertain drive mechanism any Gas-Oil-Ratio (GOR) controls, where appropriate
and in accordance with prudent reservoir management practices, shall be addressed in the
approved FDP. If significant uncertainty exist in the reservoir drive mechanism, the FDPs

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should have multiple scenarios covering the potential range of reservoir drive mechanisms
and reservoir descriptions, and consequently the range of anticipated reservoir behavior.

However, if no reservoir studies have been conducted, the reservoir GOR shall be limited
to 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 on data gathering to understand the
reservoir behaviour.

Nevertheless, PS Contractor may propose for PETRONAS approval the revision of GOR
limit with technical justification and in accordance with good industry practices.

The reservoir depletion shall not exceed 15% of developed EUR per year. Any depletion
rate exceeding 15% need to be supported by reservoir studies and approved by
PETRONAS

Some fields may be subjected to National Depletion Policy (NDP) policy. Please refer to
Procedures for crude oil production allowable Section 8.3

PS Contractor shall take actions to improve well deliverability/injectivity as deemed
necessary. PS Contractor may carry out workovers and/or other well work activities and
artificial lift programs which require submission of proposals for PETRONAS approval
(refer to Appendix 12 for documentation and approval requirements).

PS Contractor shall present to PETRONAS the field performance/surveillance, in the
annual Field Reservoir Management Review (FRMR). The timing for the annual review
and the package submission deadline will be determined by PETRONAS. PETRONAS
may also request detail review by well in the Field Review Workshop (FRW) at any time
required. PS Contractors shall invite PETRONAS for participation in any PS Contractors
in-house detail well by well review to obtain exception for a separate FRW.

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12.3 MIDDLE AND LATE STAGE

PS Contractor shall continue to gather and analyze reservoir performance data and
operate in a manner that is consistent with the optimum reservoir management strategy of
the field in line with sub-section 12.2.

PS Contractor shall apply appropriate reservoir management tools and/or techniques for
analyzing field performance. PS Contractor shall also conduct reservoir studies (i.e. full
field review/depletion study) when theres new data available (such as new or reinterpreted
seismic, new well data, etc) or when performance deviate from forecast. When
performance is per expectation, PS Contractors shall also nevertheless conduct the full
field review/depletion study at least once every 3 to 5 years from the initial production. The
results from the reservoir studies shall be submitted to PETRONAS for review. These full
field review/depletion study shall cover but not limited to subsurface static and dynamic
model update and further development opportunity. PS Contractor may apply for exception
for the field review/depletion study with justification for PETRONAS consideration.

PS Contractor shall take actions to improve well deliverability/injectivity as deemed
necessary. PS Contractor may carry out workovers and/or other well work activities and
artificial lift program which require submission of proposal for PETRONAS approval (refer
to Appendix 12 for documentation and approval requirements).

PS Contractor shall present to PETRONAS the field performance/surveillance during
annual review. The timing for the annual review and the package submission deadline will
be determined by PETRONAS. PETRONAS may also request detail review by well (FRW)
at any time required. PS Contractor shall invite PETRONAS for participation in any PS
Contractors in-house detail well by well review to obtain exception for a separate FRW.

12.4 IMPROVED AND ENHANCED RECOVERY

At any stage of reservoir depletion PS Contractor shall look for opportunities to add
reserves, preferably by natural means. However, artificial lift and/or improved recovery
method may be required in cases where natural drive mechanisms are insufficient and it is

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economically justifiable to do so. PS Contractor shall submit the artificial lift and/or
improved recovery program in the FDP or FDP Revision for PETRONAS technical review
and approval.

Examples of improved recovery method include but 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, PS Contractor shall conduct voidage
replacement and volumetric sweep analysis of each reservoir and present summary of
results to PETRONAS annually. For water injection, voidage replacement policy of each
reservoir will be determined by the optimum reservoir management strategy of the field.
For immiscible gas injection for pressure maintenance, voidage replacement policy of each
reservoir will be determined by the optimum reservoir management strategy of the field,
and/or a group of fields sharing the same infrastructure.

At any stage of depletion, PS Contractor may seek PETRONAS approval for the
application of enhanced recovery techniques. PS Contractor shall conduct screening
study for enhanced recovery development opportunities during initial Field Development
Plan and/or investigate these as part of Full Field Reviews.

Examples of enhanced recovery techniques include, but are not limited to, immiscible or
miscible gas injection, microbial enhanced recovery, surfactant flooding, steam flooding,
polymer flooding and air injection. In particular, the PS Contractor must examine the
potential for reserves optimization and geo-sequestration of greenhouse gas through
immiscible and miscible carbon dioxide injection into fields located in regions (such as
Peninsular Malaysia and Sarawak) that contain gas reservoirs with high carbon dioxide
content.

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12.5 RESERVOIR MANAGEMENT PLAN

PS Contractor shall submit a Reservoir Management Plan which includes the strategies
and plan to PETRONAS in the initial FDP for approval. The content shall include the
following but not limited to ;

12.5.1 Reservoir Management Strategy and Plan in various anticipated operational
conditions.

Any deviation to the plan outlined in 12.5.1 requires a revision/update to the RMP, and
shall require PETRONAS approval prior to implementation.

12.5.2 An integrated sand management plan. Justification is required for not having sand
management plan/provision. For existing reservoirs that are producing sand, an RMP
or FDP update is required to be submitted for approval to include this new
requirement.

The RMP is required to be assessed and reviewed by PS Contractors annually and
reviewed to PETRONAS as part of the annual performance review (FRMR or FRW
reviews).

12.6 WELL ABANDONMENT

PS Contractor shall submit plans for well abandonment for PETRONAS approval in
accordance to section 5 of the Procedure for Drilling Operation or once the PSC
or/and PETRONAS has determined that the reservoir/well can no longer produce
economically and does not have the potential to do so in the future. This requirement
shall be in-line with Section 16 of Guidelines for Decommissioning of Upstream
Installation.


SECTION 13
GUIDELINES FOR WELL TEST, PRODUCTION
MEASUREMENT AND ALLOCATION
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SECTION 13
GUIDELINES FOR WELL TEST, PRODUCTION MEASUREMENT
AND ALLOCATION
Executive Summary
This section provides the scopes / guidelines on the requirement for the information that is required
to be submitted related to the completion and recompletion of development/ production wells on
Well Test and Production Measurement and Allocation.
It also provides the procedure for acquiring basic information for the purpose of reservoir
management. However, the procedure written in this section does not cover all aspects of Well
Testing and Production Measurement and Allocation, and shall be regarded as PETRONAS'
requirements necessary while ensuring safety and integrity of production facilities based on good
oilfield practices.
This section shall be read together with the followings:
1. Section 3 : Guidelines for FDP Review and Approval Process
2. Section 11 : Guidelines for Facilities Reliability & Integrity Management
3. Section 12 : Guidelines for Reservoir Management.
4. Section 14 : Guidelines for Hydrocarbon Measurement
5. Section 15 : Guidelines for Gas Measurement
In cases where the requirements and frequencies are not specifically stated in this Guidelines, PS
Contractor shall derive the scopes and frequencies based on best oilfield practices, internationally
recognised codes and standards and applicable Malaysian Laws, and shall implement the same
accordingly.

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AUG 2008

13.1 OIL PRODUCING WELL
13.1.1 Production Rate Test
Upon initial completion or recompletion of oil wells, PS Contractor shall carry out the
initial production rate test as soon as stable flow is established and/or subject to not
more than 60 days of initial production or at the first safe opportunity available. The
test shall be carried out on each separated producing interval(s) of the well whenever
the interval(s) is put on production.
PS Contractor shall conduct subsequent production rate test monthly for all active
producers. However, if the well has established a consistent and predictable
performance trend, a quarterly production test is allowed with PETRONAS approval.
Production rate test shall also be conducted if the following arisen:-
a) The new choke size has never been used before.
b) The well performance is anticipated to be significantly different from
prediction.
c) Shut-in well within the last 3 years with capability of flowing.
Result of the production test shall be maintained by PS Contractor and be submitted
as per Section 17, Guidelines for Data Management and Submission. The report of the
above test shall include but not limited to the following information;
a) Choke size used for the well during the production test was conducted.
b) Result of the production rate test (including the gas lift or other related
information, where applicable).
c) Measurement of the surface production conditions, i.e tubing and casing
head pressure, pressure and temperature (where applicable) of the
measuring equipment.

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13.1.2 Bottom Hole Pressure Survey
13.1.2.1 Transient Pressure Survey
PS Contractor shall conduct initial flowing and build-up (FBU) or drawdown
(DD), pressure survey(s) for newly completed or recompleted oil wells for each
reservoir. The length of the build-up or drawdown period must be sufficient to
capture well and reservoir parameters.
This survey shall be conducted at the first safe opportunity available.
Subsequent to the initial survey, periodical survey shall be conducted on each
active producer when deemed necessary for wellbore evaluation. The
exercise shall be conducted in accordance with prudent reservoir
management practices.
13.1.2.2 Static Bottom Hole Pressure (SBHP)Survey
This survey shall be conducted on at least 50% of the total active producers in
each reservoir annually for the first two years of its producing life and on at
least 25% of total active producers thereafter. The survey can be conducted
on active or non-active producers.
13.1.2.3 Production Logging Tool (PLT) Survey
For commingle reservoirs, PS Contractor shall conduct initial PLT Survey to
define proper production allocation and/or identify well / reservoir problem.
The subsequent survey shall be conducted as and when required.
13.1.2.4 Flowing Survey
For oil wells with artificial lift, PS Contractors shall conduct flowing survey as
required to validate well model and achieve optimum well operating condition.
13.1.2.5 Fluid Contact Logging Survey
PS Contractors shall conduct fluid contact logging survey as required.

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13.2 GAS PRODUCING WELL
13.2.1 Deliverability Test
Upon initial completion or recompletion of gas wells, PS Contractor shall carry out the
initial deliverability test as soon as stable flow is established and/or subject to not more
than 60 days of initial 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 on production and on a minimum of three (3) rates.
Subsequent to the initial deliverability test, periodical delivery test shall be performed
at least once a year, if a single rate test indicates significant delivery change. This test
shall be conducted for at least four (4) different flowrates on all active producers.
13.2.2 Periodic Production Rate Test
PS Contractor shall conduct subsequent monthly production rate test for all active gas
producers.
Result of the production rate test shall be maintained by PS Contractor. The report for
the above test shall include but not limited to the following information:
i. Choke size used for the well during the production test was conducted.
ii. Result of the production rate test.
iii. Measurement of the surface production conditions, such as tubing and casing
head pressure, pressure and temperature (where applicable) of the measuring
equipments.

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13.2.3 Bottom Hole Pressure Survey
13.2.3.1 Transient Pressure Survey
PS Contractor shall conduct initial flowing and build-up (FBU) pressure
survey(s) for newly completed or recompleted gas wells for each reservoir
(refer to Section 12 for definition). The test should consist of at least 3 different
rates (as per initial deliverability test) and followed by sufficient build-up period
to capture well and reservoir parameters.
This survey shall be conducted at the first safe opportunity available. The
survey results shall be submitted within 60 days of completion of the survey.
Subsequent to the initial survey, periodical survey shall be conducted on each
active producer when deemed necessary for wellbore evaluation. The
exercise shall be conducted in accordance with prudent reservoir
management practices.
13.2.3.2 Static Bottom Hole Pressure (SBHP)Survey
This survey shall be conducted on at least 50% of the total active producers in
each reservoir (refer to Section 12 for definition) annually for the first two years
of its producing life and on at least 25% of total active gas producers
thereafter.
13.2.3.2.1 Production Logging Tool (PLT)Survey
For commingle gas reservoirs, PS Contractor shall conduct PLT
Survey for every 2 years to define proper production allocation and/or
identify well / reservoir problem.
13.2.3.2.2 Fluid Contact Logging Survey
PS Contractors shall conduct fluid contact logging survey as required.

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13.3 INJECTION WELL
13.3.1 Injection Rate Measurement
Injection volume shall be measured and allocated on monthly basis.
13.3.2 Injectivity Test
PS Contractor shall conduct initial injectivity test in every injection well or in any well
converted to injection well for the purpose of pressure maintenance. For water injector,
the test shall be done until above fracture pressure or maximum safe operating
injection pressure to determine the reservoir fracture gradient and other well/reservoir
information.
Test shall be conducted within 90 days of injection or at the first safe practical
opportunity available.
13.3.3 Injection Profiling Survey
For commingle reservoirs, PS Contractor shall conduct initial Injection Profiling Survey
to define proper injection allocation and/or identify well / reservoir problem.
The subsequent survey shall be done as required.
13.3.4 Injection Fall Off Survey
PS Contractor shall conduct initial Injection Fall Off Survey for newly completed or
recompleted wells for each reservoir (refer to Section 12 for definition). The test should
include sufficient shut in period to capture well and reservoir parameters.
This survey shall be conducted at the first safe opportunity available. The survey
results shall be submitted within 60 days of completion of the survey.
Subsequent to the initial survey, periodical 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.

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13.4 REQUIREMENT FOR WELL TESTING MEASUREMENT
DEVICES.
For oil / gas / injection well, the measurement devices to be used for well testing purposes
shall be calibrated annually with an accuracy of +/- 10%.
13.5 EXCEPTION TO THE ABOVE REQUIREMENT
PS Contractor may apply approval for exception to the above requirements with justifiable
reason(s). Exception request/report shall be submitted to PETRONAS within 30 days
before/after the occurrence of the exception case(s), respectively.
PETRONAS may also from time to time request additional tests / surveys to be carried out
within operational constraint if necessary.
13.6 RECORD KEEPING
Result of the above test shall be maintained by PS Contractor and shall be submitted in
accordance with Section 17.
13.7 PRODUCTION MEASUREMENT AND ALLOCATION
13.7.1 Production to each Field and Platform/Production Station.
13.7.1.1 Measurement
Production rates of oil, gas, condensate (if applicable) and formation water
shall be determined for each platform/production station, field and terminal.
Measurement for platform/production station, field and terminal which share a
common facility with other station having different equity and PSC shall be
agreed upon by PETRONAS.
It is PSC Operators responsibility to ensure that the measurement system for
well testing purpose is at all time comply with accuracy requirement of 10%.
This can be conducted by means of onsite calibration or other methods that
deem appropriate.

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13.7.1.2 Allocation
Following the end of each calendar month, based on official measurement in
the terminal either onshore or marine terminal or in other authorised place, the
monthly production of oil, gas, condensate (if applicable) and 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: -
i petroleum and formation water;
ii fluids injected; and
iii petroleum/gas utilised, flared or vented, stored in and delivered from
each production station/terminal.
13.8 PRODUCTION ALLOCATION TO EACH PRODUCTION STRING
Following the end of each calendar month, based on the monthly production, the
production rates of oil, gas, condensate (if applicable) and formation water for individual
string shall be determined based on production rate test.
13.9 PRODUCTION ALLOCATION TO EACH PRODUCING INTERVAL
When two 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.
Determination of the split ratios shall be made before a new combination of producing
intervals is placed into production or when the combination is changed or when data
indicate a change is in order. 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 which are not accessible for survey, the split ratio shall be based upon reservoir
engineering calculation from the subject well(s) 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.

-END OF SECTION 13-

SECTION 14
GUIDELINES FOR DYNAMIC LIQUID
HYDROCARBON MEASUREMENT
Page 217

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REVISION 2
AUG 2008

SECTION 14
GUIDELINES FOR DYNAMIC LIQUID HYDROCARBON
MEASUREMENT
Executive Summary
These guidelines provide the minimum requirements for the establishment of a Liquid
Hydrocarbon Custody Transfer and Allocation Metering Systems and also the information that are
required to be submitted and shall be regarded as PETRONAS' general requirements necessary
while ensuring accuracy, safety and integrity of the metering systems based on best oilfield
practices, internationally recognised codes and standards and applicable Malaysian laws.
In cases where the requirements and frequencies are not specifically stated in these guidelines, PS
Contractor shall derive the scopes and frequencies based on best oilfield practices, internationally
recognised codes and standards and applicable Malaysian Laws, and shall implement the same
accordingly.

SECTION 14
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AUG 2008

14.1 INTRODUCTION
These guidelines shall be read as part of Section 12, Guidelines for Reservoir
Management and Section 13, Guidelines for Well Testing, Production Measurement and
Allocation.
14.1.1 Scope

These guidelines provide the minimum requirements in the design, installation, testing,
commissioning, operation and maintenance of Liquid Hydrocarbon Custody Transfer
and Allocation Metering Systems. Unless otherwise specified, the guidelines
mentioned hereunder are applicable for both Custody Transfer and Allocation Metering
Systems.

The objective of these guidelines are to ensure that all Liquid Hydrocarbon Custody
Transfer and Allocation Metering Systems are designed, installed, tested,
commissioned, operated and maintained in accordance with the minimum
requirements of PETRONAS for accurate measurements of liquid hydrocarbon.

This guidelines does not cover the static measurement i.e. tank gauging, however, it is
recognized that, should the dynamic measurement failed, the static measurement will
be used for quantitative determination in accordance to the agreed onshore/offshore
terminal procedures.

14.1.2 Distribution, Intended Use and Regulatory Considerations

Unless otherwise authorized by PETRONAS, the distribution of these guidelines is
confined to companies forming part of PETRONAS and PETRONAS Production
Sharing (PS) Contractors or their nominated third party or parties for the above scope
of work.

These guidelines are intended for use by all involved in the design, installation, testing,
commissioning, operation and maintenance of a Liquid Hydrocarbon Custody Transfer
and Allocation Metering Systems in PETRONAS, its PS Contractors or their nominated
third party. It is the responsibility of the respective PS Contractors or Contractor as

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referred to in these guidelines, to ensure that these guidelines are followed if, wholly
or partly, the above scope of work are outsource or contract out to any third party or
parties.

In developing oil and gas fields that straddle with neighbouring countries, if the co-host
country has its local regulations, the Contractor shall determine by careful scrutiny
which of the requirements are more stringent and which combination of the
requirements will be acceptable as regards to safety, environmental and economic
aspects. In all cases the Contractor shall inform PETRONAS of any deviation from the
requirements of these guidelines which are considered to be necessary in order to
comply with the neighbouring countries local regulations. PETRONAS may then
negotiate with the Malaysian Authorities and the respective Authorities concerned with
the objective of obtaining agreement to follow these guidelines as closely as possible
and also to be cost effective.

14.1.3 Definitions
General definitions
The Contractor refers to the Production Sharing Contractors which sign the
Production Sharing Contract with PETRONAS in respect of the exploration,
exploitation, winning and obtaining of petroleum resources in the Contract Area on the
terms and conditions set out in the said contract.
The Vendor is the party which manufactures or supplies equipment and services to
perform the duties specified by the Contractor.
The word Shall indicates a requirement.
The word Should indicates a recommendation.
Specific definitions
Accuracy - The measure of the closeness of a measurement to the true value.
Allocation Metering System (for liquid hydrocarbon)- A measuring system
comprising mechanical, instrument and computer parts whose registered measured
quantity is used for allocation between two or more Contractors which involved in

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sharing the same facilities for their operation . This system normally has an uncertainty
of +/-1%.
Automatic Sampler - A system which, when installed in a pipe and actuated by
automatic control equipment, enables a representative sample to be obtained from the
liquid 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 That part of the metering system that consists of digital computers
and receives digital signals from A/D converters or from digital instrument loops.
Control Chart - A graphical chart of the constancy of measurement used for
evaluating whether meter proving operations are in or out of statistical control. On it
are shown the +/- 3 sigma limits of dispersion from the average system factor, x
(standard deviation), within which the measurement system considered to be in control
(API Chapter 13).
Custody Transfer Metering System (for liquid hydrocarbon) - A measuring system
comprising mechanical, instrument and computer parts whose registered measured
quantity is used for sale where there is a change in ownership. This system normally
has an uncertainty of +/-0.25 % of standard volume.
Density - The density of a quantity of a homogeneous substance is the ratio of its
mass to its volume. The density varies as the temperature changes and is therefore
generally expressed as the mass per unit of volume at a specific temperature.
Displacement Prover - Provers, which operate on the principle of the repeatable
displacement of known volume of liquid from a calibrated section of pipe between two
detectors. These include provers that were commonly referred to as either
conventional pipe provers or 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
measurement system and performs calculations for the purpose of providing flow rate
and total quantity data.

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Flow meter Flow measuring device which, indicates the measured flow rate. In
some cases, it is also a device that indicates the total amount of fluid passed during a
selected time interval.
Instrument Loop - Includes all elements that form part of the measurement of each
individual quantity from sensor to input of the A/D converter or input of digital signal to
the computer part.
Linearity - The deviation or spread of calibration data points from an acceptable
straight line over the defined flow range.
Linearity of a Meter - The ideal accuracy curve of a volume meter is a straight line
denoting a constant meter factor. Meter linearity is expressed as the total range of
deviation of the accuracy curve from such a straight line between the minimum and
maximum recommended flow rates.
Maximum Meter Flow Rate - The maximum rate of flow recommended by the meter
manufacturer or authorised by a regulatory body. The maximum rate is determined by
considerations of accuracy, durability, pressure drop, repeatability, and linearity.
Meter Proving - An exercise carried out in accordance to the proving procedure in
order to determine the relationship between the volume of liquid passing through a
meter at one set of conditions and the indicated or reference volume at the same
conditions.
Meter run - A flow measuring device complete with associated strainers, entry/exit
pipework, upstream and downstream straight lengths, flowmeter and flow
straighteners.
Minimum Meter Flow Rate - The minimum rate of flow recommended by the meter
manufacturer or authorised by a regulatory body. The minimum rate is determined by
considerations of accuracy, repeatability and linearity.
Online Density Meter - A density meter also known as densitometer operating on a
representative sample of the process material withdrawn continuously from the
process line or vessel via a sampling system.
Positive Displacement Meter - A meter in which the measuring element is the
discrete volumetric segments in the meter and volume is directly measured by

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continuous separating (isolating) a flow stream into discrete volume segments and
counting them.
Prover Computer - is an arithmetic processing unit and associated memory device
which consists only the proving function for the proving of meters and the calculation
of meter factors.
Pulse Interpolation - Any of the various techniques by which the whole number of
meter pulses is counted between two events (such as detector switch closures) and
any remaining fraction of a pulse between the two events is calculated.
Repeatability - The quality which characterizes the ability of a measuring instrument
to give identical indications or responses, for repeated applications of the same value
of the measured quantity under stated conditions of use.
Sampling - An exercise in accordance to the procedure that is carried out either
automatically or manually to obtain a sample that is representative of the contents of
any pipe, tank or other vessel and to replace that sample in a container from which a
representative test specimen be taken for analysis.
Small Volume Provers - Any pipe prover used to calibrate a meter, having a volume
between detectors that does not permit a minimum accumulation of 10,000 whole
(unaltered) pulses from the meter. Small volume provers require meter pulses
discrimination by pulse interpolation or other technique to increase the resolution.
Standard Reference Conditions - The conditions of temperature and pressure to
which measured volumes are to be corrected. Standard reference conditions for
pressure and temperature shall be 101.325 kPa (abs) and 15 C respectively, in
accordance with ISO 5024.
Station Computer - is an arithmetic processing unit and associated memory device
which sends commands and accepts calculated data from Flow Computer and Prover
Computer for Station Totalisation computation and archiving.
Turbine Meter - A meter in which the measuring element is a multi-bladed rotor or
impeller to which the metered stream imparts a rotational velocity that is proportional
to the mean velocity of the stream. Measured volume is registered by counting rotor
revolutions.

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Uncertainty - The part of the expression of the result of a measurement which states
the range of values within which the true value of, if appropriate, the conventional true
value is estimated to fall.
Validation - The process of confirming or substantiating the accuracy of input
variables to a measurement system at normal operating conditions, using reference
equipment traceable to certified standards.
14.1.4 Abbreviations
AC - Alternating Current
A/D - Analogue to Digital
AGA - American Gas Association
API - American Petroleum Institute
BS - British Standards Institution
CCR - Central Control Room
DC - Direct Current
DP - Differential Pressure
FAT - Factory Acceptance Test
GHV - Gross Heating Value
IP - The Institute of Petroleum
IEC - International Electrotechnical Commission
ISA - Instrument Society of America
ISO - International Organization of Standardization
LCR - Local Control Room
MPMS - Manual of Petroleum Measurement Standard
NBS - National Bureau of Standard
NEC - National Electricity Code
PID - Piping and Instrument Drawings
RTD - Resistance Thermal Detector

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SI - International System of Unit
SIRIM - Standard Industrial Research Institute of Malaysia
STC - Site Testing and Commissioning
14.2 GENERAL REQUIREMENTS
14.2.1 Units of Measurement

The base (reference or standard) conditions for metering system shall be in Sl units in
accordance with the ISO 5024 latest revision whose base conditions are defined as
pressure of 101.325 kPa (abs) at temperature 15
o
C. Where an imperial unit such as
barrel is required, it shall be converted from the base Sl unit and referenced to 14.696
psia and 60
0
F.

Liquid hydrocarbon measurement shall be either in volumetric, mass or energy units.
The units shall be SI units.

14.2.2 Approval Requirements

PETRONAS approval shall be obtained for measurement and allocation concept and
metering project implementation as per section 14.2.2.1 and 14.2.2.2, respectively.
Section 14.2.2.3 specifies the government approval that is required to be complied by
Contractors.

14.2.2.1 Measurement and Allocation Concept

Proposed Measurement and Allocation concept shall be submitted for
PETRONAS evaluation and approval. The concept shall be submitted and
agreed during the Field Development Plan stage. Contractor shall carry out
the financial exposure and cost benefit analysis during the evaluation of the
concept and to determine the location for the installation of the metering
system, metering system configuration and level of accuracy required. To

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facilitate the above approval, the preliminary submission to PETRONAS shall
include but not limited to the following items.
1. Measurement philosophy.
2. Product allocation principles.
3. Measurement methods and standards.
4. Proposed system accuracy.
5. Production accounting exposure analysis.
6. Metering Project cost estimates.
7. Field area and installation layout with main pipelines.
8. Proposed sizing of the metering system.
9. Preliminary system configuration.

The metering system can either be used for Custody Transfer or Allocation
purpose.

Two categories of metering system fall under the preview of these guidelines.
a. Custody Transfer Metering System This type of system is
normally of high accuracy and designed with an uncertainty of +/-
0.25% of standard volume, used for custody transfer application i.e.
transfer of ownership. The figure registered from this system is used
for sales determination.
b. Allocation Metering System - This type of metering system has
slightly lower accuracy than Custody Transfer Metering and normally
designed with an uncertainty of +/-1%. This type of system is used for
allocation of liquid between fields of different ownership sharing a
common facility or facilities.
The allocation method normally used is by full allocation i.e. where
metering systems are installed in all fields of different ownership
involved in sharing the same facilities. However, the uncertainty of the

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metering system can also be designed to be of custody transfer
quality standard e.g. +/-0.25% if measurement by difference
allocation concept being adopted. Factors such as oil reserve,
investment cost and impact to the related parties are to be considered
and agreed by those involved before this allocation concept is
adopted.
Only upon PETRONAS agreement on the measurement and allocation
concept, Contractors can proceed on procuring of the relevant metering
systems in accordance to these guidelines. It is the responsibility of the
Contractor to obtain agreement from their equity partner and the interested
party or parties that will be affected with the metering system installation,
before the concept is submitted for PETRONAS agreement.
14.2.2.2 Metering Project Implementation

PETRONAS will also request the following information to be submitted for
approval prior to the release of bid package:-
a) System specifications.
b) Design formula and calculations.
c) Calculation of overall accuracy and uncertainty of the system.
d) Relevant drawings.
e) Other relevant information.

PETRONAS may also request the Project Definition Manual be submitted prior
commencing fabrication of the metering system and will inform Contractor if
other information is required.

Prior to the official use of the metering system, Contractor shall submit an
application together with all the relevant data for PETRONAS to review and
PETRONAS will provide the approval after having satisfied with the system
performance either from the data submitted or after visiting the installation site.
Metering system installed shall be traceable to SIRIM Berhads standard.

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Contractor shall also submit to PETRONAS for approval the hydrocarbon
allocation and accounting procedure and as well as the validation procedure.
The operation procedure will be requested on the need basis.

14.2.2.3 Government Regulatory Requirement

Custody Transfer Metering System which registered flow quantity that is also
used to calculate the crude oil sales tax needs to be agreed by the Malaysian
Authorities i.e. SIRIM Berhad and Customs and Excise Department. System
to be installed shall be first agreed by the authorities and certification from
them is necessary prior official use.

Should other method of measurement intended to be used for the above
application, agreement by Customs and Excise Department is necessary.

Contractor shall also ensure that the Department of Safety and Health (DOSH)
approval is obtained by their Vendors should the fabrication and testing of the
metering system be carried out in Malaysia. Approval should also be obtained
if the system is to be installed and operated onshore.

14.2.2.4 Deviations

Any deviation from these guidelines with respect to the measurement and
allocation concept, design, operation and maintenance of the metering system
requires PETRONAS prior approval.

14.2.3 Documentation
Contractor shall establish and maintain an up-to-date file containing all specifications,
calculations and drawings (as-built). The file should also contain reports concerning
verification revisions, design, fabrication, installation and commissioning including
inspection and testing programs and operation manual for all fixed and temporary
phases, and other relevant documentation.

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Contractor shall ensure that all documentation during the metering project
implementation are timely available such as the project definition manual including the
uncertainty analysis, factory and site acceptance test procedures and its result and as
well as project completion report. PETRONAS may request some of these information
on the need basis.

The Contractor should maintain up-to-date lists of current documentation and
documentation under preparation. Contractors internal control system including the
documentation should also be made available to ensure the qualities of the metering
systems are maintained.
14.3 DESIGN
14.3.1 General Requirement

The metering and proving systems shall be designed, fabricated, inspected and tested
in accordance with the latest agreed editions and addenda to the technical
specifications, codes, standards and references mentioned in Section 14.7 -
References.

Contractor shall request the vendor to quote for the design, manufacture, testing,
calibration and documentation of a fully integrated skid and associated control panel.

The metering system shall comprise the following major component parts:-

1. Field mounted skid and instrumentation.
The minimum number of parallel meter runs required from the specified
maximum and minimum flow rates at the specified accuracy with one
complete spare meter run and a proving facilities. For allocation metering
system where its availability is less critical, the spare run may not be
required.
Flow proportional automatic sampling system.

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All associated pipe-works, valves and fittings, access stairs, walkways for
operation, maintenance and validation, lifting pad eyes and drip pans.
All transducer and instrumentation necessary for automatic meter proving
prover operation and continuous measurement of mass and volumetric
quantities and flowrates of liquid together with its temperature, pressure,
density and water content prior to delivery.
2. Metering control panel and computing facilities in the Control Room
The computer system consisting of flow computers, prover computer,
station computer and communication bus. Station computer and
communication bus shall be provided with full redundancy. For the
allocation metering system, this depends on the availability and criticality
requirement of the system.
All other items not specifically mentioned but necessary for the functioning
of the systems, including equipment for testing and calibration.
The control panel shall include all terminations, computing devices,
indicators and controls necessary for operation from the panel location.
All equipment within the skid shall be ergonomically arranged such that it is
safe and easily accessible for operation, maintenance and validation. Facilities
to ease the validation shall be included in the system. Platforms, gratings,
stairs, etc. be provided as required for easy movement within the skid area.
For metering system that required heat tracing, all equipment and components
that will be accessed periodically shall be provided with removable insulating
covers fitted with quick release fasteners. All equipment and material supplied
shall be brand new and suitable to be used for its intended operating
conditions.
The system shall be designed to allow subsequent re-calibration of the
displacement prover on site with a portable master pipe prover - master meter
calibration equipment, tank prover-master meter or calibration can. For
allocation metering system where a master meter being used, a calibration
facility for proving the master meter shall be made available. Suitable process

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and electrical equipment and connections shall be provided for the above
purpose.
No bypassing of the metering system is allowed for normal operations after
commissioning and startup. For the purpose of commissioning and start up,
should a bypass line is required, it shall be provided with a blind or a positive
shutoff double block and bleed valve with telltale bleed for verifying shutoff
integrity. This valve shall always be sealed.
Other designs can be accepted provided that the Contractor can demonstrate
and document equivalent or better accuracy and integrity of the above-
mentioned system.
A typical flow scheme is shown in Figure 1 Appendix 14.

14.3.2 Meter Run Design / Pipe Work

The meter runs shall be designed in accordance to the ISO 2714, ISO 2715 and API
Manual of Petroleum Measurement Standards Chapter 5-Metering and other chapters
as specified in the reference list. Materials selected shall conform to applicable codes,
pressures and temperature ratings, process conditions, corrosion resistance, ingress
protection and electrical safety classification.

Each parallel meter run shall be provided with an inlet, outlet, stream control and
prover inlet valves, thermal relieve valve, flowmeter with required upstream and
downstream straight length or flow straightening vane as required and a strainer with
differential pressure indicator and draining facility. The strainer shall be able to handle
the highest flow capacities of the meter with a minimum pressure drop. Temperature
transmitter and thermowell, pressure transmitter and pressure gauge shall also be
provided. The number of parallel meter runs shall be such that the metering system
shall be capable of measuring all flow rates from the minimum to maximum of the
metering system throughput with one meter run on standby and the remaining meters
still operating within their working range. For allocation metering system that is less
critical, standby meter run may not be required. However, prior approval shall be
obtained from PETRONAS as per Section 14.2.2 - Approval Requirements.

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A full bore through conduit or ball valve should be fitted upstream, downstream and
prover inlet of each meterrun.

Double block and bleed valves configuration should be fitted at the following places:-
Meter run outlets to prover inlet header
Meter run outlets to outlet header
Prover outlet to outlet header
Prover drains line.
These valves (with the exception of the meter run inlet valve) shall have
instrumentation for cavity pressure relief and shutoff integrity verification. Drain
connections from double block and bleed valves configuration shall have an isolation
valve and pressure gauge, for verification of tight shut-off. For offshore metering
systems, suitable arrangement for the valves to meet the safety standard is to be
followed. Flow control valves shall preferably be located at the following points: -
On each meter run outlet between the tee and the outlet double block and
bleed valve.
On the prover outlet between the 4-way diverter valve and the outlet double
block and bleed valve.
The valves shall be capable of stable control over at least the normal linear range of
the meter. Valve and actuator sizing calculations shall be required as part of the
documentation.

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

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

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14.3.2.1 Flowmeter Type

Turbine and positive displacement flowmeter are normally used for custody
transfers of liquid hydrocarbons. In determining the type of flowmeter to be
used, reference to Appendix 14.1, shall be made for flowmeter design
requirements.

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.

Linearity of each meter shall be better than 0.25% over a 10:1 flow range at
the specific operating viscosity. The meter shall be calibrated initially,
preferably on the liquid with the viscosity for which the system is designed, or
if unavailable, on water by the independent authority. Viscosity performance
shall be established when the meters are in operation.

The repeatability of 5 consecutive proof runs under stable conditions shall be
better than 0.025 % of the average meter factor. This shall be checked at
minimum and maximum flow and at evenly distributed flow rates within the
specified 10:1 range, on both water and fluid of the relevant viscosity. The
former checks shall be carried out at the Manufacturer's works during system
test (FAT) and the latter during location tests (SAT).

14.3.2.2 Prover Design

A permanent meter proving facility shall be provided and be designed as per
ISO 7278 Liquid Hydrocarbons Dynamic Measurement Proving Systems
for Volumetric Meters and API MPMS Chapter 4 Proving Systems and
Chapter 4 of API Manual. Meter proving facility can be using any of the
following methods.

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14.3.2.3 Displacement Prover

A displacement prover includes a calibrated section in which a displacer
travels with the flow, activating detection devices. All types of displacement
prover systems operate on the principle of the repeatable displacement of the
known volume of liquid from a calibrated section of pipe between two
detectors. Displacement of the volume of liquid is achieved by an oversized
sphere or a piston traveling through the pipe. The liquid flow is not interrupted
during meter proving. This uninterrupted flow permits the meter to be proved
under specific operating conditions and at a uniform rate of flow without
having to start and stop.
Generally, displacement provers can be categorised as follow:
a) Conventional Pipe Prover
The Conventional Pipe Prover shall preferably be of the bi-directional
type with quick opening closure for sphere removal, sized and
manufactured in accordance with ISO 7278-2 Liquid hydrocarbon
Dynamic measurement Proving systems for volumetric meters
Part 2: Pipe provers, API MPMS, Chapter 4.2 - Manual of
Petroleum Measurement Standards Chapter 4 - Proving Systems
Section 2 - Displacement Provers and the following criteria :-
a. Number of meter pulses generated over calibrated volume to
be not less than 10,000 whole pulses (unaltered) per trip i.e.
20,000 pulses (unaltered) total round trip volume.
b. Resolution of detector/displacer system shall be compatible
with requirement (1).
c. Displacer velocity not exceeds 3 m/s.
d. Length between detector switches to be at least 20,000 times
detector repeatability.
e. Prover connection shall be downstream of the meters.

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f. The prover shall be designed such that the repeatability
during calibration of the volumes, where five calibration trials
are performed and be within +/-0.01% of the average volume.
g. Connections shall be provided on the 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 prover
system should also been equipped with the temperature and
pressure measuring element.
h. Other considerations for the design including of the
followings:-
1. Detector switches
The pipe prover shall have two detector switches at each
end of the prover with preferable four independent
calibrated prover volumes. The prover 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 one time if either
one of the detector switches fails, it does not invalidate
the other prover volume.
The detector should be designed such that the contacting
head of the detector protrudes far enough into the prover
pipe to ensure switching takes place at all flow rates
during calibration and normal operation. Detectors and
switches should be weatherproofed against corrosive
marine environment and suitable for the electrical safety
classification of the installation.
2. Prover Internal and Coating
Internal diameter of the prover loop shall have the same
diameter throughout and there shall be no tappings or

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drain points between the calibrated volumes of the
prover.
The internal coating of the pipe prover shall provide a
continuous level, durable and smooth surface for the
application. The vendor shall provide full details of the
coating, surface preparation, method of surface
preparation, method of application, maximum allowable
fluid temperature and method of repair. Porosity and
explosive decompression of the lining shall also be
avoided.
3. Four-way Diverter Valve
The four way diverter valve shall be motorised and
provided with a local and remote actuation together with a
manual override hand wheel. If remote status of valve is
required, limit switches shall be provided. Necessary
instrumentation to detect leakage on the valve is also to
be equipped. The 4-way flow diverter valve in the bi-
directional prover shall be fully seated and sealed before
the displacer meets the first detector.
4. Freedom from Shock
When the prover is operating at its maximum design
flowrate the displacer shall come to rest safely at the end
of its travel without shock.
5. Guide Bars/Tees
Careful consideration shall be given to the design of
guide bars or tees to avoid damage to displacers.
b) Small Volume Prover
Small Volume is one type of prover of which the volume is
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between detector switches for each pass of the displacer. Small
volume provers require meter pulse discrimination by pulse
interpolation or another technique to increase the resolution.

The performance of this type of prover is critically dependent on the
mechanical precision of the tube bore and movable element position
detecting system, the measurement accuracy and stability of
temperature and pressure, tightness of the moving parts and the ratio
between the diameter of the tube and the actual displacement of the
moveable elements.

Should the fiscal authorities accept the use of small volume provers,
these may be applied. For offshore applications, where space and
weight are important considerations, a small volume provers will
provide a smaller and lighter solution for a given meter capacity.

Small volume provers shall be designed and manufactured in
accordance with ISO 7278-2 Liquid hydrocarbon Dynamic
measurement Proving systems for volumetric meters Part 3: Pulse
Interpolation Technique, and API MPMS, Chapter 4.2 - Manual of
Petroleum Measurement Standards Chapter 4 - Proving Systems
Section 2 - Displacement Provers and also with the following criteria:
Small Volume Prover inlet connection should preferably be
downstream of the operation meters.
Connections shall be provided at the small volume prover
system to facilitate re-calibration by Water Draw Method at
site.
Piston seal leakage check kit shall be delivered together with
the small volume prover.
Water Draw Assembly or Test Measures should be delivered
together with the small volume prover.

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The prover shall be designed such that the repeatability
during calibration of the volumes, where five calibration trials
i.e. 5 consecutive runs are performed and be within +/-0.01%
of the average volume.
Vertically installed.
Test Measures for the calibration of the small volume provers shall
comply with the requirements given in the API Manual of Petroleum
Measurement Standards Chapter 4 - Proving Systems, Section 7 -
Field Standards Test Measures and shall be supplied by the vendor,
certified with certificate issued. Prior calibration of small volume
provers using the Test Measures at site, the Test Measures shall be
first calibrated and certified by SIRIM.
As minimum requirements, the following elements shall forms parts of
the small volume prover :
1. A precision cylinder.
2. A displacer piston, spheroid, or other fluid separation device.
3. A means of positioning and launching the displacer upstream
of the calibrated section.
4. A displacer detector(s)
5. A valve arrangement that allows fluid flow while the displacer
is traveling from one position to the opposite position.
6. Pressure measurement and indication devices.
7. Temperature measurement and indication devices.
8. Instrumentation with timers, counters, and pulse interpolation
capability
During proving of Turbine and Positive Displacement meters, the
displacer velocity shall not exceed 1.5 m/s. The internal diameter of
the prover flow tube shall have the same diameter throughout the flow
tube. The calibrated or swept volume of the prover, located between

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the displacer-position sensors shall be free from any tappings, vent or
drain points.

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

The internal coating of the small volume prover shall have uniform
bore, durable and smooth long lasting surface.

Block valve shall be installed to isolate the small volume prover from
line pressure during maintenance, removal of displacer, replacement
of seals, cleaning, etc.

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

14.3.2.4 Master-Meter Provers

A Master-meter is an indirect prover that uses the concept of transfer proving.
A flow meter with exceptional linearity and repeatability is selected to serve as
a master meter (Intermediate Standard) for the proving of another meter or
prover operating in the field. A comparison of the two outputs is the basis of
the master-meter proving method.

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The master- meter provers shall be manufactured in accordance with ISO
7278 Liquid Hydrocarbons Dynamic Measurement Proving Systems for
Volumetric Meters and the API Manual of Petroleum Measurement Standards
Chapter 4 - Proving Systems, Section 5 - Master-Meter Provers.

Master-meter proving, of which satisfactory results can be achieved, is used in
situations in which proving by direct method cannot be accomplished because
of logistic reasons, such as unavailability of provers. However, the Master-
meter method introduces uncertainties between the meter being proved and
the prover that is used to calibrate the master meter. Master Meter Provers
shall be used on a less critical metering system.

The master meter should be placed downstream of the meter to be proved
and shall be connected in series and close enough to minimize corrections for
volume during proving. All fluid diverting valves between the meters shall
provide a positive seals.

If the master meter is in portable service, it should be protected against
damage during transportation, installation and handling.

14.3.3 Instrument Requirement

14.3.3.1 Field Instrumentation

14.3.3.1.1 Location of Sensors

Temperature and pressure shall be measured in each meter runs and at
the inlet and the outlet of the pipe prover.

14.3.3.1.2 Installation of Instruments

A thermowell shall be installed adjacent to every electronic temperature
sensor or group of sensors for calibration. It shall be possible to connect
test instruments in parallel with all pressure sensors in the metering

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system. Temperature, pressure and density, where specified, measuring
points shall be representative of conditions at the meter and situated as
follows:-
a. In volumetric measurement systems: as close to the meter as
possible without infringing the requirements of the API
Measurement manual or other standards as specified in this
guideline.

b. In mass measurement systems: as close to the densitometers
as possible, which should also be located as near the meter
as possible, without infringing the API Measurement Manuals
or other standard as specified in this guideline.

14.3.3.1.3 Instrument Loops

The instrument loops shall be kept separate 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 metering system.

Cables and other part of the instrument loops shall be designed and
installed so that they will not be affected by electromagnetic fields.

14.3.3.1.4 Transmission of Pulse Signal

Pulse signal transmission and treatment from the turbine meter shall be
designed in accordance with guidelines in IP252 or ISO 6551.

A pulse comparator shall be installed which signals an alarm when a pre-
set number of error pulses occurs on either of the transmission lines in
accordance with the above code. The pre-set 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 1 count in 100,000.

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Pulse discrepancies that occur during the low flow rates experienced
during meter starting and stopping should be inhibited. The pulse
transmission to the prover counter should be from one or both of the
secured lines to the pulse comparator, and precautions should be taken to
avoid any signal interference in the spur from the comparator line.

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 the metering system satisfies the requirement in this article and
satisfactory documentation of the reliability for the interpolation is
produced.

14.3.3.1.5 Conversion of Signals from Analog to Digital Form

The A/D conversion shall not contribute systematic errors to the
measurements. Total inaccuracy in the analog to digital conversion,
including resolution, drift, linearity, repeatability and other random errors
shall be less than +/- 0.025% of full scale.

Where a single A/D conversion is used, back-up converter is required.

14.3.3.1.6 Temperature Measurement

The temperature-measuring element shall be a platinum resistance
element or temperature transmitter in accordance with guideline in IEC
751 Tolerance class A" or equivalent. The accuracy for the complete
circuit shall be better than +/-0.15
o
C.

14.3.3.1.7 Pressure Measurement

The accuracy for the complete pressure loop shall be better than +/-0.25%
of span.

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14.3.3.1.8 Density Measurement

The density measurement where specified, shall be designed in
accordance with IP Petroleum Measurement Manual Part VII Section 2 or
API Manual of Petroleum Measurement Standard, Chapter 9.

For mass measurement, two density transducers should be installed. The
installation shall be such that the liquid passing through the density meter
is representative of the line density and no gas can be trapped in the
density meter that could cause the error on the density reading. They
should both be installed at the inlet to the metering system, within a fast
loop arrangement. Insertion type densitometers may be installed in the
inlet or outlet of the metering system.

The densitometers installation should be in such that one can remain
online for density measurement continuously while the other one is taken
out for maintenance / validation. Necessary correction to meter conditions
shall be carried out. The built -in temperature sensor in the densitometer
shall only be used for indication purpose.

The accuracy for the complete loop shall be better than +/- 0.5 kg/m
3
.
14.3.3.2 Control Room Instrumentation

14.3.3.2.1 Environmental

Instruments which are sensitive to temperature or other environmental
factors shall be installed in locations where these factors can be
controlled.

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14.3.4 Computer Based Monitoring and Control Functions Requirement

14.3.4.1 General

Metering and meter proving shall be managed by a computer system. Manual
proving shall also be incorporated as a backup. This system shall be installed
in the CCR, LCR or local equipment room. Normally, separate computers
should be dedicated to each of the metering runs, to the station and to prover
control. However, the functionality of the prover and station computers may
be combined into one or more computers if it can be demonstrated that the
required reliability, availability and redundancy standards will be met.
However, such arrangement has to be agreed by PETRONAS.

The computer system is to be designed as follows:-
1) The computer part in the metering system shall have no functions other
than those involved in the metering. The metering system shall be
designed in such a way that the maximum liquid flow will be measured.
2) The computer part shall have the capability of displaying continuously the
number of pulses received from the meter during proving.
3) The system should include at least two 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.
4) The computer shall also be designed to ensure that amounts generated
during validation/calibration are registered separately from the measured
amount.
5) Manually entered parameter shall be displayed without rounding off or
truncation of digits. The display on the computer shall have sufficient
resolution to enable the verification for the calculation accuracy as in
Section 14.3.4.3 be carried out.
6) Computer system shall be designed such that the transfer of data to DCS
/ SCADA / Plant Information (PI) System is permissible and all interfacing

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requirement such as the handshaking and necessary software is
provided.
7) The computer part shall have automatic watch over for differences
between readings of measured values, for parallel meter runs.
8) For continuous monitoring of measurement data the computer shall, for
each meter run, automatically log and store for at least one year the
following data: At intervals of 1 hour cumulative quantities, meter factor
and average values of pressure, temperature and density. At intervals of
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 shall not be possible without the use of key
operated switch.
9) The flow computer shall (standard feature and without further
modification) be able to receive at least 2 pulse trains from a turbine meter
to perform the pulse security check in accordance with the guidelines
stated in the IP 252 or ISO 6551.
10) Report facility for computer constants, keypad setting should be available.
11) The computer will have the ability to perform meter curve (foot-print)
interpolation for minimum of 8 calibration points.

14.3.4.2 Data Security

The data transmission of the computer shall be designed in accordance with
Level A of the IP Standard 252/76, Part XIII Section 1.
The computer shall have a self-diagnostic capability. It shall monitor that the
program loops 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.
The algorithms and the fixed parameters important for accurate computation
of fiscal quantities shall be stored in non-alterable memory.

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Security system shall be provided for manual entering of data. The computer
system shall be designed and features provided for sealing.
Program version number shall be assigned to identify the current program
used and this can be determined directly from Visual Display Unit (VDU) or
print out. The version number can be updated every time permanent program
is altered.

14.3.4.3 Calculation

The computer routines for fiscal measurement calculation shall satisfy API
MPMS Chapter 12- Calculation of Petroleum Quantities and IP 201 Petroleum
Measurement Manual Part 1- Calculation of Oil Quantities.
1) Update time to changes of input signals shall not be more than 2
seconds and parameters having response time such as density and
temperature shall not exceed 5 seconds.
2) The interval between each cycle for computation of instantaneous
flowrate and accumulated flow shall be less than 10 seconds.
3) The algorithms for calculation of meter factor at reference condition
shall contain all correction factors given in API 2534 1st edition 1970.
4) Algorithm and rounding off error for computation of fiscal quantities in
the flow computer shall be within +/- 0.001 % for totalisation and +/-
0.01% for flowrate of the computed value. Rounding or truncation
shall only be carried out at the end of final computation.
5) Temperature reading in degree Fahrenheit (deg F) shall be corrected
to 1 decimal point and 2 decimal points for reading of temperature in
degree Celcius ( C).
6) For meter factor and volume prover computation purposes, the
decimal points used shall follows:
i. Ctl, Cpl, Cts and Cps - 6 decimal points.
ii. Prover volume calculation - 4 decimal points.

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iii. Meter factor - 6 decimal points.
iv. Final prover volume shall be corrected to 3 decimal points.
7) Any deviation from the above requirements PS Contractor is obliged
to follow SIRIM requirement.

14.3.4.4 Printouts and Hardcopies

The computer system shall have dedicated printers for alarms and reports.
Supervisory computer should be able to electronically archive all the alarms
and reports. Common printer can be used if an acceptable priority routine is
established. Automatic logging on the following information is to be provided:
1) Alarms for faults detected by the computer (date, time).
2) Inserted parameters/constant, both fixed and changeable.
3) Quantity report.
4) Instantaneous values of rate and measured input parameters. Fixed
values, which are used instead of live signals, shall be identified.
5) Meter proving report. All data required for manual checks of
calculated correction factors and meter factor shall also be included.
The Contractor, after consultation with PETRONAS, shall establish a system
for reporting of agreed data.
14.3.4.5 Meter Proving Algorithm Routine

During designing the computer routine for meter proving operations, the
followings shall be followed:-
1) All meter runs outlet and prover inlet valves and status check for
meter proving sequencing shall be automatic.
2) 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

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run for repeatability acceptance shall only be changeable with highest
security level. (Meters repeatability shall be such that they can be
calibrated against a permanent meter prover with a sequence of 5
consecutive runs, where the difference between the highest and
lowest meter factor does not exceed 0.05% of the average meter
factor).
3) Maximum trial runs before the computer aborts the proving operation
shall also be made changeable with highest security level. (Default
number of trial runs is 10).
4) Prover stabilisation period for process conditions i.e. temperature,
flowrate, pressure parameters of the stability limit shall be user
changeable with appropriate security level (supervisor/engineer).
5) 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.

14.3.4.6 Power Supply
The computer shall be equipped with an uninterruptable power supply (UPS)
system for back up purposes. Normal operation of the metering system shall
not be affected if there is any change from one power source to another.
14.3.5 Sampling and Analysis Requirement

The metering system shall be provided with automatic flow proportional sampling
system to collect representative sample for the determination of BS&W, average
density and for other analysis purposes. Manual spot sampling for back-up purposes
should also be made available. The sampling system shall be designed in accordance
with guidelines in IP Petroleum Measurement Manual Part VI Sampling Section 2, ISO
3171 and API MPMS Chapter 8 of latest edition.

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AUG 2008

As sampling system for the determination of water content is critical especially in
upstream activities which eventually determined the net production, due attention must
given to the the design and operation in ensuring a representative sampling.

For Custody Transfer System, sampler controller and sample monitoring unit should
be installed.

Selection of sampling point shall be such that the pipeline condition at the selected
point is homogeneous. Contractor need to demonstrate by calculation whether
additional mixing requirement such as static or jet mixer is required to ensure
homogeneity of the liquid prior sampling.

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

For sampling of pressurised liquids, the following should be observed.
a. Pressurised cylinders should be lightweight.
b. Prior extracting of the liquid either for further transportation or analysis, the
samples shall be representative and can be achieved through internal mixing
in the cylinder. Integrity of the samples are to be maintained throughout the
exercise.
c. For pressurized manual sampling, appropriate sample point and sampling
cylinder for pressurized liquid is to be used and to ensure that no lighter
components of the fluid able to be liberated out of the cylinder
14.3.6 Metering Data
The metering data should be made available by PS Contractors at hourly/daily or on
request basis. Please refer to Appendix 14..2.

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14.4 TESTING, CALIBRATION AND COMMISSIONING


Prior to site installation, a Factory Acceptance Test (FAT) shall be conducted to check
the integrity of both the computer software and the mechanical/skid instrumentation.
FAT procedures shall be agreed between Contractor and the Vendor prior to the test.

During FAT, the electronic and the mechanical instrumentation shall be tested
together. Prover system need to be first calibrated and witness by a third party before
flow integration test be carried out. It is essential that the vendor shall demonstrate
that the equipment was internally tested and in good working order before the
Contractor and PETRONAS representatives are invited for the FAT.

All FAT results are to be fully documented. Only after successful completion of the
FAT can the metering system be accepted and shipped out to the site. On site, further
testing shall be carried out prior to the commissioning of the system. Calibration of all
instrumentations using SIRIM Berhads traceable test equipment shall be carried out. It
is the responsibility of the Contractor to ensure that the FAT and Site Acceptance Test
(SAT) procedures be made available prior to the tests. PETRONAS may request these
procedures to be submitted for review. PETRONAS shall be notified at least three
weeks prior to both tests.

14.4.2 Calibration

14.4.2.1 General

Liquid Hydrocarbon Custody Transfer and Allocation Metering Systems shall
be calibrated with test equipment having certified traceability to international or
national standards.

Secondary standards or instruments used for calibration of all relevant parts of
the metering system shall be calibrated and certified by SIRIM Berhad or any
other independent laboratory which can prove such traceability.

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14.4.2.2 Instrument Calibration

All relevant instruments used in the metering system shall be calibrated and
certified by the manufacturer which can prove such traceability.

14.4.2.3 Prover Calibration

The proving system shall be calibrated at the vendors works as part of their
system checks and after installation on site, immediately prior to start up. The
detail calibration method used will depend on the type of meter proving
system.

14.4.2.3.1 Displacement Prover Calibration

a) Conventional Pipe Prover Calibration

The pipe prover shall be calibrated using water draw or master-
meter method at vendor's work place as part of their system
checks. The pipe prover shall also be calibrated by using water
draw or master-meter method upon installation on-site for Site
Acceptance Test before it is put into service. If master meter
method is used, the meter shall be calibrated at site using water
draw. Similar method of calibration should be done both at the
vendors factory and at site.

Both calibrations shall be in accordance with the standards as
specified in Section 14.7 - References. All pipe prover calibrations
shall be witnessed by an independent certification authority and
attested to in writing.

Test Measures used for the pipe prover volume calibration shall
be certified traceable to international or national standards.

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The pipe prover shall be calibrated with at least two separate
volumes. Four volumes are preferred. The pipe prover shall be
capable of producing corrected volumes for five consecutive runs
in any given direction within 0.01% of the average. The average
of the five (5) consecutive round trips volumes shall be used as
the base volume of the pipe prover.

Pipe prover volume calibration process shall be repeated at a flow
rate change of at least 25% to verify the possible leak during the
base volume calibration. The corrected volumes for 3 consecutive
runs at any given direction shall repeat within 0.01% of the
average. The average volume of these three (3) round trips
volumes shall not deviate from newly established prover base
volume by more than 0.02%.

Copies of the calibration certificates for each of these and all
subsequent calibrations shall be documented in the validation
report and shall be made available to PETRONAS upon request.
These certificates shall show the reference numbers of the sphere
detectors. The calibrated volume shall be in SI Units at Standard
Reference Conditions.

b) Small Volume Prover Calibration

The small volume prover shall be calibrated physically using
water draw method at vendor's work place as part of their system
checks for both the upstream and downstream volumes. The
small volume prover shall also be calibrated by using the same
method i.e. 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 14.7 - References.

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All small volume prover calibrations shall be witnessed by an
independent certification authority and attested to in writing.

Test Measures used for the small volume prover calibration shall
be certified traceable to international or national standards.

The small volume prover shall be calibrated physically for both the
upstream and downstream volume if these volumes are used for
meter proving. The small volume prover shall be capable of
producing corrected volumes for five (5) consecutive runs in any
given direction repeatable within 0.01% of the average.

The average of the five (5) consecutive volumes shall be used as
the base volume of the small volume prover. Small volume prover
calibration process shall be repeated at a flow rate change of at
least 25% or greater to verify the possible leak during the base
volume calibration. The corrected volumes for 3 consecutive runs
in any given direction shall repeat within 0.01% of the average.
The average volume of these three (3) round trips volumes shall
be within 0.02% with the newly established base volume.

Copies of the calibration certificates for each of these and all
subsequent calibrations shall be sent to PETRONAS upon
request. These certificates shall show the reference numbers of
the optical detectors used in the calibration.

The calibrated volume shall be in SI Units at Standard Reference
Conditions.

14.4.2.3.2 Master-Meter Prover Calibration

The master meter prover shall be calibrated on the same liquid or
other liquid as appropriate that will be used during operation of the
meter. A linearity curve of the master meter prover should be

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developed at minimum 8 points over the range of the meter to
operate. The linearity limit shall be within +/- 0.25% for up to 2 inch
meter and +/- 0.15% for meter size greater than 2 inch. The meter
factor that is applied to the master meter should be the average value
of five (5) consecutive runs repeating within +/- 0.01% of the average.

14.4.2.4 Meter Calibration

The first calibration test on each meter shall be performed at Vendor's
premises. For each type of meter used, the performance of the meter shall,
prior to factory acceptance test, be demonstrated by the Vendor by initial
calibration with a suitable medium at minimum 8 points. 5 of these points shall
span the Normal operating range and 3 points shall span low flow to Design
Minimum. The Vendor shall issue calibration certificates for the meter
calibrated.

Each point shall consist of five (5) consecutive runs, the results of which the
difference between the highest and lowest meter factor does not exceed
0.025% of the average meter factor.

The linearity must be within +/-0.25% over the specified "Normal operating flow
range". The vendor or Contractor shall perform final test and calibration during
Site Acceptance Test with hydrocarbon against meter prover.

14.4.3 Testing

14.4.3.1 General Testing

General Testing shall include checking against drawings, flushing, cleaning,
hydrostatic pressure testing, electrical earthing and be done on an individual
item basis. Vendor shall perform its own test prior to FAT and provide the
necessary evidence if required via filled test sheets.

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14.4.3.2 Factory Acceptance Test

14.4.3.2.1 General Check

Prior to further test in the factory, a general check on the system is to
be carried out. This includes checking of the following items.
1. Dimension check as per approved drawings and standards.
2. Instrument installation and quantity check as per approved
drawings and bill of quantity respectively.
3. Availability of all documentations.
14.4.3.2.2 Metering Panel and Instrumentation Equipment Tests

1. All panel and field mounted instrumentation, cabling and the
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.

2. Calibration checks using precision test equipment shall be
performed on all transducers, transmitters, converters, indicators,
recorders, gauges and switches, etc. supplied for use with the
system.

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

4. An insulation test shall be made on all power supply and
instrument cables, and panel wiring using voltage tester.
Instruments shall be disconnected during this test which may
cause internal damage. All resistance thermometer elements
shall be tested for insulation resistance to BS -1904.

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

6. The control panel shall be fully functionally tested before
connection to the skid using appropriate simulators and other test
equipment.
These tests shall include:
b. Panel mounted receiving indicators etc.
c. Outputs from panel mounted controls.
d. Meter run and prover instruments.
e. Computer functional test.
f. Verification of computer calculation and integration
accuracy as specified in Section 14.3.4.
g. Interlocks and alarms.
h. Checking of power distribution circuits and breakers for
correct wiring.
i. Analogue functions shall be calibrated at a minimum of
five points rising and five points falling in the range (0%,
25%, 50%, 75%, 100%).
7. All remotely operated valves shall be checked after installation on
the metering skid by: -
a. Manual stroking of the valves to check limit switch actuation
and to ensure full operating.
b. Local operation to verify phase of electrically operated
actuators rotation and functioning of local controls.
c. Remote operation and checking of remote position indication
and interlocks.
d. Noting the time for each valve to fully stroke in each direction.

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

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

10. The panel should be heat soaked for a minimum of 100 hours.
Records shall be made of temperature at selected points on the
panel. Following completion of the heat soak, the loop checks as
in item 8 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 stabilized).

11. Measurement and records shall also be made on panel maximum
power consumption (AC & DC).

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

13. Spares, if possible should be tested.

14. The simulation test among other thing shall include simulating
with at least five different values that cover the minimum and
maximum level in the working range of the skid instrument and
the computers using test simulators.

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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 the different functions of the computers shall
include but not be limited to manually input data, printouts, alarms
and data transmission between the computers.

All calculations by the computers shall be verified by injecting
known values to the computers and to compare the result using
manual calculation e.g. flow calculation software.

14.4.3.2.3 Flow Testing Calibration

1. Prior to flow test at the vendor's location, all the individual
equipment inclusive of mechanical, instrument and computing
system has first to be tested. The system shall be connected to
suitable pump and test equipment where the following tests be
carried out using water or other suitable test medium.
a. All meters shall be individually flow tested and proved
against the prover at their rated maximum and minimum
flows on five points at specified intervals between
maximum and minimum. Each point shall consist of five
consecutive runs, the results of which the difference
between the highest and lowest meter factor does not
exceed +0.025% of the average meter factor.
The linearity must be within +/-0.25% over the specified
"Manufacturer design flow range".
b. Observations shall also be made and recorded of:
i. Pressure drop across strainer.

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ii. Pressure drop across meter run.
iii. Pressure drop across prover.
iv. Density measurement, if applicable.
Checks shall be made during testing for tightness of shut-
off on high integrity and the four-way diverter valves.
c. All meter runs shall preferably be flow tested
simultaneously (i.e. one metering and one proving) and
preferably up to the normal maximum linear capacity of
each meter.
d. Checks shall be made on the functioning of the flow
control valves.
e. Checks shall be made on the correctness of the meter
proving algorithms.
f. Checks shall be made to ensure correct reports such as
meter proving report and metering report (hourly or batch
report) generated by the computing system.
g. Checks on the correct functionality of the sampling
system to ensure volume collected and accuracy as per
number of grabs, accuracy of sampling system, alarms
and switching of sampling cylinders.
2. Following completion of the flow testing, the liquid test medium
shall be drained and a thorough inspection be carried out on the
condition of prover lining and other equipment where possible.
3. Computer simulations shall be carried out whereby all calculations
by the computing system shall be verified.

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14.4.3.3 Site Acceptance Test

The Contractor shall provide test procedures for punch list items arriving on
site.

Other items to be provided shall include but not limited to the following: -
1. Loop diagram and loop checkout sheets.
2. Full print data base checking.
3. System functional test procedure and schedule.
The onsite acceptance test shall be considered as an extension of the FAT.
Prior to SAT, all wiring termination to be checked and powering of the panel
should be carried out by the vendor or authorized vendors representative.
Some tests carried out during FAT shall also be repeated during SAT. SAT on
Custody Transfer Metering System that involved export tax computation
should be witnessed by SIRIM. The SAT shall concentrate more specifically
on the following: -
a. Inspection of material and equipment on arrival at site including
spares and documentation. If damage occurred during transport, it is
important to establish without delay, the extent of the damages and
whether it is repairable onsite or necessary to order new materials.
Suitable storage of material and equipment should be provided.
b. Field calibration of the pipe prover shall be in accordance with API
Manual of Petroleum Measurement Standard Chapter 4 - Meter
Proving and the requirements stated in these guidelines. All
calibration equipment used for prover and other metering equipment
shall be traceable to National Standard.
All prover calibration on Custody Transfer Metering System that
involved export tax computation shall be witnessed by Contractor and
SIRIM. PETRONAS at any time may also witness the calibration
exercise. The results shall be certified by SIRIM.

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c. The metering panel and instrumentation equipment test shall also be
repeated which also includes the computations check carried out by
the computer system. The calibration exercise carried out on the
instrument in this exercise is considered as Validation No. 1.
d. The completed meter skid and panel shall be subjected to operational
functional test during actual flow condition to demonstrate satisfactory
performance at the design flowrates.
e. Contractor shall submit project completion report, which should
include the first official validation report to PETRONAS within 30 days
after system has been commissioned. Before the system is put in
operation for official use, approval from PETRONAS shall be
obtained.
14.4.4 Commissioning

14.4.4.1 General

The installation, commissioning and start-up of the metering system shall be
carried out in accordance with the requirements in this section.

14.4.4.2 Installation Quality Assurance

The Contractor shall set up an installation and commissioning plan of a
system of activities, the purpose of which is to provide assurance and show
evidence that the overall quality control shall be effectively maintained.

The plan shall be applied systematically to all metering systems, and
deviations will not be tolerated.

14.4.4.3 Commissioning

Commissioning shall include running-in of all rotating equipment, checking
alignment, testing control loops, stroking valves, flushing, hydrotesting, final

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testing of electrical instrumentation systems, purging, drying, inerting etc.
usually carried out sequentially on a system basis. Commissioning is
completed when the metering system is ready for start-up.

14.4.4.4 Start-up

This begins with the introduction of process hydrocarbons not counting where
these may have been used previously for pressure testing/purging.
14.5 OPERATION, VALIDATION AND ACCOUNTING
Contractor shall operate and maintain the metering system to the highest degree of
engineering standard in order to maintain its accuracy and integrity. As such,
operating, validation and accounting procedures/manuals shall be prepared by the
Contractor and approved (validation and accounting procedures) by PETRONAS
before start-up. These procedures shall document all activities that influence the
measurement system.
14.5.2 System Operation
The Contractor is required to carry out the following essential activities:-
1. Metering stations shall be operated and maintained in accordance with the
manufacturers recommendations and approved operation, validation and
hydrocarbon accounting procedures. Particular attention shall be given to flow
stabilization prior to meter proving, checking of block and bleed valves for
leaks.
a) Meter Proving Operations for Continuous Flow Measurement System
For a newly commissioned metering station with a dedicated meter
proving facility in a continuous production system (as distinct from
tanker loading), meters shall be proved twice a week at approximately
equal intervals between proving. Provided the meter factor scatter is

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acceptable to PETRONAS and until a meter factor control chart is
established, the frequency may be reduced to once a week or monthly
basis.
The frequency for proving may be further reduced upon agreement
between PETRONAS and Contractor.
b) Meter Proving Operations for Batch Measurement System
For tanker loading systems, any meter onstream shall be proved at
least once regardless of the duration of loading. Additional proving is
required on stream(s) where conditions have changed and a prove
required alarm is triggered.
2. Where meter types other than mentioned in this guideline, the type and
frequency of meter proving by the Contractor shall be determined on an
individual basis by PETRONAS after consultation with the Contractor.
Account shall be taken on the meter type, process fluid and operational load
cycle. Where meters employing novel technology are to be used, extra
evaluation periods and tests will usually be required before a long-term
operational schedule can be determined.
3. Meter factors that are acceptable for use shall be based on the repeatability
acceptance criteria of not more than 0.05% of five consecutive runs. Meter
factor control chart is to be developed and Meter Factor High and Low limits
be established used to verify the acceptability of the meter factor.
4. Pipe provers and small volume provers shall be calibrated at least once a
year. Where this is not possible for operational or whatever reasons, longer
calibration interval may be considered by PETRONAS. However, those
systems that are affected by taxes calculation require SIRIM Berhads
approval. Inspection of the sphere, checking of sphere size, concentricity etc.
should take place prior to calibration. After calibration, the sphere detectors
and switches shall be sealed.

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Any maintenance work on the prover that could affect the swept volume e.g.
changes of sphere detectors and switches should not be undertaken without
prior notice to PETRONAS who will advice if a calibration is required.
14.5.2.1 Operating Manual

The Operating Manual shall be prepared for the purpose of providing
operational guideline for the operators in performing metering activities. It shall
then describe the operation of the system which includes the computers, the
skid instrumentation, sampling activities and other operation of the metering
system.

The manual among other things shall also include what actions to be taken in
case of malfunction or alarm on the metering system.

The minimum content of the manual shall consist of the following:-
1. Overall process description.
2. Metering system description.
3. Metering instrument specification.
4. Computer system operation (including the computer read codes) and
actions taken on alarms.
5. Metering system operation.
6. Metering sealing procedure.
7. Sampling procedure.

14.5.3 System Validation

In order to maintain the reliability and accuracy of the metering system, Contractor
shall conduct a periodic calibration and validation of the metering system at a
frequency agreed by PETRONAS. For new systems, a monthly validation shall be
performed. A new validation frequency can be agreed with PETRONAS after such time
the system is stable. The calibration/validation shall be performed in accordance with

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the system Validation Manual prepared by the Contractor and approved by
PETRONAS.

All validation result shall be recorded on the format agreed in the Validation report.
The report shall include but not limited to the following:-
1. As found and as left result of the calibration exercise.
2. System error preferably in accordance with ISO 5168 latest revision.
3. Findings and recommendations.
4. Metering irregularities occurred since then and between the last validations.
Validation reports shall then be prepared after each validation and submitted to
PETRONAS within 1 month. Any irregularity on the figures generated, resulting from
the validation shall be endorsed by PETRONAS.

14.5.3.1 Validation Manual

The Validation Manual shall be prepared for the purpose of providing guideline
for the verification of the metering system instrumentation. The content of the
validation manual shall consist of, but not limited to the following:
1. Brief description of the metering system
This shall include a concise description of the design concept of the
system and its instrumentation including the computer system. Description
as to 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 system.
Instrument description shall include manufacturer's name and model
number, range, accuracy, input/output signal and tag number.

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2. Calibration Procedures
The step-by-step calibration procedures for the instruments shall be
detailed out for each individual instrument in the system. A set of
validation check sheets shall also be included and all readings obtained
during each calibration shall be recorded on the check sheets. Adjustment
shall be made when a reading is out of tolerance. After any adjustment
the complete test shall be repeated.
3. Frequency of Calibration and Inspection
Contractor shall detail out the frequency of validation/calibration of each of
the metering instruments.
4. Flow Calculation
Calculations/formulae used to arrive at the volumetric, mass and heat
throughput shall be clearly laid out. All flow constants that are to be used
shall be shown in actual units they are used. Where the flow constants are
fixed, the actual values and their derivations shall be shown.
5. Metering Irregularity Calculation
All types of irregularities on the metering system and methods for the
corrections shall be clearly stated.
6. Calibration / Validation Equipment
A list of the calibration/validation equipment to be used in the validation
exercise shall be provided in the validation manual. All information related
to the equipment specification such as its accuracy, repeatability, serial
no., and range shall also be provided.
The accuracy of the calibration equipment shall be better than the
accuracy of the instrument to be validated.

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The equipment shall be traceable to SIRIM or any National Bureau of
Standard acceptable to SIRIM.
7. System Error Calculation
System error calculation shall be listed in the validation manual and
preferably will be in accordance with ISO 5168 latest revision.
14.5.4 System Maintenance

The Contractor shall maintain the metering system in order to maintain its accuracy
and integrity.

The Contractor shall notify and seek PETRONAS approval before any change or
modification is made on the metering system. Drawing(s) and sufficient data shall be
submitted together with the request for approval.

PETRONAS representative(s) shall be invited to witness the maintenance activities on
the system modification. All results pertaining to these activities shall then be properly
documented. The contractor shall also obtain the vendor's recommended
comprehensive spare parts list and priced quotation for parts for commissioning and
two years operation.

14.5.5 Security

All software and all flow factors, status and alarm information stored in the system
shall be protected to prevent loss of information by inadvertent operator action or input
power failure.
In order to ensure security of data in the computers and other critical instrumentation
in the metering system, sealing procedures shall be adhered to. The procedure shall
be prepared by the Contractor.
Critical instruments such as the computers and critical valves shall be sealed where
practically possible to prevent unauthorized entry or manipulation of the computer

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system and opening or closing of critical valves at the metering skid. The sample cans
of the sampling systems shall be sealed. The seals shall have serial number for easy
identification.
The last valve downstream of the outlet header or offloading valve shall be sealed as
per Custom requirement.
The sealing of these identified critical instruments shall be carried out by Contractors
authorized person and be recorded in a dedicated Sealing Log Book. This logbook
shall be kept in the metering control room where PETRONAS will review it on the need
basis.
14.5.6 Accounting / Allocation Manual

The Accounting/Allocation Manual shall be prepared by Contractor and approved by
PETRONAS. The purpose of this manual is to precisely define the way metered and
other data are to be used for the determination of sales, allocation and production
quantities. The minimum content of this manual shall consist of the following: -
a) Accounting and allocation concepts.
b) Allocation procedure and algorithm.
c) Production measurement system.
d) Product sampling and analysis.
e) Data requirements.
f) Mass, volume and heating value calculations.
g) Methods to account for irregularities in quantity.
14.5.7 Metering Station Record Keeping

14.5.7.1 Log Books/Records

Contractors shall maintain electronic / manual logbook and records of prover
system, metering system, meter proving and metering print - out. Records of

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parameters such as meter flow rate, liquid temperature and density shall be
kept at the metering station for at least 3 months. All of the logbook / records
shall be made available within reasonable time for inspection by PETRONAS.
Electronic or manual logbook and records shall be maintained comprising
information of the following systems:

i) Prover System

The 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.

ii) Metering System

A. Metering Log book
A log book for the metering system shall be kept preferably for each
meter showing details of:
1. Type, Stream and Tag No. particulars including location and
production measured.
2. Totaliser reading(s) where applicable on commencement and
cessation of metering.
3. All mechanical or electrical repairs or adjustments made to the
meter or its read-out equipment and other parts of the metering
system.
4. Metering errors due to equipment malfunction, incorrect
operation, etc. including data, time and totaliser readings; both at
the time or recognition of an error condition and when
remedial action is completed.
5. Alarms, together with reasons and operators response.
6. Any breakdown of meter or withdrawal from normal service,
including time and totaliser readings.
7. 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 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.
One of these sets of readings should be recorded at 2400 hours, or at
the agreed time for taking daily closing figure.

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

iii) Meter Proving Record

The Contractor shall also keep a Meter Proving Record for each meter
giving the details of each proof run such as prove flow rate, pressure,
temperature, meter factor etc. This record shall include a running plot, or
similar control chart, so that any undue change or fluctuation in meter
factors may be easily detected (see API Chapter 13).

14.5.8 Direct Reporting

Contractor shall notify PETRONAS regional office prior to any major maintenance, re-
calibration work on the metering and proving systems and also other operational
related activities. PETRONAS shall also be officially notified, when any abnormal
situation or error occurs which could require significant adjustment to the totalised
meter throughputs.
If a meter is required to be removed for maintenance work or replacement,
PETRONAS shall be officially informed detailing the serial number of the meter
concerned and the reasons for the action taken.

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When correction to meter totalised figures are required 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 occurring.
14.6 FINAL PROVISION
i. Final acceptance of the metering system will depend on the successful completion of
site acceptance tests during actual flowing conditions at the field site.
ii. Contractor shall submit project completion report to PETRONAS at least 30 days after
system has been commissioned for official approval of system usage.
iii. PETRONAS reserves the right to make more detailed requirements for items
mentioned in these guidelines.
iv. PETRONAS may in special cases provide exemption from the requirements of these
guidelines.

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14.7 REFERENCES

PETRONAS Technical Standard
PETRONAS Procedures/Guidelines for Upstream Activities, Production Operations
Section 13 Guidelines for Well Testing, Production Measurement and Allocation.
SIRIMs Berhad Crirteria Circular - AFLA 1991/01 and 1991/02.
API Manual of Petroleum Measurement Standards Chapter 1 Vocabulary
API Manual of Petroleum Measurement Standards Chapter 4 Proving Systems
Section 1 Introduction
Section 2 Displacement Provers
Section 5 Master-Meter Provers
Section 6 Pulse Interpolation
Section 7 Field Standard Test Measures
Section 8 Operation of Proving Systems
API Manual of Petroleum Measurement Standards Chapter 5 Metering Section 1
General Considerations for Measurement by Meters
Measurement of Liquid Hydrocarbon by Displacement Meters
Measurement of Liquid Hydrocarbon by Turbine Meters
Accessory Equipment for Liquid Meters
Fidelity and Security of Flow Measurement Pulsed-Data Transmission Systems

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Measurement of Liquid Hydrocarbon by Coriolis Meters
API Manual of Petroleum Measurement Standards Chapter 5 Metering Section 8 -
Measurement of Liquid Hydrocarbon by Ultrasonic Flow Meters using Transit Time
Technology
API Manual of Petroleum Measurement Standards Chapter 6 Metering
Assemblies
API Manual of Petroleum Measurement Standards Chapter 7 Temperature
Determination
API Manual of Petroleum Measurement Standards Chapter 8 Sampling
API Manual of Petroleum Measurement Standards Chapter 9 Density
Determination
API Manual of Petroleum Measurement Standards Chapter 10 Sediment and
Water
API Manual of Petroleum Measurement Standards Chapter 11 Physical
Properties Data.
API Manual of Petroleum Measurement Standard, Chapter 12 Calculation of
Petroleum Quantities.
API Manual of Petroleum Measurement Standards Chapter 13 Statistical Aspects
of Measuring and Sampling
API Manual of Petroleum Measurement Standard, Chapter 15 Guidelines for the
Use of the International System of Units (SI) in the Petroleum and Allied Industries
API Manual of Petroleum Measurement Standards Chapter 20 Allocation
Measurement
API Manual of Petroleum Measurement Standards Chapter 21 Flow Measurement
Using Electronic Metering System
API Standard 2534 - Measurement of Liquid Hydrocarbon by Turbine Meter
Systems.
BS 5233 : -1975 'Glossary of Terms used in Metrology ', 1st edition 1975.

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BS 1904 'Specification for Industrial Platinum Resistance Thermometer elements'.
IEC 751 : 1983 'Industrial platinum resistance thermometer Sensor', 1st edition
1983.
IP Petroleum Measurement Manual, Pan VI Section 2 A Guide To Automatic
Sampling of liquid from pipelines July 1987.
IP 252/76 Petroleum Measurement Manual, Part XIII Section 1 Fidelity and Security
of measurement - Data Transmission for fluid metering system.
IP Petroleum Measurement Manual, Part VII Section 2 Continuous Density
Measurement tentative Sept. 1979.
IP 201/64 Petroleum Measurement Manual, Part 1- Calculation of Oil Quantities.
IP Petroleum Measurement Manual, Part VI1 Section 2- Guide to Automatic
Sampling.
ISA Standard S 5,1 1983 'Instrumentation Symbols and Identification' 3rd edition.
ISO 1000 : 1981 'Sl Units and recommendations for the use of their multiples and of
certain other units' - 2nd edition 1981. (Latest 3
rd
Edition 1992-11-01 Amendment 1
1998-11-01)
ISO 1998-6 Petroleum Industry Terminology Part 6: Measurement First
Edition
ISO 2714 Liquid hydrocarbons - Volumetric measurement by displacement meter
systems other than dispensing pump
ISO 2715 Volumetric measurement by turbine meter systems
ISO 3170 Petroleum liquids Manual sampling
ISO 3171 Petroleum liquids - Automatic pipelines sampling
ISO 4124 Liquid Hydrocarbons Dynamic measurement Statistical control of
volumetric metering systems
ISO 4267-2 Petroleum and liquid petroleum products Calculation of oil quantities
Part 2: Dynamic measurement

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ISO 5024 Petroleum liquids and liquefied petroleum gases Measurement
Standard reference conditions
ISO/TR 5168 Measurement of fluid flow Evaluation of uncertainties
ISO 6551 Petroleum liquids and gases Fidelity and security of dynamic
measurement Cabled transmission of electric and/or electronics pulsed data
ISO 7278-1 Liquid hydrocarbons Dynamic measurement Proving systems for
volumetric meters Part 1: General principles
volumetric meters Part 2: Pipe provers
volumetric meters Part 3: Pulse interpolation techniques
volumetric meters Part 4: Guide for operators of pipe provers
ISO/TR 9494 Petroleum liquids Automatic pipeline sampling Statistical
assessment of performance of automatic samplers determining the water content in
hydrocarbon liquids
ISO 10790 Measurement of fluid in closed conduits Guidance to the selection,
installation and use of Coriolis meters (mass flow, density and volume flow
measurements)
ISO/TR 12765 Measurement of fluid in closed conduits Methods using transit-time
ultrasonic flowmeters
ISO/TC28/SC2 - 24E July 1972 - Glossary of Measurement Terminology.

- END OD SECTION 14 -

SECTION 15
GUIDELINES FOR GAS MEASUREMENT

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SECTION 15
Executive Summary
These guidelines provide the minimum requirement for the establishment of a Gas Custody
Transfer and Allocation Metering Systems and also the information that are required to be
submitted and shall be regarded as PETRONAS' general minimum requirements necessary
while ensuring accuracy, safety and integrity of the metering systems based on best oilfield
practices, internationally recognised codes and standards and applicable Malaysian laws.
In cases where the requirements and frequencies are not specifically stated in these
guidelines, PS Contractor shall derive the scopes and frequencies based on best oilfield
practices, internationally recognised codes and standards and applicable Malaysian laws, and
shall implement the same accordingly.

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15.1 INTRODUCTION
These guidelines shall be read as part of the Main Documents, Production Operations
Section 13: Guidelines for Well Testing, Production Measurement and Allocation.
15.1.1 Scope
These guidelines provide the minimum requirements in the design, installation, testing,
commissioning, operation and maintenance of Gas Custody Transfer and Allocation
Metering System. Unless otherwise specified, the guidelines mentioned hereunder are
applicable for both Custody Transfer and Allocation Metering Systems.

The objective of these guidelines are to ensure that all Gas Custody Transfer and
Allocation Metering Systems are designed, installed, tested, commissioned, operated
and maintained in accordance with the minimum requirements of PETRONAS for
accurate measurement of gas.

15.1.2 Distribution, Intended Use and Regulatory Considerations

Unless otherwise authorised by PETRONAS, the distribution of these guidelines are
confined to companies forming part of PETRONAS and PETRONASs Production
Sharing (PS) Contractors or their nominated third party for the above scope of work.

These guidelines are intended for use by all involved in the design, installation, testing,
commissioning, operation and maintenance of Gas Custody Transfer and Allocation
Metering Systems in PETRONAS, its PS Contractors or their nominated third party. It
is the responsibility of the respective PS Contractor or Contractor as referred to in this
guidelines, to ensure that these guidelines are followed if, wholly or partly, the above
scope of work are outsource or contract out to any third party or parties.

In developing oil and gas fields that straddle with neighbouring countries, if the co host
country have its local regulations, the Contractor shall determine by careful scrutiny
which of the requirements are more stringent and which combination of the
requirements will be acceptable as regards to safety, environmental and economic

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aspects. In all cases the Contractor shall inform PETRONAS of any deviation from the
requirements of these guidelines which are considered to be necessary in order to
comply with the neighbouring countries local regulations. PETRONAS may then
negotiate with the Malaysian Authorities and the respective Authorities concerned with
the objective of obtaining agreement to follow these guidelines as closely as possible
and also to be cost effective.

15.1.3 Definitions

15.1.3.1 General definitions

The Contractor refers to the Production Sharing Contractors which sign the
Production Sharing Contract with PETRONAS in respect of the exploration,
exploitation, winning and obtaining of petroleum resources in the Contract
Area on the terms and conditions set out in the said contract.
The Vendor is the party which manufactures or supplies equipment and
services to perform the duties specified by the Contractor.
The word Shall indicates a requirement.
The word Should indicates a recommendation.

15.1.3.2 Specific definitions

Accuracy - The measure of the closeness of a measurement to the true
value.
Allocation Gas Metering System - A measuring system comprising
mechanical, instrument and computer parts whose registered measured
quantity is used for allocation between two or more parties, which involved in
sharing the same facilities for their operation. This system normally has an
uncertainty of +/-2%.

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Automatic Sampler - A system which, when installed in a pipe and actuated
by automatic control equipment, enables a representative sample to be
obtained from the fluid/gas flowing in the pipeline. 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 That part of the metering system that consists of digital
computers and receives digital signals from A/D converters or from digital
instrument loops.
Custody Transfer Gas Metering System - A measuring system comprising
mechanical, instrument and computer parts whose registered measured
quantity is used for sale where there is a change in ownership. This system
normally has an uncertainty of +/-1 %.
Flow Coefficient - The same as flow coefficient mentioned in ISO 5167 latest
edition.
Flow Computer - is an arithmetic processing unit and associated memory
device that accepts electrically converted signals representing input variables
from a liquid measurement system and performs calculations for the purpose
of providing flow rate and total quantity data.
Gross Heating Value - Mass Based - The number of heat units liberated
when unit mass of a product in the vapor phase at standard temperature and
pressure is burned completely in air saturated with water vapor. The gaseous
products of combustion are brought to the same standard conditions for
temperature and pressure but the water produced is condensed to liquid in
equilibrium with water vapor.
Instrument Loop - Includes all elements that form part of the measurement of
each individual quantity from sensor to input of the A/D converter or input of
digital signal to the computer part.

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Linearity - The deviation or spread of calibration data points from an
acceptable straight line over the defined flow range.
Meter run - A flow measuring device complete with associated strainers,
entry/exit pipework, upstream and downstream straight lengths, flowmeter and
flow straighteners.
Minimum Meter Flow Rate - The minimum rate of flow recommended by the
meter manufacturer or authorised by a regulatory body. The minimum rate is
determined by considerations of accuracy, repeatability and linearity.
Maximum Meter Flow Rate - The maximum rate of flow recommended by the
meter manufacturer or authorised by a regulatory body. The maximum rate is
determined by considerations of accuracy, durability, pressure drop,
repeatability, and linearity.
Online Gas Density Meter - A density meter also known as densitometer,
operating on a representative sample of the process material withdrawn
continuously from the process line or vessel via a sampling system.
Orifice Plate - The same "orifice plate" as mentioned in ISO 5167 latest
edition.
Repeatability - The quality which characterizes the ability of a measuring
instrument to give identical indications or responses, for repeated applications
of the same value of the measured quantity under stated conditions of use.
Reynold Number - Dimensionless parameter expressing the ratio between
the inertia and viscous forces (ISO 5167 - 1:2003 (E)).
Sampling - An exercise in accordance to procedure that is carried out either
automatic or manual to obtain a sample that is representative of the contents
of any pipe, tank or other vessel and to replace that sample in a container
from which a representative test specimen be taken for analysis.

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Standard Reference Conditions - Standard reference conditions for
pressure and temperature shall be 101.325 kPa (abs) and 15 Degrees C
respectively, in accordance with ISO 5024.
Station Computer - is an arithmetic processing unit and associated memory
device which sends commands and accepts calculated data from Flow
Computer and Prover Computer for Station Totalisation computation and
archiving.
Uncertainty - The part of the expression of the result of a measurement which
states the range of values within which the true value of, if appropriate, the
conventional true value is estimated to fall.
15.1.4 Abbreviations
AC - Alternating Current
A/D - Analogue to Digital
AGA - American Gas Association
API - American Petroleum Institute
BS - British Standards Institution
CCR - Central Control Room
DC - Direct Current
DP - Differential Pressure
FAT - Factory Acceptance Test
GHV - Gross Heating Value
IP - The Institute of Petroleum
IEC - International Electrotechnical Commission
ISA - Instrument Society of America
ISO - International Organization of Standardization
LCR - Local Control Room

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MPMS - Manual of Petroleum Measurement Standard
NBS - National Bureau of Standard
NEC - National Electricity Code
PID - Piping and Instrument Drawings
RTD - Resistance Thermal Detector
SI - International System of Unit
SIRIM - Standard Industrial Research Institute of Malaysia
STC - Site Testing and Commissioning

15.2 GENERAL REQUIREMENTS
15.2.1 Units of Measurement
The base (reference or standard) condition for metering system shall be in Sl units in
accordance with the ISO 5024 latest revision whose base conditions are defined as
pressure of 101.325 kPa (abs) at temperature 15
o
C. Where imperial unit such as barrel
is required, it shall be converted from the base Sl unit and referenced to 14.696 psia
and 60
o
F.

Gas measurement shall be either in volumetric, mass or energy units. The units shall
be SI units.
15.2.2 Approval Requirements
PETRONAS approval shall be obtained for measurement and allocation concept and
metering project implementation as per Items 5.2.2.1 and 5.2.2.2, respectively. Item
5.2.2.3 specifies the governments approval that is required to be complied by
Contractors.

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15.2.2.1 Measurement and Allocation Concept

Proposed Measurement and Allocation concept shall be submitted for
PETRONAS evaluation and approval. The concept shall be submitted and
agreed during the Field Development Design stage. Contractor shall carry out
the financial exposure and cost benefit analysis during the evaluation of the
concept and to determine the location for the installation of the metering
system, metering system configuration and the level of accuracy required. To
facilitate the above approval, preliminary submission to PETRONAS shall
include but not limited to the following items.
1. Measurement philosophy
2. Product allocation principles.
3. Measurement methods and standards.
4. Proposed system accuracy.
5. Production accounting exposure analysis.
6. Project cost estimates.
7. Field area and installation layout with main pipelines.
8. Proposed sizing of the metering system.
9. Preliminary system configuration.
The metering system can either be used for Custody Transfer or Allocation
purpose.

Two categories of metering system fall under the purview of these guidelines.
a) Custody Transfer Metering System - This type of system is normally of
high accuracy and designed with an uncertainty of +/- 1%, used for
custody transfer application i.e. transfer of ownership. The figure
registered from this system is used for sales determination.
b) Allocation Metering System - This type of metering system has slightly
lower accuracy than the Custody Transfer Metering System and normally
designed with an uncertainty of +/-2%. This type of system is used for

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allocation of gas between fields of different ownership sharing a common
facility or facilities. Allocation method normally used is by full allocation
i.e. where metering systems are installed in all PSC parties involved in
sharing the same facilities. However, the uncertainty of the metering
system can also be designed to be of custody transfer quality standard i.e.
+1% if measurement by difference allocation concept being adopted.
However, factors such as gas reserve, investment cost and impact are to
be considered and agreed by all related parties before this allocation
concept is adopted.
Generally two main measurement concepts currently are acceptable for
the above purpose namely,
1. Measurement by difference method.
2. Full allocation.
Only upon PETRONAS agreement on the measurement and allocation
concept, Contractors can proceed on procuring of the relevant metering
systems in accordance to these guidelines. It is the responsibility of the
Contractor to obtain agreement from their equity partner and the interested
party or parties that will be affected with the metering system installation,
before the concept is submitted for PETRONAS agreement.
15.2.2.2 Metering Project Implementation
PETRONAS will also request the following information to be submitted for
approval prior to the release of bid package: -
a) System specification.
b) Design formula and calculation.
c) Calculation of overall accuracy and uncertainty of the system.
d) Relevant drawings.
e) Other relevant information.

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PETRONAS may also request the Project Definition Manual be submitted
prior to commencing the fabrication of the metering system and will inform
Contractor if other information is required.

Prior to the official use of the metering system, Contractors shall submit an
application together with all the relevant data for PETRONAS to review and
PETRONAS will provide the approval after having satisfied with the system
performance either from the data submitted or after visiting the installation site.
Metering system installed shall be traceable to SIRIM Berhads standard.

Contractors shall also submit to PETRONAS for approval the hydrocarbon
allocation and accounting and as well as the validation procedures. The
operation procedure will be requested on the need basis.
15.2.2.3 Government regulatory requirement
Contractors shall ensure that the Department of Safety and Health (DOSH)
approval is obtained should the fabrication and testing of the metering system
be carried out in Malaysia. Approval should also be obtained if the system is to
be installed and operated onshore.
15.2.2.4 Deviations

Any deviations from these guidelines with respect to the measurement and
allocation concept, design, operations and maintenance of the metering
system shall require PETRONAS prior approval.

15.2.3 Documentation
Contractor should establish and maintain an up-to-date file containing all
specifications, calculations and drawings (as-built). The file should also contain reports
concerning verification revisions, design, fabrication, installation and commissioning
including inspection and testing programs and operation manual for all fixed and
temporary phases, and other relevant documentation.

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Contractor shall ensure that all documentation during the metering project
implementation are timely available such as the project definition manual including the
uncertainty analysis, factory and site acceptance test procedures and its result and as
well as project completion report. PETRONAS may request some of this information
on the need basis.

The Contractor should maintain up-to-date lists of current documentation and
documentation under preparation. Contractors internal control system including the
documentation should also be made available to ensure the quality of the metering
systems is maintained.
15.3 DESIGN
The gas metering system shall be designed and constructed in accordance with the
industry and international standards and shall be capable of measuring minimum and
maximum flowrates (using mass based computations) at the expected system
throughput with parallel meter runs and with the provision of one standby meter run.
Should the system is a less critical system, standby meter run may not be necessary.
However, prior approval shall be obtained from PETRONAS as per Section 15.2.2
Approval Requirements

The system shall have common inlet and outlet header with system of valves to
facilitate inspection and maintenance. No bypassing of the metering system is allowed
for normal operations after start-up.

Instrumentation to measure flow, line pressure, line temperature and density shall be
provided for each meter run. Density calculation using component can be an
alternative means in the event that direct measurement by the instrumentation is not
possible.

These instruments shall have back up facilities in case of failure. Local read out
indicators, recorders or solar flow computer should also be made available on each

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meter run. Use of multi-stream flow computer for backup shall come with dedicated
power supply from separate source.

Metering stations should be designed to minimize the probability of liquid carry-over
into the metering station and from any condensation or separation that would have
significant effect on measurement uncertainties.

Where new technology other than orifice plate or ultrasonic metering are to be
deployed, details of proposed equipment, layout and verification procedures should be
discussed with PETRONAS in advance.
A control room should be made available to station the computational facilities to
continuously compute the volume and the mass.

The energy value of gas delivered shall be computed by multiplying the total mass
over a period of time by the average Gross Heating Value (GHV) of the gas during the
same period of time as above. The composition of the gas GHV (mass based) shall be
determined by using an on-line Gas Chromatograph or through flow proportional
sampling and lab analysis.

The Sl unit shall be used and the heat content of the gas shall be expressed in
Megajoules at Standard Reference Conditions.

In addition to lifting pad eyes and drip pan, the metering system shall also be designed
with access stairs and walkways for operation, maintenance and calibration. Piping
shall be arranged in such a manner to avoid tripping or overhead problems.

A typical flow scheme is contained in Appendix 15 of this guideline.

15.3.2 Mechanical Requirement and Primary Element
15.3.2.1 Orifice Meter

Orifice meter design and installation shall be in accordance with ISO 5167
latest edition unless otherwise specified in this guideline. Proposals to

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implement new requirements contained within the latest revision of ISO 5167
for existing metering systems, either partially or in full, should be discussed
with PETRONAS prior to implementation.
15.3.2.1.1 Orifice plate and fitting

1. The minimum diameter ratio (Beta Ratio) shall not be less than
0.2 and the maximum allowable shall not exceed 0.6.
2. Maximum differential pressure of 0.5 bar is preferred. Higher
differential pressure may be used where it is demonstrated that
the conditions of items d. and e. mentioned below are met.
Deformation calculation shall be calculated for the worst case
condition if the meter forms part of the blowdown system.
3. Orifice plate shall have the thickness as determined in ISO 5167
latest revision.
4. The deformation of the orifice plate at maximum differential
pressure shall be less than 1% (i.e. not exceeding flatness limit).
When measured on bench, the flatness shall be within 0.5%.
5. The uncertainty in flow caused by elastic deformation of the orifice
plate shall be less than 0. 1%.
6. The upstream and downstream pressure tapping shall be in the
same axial plane in accordance with direction stated in ISO 5167
latest edition.
7. Carrier for the Orifice Plate should be of the type so that the plate
may be changed or removed for routine inspections without
depressurising the line.
15.3.2.1.2 Meter Tubes
Upstream and downstream pipe length from the orifice plate shall
have the lengths as specified in "Zero additional uncertainty".

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The tube should be installed in a manner so that it can 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 minimize the heat
transmission or loses to or from the surroundings to ensure
temperature stability. The density tapping line and other line (e.g.
Temperature Transmitter), that form part of the density calculation
shall be fully insulated to minimize the errors.
The use of flow straightening vanes, drain and vent holes in the meter
tubes shall follow the recommendations as stipulated in ISO 5167
latest edition.
Upstream pipe run between primary device and first upstream fitting
or disturbance may be made up of one or more sections of pipe as
per ISO 5167 latest edition. It must be ensured that the diameter step
between any two sections does not exceed 0.3% of the mean value of
D, i.e. pipe diameter which is measured in accordance to ISO 5167
latest edition.
15.3.2.1.3 Valves and Fittings
Both ends of gas meter run shall be provided with block and bleed
valves for isolation and may be either through conduit gate or full bore
ball valves. The gas isolation system shall be designed such that
differential pressure across the orifice plate does not exceed 1 bar
during pressurisation and depressurisation. Equalizing line and valves
shall be provided by passing across the inlet valve for
pressurising/equalising and depressurising the meter run.
The gas metering station shall be provided with a vent system.
Individual connections to this system shall be taken from downstream
of the office meters. Each connection shall be provided with dual
block valves and a pressure gauge located in between the block
valves.

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15.3.2.2 Gas Ultrasonic Flow Meter (Multipath)
The design of a gas metering system should follow the ISO/TR 12765 and
AGA 9 and specific recommendations from the meter manufacturer. The use
of this type of meter is subject to PETRONAS approval.
15.3.2.2.1 General Requirements.
The ultrasonic meters to be used shall have sufficient number of
sound path, which is proven to provide a representative gas velocity
measurement covering the cross section of the pipe at the relevant
flow conditions.
Meters shall be installed in accordance with field proven installation
practices. It shall also be installed such that no accumulations of liquid
or particles could possibly occur in the vicinity of the transducers that
could affect its performance.
Piping arrangement for the meter or the construction of the meter
itself shall allow inspection and necessary maintenance on the meter
to be carried out. The transducer shall be retrievable and with the
removal a pair of the transducers, the uncertainty of the meter shall
be within tolerable limit. All the pair transducers shall be tagged
accordingly.
Facility for the detection of malfunction of the meter such as
transducer failure should also be provided. Low flow alarm shall be
indicated when meter starts to operate below its specified minimum
flowrate.
System diagnostic shall be provided for performance monitoring of the
meter.
Tampered free computing feature should be provided to log the
required data.

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Precautionary measures should be taken if carbon dioxide (CO
2
)
levels are expected to approach 8% or if the meter is operating near
the critical gas density. The presence of high levels of some
component in the gas e.g. CO
2
, can influence and possibly inhibit the
operation of the meter.
15.3.2.2.2 Meter Tubes
The number of meter tubes shall be based on a design capacity and
spare run shall be provided for custody transfer metering system. As for
the allocation metering, the spare run requirement is dependent upon the
criticality of the system. However, a minimum set of a pair offline
transducer shall be made available.
The minimum upstream pipe length shall be 10D with upstream flow
conditioner and the minimum downstream pipe length shall be 5D. For bi-
directional applications, both ends of the meter should be considered
upstream. It shall be further verified that the piping upstream and
downstream of the meter will not resulted in the measurement uncertainty
as mentioned in Section 2.2.1 is exceeded. Flow straighteners of
recognised standard can be installed, if necessary.
Meter manufacturer shall be consulted on the installation location such as,
the meter not to be installed near a pressure reduction system (e.g.
valves), and the surrounding equipment will not affect the ultrasonic
signals. Proper evaluation needs to be carried out.
15.3.2.3 Other Meters
Used of other types of meter than orifice plate and gas ultrasonic flowmeters
shall be subjected to PETRONAS prior approval.

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15.3.3 Instrument Requirement
15.3.3.1 Field Instrumentation
15.3.3.1.1 Instrument loop
The instrument loops shall be kept separate 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 metering system.
Cables and other part of the instrument loops shall be designed and
installed so that they will not be affected by electromagnetic fields.
15.3.3.1.2 Differential Pressure Measurement
If the relative measuring uncertainty at the lowest operational
differential pressure exceeds +/- 0.7%, each meter tube shall have
more than one transmitter, each covering a part of the total differential
pressure range in the system. In addition, there shall be a check
differential pressure cell connected to the computer part, which shall
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 in the
mass flow computation. In the event of failure on Pay transmitter, the
Check transmitter will be used.
The system shall also be designed in such a way that auto switching
over is provided between the Low and the High DP (Differential
Pressure).
The impulse lines connecting the meter's static and differential
pressure sensors shall be as short as possible and the upstream and
downstream pressure tapping shall be in the same axial plane and
shall not be below the central axis of the meter tube.

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1. Installation requirement.
The differential pressure 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. The manifolds valves and pipe assemblies shall be
designed for isolation purposes, maintenance and shall also have
the provision for on-line calibration.
2. Accuracy Requirement
Differential pressure loop shall have an accuracy better than
0.25% of span.
15.3.3.1.3 Density Measurement
Gas density at the meter may be determined by continuous direct
measurement using a densitometer or calculation based on equation
of state with the measurements of the gas temperature, pressure and
composition. However, both methods can be used for the pay and
check function. Minimum requirements for density measurement
using both methods are as follows:
1. General Requirement
Each meter run shall be provided with the facility to measure the
online density. The position of the densitometer shall be such that
the density of the gas is measured at line temperature and
pressure.
The output signal from the densitometer shall be in the form of
frequency.
The densitometer shall be provided with facilities for online
calibration without removing the unit from its mounting.

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2. Installation Requirement
The densitometers shall be installed as near as possible to the
density sample probe, downstream of the orifice, in a pocket.
Density samples shall be extracted at a point 8D downstream of
the orifice and returned to the flange tap downstream, in
accordance with the I.P. Petroleum Measurement Manual Part VII
Density Section 2.
The built-in RTD shall be used for indication purpose only. The
complete system shall be insulated against heat loss.
The accuracy for the complete density circuit using vacuum check
method shall be within 80 nanoseconds.
15.3.3.1.4 Temperature Measurement
The temperature measurement shall be made using a 4 wire
platinum RTD in accordance to IEC 751 (1983) "Tolerance Class
A" or equivalent.
The temperature measuring device shall be located downstream
of the orifice plate close to the densitometer.
2. Local Indicators
Local Indicators for the line temperature should be provided for
each meter run.
A thermowell should be installed adjacent to every electronic
temperature sensor or group of sensors for calibration.

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The accuracy for the complete circuit shall be better than
0.15
o
C.
15.3.3.1.5 Pressure Measurement
The static pressure tapping shall be in accordance with the ISO
5167 latest edition whereby it is located in the plane of the
upstream pressure tapping. It shall be preferably separated from
the tapping provided to measure the differential pressure
2. Local Indicators
Local Indicator for the gauge pressure should be provided for
each meter run.
The location for the local Indicator shall be close to the static
pressure transmitter tapping.
Better than 0.25% of span.
15.3.3.1.6 Local Recorders

For orifice meter, local recorders shall be installed at the metering
skid to give a local readout and act as a backup unit to the flow
computer. It can be either a chart recorder or an independently
powered flow computer (e.g. solar powered, multi-stream flow
computer, etc.);

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Local recorder inputs or inputs to the independently powered flow
computer for the differential pressure, line temperature as well as
the line pressure shall be provided in each meter run in order to
facilitate the computation of the mass and volume throughput for
the particular line in case of failure of the main computer.
The local recorders shall be located at the metering skid and shall
be sheltered.
15.3.3.2 Control Room Instrumentation

Instruments that are sensitive to temperature or other environmental factors
should be installed where these factors can be controlled.

15.3.4 Computer Based Monitoring and Control Functions Requirements
15.3.4.1 General

Gas metering computation shall be managed by a computer system. This
system shall be installed in the CCR, LCR or local equipment room. Normally,
separate computers should be dedicated for the metering runs, and the 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 arrangements have to be agreed by
PETRONAS.

The computer system is to be designed as follows:-
1. The computer part in the metering system shall have no functions
other than those involved in the metering. The metering system shall
be designed in such a way that the maximum gas flow will be
measured.
2. The system should include at least two independent registers for
storing accumulated fiscal quantities for each meter run and the

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station total. It shall not be possible to delete or change these
registers by operator encroachment or power failure.
3. The computer shall also be designed to ensure that cumulative
quantities generated during validation/calibration are registered
separately from the measured amount.
4. Manually entered parameter shall be displayed without rounding off or
truncation of digits. The display on the computer shall have sufficient
resolution to enable the verification for the calculation accuracy as in
Section 15.3.4.3 be carried out. Facilities shall be provided to prevent
access to computer by unauthorised personnel.
5. Computer system shall be designed such that the transfer of data to
DCS /SCADA/Plant Information (PI) system is permissible and all
interfacing requirement such as the handshaking and necessary
software is provided.
6. The computer part shall have and automatic watch over for
differences between readings of measured values, for parallel meter
runs.
7. For continuous monitoring of measurement data the computer shall,
for each meter run, automatically log and store for at least one year
the following data: At intervals of 1 hours cumulative quantities, and
average values of pressure, temperature and density. At intervals of
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 shall not be possible without the use of
key operated switch.
8. Gas meter proving algorithm should be available.
9. Report facility for computer constants, keypad setting should be
available.
10. The computer will have the ability to perform meter curve (foot-print)
interpolation for minimum of 8 calibration points.

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15.3.4.2 Data Security

The data transmission of the computer shall be designed in accordance with
Level A of the IP Standard 252/76, Part XIII Section 1.

The computer shall have a self-diagnostic capability. It shall monitor that the
program loops 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.

The algorithms and the fixed parameters important for accurate computation
of fiscal quantities shall be stored in non-alterable memory.

Security system shall also be provided for manual entering of data. The
system shall be designed and features provided for sealing of the computer
systems.

Program version number be assigned to identify the current program used and
this can be determined directly from Video Display Unit (VDU) or print out. The
version number can be updated every time permanent program data is
altered.
15.3.4.3 Calculation

The computer routines for fiscal measurement calculation shall be in
accordance to the requirements detailed in the applied standards. It shall also
include the followings:-
1. Update time to changes of input signals to metering system shall not
be more than 2 seconds and parameters having response time such
as density and temperature shall not exceed 5 seconds.

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2. The interval between each cycle for computation of instantaneous
flowrate and accumulated flow shall be less than 10 seconds.
3. Algorithm and rounding off error for computation of fiscal quantities in
the flow computer shall be within +/- 0.001 % for totalisation and +/-
0.01% for flowrate of the computed value. Rounding or truncation
shall only be carried out at the end of final computation.
15.3.4.4 Printouts and Hardcopies

The computer system shall have dedicated printers for alarms and reports.
Common printer can be used if an acceptable priority routine is established.
Automatic logging on the following information is to be provided.
a) Alarms for faults detected by the computer (date time).
b) Inserted parameters/constant, both fixed and changeable.
c) Quantity report.
d) Instantaneous values of flow rate and measured input parameters.
Fixed values which are used instead of live signals shall be identified.

15.3.4.5 Power Supply

The computer shall be equipped with an uninterruptible power supply (UPS)
system for back up purposes. Normal operation of the metering system shall
not be affected if there is any change from one power source to another.

15.3.5 Sampling and Analytical Instrumentation

15.3.5.1 General Requirements Sampling

Recommendations as specified in ISO 5167 latest edition is to be followed.
Delay time calculation shall be performed to ensure that delay time between

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sample point and analyser shall be kept short and at least shorter that the
duration of the analytical cycle.
15.3.5.2 On-Line Gas Chromatograph

The Gross Heating Value (GHV) (mass based) shall be calculated in
Megajoules per kilogram (MJ/kg) at Standard Reference Conditions.

Packing materials used in the chromatograph column, carrier gas, valves
configuration, and pressure flow regulators shall be of industry standards. The
composition shall represent the composition determine according to ISO 6974.
The calibration gas composition for the Gas Chromatograph shall be as close
as possible to the process gas composition.

The controller shall be programmed such that computations are made based
on the peak integration of individual components constituting the sample.
Hydrocarbon fractions heavier than and including Hexane should be combined
and treated as normal Hexane.

The analysis shall be normalized to 100 percent and the result expressed in
percentage mole fractions. Operating density calculation is normally
performed by the computer using the percentage mole fraction from the G.C
(Gas Chromatograph). The computer system shall also capable of calculating
the followings based on the compositional data according to ISO 6976 latest
edition:
Compressibility factor at reference condition.
Gross calorific value.
Wobbe-index.
Relative density (real / ideal).
Density at reference condition.

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The sampling system shall ensure that gases to GC are representative and
any liquid contamination is prevented in the sample tubing. Recommendations
as specified in ISO 10715 latest edition is to be followed. The sampling route
between the sampling point and the analyser shall be practically as short as
possible.
15.3.5.3 Gas Sampler Systems

Where no online Gas Chromatograph is installed and Gas Sampler (GS) is
used, an automatic Gas Sampler shall be able to collect and store
representative gas sample at line condition for transportation and analysis.
The system shall be in accordance with ISO 10715.

The automatic gas sampler shall be provided with the following monitoring
facilities:
1. Amount of sample collected.
2. Health status of sampler controller/system
3. Sampler cans in use
15.3.5.4 Manual Sample Point

In addition to the above, 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.
15.4 TESTING, CALIBRATION AND COMMISSIONING

Prior to site installation, a Factory Acceptance Test (FAT) shall be conducted to check
the integrity of both the computer software and the mechanical/skid instrumentation.
FAT procedures shall be agreed between Contractor and the Vendor prior to the test.

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During FAT, the electronic and the mechanical instrumentation shall be tested
together. It is essential that the vendor shall demonstrate that the equipment was
internally tested and in good working order before the Contractor and PETRONAS
representatives are invited for the FAT.

All FAT results are to be fully documented. Only after successful completion of the
FAT can the metering system be accepted and shipped out to the site. On site, further
testing shall be carried out prior to the commissioning of the system. Calibration of all
instrumentations using SIRIM Berhads traceable test equipment shall be carried out. It
is the responsibility of the Contractor to ensure that the FAT and Site Acceptance Test
(SAT) procedures be made available prior to the tests. PETRONAS may request these
procedures to be submitted for review. PETRONAS shall be notified at least three
weeks prior to both tests.
15.4.2 Calibration
15.4.2.1 General
Gas Custody Transfer and Allocation Metering Systems shall be calibrated
with instruments having certified traceability to international or national
standards.
Secondary standards or instruments used for calibration of all relevant parts of
the metering system shall be calibrated and certified by SIRIM Berhad or any
other independent laboratory which can prove such traceability.
15.4.2.2 Meter Calibration / Inspection
15.4.2.2.1 Orifice Meter

Inspection and measurement of upstream pipe section (D) adjacent to
the orifice plate shall be checked for circularity and cylindricality in
accordance to ISO 5167. Inspection shall be conducted by third party
and traceable to applicable International standard.

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15.4.2.2.2 Ultrasonic Meter

The ultrasonic flowmeter when intended to use for Custody Transfer
and Allocation purposes shall be first calibrated at a traceable
laboratory at conditions near to its operational conditions and a
certificate is to be issued. The meter shall be calibrated for at least 5
points over the whole operating range of the meter after which errors
curve be generated. The geometric dimensions of the ultrasonic flow
meter which affect the measurement result of the gas flowrate shall be
measured by traceable equipment and its result be made available on
the certificate.

Where system diagnostic is used to justify an extension to the interval
between meter recalibrations for multi-path ultrasonic flow meters,
features and data acquired should be agreed with PETRONAS in
advance.
15.4.2.3 Instrument Calibration

All relevant instruments used in the metering system shall be calibrated and
certified by the manufacturer, which can prove such trace ability.
15.4.3 Testing
15.4.3.1 General Testing

General Testing shall include checking against drawings, flushing, cleaning,
hydrostatic pressure testing, electrical earthing and be done on an individual
item basis. Vendor shall perform its own test prior to FAT and provide the
necessary evidence if required via filled test sheets.

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15.4.3.2 Factory Acceptance Test
15.4.3.2.1 General Check

Prior to further test in the factory, a general check on the system is to
be carried out. This includes checking of the following items.
1. Dimension check as per approved drawings and standards.
2. Instrument installation and quantity check as per approved
drawings and bill of quantity respectively.
3. Availability of all documentations.
15.4.3.2.2 Metering Panel and Instrumentation Equipment Tests

1. All panel and field mounted instrumentation, cabling and the
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.
2. Calibration checks using precision test equipment shall be
performed on all transducers, transmitters, converters, indicators,
recorders, gauges and switches, etc. supplied for use with the
system.
3. All safety and relief valves shall be tested, set and tagged with the
set pressure.
4. An insulation test shall be made on all power supply and
instrument cables, and panel wiring using voltage tester.
Instruments shall be disconnected during this test which may
cause internal damage. All resistance thermometer elements
shall be tested for insulation resistance to BS -1904.
5. A sample of the power circuit breakers shall be tested by
simulating a short circuit failure.

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6. The control panel shall be fully functionally tested before
connection to the skid using appropriate simulators and other test
equipment.
7. These tests shall include:
a) Panel mounted receiving indicators etc.
b) Outputs from panel mounted controls.
c) Meter run and instruments.
d) Computer functional test.
e) Verification of computer calculation and integration
accuracy as specified in Section 3.4.
f) Interlocks and alarms.
g) Checking of power distribution circuits and breakers for
correct wiring.
Analogues functions shall be calibrated at a minimum of five
points in the range (0%, 25%, 50%, 75%, 100%).
8. All remotely operated valves shall be checked after installation on
the metering skid by: - .
a) Manual stroking of the valves to check limit switch actuation
and to ensure full opening.
b) Local operation to verify phase of electrically operated
actuators rotation and functioning of local controls.
c) Remote operation and checking of remote position indication
and interlocks.
d) Noting the time for each valve to fully stroke in each direction.
9. After connection between the panel and skid, loop checks shall be
made on all circuits to check correct wiring and calibration of the
system. This shall include checks if all alarms, interlocks, digital
and analogue inputs and outputs.

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10. A check shall be made on effects of power supply variation by
setting all instruments in a normal operating mode and varying the
output voltage to upper and lower limits and noting the effect by
repeating functional checks.
11. The panel should be heat soaked for a minimum of 100 hours.
Records shall be made of temperature at selected points on the
panel. Following completion of the heat soak, the loop checks as
in No. 8 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).
12. Measurement and records shall also be made on panel maximum
power consumption (AC & DC).
13. Data transfer to another system shall be checked for data
accuracy, data correctness and redundant switching of
communication channel.
14. Spares, if possible should be tested.
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 the different functions of the computers shall
include but not be limited to manually input data, printouts, alarms and
data transmission between the computers.
All calculations by the computers shall be verified by injecting known
values to the computers and to compare the result using manual
calculations.
15.4.3.3 Site Acceptance Test

The Contractor shall provide test procedures for punch list items arriving on
site. Other items to be provided shall include but not limited to the following :-

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1. Loop diagram and loop checkout sheets.
2. Full print data base checking.
3. System functional test procedure and schedule.
The onsite acceptance test shall be considered as an extension of the FAT.
Prior to SAT, all wiring termination to be checked and powering of the panel
should be carried out by the vendor or authorized vendors representative.
Some tests carried out during FAT shall also be repeated during SAT. The
SAT shall concentrate more specifically on the following: -
a) Inspection of material and equipment on arrival at site including
spares and documentation. If damage occurred during transport, it is
important to establish without delay, the extent of the damages and
whether it is repairable onsite or necessary to order new materials.
Suitable storage of material and equipment should be provided.
b) The metering panel and instrumentation equipment test shall also be
repeated which also includes the computations check carried out by
the computer system. The calibration exercise carried out on the
instrument in this exercise is considered as Validation No 1.
c) The completed meter skid and panel shall be subjected to operational
functional test during actual flow condition to demonstrate satisfactory
performance at the design flowrates.
d) Contractor shall submit project completion report, which should
include the first official validation report to PETRONAS within 1 month
after system has been commissioned. Before the system is put in
operation for official use, approval from PETRONAS shall be
obtained.
15.4.4 Commissioning
15.4.4.1 General

The installation, commissioning and start-up of the metering system shall be
carried out in accordance with the requirements in this section.

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15.4.4.2 Installation Quality Assurance

The Contractor shall set up an installation and commissioning plan of a
system of activities, the purpose of which is to provide assurance and show
evidence that the overall quality control shall be effectively maintained.
The plan shall be applied systematically to all metering systems, and
deviations will not be tolerated.
15.4.4.3 Commissioning

Commissioning shall include running-in of all rotating equipment, checking
alignment, testing control loops, stroking valves, flushing, hydrotesting, final
testing of electrical instrumentation systems, purging, drying, inerting etc.
usually carried out sequentially on a system basis. Commissioning is
completed when the metering system is ready for start-up.
15.4.4.4 Start-up
This begins with the introduction of process hydrocarbons not counting where
these may have been used previously for pressure testing/purging.
15.5 OPERATION, VALIDATION AND ACCOUNTING
Contractor shall operate and maintain the metering system to the highest degree of
engineering standard in order to maintain its accuracy and integrity. As such,
operating, validation and accounting procedures/manuals shall be prepared by the
Contractor and approved (validation and accounting procedures) by PETRONAS
before start-up. These procedures shall document all activities, which influence the
measurement system.

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15.5.2 System Operation

The Contractor is required to operate and maintained the metering stations in
accordance with the manufacturers recommendations and approved operation,
validation and hydrocarbon accounting procedures.

15.5.2.1 Operating Manual

The Operating Manual shall be prepared for the purpose of providing
operational guideline for the operators in performing metering activities. It shall
then describe the operation of the system which includes the computers, the
skid instrumentation, sampling activities and other operation of the metering
system.
The manual among other things shall also include what actions to be taken in
case of malfunction or alarm on the metering system.
The minimum content of the manual shall consist of the following:-
1. Overall process description.
2. Metering system description.
3. Metering instrument specification.
4. Computer system operation (including the computer read codes) and
actions taken on alarms.
5. Metering system operation.
6. Metering sealing procedure.
7. Sampling procedure.
15.5.3 System Validation
In order to maintain the reliability and accuracy of the metering system, Contractor
shall conduct a periodic calibration and validation of the metering system at a
frequency agreed by PETRONAS. For new systems, a monthly validation shall be
performed. A new validation frequency can be agreed with PETRONAS after such

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time the system is stable. The calibration/validation shall be performed in accordance
with the system Validation Manual prepared by the Contractor and approved by
PETRONAS.

All validation result shall be recorded on the format agreed in the Validation report.
The report shall include but not limited to the following:-
1. As found and as left result of the calibration exercise.
2. System error preferably in accordance with ISO 5167 latest revision.
3. Findings and recommendations.
4. Metering irregularities occurred since then and between the last
validations.

Validation reports shall then be prepared after each validation submitted to
PETRONAS within 1 month. Any irregularity on the figures generated, resulting from
the validation shall be endorsed by PETRONAS.
15.5.3.1 Validation Manual

The Validation Manual shall be prepared for the purpose of providing guideline
for the verification of the metering system instrumentation. The content of the
validation manual shall consist of, but not limited to the following:
1. Brief description of the metering system
This shall include a concise description of the design concept of the
system and its instrumentation including the computer system.
Description as to 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 system.
Instrument description shall include manufacturer's name and model
number, range, accuracy, input/output signal and tag number.

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2. Calibration Procedures
The step-by-step calibration procedures for the instruments shall be
detailed out for each individual instrument in the system. A set of
validation check sheets shall also be included and all readings
obtained during each calibration shall be recorded on the check
sheets. Adjustment shall be made when a reading is out of tolerance.
After any adjustment the complete test shall be repeated.
3. Frequency of Calibration and Inspection
Contractor shall detail out the frequency of validation/calibration of
each of the metering instruments.
4. Flow Calculation
Calculations/formulae used to arrive at the volumetric, mass and heat
throughput shall be clearly laid out. All flow constants that are to be
used shall be shown in actual units they are used. Where the flow
constants are fixed, the actual values and their derivations shall be
shown.
5. Metering Irregularity Calculation
All types of irregularities on the metering system and methods for the
corrections shall be clearly stated.
6. Calibration / Validation Equipment
A list of the calibration/validation equipment to be used in the
validation exercise shall be provided in the validation manual. All
information related to the equipment specification such as its
accuracy, repeatability, serial no., 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 SIRIM or any National Bureau of
Standard acceptable to SIRIM.

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7. System Error Calculation
System error calculation shall be listed in the validation manual and
will be preferably in accordance with ISO 5167 latest revision.
15.5.4 System Maintenance
The Contractor shall maintain the metering system in order to maintain its accuracy
and integrity.
The Contractor shall notify and seek PETRONAS' approval before any change or
modification is made on the metering system. Drawing(s) and sufficient data shall be
submitted together with the request for approval.
PETRONAS representative(s) shall be invited to witness the maintenance activities on
the system modification. All results pertaining to these activities shall then be properly
documented. The contractor shall also obtain the Vendor's recommended
comprehensive spare parts list and priced quotation for parts for commissioning and
two years operation.
15.5.5 Security
All software and all flow factors, status and alarm information stored in the system
shall be protected to prevent loss of information by inadvertent operator action or input
power failure.
In order to ensure security of data in the computers and other critical instrumentation
in the metering system, sealing procedures shall be adhered to. The procedure shall
be prepared by the Contractor.
Critical instruments such as the computers, DP transmitters, tapings and critical valves
shall be sealed where practically possible to prevent unauthorized entry or
manipulation of the computer system and opening or closings of critical valves at the
metering skid. The sample cans of the sampling systems shall be sealed. The seals
shall have serial number for easy identification.

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The last valve downstream of the outlet header or offloading valve shall be sealed as
per Custom requirement.
The sealing of these identified critical instruments shall be carried out by Contractors
authorised person and be recorded in a dedicated Sealing Log Book. This log book
shall be kept in the metering control room where PETRONAS will review it on the
need basis.
15.5.6 Accounting / Allocation Manual
The Accounting/Allocation Manual shall be prepared by Contractor and approved by
PETRONAS. The purpose of this manual is to precisely define the way metered and
other data are to be used for the determination of sales, allocation and production
quantities. The minimum content of this manual shall consist of the following:-
1. Accounting and allocation concepts.
2. Mass, volume and heating value calculations.
3. Methods to account for irregularities in quantity.
15.5.7 Metering Station Record Keeping
15.5.7.1 Log Books/Records

Contractors shall maintain electronic / manual logbook and records of prover
system, metering system, meter proving and metering print - out. Records of
parameters such as meter flow rate, gas temperature and density shall be
kept at the metering station for at least 3 months. All of the logbook / records
shall be made available within reasonable time for inspection by PETRONAS.
Electronic or manual logbook and records shall be maintained comprising
information of the following:
a) Metering Log book
A log book for the metering system shall be kept preferably for each meter
showing details of:

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i. Type, Stream and Tag No. particulars including location and
production measured.
ii. Totaliser reading(s) where applicable on commencement and
cessation of metering.
iii. All mechanical or electrical repairs or adjustments made to the meter
or its read-out equipment and other parts of the metering system.
iv. Metering errors due to equipment malfunction, incorrect operation,
etc. including data, time and totaliser readings; both at the time or
recognition of an error condition and when remedial action is
completed.
v. Alarms, together with reasons and operators response.
vi. Any breakdown of meter or withdrawal from normal service, including
time and totaliser readings.
vii. Replacement of security seals when broken.
b) Metering Record
A manual / automatic recording should also be kept, at intervals of not
more than 1 hour, of the following parameters:
i. All meter totaliser readings;
ii. Meter flow rates (also relevant meter factors), pressure and
temperature, and (if measured continuously) density.
One of these sets of readings should be recorded at 2400 hours, or at the
agreed time for taking daily closing figure.
15.5.8 Direct Reporting
Contractor shall notify PETRONAS regional office prior to any major maintenance, re-
calibration work on the metering and also other operational related activities.
PETRONAS shall also be officially notified, when any abnormal situation or error
occurs which could require significant adjustment to the totalised meter throughputs.

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If a meter is required to be removed for maintenance work or replacement,
PETRONAS shall be officially informed detailing the serial number of the meter
concerned and the reasons for the action taken.
When correction to meter totalised figures are required 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 occurring.

15.6 FINAL PROVISION

15.6.1 Final acceptance of the metering system will depend on the successful completion of
site acceptance tests during actual flowing conditions at the field site.

15.6.2 Contractor shall submit project completion report to PETRONAS at least 30 days after
system has been commissioned for official approval of system usage.

15.6.3 PETRONAS reserves the right to make more detailed requirements for items mentioned
in these guidelines.

15.6.4 PETRONAS may in special cases provide exemption from the requirements of these
guidelines.

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15.7 REFERENCE
PETRONAS Procedures/Guidelines for Upstream Activities, Production Operations
Section 7.2 - Well Testing, Production Measurement and Allocation.
BS 1904: 'Specification for Industrial Platinum Resistance Thermometer elements'
IEC 751: 1983 'Industrial platinum resistance thermometer Sensor', 1st edition 1983
IP Petroleum Measurement Manual, Part VII Section 2 Continuous Density
Measurement tentative Sept. 1979.
ISO 1000: 1981 'Sl Units and recommendations for the use of their multiples and of
certain other units' - 2nd edition 1981
ISO 5024: l979 'Standard Reference condition for volume, mass and heat 1st edition
1979.
ISO 6551: 1982 Petroleum liquids and gases - Fidelity and security of dynamic
measurement - Cable transmission of electronic and/or electronics pulsed data. 1st
edition 1982.
ISO 5168: 1978 (E) Measurement of fluid flow - Estimation of uncertainty of a flow-
rate measurement.
ISO 5167-1: 1991 (E) Measurement of fluid flow by means of pressure differential
devices - Part 1: Orifice plates, nozzles and venturi tubes inserted in circular cross-
section conduits running full.
ISO 6976: Natural Gas - calculation of calorific valves, density, relative density and
Wobbe index from gas composition.
ISO 12765/TR: 1998 Measurement of fluid flow in closed conduits -Methods using
transit-time ultrasonic flowmeters.
ISO 10715: 1997 Natural gas - Sampling guidelines
AGA 9: 1998 Measurement of Gas by Multipath Ultrasonic Meters.
AGA 8: 1985 Compressibility Factors for natural gas and other related hydrocarbon
gas.
ISO 12213: 1997 Natural gas - calculation of compression factor.
ISO 6974-1984(E): Natural Gas - Determination of hydrocarbon, inert gases and
hydrocarbons up to C
8
- Gas chromatographic method.

-END OF SECTION 15-

SECTION 16
GUIDELINES FOR DECOMMISSIONING OF
UPSTREAM INSTALLATION
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SECTION 16
GUIDELINES FOR DECOMMISSIONING OF UPSTREAM
INSTALLATION
Executive Summary
This section provides guidelines and minimum requirement for decommissioning of upstream
installation.

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16.1 INTRODUCTION

Since 1976, PETRONAS, the national oil corporation, had entered into several Production
Sharing Contracts (PSC) with various oil companies for the exploration and exploitation of
petroleum resources in Malaysia.

PETRONAS as custodian and statutory manager of the national petroleum resources in
Malaysia, is obligated to address the process of decommissioning of all disused upstream
structures and 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.

PS Contractors conducting platform decommissioning pursuant to their PSC shall comply
with these guidelines. These guidelines may be expanded or amended from time to time
upon written notice by PETRONAS. All additions or amendments are to be in consultation
with the PS Contractors.

When amendments are made to the guidelines, PETRONAS shall consider the
incremental expenditures that may be required to comply with such amendments. PS
Contractors will be granted sufficient time from the effective date to make necessary
revisions to the Work Programme and Budget and to conduct the decommissioning
operations in accordance with the amended guidelines.

PS Contractors may request for exceptions to these guidelines in their decommissioning
plans. Such exceptions may be granted at the sole discretion of PETRONAS taking into
account safety of navigation, environment, efficiency and prudent practice.

16.1.1 Definitions

a) Onshore (Land and Territorial Sea)
Land and inclusive of areas falling within 12 nautical miles from low later line
of the official coastal line (Please refer to Appendix 16.5).

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b) Shallow Water
Offshore areas falling beyond 12 nautical miles from low water line of the
official coastal line and no greater than 200 meters in depths. (Please refer
to Appendix 16.6).
c) Deepwater
Offshore areas, which are more than 200 meters in depth (Please refer to
Appendix 16.7).
Please refer to Appendix 16.1 for the schematic definition of the above areas.
16.2 OBJECTIVE OF THE GUIDELINES
The purpose of these guidelines is to provide guidance for all PS Contractors to ensure
that all activities pertaining to the decommissioning of any disused upstream structures
and installations shall be consistent with the terms of the PSC, national / local laws and
international conventions. The scope of these guidelines covers the abandonment of wells,
and decommissioning of pipelines, and facilities.

16.3 DECOMMISSIONING PHILOSOPHY AND REQUIREMENT

16.3.1 PETRONAS Decommissioning Philosophy

PETRONAS' decommissioning philosophy to be applied in Malaysia, based on the
areas as defined in Section 16.1.1 above, is noted as follows: -
1. PETRONAS, as the statutory manager for petroleum resources, shall adhere to
the standards and obligations committed to by the Government of Malaysia and
will adopt measures which shall be no less effective than the established
international rules and standards, and consistent with the national/local laws.
2. Disused upstream structures and installations need to be decommissioned.
Decommissioning is a process to put disused structures and installations out of
service. The extent of such removal shall be decided on a case-by-case
decommissioning assessment, taking into account all factors particularly the

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legitimate interests of other PS Contractors, users of the sea, the safety of
navigation and the preservation of the marine environment.
3. It is envisaged that each case-by-case decommissioning assessment shall
entail consultations involving all interested parties.
16.3.2 General Decommissioning Requirement
All disused upstream structures and installations located in Malaysia are required to
be fully decommissioned, except where non-removal or partial removal is consistent
with the standards and requirements imposed by these guidelines. In general,
decommissioning of structures and installations shall be evaluated on case-by-case
basis.
In line with PS Contractors obligation as stipulated in the PETRONAS FDP
Guidelines Milestone Review 4, PS Contractors shall provide the decommissioning
plan, which includes but not limited to schedule, method (options) and cost
estimates based on end of PSC life or fields economic life.
The decommissioning work is driven by the following factor: -
a) Safe operations of the facilities towards integrity and Health, Safety and
Environment.
b) End of field economic life.
c) Legislative requirements.
The general approval process of structures and installations decommissioning is
shown in Appendix 16.2.
16.3.2.1 Safe Operations of the Facilities towards Integrity, Health, Safety and
Environment (HSE)
The facilities integrity which covers pipelines, topsides, structures, wells and
marine facilities shall be regularly assessed in line with Section 11 (Guidelines
for Inspection and Maintenance ). In the event that the integrity assessment
falls below the integrity safe limit, pose serious risk to HSE, and beyond repair,
PS Contractors may consider the facilities to be decommissioned.

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16.3.2.2 Field Review
The field review can be conducted through Full Field Review (FFR), Depletion
Studies, Subsurface Review, etc. The field review shall be completed three (3)
to five (5) years prior to the projected date by which time the fields production
level is expected to decline or drop below PS Contractors forecasted economic
region (case-by-case basis).The decision to decommission the field would be
based on the field review and on the case where the field can no longer be
produced and/or redeveloped commercially using existing and new technology,
including Enhanced Oil Recovery (EOR), using the current facilities. The field
review shall include but not be limited to the following:
1. Re-interpretation of the current seismic data.
2. Study on redevelopment opportunities using the Improved Oil Recovery
(IOR) techniques.
3. Screening study for EOR opportunities and techniques.
The outcome of the field review shall be submitted to PETRONAS. Therefrom,
the decision to decommission any field will be subjected to PETRONAS
approval.

16.3.2.3 Legislative Requirement

Please refer to Section 16.4 Legal Frame Work.

16.4 LEGAL FRAMEWORK
16.4.1 General
The following legislation and standards (as amended) shall be referred to in the
implementation of the various decommissioning options for disused upstream
structures and installations within Malaysia. At present, the Government of Malaysia
has not promulgated any specific decommissioning regulations for the oil and gas
industry. There are, however, enabling provisions in several Acts which allow the

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Government of Malaysia to promulgate any decommissioning regulations as it
deems fit.
These are:
1) Merchant Shipping Ordinance, 1952 - Section 485A. Power to make
regulations relating to offshore industry structures, etc.
(1) Notwithstanding anything contained in this Act, the Minister may make
regulations for the purpose of ensuring the safety of and control over off-
shore industry structures, off-shore industry mobile units and off-shore
industry vessels.
(2) Without prejudice to the generality of the powers under subsection (1),
such regulations may make provisions for or in relation to any of the
following matters.
2) Continental Shelf Act, 1966 (Revised 1972) - Section 16.6. Regulations.
(1) The Yang di Pertuan Agong may make regulations for:
(i) Providing for the removal of installations or devices constructed,
erected, or placed in, on, or above the continental shelf which have
been abandoned or become disused.
3) Exclusive Economic Zone Act, 1984
- Section 21. Prohibition of construction, operation or use of artificial island,
etc., except with authorization.
(i) 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 authorization of the Government and
subject to such conditions as it may impose.
- Section 22. Consent of Government necessary for delineation of course for
laying of submarine cables and pipelines.

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(ii) 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.
(iii) Without prejudice to subsection (1), 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 owner of 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 thereof and shall,
if so directed by the Government, remove such cable or pipeline within
such period of time as the Government may direct.
- Section 41. Power to make regulations.
(i) The Yang di-Pertuan Agong may make regulations for carrying out the
provisions of this Act.
(ii) Without prejudice to the generality of subsection (1), such regulations
may provide for any of the following matters.
16.4.2 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:
1. Exclusive Economic Zone Act 1984
a. Section 2. Interpretation.
b. Section 10. Offence in respect of the discharge or escape of certain
substances.

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2. Environmental Quality Act, 1974
a. Section 27. Prohibition of discharge of oil into Malaysian waters.
b. Section 29. Prohibition of discharge of wastes into Malaysian waters.
3. Environmental Quality (Prescribed Activities) (Environmental Impact
Assessment) Order 1987 - Item 12. Petroleum.
4. "Environmental Impact Assessment Guidelines for Petroleum Industries: an
administrative guideline issued in 1997 by Department of Environment, Ministry
of Science, Technology & Environment, Malaysia.
16.4.3 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:
1. United Nations Convention on the Law of the Sea (UNCLOS), 1982 Article
60(3).
2. International Maritime Organisation (IMO) Guidelines & Standards, 1989.
3. International Convention for the Prevention of Pollution from Ships, 1973 and
the modifying Protocol, 1978 (MARPOL 73/78)

16.5 ONSHORE (LAND AND TERRITORIAL SEA)

Decommissioning of onshore facilities shall be conducted in consultation with and approval
from the Local Authorities, as the case may be, before proceeding with the following
activities.

16.5.1 Pre-Decommissioning Process
A Decommissioning Options Assessment (for example, Best Practicable
Environmental Option (BPEOA)) shall be conducted to evaluate potential
decommissioning options, taking into consideration the strategies, environmental,

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safety and cost elements. In addition to that, the options recommended should 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. PS
Contractors shall submit their Decommissioning Options Assessment to
PETRONAS for review and approval. The Decommissioning Options Assessment
proposal shall include but not limited to:
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.
16.5.1.1 Establishment of Decommissioning Options for Onshore Facilities
The main options that PS Contractors shall forward for PETRONAS
considerations, for decommissioning onshore facilities shall include but not
limited to:
16.5.1.1.1 Land Installations
16.5.1.1.1.1 Structure
Mothball/Relocate/Reuse
Mothballing is an option when the structure can be maintained with
minimum maintenance but sufficient to ensure integrity, for future
reuse at the site or at an alternative site after total removal.
For PETRONAS consideration of this option, PS Contractors
would need to:
identify immediate or future developments in the area that
would use a similar type of facilities;
investigate whether the existing facilities are suitable for
continued use;

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estimate the duration and maintenance cost of the
mothball period; and
prepare the system for minimum maintenance and initiate
mothballing; upon PETRONAS approval to proceed.
PETRONAS must be consulted for any reclassified use.
16.5.1.1.1.2 Total Removal and Reinstatement of Land
In this option the entire structure is removed. The land
reinstatement shall be subjected to Local Authorities requirement.
16.5.1.1.1.3 Pipeline
Pipeline can be decommissioned either by leaving it in-situ or by
total removal.
16.5.1.1.1.4 Well
Well abandonment shall be conducted as per PETRONAS
Procedure for Drilling Operations (refer to Section 5). The wellhead
shall be totally removed and the land to be reinstated.
16.5.1.1.2 Territorial Sea
16.5.1.1.2.1 Sub-Structures
16.5.1.1.2.1.1 Relocate / Reuse
would need to:
identify immediate or future developments in the area
that would use a similar type of platform or any new
field development that may tie-back and use the
facilities on the platform;

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investigate whether the existing platform is suitable for
continued use; and
prepare the system for minimum maintenance; upon
PETRONAS approval to proceed.
Relocation of a reusable platform requires the topsides to be
decommissioned and removed if necessary and the jacket
structure cut at piles and relocated.
16.5.1.1.2.1.2 Artificial Reef
With the partial or total removal options, the platform could be
relocated and disposed off at a suitable site to create artificial
reefs. There are various factors to be considered such as
fisheries potential enhancement, usefulness of the platform,
environmental impacts and effect to other users of the sea. If
the platform location is an ideal condition for a reef site, the
topple-in-place option can be the best removal option if the
water depth at the site is sufficient to provide navigational
clearance.
For platform removal option, PS Contractors in consultation
with PETRONAS shall liaise with Approving Authority in
identifying a new reef site or to add to an existing reef location.
16.5.1.1.2.1.3 Total Removal
In this option the entire structure above the seabed is
removed. The structure may be disposed off by taking it
onshore for recycling or emplacing it as a marine habitat (or
artificial reef).

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16.5.1.1.2.2 Topsides
The topsides could be disposed off by taking it onshore for
recycling or reuse or emplacing it as a marine habitat (or artificial
reef).
16.5.1.1.2.2.1 Mothball / Relocate / Reuse
Mothballing is an option when the structure can be maintained
with minimum maintenance but sufficient to ensure integrity,
for future reuse at the site or at an alternative site after total
removal.
would need to:
that would use a similar type of platform;
continued use;
estimate the duration and maintenance cost of the
mothball period; and
prepare the system for minimum maintenance and
initiate mothballing; upon PETRONAS approval to
proceed.
Relocation of a reusable platform requires the topsides to be
decommissioned and removed if necessary and the jacket
structure cut at piles and relocated.
16.5.1.1.2.3 Pipeline
Pipeline can be decommissioned either by leaving it in-situ or by
total removal.

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PS Contractors in consultation with PETRONAS shall liaise with
Approving Authority whether to leave the pipeline in-situ or totally
removed.
16.5.1.1.2.4 Well Abandonment
shall be totally removed.
16.5.1.1.2.5 Marine Facilities
The decommissioning and removal of marine facilities shall be
decided by PETRONAS inline with the findings of
Decommissioning Options Assessment.
16.5.1.1.2.5.1 Relocate / Reuse
would need to:
that would use a similar type of facilities;
investigate whether the existing facilities are suitable
for continued use; and
16.5.1.2 Decommissioning Plan
A decommissioning plan may deal with the decommissioning of all of the
facilities located on a field or part of the facilities including a single installation
or pipeline. The precise content of a decommissioning plan may vary according
to the circumstances. Please refer to Appendix16.3 as a minimum requirement
to be included in the decommissioning plan. The decommissioning plan shall

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be submitted by the PS Contractors for PETRONAS approval at least 12
months prior to decommissioning activities.
16.5.1.2.1 Health, Safety and Environment (HSE) Requirement Health
HSE considerations for each decommissioning option will vary
consistent with Decommissioning Options Assessment taking into
account human life, environment, asset and reputation. While the
approved decommissioning option should not pose any adverse impact
to the environment, it should 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 subsequent submission to the Department
Of Environment for approval six (6) months prior to the
decommissioning of any platform. In the case where Environmental
Impact Assessment (EIA) is applicable, the EMP needs to be
consistent with the EIA requirements.
The EMP shall cover but not limited to: -
Pre-decommissioning activities covering baseline studies, chemical
and waste inventory, pollution control, etc.
Decommissioning activities covering environmental aspects and
significant impacts of platform decommissioning and the mitigation
measures to be taken during platform removal, transport and
disposal to minimise health, safety and environmental impact.
Post-decommissioning activities covering the monitoring of the
impact/effects on marine environment and ecosystem, navigation
and other users of the sea, etc.
The risk assessment shall be conducted to cover safety, health
and social aspect of the proposed decommissioning proposal for

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submission to PETRONAS. The risk assessment shall include but
not limited to: -
Identification of hazard potential issues and consequential impacts
of the option selected.
Measures to reduce risk to As Low As Reasonably Practicable
(ALARP).

16.5.1.2.2 Consultation and Liaison

An integral part of the decommissioning plan is to demonstrate the
industrys high level of environmental awareness and proactiveness. In
the event that a public consultation process becomes necessary in
certain cases, the PS Contractors may be required to assist
PETRONAS to initiate and manage the dialogue process to obtain the
community and stakeholders views and concerns.
PS Contractors together with PETRONAS shall liaise with various
Government departments as and when required. The various
departments are but not limited to:
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 Co-ordination Centre
Co-ordination in 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.

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Inland Revenue
Taxation.
Royal Customs
Excise duty.
Attorney General's Office
Legal aspects on the maritime affairs.
Local Authorities
Disposal and potential usage of platforms on land.
Department of Safety and Occupational Health
Ministry of Domestic, Trade and Consumer Affairs
Royal Malaysian Police
16.5.1.3 Incorporation in Work Programme and Budget (WP&B)

As soon as PETRONAS approves the decommissioning plan, the PS
Contractors shall provide budget provisions for platform decommissioning in the
immediate forthcoming WP&B. Details of information required shall be
consistent with pre-budget guidelines. The decommissioning activities shall
commence after PETRONAS approves the decommissioning WP&B.

16.5.2 Decommissioning Execution

16.5.2.1 Project Execution Plan

Each decommissioning activity requires Project Execution Plan (PEP) that
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, PS Contractors shall seek PETRONAS approval for execution. Refer to
Appendix 16.4 for table of content.

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16.5.2.2 Land Installation Decommissioning
16.5.2.2.1 Structure
The integrity of the structure needs to be revalidated by certified parties
prior to decommissioning work based on latest reassessment report.
16.5.2.2.1.1 Mothball / Relocate / Reuse
In general, the applicable means are total removal of structure
above ground. The structure requirement for removal shall follow
the Local Authority requirements.
16.5.2.2.2 Pipeline
Pipelines decommissioning and disposal shall be decided by
PETRONAS on a case-by-case basis. Pipelines decommissioning work
involves flushing and cleaning to meet regulatory requirements.
Pipelines which are to be left in-situ shall be flushed, filled with
seawater, cut and plugged, with the ends buried below ground.
16.5.2.2.3 Well Abandonment
Well abandonment shall be conducted as per PETRONAS Procedure
for Drilling Operations (refer to Section 5).
16.5.2.3 Territorial Sea
16.5.2.3.1 Sub-Structure
The integrity of the sub-structure needs to be revalidated by certified
parties prior to decommissioning work based on latest reassessment
report incorporating any underwater findings. 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 IMO
(Resolution A.672 (16)), set out the minimum global standards to be
applied for the removal of offshore installations and structures.

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16.5.2.3.1.1 Total Removal
In general, the applicable means are total removal by lifting/floating
of substructure after piles have been cut. The depth of cutting shall
be a minimum of one (1) meter below the mudline subject to
cutting method and seabed conditions such as siltation rate,
erosion rate, type of soil, etc. The substructures requirement for
removal shall follow the IMO requirement.
16.5.2.3.1.2 Relocate/Reuse
would need to:
would use a similar type of platform;
continued use; and
PETRONAS must be consulted for any reclassified use. Relocation
of a reusable platform requires the topsides to be decommissioned
and removed if necessary and the jacket structure cut at piles and
relocated.
16.5.2.3.1.3 Artificial Reef
With the total removal options, the substructure could be relocated
and disposed off at a suitable site to create artificial reefs. There
are various factors to be considered such as fisheries potential
enhancement, usefulness of the platform, environmental impacts
and effect to other users of the sea. If the platform location is an
ideal condition for a reef site, the topple-in-place option can be the
best removal option if the water depth at the site is sufficient to
provide navigational clearance.

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For structure removal option, PS Contractors in consultation with
PETRONAS shall liaise with Approving Authority in identifying a
new reef site or to add to an existing reef location.
16.5.2.3.2 Topside
PS Contractors to comply with Section 11.4.11 of PPGUA:
Preservation of Facilities, Structures and Pipelines upon cessation of
production. addition, PS Contractors shall obtain PETRONAS prior
approval for removal of any components from the said facilities until
decommissioning is completed.
Decommissioning activities shall only be carried out after the platform
is totally shutdown, cleared of all hazardous materials and certified safe
for decommissioning to proceed.
The minimum scope of requirements should cover the four (4) principal
categories of all production and utilities systems on a topside namely: -
1. Hydrocarbon systems
All separators, process vessels and piping shall be purged and
flushed. Residual hydrocarbons shall be collected and dispose at
certified onshore disposal site / agency. Radioactive materials shall
be handled according to AELB guideline.
2. Non-hazardous systems
Cooling water, firewater, utility air and instruments need to be
depressurised, flushed, drained and isolated.
3. Toxic and hazardous chemical systems
Toxic and hazardous materials should be removed. The system
shall be purged, flushed and detoxified. Any discharge of the
cleaning effluent must satisfy any applicable regulation.

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4. Electrical power systems
Decommissioning of electrical systems is a planned sequenced
shutdown of all motor control centers, switchgear and generators
with proper safety procedures.
Upon completion of all decommissioning works, the topside is to be
rendered safe for hotwork via permit to work system. Issuance of
safe certificate for hotwork shall be enforced.
Integrity of structures has to be verified prior to any cutting, removal,
lifting / floatation and transportation of any package or modules.
Centers of gravity of the topsides loads have to be established.
16.5.2.3.3 Pipeline
Pipelines decommissioning and disposal shall be decided by
PETRONAS on a case-by-case basis. Pipelines decommissioning work
involves flushing and cleaning to meet regulatory requirements.
Pipelines to be left in-situ shall be flushed, filled with seawater, cut and
plugged, with the ends buried below mudline.
The risers, tube turns and minimum twelve (12) meters of the pipeline
section from the base of the substructure shall be totally removed. The
removal can be conducted together with substructure removal where
applicable.
Where appropriate, special measures and consideration need to be
taken for hot tap or other special pipeline-to-pipeline connections to
reduce risk and exposure of the remaining section of pipeline. For total
pipeline removal execution, Local Authority shall be consulted on the
method and disposal options.
Well abandonment shall be conducted as per PETRONAS Procedure
for Drilling Operations (refer to Section 7). The wellhead shall be totally
removed with cutting depth of wellhead system at a minimum of two (2)

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meters below the mudline subject to cutting method and seabed
conditions such as siltation rate, erosion rate, type of soil, etc. The
substructures requirement for removal shall follow the IMO
requirement.
16.5.2.3.5 Marine Facilities
The decommissioning and removal of marine facilities shall be decided
by PETRONAS inline with the findings of Decommissioning Options
Assessment.
16.5.3 Post Decommissioning Process
16.5.3.1 Removal of Debris and Seabed Clearance
On completion of all decommissioning activities, the land / seabed in the
facilities vicinity shall be cleared of all debris that shall be properly disposed
according to legislative requirements. Any exceptions to the requirement shall
be subjected to governments approval. For partial removal or in-situ toppling
methods, the remaining structures shall be surveyed and their positions
recorded. This information would then be submitted to the relevant authorities.
The PS Contractors shall check the specified area and remove any debris
located within its footprint and vicinity of the facilities (gazetted area). Any
exceptions to the requirement shall be subjected to PETRONAS approval. The
PS Contractors shall verify the site is clear after decommissioning by
appropriate methods such as underwater diver survey, trawling in two
directions across the location or any other methods subject to approval from
PETRONAS.
PS Contractors shall degazette the facilities and update Admiralty Charts /
Malaysian Charts etc. with respective government agency.
16.5.3.2 Verification
The PS Contractors shall verify that the area was cleared of all obstructions
and debris. The PS Contractors shall run side-scan sonar or bottom-scan sonar
or any other methods subject to approval from PETRONAS, across the location

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to ensure no debris clutters the specified area. Where practical, the PS
Contractors shall also visually record the cleared site area for evidence.
The PS Contractors shall conduct the survey immediately after the completion
of decommissioning work. The PS Contractors shall submit in writing the detail
survey report and certification to PETRONAS. This shall include a minimum,
the detail of the followings:-
1) Extent of the area surveyed, (as per gazetted area or specified
otherwise by PETRONAS)
2) Survey method used
3) Original Survey Report by the Surveyor
4) Original 3rd Party Certification PETRONAS and PS Contractors shall
mutually agree on the selection of 3rd Party Certifier and Surveyor.
16.5.3.3 Post Environmental Assessment
The PS Contractors shall conduct the Post Environmental Assessment within
three (3) months from the date of completion of decommissioning work, to
ensure that there are no adverse impacts 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 shall then
be submitted / presented to PETRONAS and the relevant authorities. Upon
acceptance of Post Environmental Assessment, PS Contractors shall close out
any action items if required.
16.5.3.4 Disposal
PS Contractors shall comply with the approved PEP. PS Contractors shall
manage disposal until the completion and submit the close out report.

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16.5.3.5 Post Decommissioning Reports
Upon completion of Post Decommissioning works, the PS Contractors as a
minimum shall submit the following reports to PETRONAS within one (1)
month.
1. Survey Verification Report
2. Disposal Report
3. Post Environmental Assessment Report.
4. As Built Drawings / Documents
16.5.4 Report
PS Contractors shall submit to PETRONAS two (2) reports (both in hard and soft
copy) namely: -
i. Completion report for each stage of decommissioning (well P&A,
pipeline, topside and sub-structures) within one month after completion
of each stage; and
ii. Final Closeout Report (no later than six (6) months after completion of
decommissioning works). The report shall cover the pre-
decommissioning, decommissioning and post decommissioning
activities. Refer to Appendix 16.8 for the Table Of Content.
16.5.5 Degazettement
PS Contractors shall submit an application to degazette the decommissioned
facilities and its relevant area within one (1) month after the submission of the
Closeout Report.
16.5.6 Residual Liability
Pending the issuance of a National Policy on Restoration of Oil & Gas Fields, any
residual liability of all disused upstream structures and installations shall be finally
decided by PETRONAS, in consultation with the relevant Government authorities.

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16.6 SHALLOW WATER
A Decommissioning Options Assessment (for example, 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 should 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. PS
Contractors shall submit their Decommissioning Options Assessment to
PETRONAS for review and approval.
The Decommissioning Options Assessment proposal shall include but not limited
to: -
Removal options.
A relative ranking of strengths and weaknesses of each option.
The estimated cost for each option including the schedule for the
recommended option.

16.6.1.1 Establishment of Decommissioning Options
16.6.1.1.1 Sub-structures
The sub-structure covers monopods, piles, jackets, conductor, riser,
etc.
16.6.1.1.1.1 Relocate / Reuse
would need to:
identify immediate or future developments in the area that would
use a similar type of platform or any new field development that
may tie-back and use the facilities on the platform;

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continued use; and
relocated.
reefs. There are various factors to be considered such as fisheries
potential enhancement, usefulness of the platform, environmental
impacts and effect to other users of the sea. If the platform location
is an ideal condition for a reef site, the topple-in-place option can
be the best removal option if the water depth at the site is sufficient
to provide navigational clearance.
For platform removal option, PS Contractors in consultation with
PETRONAS shall liaise with Approving Authority in identifying a
new reef site or to add to an existing reef location.
In this option the entire structure above the seabed is removed.
The structure may be disposed off by taking it onshore for recycling
or emplacing it as a marine habitat (or artificial reef).
16.6.1.1.1.4 Partial Removal
Partial removal would leave the lower part of the structure in its pile
condition. The top part of the jacket may be placed besides this
structure, taken onshore for recycling or emplace it as a marine
habitat (or artificial reef).

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16.6.1.1.2 Topsides
Mothballing is an option when the topside can be maintained with
would need to:-
would use a similar type of processes;
investigate whether the existing topside is suitable for
continued use;
estimate the duration and maintenance cost of mothball period;
mothballing; and
investigate whether the existing topside is suitable for other
non oil & gas purposes such as training centre, etc.
PETRONAS shall be consulted for any reclassified use.
16.6.1.1.3 Pipeline
Pipeline can be decommissioned either by leaving it in-situ or by total
removal. PS Contractors in consultation with PETRONAS shall liaise
with Approving Authority whether to leave the pipeline in-situ or totally
removed.

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16.6.1.1.4.1 Dry Wellhead
16.6.1.1.4.2 Subsea Wellhead
Procedure for Drilling Operations (refer to Section 5). Subsea well
head and its associated accessories can be decommissioned
either by leaving it in-site or by total removal.
16.6.1.1.5 Mobile and Floating Facilities
Mobile and Floating Facilities and their ancillaries (buoys, chains,
anchors, and turret/riser) can either be reused at a different location or
totally disposed.
to the circumstances. Please refer to Appendix 16.3 as a minimum requirement
to be included in the decommissioning. The decommissioning plan shall be
submitted by the PS Contractors for PETRONAS approval at least twelve (12)

16.6.1.3 Health, Safety and Environment (HSE) Requirement
HSE considerations for each decommissioning option will vary consistent with
Decommissioning Options Assessment taking into account human life,
environment, asset and reputation. While the approved decommissioning
option should not pose any adverse impact to the environment, it should

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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 subsequent
submission to the Department Of Environment for approval six (6) months prior
to the decommissioning of any platform. In the case where Environmental
Impact Assessment is applicable, the EMP needs to be consistent with the EIA
requirements.
Pre-decommissioning activities covering baseline studies, chemicaland
waste inventory, pollution control, etc.
measures to be taken during platform removal, transport and disposal
to minimise health, safety and environmental impact.
impact/effects on marine environment and ecosystem, navigation and
other users of the sea, etc.
The risk assessment shall be conducted to cover safety, health and social
aspect of the proposed decommissioning proposal for submission to
PETRONAS. The risk assessment shall include but not limited to: -
Identification of hazard potential issues and consequential impacts of
the option selected.
(ALARP).

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16.6.1.4 Consultation and Liaison
An integral part of the decommissioning plan is to demonstrate the industrys
high level of environmental awareness and proactiveness. In the event that a
public consultation process becomes necessary in certain cases, the PS
Contractor may be required to assist PETRONAS to initiate and manage the
dialogue process to obtain the community and stakeholders views and
concerns.
PS Contractors together with PETRONAS shall liaise with various Government
departments as and when required. The various departments are but not
limited to:
Safety of navigation, search and rescue and other maritime services.
Co-ordination in the enforcement of maritime activities in Malaysian
waters.
Fishing industry, marine parks and reserves, including coral reefs and
artificial reefs, enforcement on fishing activities.
Inland Revenue
Taxation.
Royal Customs
Excise duty
Local Authorities

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16.6.2 Decommissioning Process


execution. In the event of any deviation from the approved Decommissioning
Plan, PS Contractors shall seek PETRONAS approval for execution. Refer to
Appendix 16.4 for table of content.

16.6.2.2 Sub-structures Decommissioning
The integrity of the sub-structure needs to be revalidated by certified parties
prior to decommissioning work based on latest reassessment report
incorporating any underwater findings. 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 IMO (Resolution A.672 (16)), set out the minimum global standards
to be applied for the removal of offshore installations and structures.

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16.6.2.2.1 Partial Removal
The upper portion of the sub-structure shall be removed to an agreed
cut level. The remaining sub-structure may be retained or removed
completely. Partially removed structure must allow for a minimum of 55
meters of water clearance.
16.6.2.2.2 Total Removal
In general, the applicable means are total removal by lifting/floating of
substructure after piles have been cut. The depth of cutting shall be a
minimum of one (1) meter below the mudline subject to cutting method
and seabed conditions such as siltation rate, erosion rate, type of soil,
etc. The substructures requirement for removal shall follow the IMO
requirement.
16.6.2.2.3 Topple
The substructure is toppled to the seabed at its piled location and must
lie below the recommended level imposed by the regulations which is a
minimum of 55 meters water clearance from the highest structure
elevation.
16.6.2.3 Topside
PS Contractors to comply with Section 11.4.11: Preservation of Facilities,
Structures and Pipelines upon cessation of production. In addition, PS
Contractors shall obtain PETRONAS prior approval for removal of any
components from the said facilities until decommissioning is completed.
Decommissioning activities shall only be carried out after the platform is totally
shutdown, cleared of all hazardous materials and certified safe for
decommissioning to proceed.

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All separators, process vessels and piping shall be purged and flushed.
Residual hydrocarbons shall be collected and dispose at certified onshore
disposal site / agency. Radioactive materials shall be handled according
to AELB guideline.
Toxic and hazardous materials should be removed. The system shall be
purged, flushed and detoxified. Any discharge of the cleaning effluent
must satisfy any applicable regulation.
Decommissioning of electrical systems is a planned sequenced shutdown
of all motor control centers, switchgear and generators with proper safety
procedures. Upon completion of all decommissioning works, the topside is
to be rendered safe for hotwork via permit to work system. Issuance of
safe certificate for hotwork shall be enforced. Integrity of structures has to
be verified prior to any cutting, removal, lifting / floatation and
transportation of any package or modules. Centers of gravity of the
topsides loads have to be established.
16.6.2.4 Pipeline
Pipelines decommissioning and disposal shall be decided by PETRONAS on a
case-by-case basis. Pipelines decommissioning work involves flushing and
cleaning to meet regulatory requirements. Pipelines to be left in-situ shall be
flushed, filled with seawater, cut and plugged, with the ends buried minimum
one (1) meter below mudline.

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The risers, tube turns and minimum twelve (12) meters of the pipeline section
from the base of the substructure shall be totally removed. The removal can be
conducted together with substructure removal where applicable. Where
appropriate, special measures and consideration need to be taken for hot tap
or other special pipeline-to-pipeline connections to reduce risk and exposure of
the remaining section of pipeline.
16.6.2.5 Well Abandonment
Well abandonment shall be conducted as per PETRONAS Procedure for
Drilling Operations (refer to Section 5). The wellhead shall be totally removed
with cutting depth of wellhead system of between zero (0) and two (2) meters
below the mudline subject to cutting method and seabed conditions such as
siltation rate, erosion rate, type of soil, etc. The substructures requirement for
16.6.2.6 Marine Facilities
The decommissioning and removal of marine facilities shall be decided by
PETRONAS inline with the findings of Decommissioning Options Assessment.
exceptions to the requirement shall be subjected to PETRONAS approval. The
PS Contractors shall verify the site is clear after decommissioning by

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PETRONAS.
Contractors shall also visually record the cleared site area for evidence. The PS
Contractors shall conduct the survey immediately after the completion of
decommissioning work.
The PS Contractors shall submit in writing the detail survey report and
certification to PETRONAS. This shall include a minimum, the detail of the
followings:-
1. Extent of the area surveyed, (as per gazetted area or specified
otherwise by PETRONAS)
2. Survey method used
3. Original Survey Report by the Surveyor
4. Original 3rd Party Certification
PETRONAS and PS Contractors shall mutually agree on the selection of 3rd
Party Certifier and Surveyor.
The PS Contractors shall conduct the Post Environmental Assessment within
ensure that there are no adverse impact on the surrounding marine and land
environment. This Assessment shall be consistent with the Post

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be submitted/presented to PETRONAS and the relevant authorities. Upon
acceptance of Post Environmental Assessment, PS Contractors shall close out
any action items if required.
16.6.3.4 Disposal
manage disposal until the completion and submit the close out report to
PETRONAS.
month:-
i. Survey Verification Report.
ii. Disposal Report.
iii. Post Environmental Assessment Report.
iv. As Built Drawings / Documents.
16.6.4 Report
copy) namely:-
i. Completion report for each stage of decommissioning (well P&A, pipeline,
topside and sub-structures) within one month after completion of each stage;
and
decommissioning works). The report shall cover the pre-decommissioning,
decommissioning and post decommissioning activities. Refer to Appendix 16.8
for the Table Of Content.

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Closeout Report.

16.7 DEEPWATER
A Decommissioning Options Assessment (for example, 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 should 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. PS Contractors shall submit their Decommissioning Options
Assessment to PETRONAS for review and approval. The Decommissioning
Options Assessment proposal shall include but not limited to: -
Removal options.
A relative ranking of strengths and weaknesses of each option.
The estimated cost for each option including the schedule for the
recommended option.

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16.7.1.1 Establishment of Decommissioning Options
16.7.1.1.1 Sub-structures
The sub-structure covers tension leg platform (TLP), piles, jackets,
conductor, riser, gravity base structure (GBS), sub-sea production
system, etc.
16.7.1.1.1.1 Relocate / Reuse
would need to:
would use a similar type of platform or any new field
development that may tie-back and use the facilities on the
platform;
continued use; and
relocated.
reefs. Various factors to consider include benefits such as
fisheries potential enhancement, usefulness of the platform,
environmental impacts and effect to other users of the sea. If the
platform location is an ideal condition for a reef site, the topple-in-

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place option can be the best removal option if the water depth at
the site is sufficient to provide navigational clearance.
Approving Authority in identifying a new reef site or to add to an
existing reef location for platform removal.
In this option the entire structure above the seabed is removed.
The structure may be disposed off by taking it onshore for recycling
or emplacing it as a marine habitat (or artificial reef).
16.7.1.1.1.4 Partial Removal
Partial removal would leave the lower part of the structure in its pile
condition. The top part of the structure may be placed besides this
substructure, taken onshore for recycling or emplace it as a marine
habitat (or artificial reef).
16.7.1.1.2 Topsides
Mothballing is an option when the topside can be maintained with
would need to:-
would use a similar type of processes;
investigate whether the existing topside is suitable for
continued use;
estimate the duration and maintenance cost of mothball period;

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mothballing; and
investigate whether the existing topside is suitable for other
non oil & gas purposes such as training centre, etc.
PETRONAS shall be consulted for any reclassified use.
16.7.1.1.3 Pipeline
Pipeline can be decommissioned either by leaving it in-situ or by total
removal.
Approving Authority whether to leave the pipeline in-situ or totally
removed.
16.7.1.1.4.1 Dry Wellhead
16.7.1.1.4.2 Subsea Wellhead
Procedure for Drilling Operations (refer to Section 5). Subsea well
head and its associated accessories can be decommissioned
either by leaving it in-situ or by total removal.
16.7.1.1.5 Mobile and Floating Facilities
Mobile and Floating Facilities and their ancillaries (buoys, chains,
anchors, turret/riser) can either be reused at a different location or
totally disposed.

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to the circumstances. Please refer to Appendix 16.3 as a minimum requirement
to be included in the decommissioning. The decommissioning plan shall be
submitted by the PS Contractors for PETRONAS approval at least twelve (12)
16.7.1.3 Health, Safety and Environment (HSE) Requirement
HSE considerations for each decommissioning option will vary consistent with
Decommissioning Options Assessment taking into account human life,
environment, asset and reputation. While the approved decommissioning
option should not pose any adverse impact to the environment, it should
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 subsequent
submission to the Department Of Environment for approval six (6) months prior
to the decommissioning of any platform. In the case where Environmental
Impact Assessment (EIA) is applicable, the EMP needs to be consistent with
the EIA requirements.
Pre-decommissioning activities covering baseline studies, chemical
and waste inventory, pollution control, etc.
measures to be taken during platform removal, transport and disposal
to minimise health, safety and environmental impact.

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impact/effects on marine environment and ecosystem, navigation and
other users of the sea, etc.
The risk assessment shall be conducted to cover safety, health and
social aspect of the proposed decommissioning proposal for
submission to PETRONAS. The risk assessment shall include but not
limited to: -
Identification of hazard potential issues and consequential impacts of
the option selected.
(ALARP).

16.7.1.4 Consultation and Liaison
An integral part of the decommissioning plan is to demonstrate the industrys
high level of environmental awareness and proactiveness. In the event that a
public consultation process becomes necessary in certain cases, the PS
Contractors may be required to assist PETRONAS to initiate and manage the
dialogue process to obtain the community and stakeholders views and
concerns.
PS Contractors together with PETRONAS shall liaise with various Government
departments as and when required. The various departments are but not
limited to:
Safety of navigation, search and rescue and other maritime services.
Co-ordination in the enforcement of maritime activities in Malaysian
waters.

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Fishing industry, marine parks and reserves, including coral reefs and
artificial reefs, enforcement on fishing activities.
Inland Revenue
Taxation.
Royal Customs
Excise duty.
Local Authorities
16.7.2 Decommissioning Process
execution. Refer to Appendix 16.4 for table of content.

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16.7.2.2 Sub-structures Decommissioning
The integrity of the sub-structure needs to be revalidated by certified parties
prior to decommissioning work based on latest reassessment report
incorporating any underwater findings.
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 IMO (Resolution A.672 (16)),
set out the minimum global standards to be applied for the removal of offshore
installations and structures.
16.7.2.2.1 Partial Removal
The upper portion of the sub-structure shall be removed to an agreed
cut level. The remaining sub-structure may be retained or removed
completely. Partially removed structure must allow for a minimum of 55
meters of water clearance.
16.7.2.2.2 Total Removal
In general, the applicable means are total removal by lifting/floating of
substructure after piles have been cut. The depth of cutting shall a
minimum of one (1) meter below the mudline subject to cutting method
and seabed conditions such as siltation rate, erosion rate, type of soil,
etc.
The substructures requirement for removal shall follow the IMO
requirement.
16.7.2.2.3 Topple
The substructure is toppled to the seabed at its piled location and must
lie below the recommended level imposed by the regulations which is a
minimum of 55 meters water clearance from the highest structure
elevation.

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16.7.2.3 Topside
PS Contractors to comply with Section 11.4.11 of PPGUA: Preservation of
Facilities, Structures and Pipelines upon cessation of production. In addition,
PS Contractors shall obtain PETRONAS prior approval for removal of any
components from the said facilities until decommissioning is completed.
Decommissioning activities shall only be carried out after the platform is totally
shutdown, clear of all hazardous materials and certified safe for
decommissioning to proceed.
All separators, process vessels and piping shall be purged and flushed.
Residual hydrocarbons shall be collected and dispose at certified onshore
disposal site / agency. Radioactive materials shall be handled according to
AELB guideline.
Toxic and hazardous materials should be removed. The system shall be
purged, flushed and detoxified. Any discharge of the cleaning effluent must
satisfy any applicable regulation.
Decommissioning of electrical systems is a planned sequenced shutdown
of all motor control centers, switchgear and generators with proper safety
procedures.

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Upon completion of all decommissioning works, the topside is to be
rendered safe for hotwork via permit to work system. Issuance of safe
certificate for hotwork shall be enforced.
Integrity of structures has to be verified prior to any cutting, removal, lifting /
floatation and transportation of any package or modules. Centers of gravity
of the topsides loads have to be established.
16.7.2.4 Pipeline
Pipelines decommissioning and disposal shall be decided by PETRONAS on a
case-by-case basis. Pipelines decommissioning work involves flushing and
cleaning to meet regulatory requirements. Pipelines to be left in-situ shall be
flushed, filled with seawater, cut and plugged, with the ends buried minimum
one (1) meter below mudline.
The risers, tube turns and minimum twelve (12) meters of the pipeline section
from the base of the substructure shall be totally removed. The removal can be
conducted together with substructure removal where applicable.
Where appropriate, special measures and consideration need to be taken for
hot tap or other special pipeline-to-pipeline connections to reduce risk and
exposure of the remaining section of pipeline.
16.7.2.5 Well Abandonment
Well abandonment shall be conducted as per PETRONAS Procedure for
Drilling Operations (refer to Section 5). The wellhead shall be totally removed
with cutting depth of wellhead system of between zero (0) and two (2) meters
below the mudline subject to cutting method and seabed conditions such as
siltation rate, erosion rate, type of soil, etc. The substructures requirement for
16.7.2.6 Marine Facilities
The decommissioning and removal of marine facilities shall be decided by
PETRONAS inline with the findings of Decommissioning Options Assessment.

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exceptions to the requirement shall be subjected to PETRONAS approval.
The PS Contractors shall verify the site is clear after decommissioning by
PETRONAS.
Contractors shall also visually record the cleared site area for evidence. The PS
Contractors shall conduct the survey immediately after the completion of
decommissioning work.
The PS Contractors shall submit in writing the detail survey report and
certification to PETRONAS. This shall include a minimum, the detail of the
followings:-

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1. Extent of the area surveyed, (as per gazetted area or specified
otherwise by PETRONAS).
2. Survey method used
3. Original Survey Report by the Surveyor
4. Original 3rd Party Certification PETRONAS and PS Contractors shall
mutually agree on the selection of 3rd Party Certifier and Surveyor.
The PS Contractor shall conduct the Post Environmental Assessment within
ensure that there are no adverse impact on the surrounding marine and land
environment. This Assessment shall be consistent with the Post
be submitted / presented to PETRONAS and the relevant authorities.
Upon acceptance of Post Environmental Assessment, PS Contractor shall
close out any action items if required.
16.7.3.4 Disposal
manage disposal until the completion and submit the close out report to
PETRONAS.
month:-
1. Survey Verification Report
2. Disposal Report

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3. Post Environmental Assessment Report
4. As Built Drawings / Documents
16.7.4 Report
copy) namely:-
i. Completion report for each stage of decommissioning (well P&A, pipeline,
topside and sub-structures) within one (1) month after completion of each
stage; and
decommissioning works). The report shall cover the pre-decommissioning,
decommissioning and post decommissioning activities. Refer to Appendix 16.8
for The Table Of Content.
Closeout Report.

16.8 PS CONTRACTORS OBLIGATIONS DURING HAND-OVER

If the PS Contractors are to relinquish field(s) to PETRONAS, the PS Contractors shall
provide the following information to the extent such information is in the PS Contractors
possession in addition to any other information stipulated by the PSC, which is required for
decommissioning planning:
Estimated remaining field life at hand-over date
Operating costs for at least three (3) years preceding the hand-over date

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Statement on wells abandonment experience for the field
Recommended method for abandonment of remaining wells
Topside inventory and their remaining life where appropriate
Underwater survey/inspection data/information for the year of handover and all the
previous inspection years
All as-built drawings, operating manuals and design documentations
Engineering evaluation of inspection and repair history for the substructure
The status and composition of the drill cutting pile where applicable
Report on any settlement and soil properties up to 5 meters below seabed
(consistent with EIA requirements)
Structural integrity assessment supported by appropriate structural analyses
Recommendation for future use of the redundant installations
Estimated cost(s) for decommissioning based on recommended option(s)
Latest report on anomalies and shallow gas within the vicinity of the installation.


SECTION 17
GUIDELINES FOR DATA MANAGEMENT AND
SUBMISSION
Page 365

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ISSUED BY
REVISION 2
AUG 2008

SECTION 17
GUIDELINES FOR DATA MANAGEMENT AND SUBMISSION

Executive Summary
PETRONAS has the entire ownership of the national petroleum resources including all data
and information generated from upstream petroleum activities of the Production Sharing
Contractor (PSC). A copy of the data shall be submitted to PETRONAS to be preserved for
future use in the domestic E&P ventures.

This section provides guidelines for Production Sharing Contractor (PSC) in managing the
data internally and submitting the data to PETRONAS.

In this respect, the PS Contractor shall have in place a proper data management system,
documented policy and guidelines and adequate data management resources or
organization to ensure data are captured, safely stored, its quality are known and
standardized, integrity are protected, is easily accessible and timely submitted to
PETRONAS according to the specified requirements.

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17.1 PREAMBLE
In accordance with the terms and conditions of the Production Sharing Contract (PSC),
PETRONAS has the entire ownership of all original data and information generated from
upstream petroleum activities under the applicable PSC. A copy of the original data shall be
submitted to PETRONAS to be preserved for future use in the domestic E&P ventures.

This section provides guidelines for Production Sharing Contractor (PS Contractor) in
managing and submitting the data to PETRONAS.

In this respect, the PS Contractor shall have in place a proper data management system,
documented policy and guidelines and adequate data management resources or
organization to ensure data are captured, safely stored, its quality are known and
standardized, integrity are protected, is easily accessible and timely submitted to
PETRONAS according to the specified requirements.

17.2 COMMITMENT AND ACCOUNTABILITY

PS Contractor shall demonstrate strong commitment and accountability in its data
management efforts, and provide necessary resources to develop and maintain an efficient
data management function.

17.3 DATA SUBMISSION GUIDELINE
All final and approved data for archival purposes shall be submitted directly to Data
Management Section of Petroleum Management Unit (PMU) except for daily operational
report or data which requires the approval from the corresponding line department in PMU.
All data shall be submitted to the stipulated addresses in Appendix 17.

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SUBMISSION
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AUG 2008

17.4 DATA SUMISSION CHECKLIST
PS Contractor shall submit all data to PETRONAS including but not limited to the data types,
data format, media format and the timeline as stipulated in Appendix 17.

17.5 DATA FORMAT STANDARD FOR SUBMISSION
PS Contractor shall be responsible to Quality Check (QC) any data generated from their
activities and take necessary action to rectify any errors or discrepancies prior using, keeping
and submitting to PETRONAS.

For raw digital data, PS Contractor shall submit the data to PETRONAS in open industry format
for easy transfer to any systems.

PETRONAS reserves the right to reject any data submitted not following the standards as
stipulated in Appendix 17. PS Contractor shall rectify and resubmit the data in correct data
and media format.

Upon request, except for raw digital data, PS Contractor shall submit data in common
commercial application format, however companies proprietary data format is not allowed.

PETRONAS reserves the rights to specify, after consultation with the PS Contractors, the
medium, format and method by which original data, information, studies, reports and samples
are to be stored, prepared and submitted to PETRONAS.

-END OF SECTION 17-

SECTION 18
GUIDELINES FOR EMERGENCY
COMMUNICATION PROCEDURE
Page 368

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AUG 2000
ISSUED BY
REVISION 2
AUG 2008

SECTION 18
GUIDELINES FOR EMERGENCY COMMUNICATION PROCEDURE

Executive Summary
This section provides guidelines for PS Contractor to communicate swiftly and reports effectively to
PETRONAS in the event of an incident and emergency occurrence in its upstream operations.
This section also provides PETRONAS and COMCEN contact lists for PS Contractors immediate
notification.

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18.1 INTRODUCTION
This Emergency Communication Procedure has been developed to ensure that the PS
Contractor communicates swiftly and reports effectively to PETRONAS in the event of an
incident and emergency occurrence in its upstream operations. This document is
formulated and developed to meet PETRONAS requirements for PS Contractor operating
in Malaysia. This procedure complements the existing Health, Safety and Environment
Guideline: Section 1 of the Main PPGUA. It shall be revised from time to time as required
by PETRONAS to ensure that any changes in the emergency response communication
chain between the PS Contractor and PETRONAS are updated and correctly documented.

18.2 SCOPE
This Emergency Communication Procedure covers all emergency situations which
may be encountered by the PS Contractor during the E & P cycle. These procedures is
to enable PS Contractor to contact and notify PETRONAS key personnel via
Petroleum Management Unit (PMU) Regional Offices, PMU HSE Kuala Lumpur,
Petroleum Operations Management, PMU Kuala Lumpur and PETRONAS COMCEN,
in the event of emergencies, to keep them informed of the related incident. Those
contacted will be in turn responsible for ensuring that all the relevant personnel (within
PETRONAS) are informed immediately.

18.3 DEFINITION

For the purpose of this Procedure, the definition of an incident and emergency is as
follows:-

18.3.1 Incident

Any abnormal or unplanned event or series of events that has caused or has
the potential to cause adverse effects to PS Contractors normal operations
and procedures, facilities, or personnel, which requires attention, and has the
potential to precipitate to an emergency. Each incident should be mitigated by

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the PS Contractor as quickly as possible, monitored and evaluated to prevent
it from escalating to an emergency situation.

18.3.2 Emergency

An unexpected situation resulting in fire, explosions, oil and/or chemical spill, gas
escape, serious injury or fatality, structural damage, total evacuation, severe
electrical storm, aircraft or vehicle crash, vessel collision or sinking, deliberate act
of arson or sabotage, or a combination of any of the foregoing incidents all of
which requires PS Contractors in-house emergency organisation immediate
response to bring it under control. These emergency situations may develop into
major disasters that warrant mobilizing special resources from external parties
such as Government (for anti-hijacking) and agencies/organisations (for search
and rescue).

18.3.3 Disaster & Crisis

An incident or emergency which has the potential to significantly impact the
companys Image, operations or entails significant economic or legal liabilities.
A disaster is therefore a subset of incidents or emergencies which due to its
nature or severity has crossed a threshold requiring support and intervention
from PETRONAS corporate level. Characteristics associated with incidents
classified as disaster include:
Effects are not localized and may have off-site impact.
Impacts may be long term based upon the incident or emergency.
Normal operations or conduct of business may be interrupted.
Resources required to respond may extend beyond the capabilities of
the distressed site or business unit.
Generate moderate to extensive media and public interest.
Time frame for actions may be extremely limited.
Potential to escalate into crisis.

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18.3.4 Crisis
A decisive moment, a time of danger or great difficulty and within the context
of this manual, which is an actual or potential threat to PETRONAS medium to
long term ability to operate its business arising from loss of control of a
disaster due to its impact on operability, image and reputation, integrity as well
as viability. A corporate crisis by definition, for PETRONAS, is a disaster which
has reached a threshold of failure to control requiring a full or partial
mobilization of the PETRONAS Crisis Management Team (CMT).
Characteristics associated with crisis include:
Significant issue affecting corporate reputation, credibility and
integrity.
Significant potential impact on PSCs, business units or joint ventures
with long-term consequences.
Extensive media and public interest generated on the incident and on
the organization.
Require significant corporate resources including financial support,
manpower, management and technical expertise to respond
effectively.
Time management is an essence.
Limited and often conflicting information regarding the situation.

18.4 EMERGENCY RESPONSE PLAN
PS Contractor is required to establish, develop and maintain comprehensive
Emergency Response Plan (ERP), Manual and Procedure which best suits their
operations needs stating the emergency organizations, responsibility, communication
system and detailed procedures outlining the action to be taken by their employees in
the event of any possible emergency which may endanger life, property or the
environment. The ERP shall be in accordance to the statutory requirements and
outlines the management of the emergency response to the incident tailored to the

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operational requirements of the PSC. Depending on the levels of emergency / crisis
situations, PETRONAS shall be informed accordingly in the event of the emergency.
Generally, the ERP shall consist of the following elements:
a) Potential hazards associated in its operations and impact to the local
community
b) Emergency response structure with roles and responsibilities of Emergency
Response Team (ERT) and Emergency Management Team (EMT) based on the
organisational and management principles of Incident Command System (ICS).
c) Response strategy, tactics and emergency management structure.
d) Communication and notification protocols (internal and external)
e) Communication and coordination between PSC and the authorities.
f) Information and media response including procedures and policy for
managing media and image issues.
g) Human resource policy and procedures of handling issues relating to
personnel, contractors, clients and local community affected by the incident.
h) Resource matrix.
i) Linkages to COMCEN and PMU to assess additional support and resources.
j) Post incident procedures.

Upon the occurrence of an emergency, the PS Contractors' Emergency Response
Plan will be activated and messages will be immediately relayed to their respective
Emergency Command/Coordination Centers (ECC). The ECC of the PS Contractors
involved will then alert SM PMU Regional Offices, SM PMU HSE Kuala Lumpur, SGM
POM-PMU Kuala Lumpur and copied the information to PETRONAS COMCEN in
Kuala Lumpur.
Upon receipt of the PS Contractors emergency notification, SGM POM-PMU will notify
relevant key personnel in PETRONAS, where appropriate action plan will be activated
accordingly.

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18.5 EMERGENCY CLASSIFICATION
In this procedure, emergencies are categorized into 3 tiers:-
Tier 1 - Incident
Tier 2 - Emergency
Tier 3 - Disaster & Crisis Situation
The detail definition of three levels of emergency / crisis situations are as follows :-
18.5.1 TIER 1 - INCIDENT (Refer Figure 1)
A situation where the incident is causing no danger to life and where risk of
damage to property and environment is minimal. The incident is within the
control of PS Contractor with assistance from local sources, where ECC is not
activated and does not classify under Tier 2 & 3. Refer to Figure 1 for the
response and communications/notification for this situation.
The situation includes the followings, but not limited to:
(a) LTI
(b) First Aid Case
(b) Near Misses
(c) Restricted Work Cases (RWC)
(d) Medical Treatment Cases (MTC)
(e) Fire (minor non-process)
(f) Minor Oil and Toxic/hazardous chemical spills (< 5 bbls)
(h) Condensate spills

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FIGURE 1: TIER 1 - INCIDENT

OFFSHORE / ONSHORE
ACCIDENT / INCIDENT
PS CONTRACTOR ER TEAM AT SITE
ACTIVATE ACTIONS TO BRING
EMERGENCY UNDER CONTROL
OR EVACUATE.
NOTIFY ONSHORE OFFICE ON
THE NATURE OF EMERGENCY,
ACTION TAKEN, ETC.
NOTIFY SUPPORT VESSELS
AND NEARBY FACILITIES FOR
ASSISTANCE IF NEEDED.
THIRD PARTIES
SUPPORT
VESSELS
BARGES
RIGS
ETC.
(AT SITE / FIELD)
PS CONTRACTOR OFFICE ONSHORE
COORDINATE OVERALL
RESPONSE EFFORT INCLUDING :
ACTIVATE PRE-ARRANGED
THIRD PARTIES ASSISTANCE,
E.G HELICOPTER, SUPPORT
VESSELS, MEDICAL
ARRANGEMENT, ETC. IF
NECESSARY.
MOBILISE INVESTIGATION
TEAM.
REPORTING TO PETRONAS
24 HRS OR MONTHLY (where
applicable)
MUTUAL SUPPORT
OTHER PS
CONTRACTORS
PROVIDE BACK-UP
HELI & VESSELS
PLANT OPERATORS
ETC.
HELI SERVICES
SUPPORT VESSELS
MEDICAL ADVICES
CONTRACTOR
SERVICES
ETC.
THIRD PARTIES
PS CONTRACTOR'S
SCOPE

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18.5.2 TIER 2 - EMERGENCY (Refer Figure 2)
A situation where there is, or which may deteriorate and cause danger to life,
and risk of damage to property, environment, potential damage to corporate
image and future operation and can be brought under control within the PSC
with the implementation of special emergency response measures through
initiation of the relevant emergency organisation and activation of the ECC and
may require support from local authorities, mutual aid groups and neighboring
plants.
The situation includes the followings, but not limited to:
(a) Lost Time Injury
(b) Fatality
(c) Bodyvac and Medevac
Body Evacuation - removal of dead body to onshore
Medical Evacuation - when life is not in immediate
danger
(d) Helicopter Emergency
Helicopter ditches into the sea
Helicopter emergency landing
Helicopter crash
(e) Fire (process and major non-process) where the Emergency
Response Team (ERT) is mobilized.
(f) Explosion
(g) Well Blowouts
(h) Structural Failures
(i) Major Oil and Toxic/Hazardous Chemical Spills (>5 barrels)
(j) Condensate Spills
(k) Man Overboard
(l) Lan and Marine Transport Incidents

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(m) Property Damage (for medium and major property damage
based on the Risk Assessment Classification)
(n) Natural Disaster :
Earthquakes
Tsunami
Typhoons
(o) Detection of Contagious Disease(s)
(p) Man Overboard

Refer to Figure 2 for the response and communications/notification for this
situation.

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FIGURE 2: TIER 2 EMERGENCY

OFFSHORE / ONSHORE
ACCIDENT / INCIDENT
ACTIVATE ACTIONS TO BRING EMERGENCY UNDER
CONTROL OR EVACUATE.
NOTIFY ONSHORE EMERGENCY CONTROL CENTRE
(ECC) ON THE NATURE OF EMERGENCY, ACTION
TAKEN, ETC. AND SEEK ASSISTANCE IF NEEDED.
NOTIFY SUPPORT VESSELS AND NEARBY
FACILITIES FOR ASSISTANCE IF NEEDED.
PS CONTRACTOR EMERGENCY TEAM AT
EMERGENCY CONTROL CENTRE (ECC)
RESPONSE IMMEDIATELY TO CALL BY SITE ER
TEAM.
COORDINATE OVERALL RESPONSE EFFORT
INCLUDING :-
ACTIVATE PRE-ARRANGED THIRD PARTIES
ASSISTANCE, E.G. HELICOPTER, SUPPORT
VESSELS, MEDICAL ARRANGEMENT, ETC.
NOTIFY LOCAL AUTHORITIES.
NOTIFY / ADVISE PS CONTRACTOR TOP
MANAGEMENT.
NOTIFY IMMEDIATELY AND IF NEEDED REQUEST
EXTERNAL ASSISTANCE FROM PETRONAS.
THIRD PARTIES
HELI SERVICES
SUPPORT VESSELS
MEDICAL ADVICES
CONTRACTOR
SERVICES
ETC.
MUTUAL SUPPORT
OTHER PS CONTRACTORS
PROVIDE BACK-UP
HELI & VESSELS
PLANT OPERATORS
PIMMAG
ETC.
THIRD PARTIES
SUPPORT VESSELS
BARGES
RIGS
ETC.
(AT SITE / FIELD)
LOCAL AUTHORITIES
HOSPITAL
POLICE
PORT
AUTHORITY
DOE
ETC.
PS CONTRACTOR'S
SCOPE
SVP, E & P BUSINESS
SGM, LEGAL & CORPORATE
AFFAIRS DIVISION
PRESIDENT
GM, HR DEVELOPMENT
PS CONTRACTOR'S
SCOPE
PETRONAS
SCOPE
PETRONAS
COMCEN
PMU HSE SENIOR MANAGER
(KUALA LUMPUR)
NOTIFY / UPDATE SGM PMU
ACCESS / MONITOR SITUATION
SENIOR GENERAL MANAGER,
POM, PMU
NOTIFY / ADVISE HIGHER MANAGEMENT AND
UPDATE OF EMERGENCY
PROVIDE INPUTS FOR PRESS RELEASES (IF
NECESSARY) THROUGH LEGAL & CORPORATE
AFFAIRS DIVISION
NOTIFY / ADVISE HRM IF EMERGENCY INVOLVED
PETRONAS STAFF
SENIOR MANAGER
PMU REGIONAL OFFICE
ASSESS / MONITOR
SITUATION AT PS
CONTRACTOR ECC OR
SITE IF POSSIBLE
UPDATE SGM POM,
PMU
CC

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18.5.3 TIER 3- DISASTER & CRISIS SITUATION (Refer Figure 3)

A situation where the incident / accident escalates and will cause grave danger
to life causing multiple fatalities, severe damage to the environment involving
neighboring sites and surrounding communities, or total loss of facility. The
incident is clearly beyond the capacity and capabilities of PETRONAS or the
PS Contractors. The situation warrants the intervention of the Malaysian
Government.
The situation includes the following, but not limited to :

(a) Security threat
Hijacking of an installation
Terrorism
Kidnapping
(b) Major oil and Toxic/Hazardous Chemical Spill (> 5 bbls)
(c) Total loss of an installation
(d) Multiple fatalities
(e) Major Marine collision incidents (involving vessels)
(f) Endemic/Pandemic Disease
(g) Aircraft crash incidents

Refer to Figure 3 for the response and communications/notification for this
situation.

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FIGURE 3: TIER 3 - DISASTER & CRISIS SITUATION

FIGURE 18.2: TIER 2 - MAJOR EMERGENCY

OFFSHORE / ONSHORE
ACCIDENT / INCIDENT
ACTIVATE ACTIONS TO BRING EMERGENCY UNDER
CONTROL OR EVACUATE.
NOTIFY ONSHORE EMERGENCY CONTROL CENTRE
(ECC) ON THE NATURE OF EMERGENCY, ACTION
TAKEN, ETC. AND SEEK ASSISTANCE IF NEEDED.
NOTIFY SUPPORT VESSELS AND NEARBY
FACILITIES FOR ASSISTANCE IF NEEDED.
PS CONTRACTOR EMERGENCY TEAM AT
EMERGENCY CONTROL CENTRE (ECC)
RESPONSE IMMEDIATELY TO CALL BY SITE ER
TEAM.
COORDINATE OVERALL RESPONSE EFFORT
INCLUDING :-
ACTIVATE PRE-ARRANGED THIRD PARTIES
ASSISTANCE, E.G. HELICOPTER, SUPPORT
VESSELS, MEDICAL ARRANGEMENT, ETC.
NOTIFY LOCAL AUTHORITIES.
NOTIFY / ADVISE PS CONTRACTOR TOP
MANAGEMENT.
NOTIFY IMMEDIATELY AND REQUEST EXTERNAL
ASSISTANCE FROM PETRONAS.
THIRD PARTIES
HELI SERVICES
SUPPORT VESSELS
MEDICAL ADVICES
CONTRACTOR
SERVICES
ETC.
MUTUAL SUPPORT
OTHER PS CONTRACTORS
PROVIDE BACK-UP
HELI & VESSELS
PLANT OPERATORS
PIMMAG
ETC.
THIRD PARTIES
SUPPORT VESSELS
BARGES
RIGS
ETC.
(AT SITE / FIELD)
LOCAL AUTHORITIES
HOSPITAL
POLICE
PORT
AUTHORITY
DOE
ETC.
PS CONTRACTOR'S
SCOPE
SENIOR GENERAL MANAGER,
POM, PMU
IMMEDIATELY INFORM THE PRESIDENT AND VP (E&P
BUSINESS) OF THE EMERGENCY
APPRAISE THE EMERGENCY
ACTIVATE COORDINATION ASSISTANCE FROM GOVERNMENT
BODIES eg. MECC AND MRCC FOR THEIR ASSISTANCE
UPDATE THE PRESIDENT AND VP (E&P BUSINESS) AND IF
NEEDED OTHER RELEVANT AUTHORITIES
INFORM AND UPDATE LEGAL & CORPORATE AFFAIRS DIVISION
TO ENABLE PRESS OFFICER TO PREPARE PRESS RELEASE
FOR MEDIA.
NOTIFY / ADVISE HRM IF EMERGENCY INVOLVED PETRONAS
STAFF.
REQUEST ASSISTANCE (IF NECESSARY) FROM SECURITY
DEPARTMENT FOR CROWD CONTROL AND PROVIDE
DIRECTION TO CONCERNED PARTIES.
SVP, E & P BUSINESS
GM, SECURITY DIV
SGM, LCAD
GM, HR DEVT
PMU HSE SENIOR MANAGER
(KUALA LUMPUR)
NOTIFY / UPDATE SGM POM, PMU
ACCESS / MONITOR SITUATION
SENIOR MANAGER
PMU REGIONAL OFFICE
ASSESS / MONITOR
SITUATION AT PS
CONTRACTOR ECC OR
SITE IF POSSIBLE
UPDATE SGM POM, PMU
PETRONAS
SCOPE
PRESIDENT
MARITIME RESCUE
COORDINATING CENTRE
(MRCC) - PORT KELANG
PROVIDE BACK UP
SEARCH AND RESCUE
SERVICES
AIRCRAFT
SURFACE CRAFT
MARITIME RESCUE
ENFORCEMENT
COORDINATING CENTRE
(MECC) - LUMUT
ACTIVATE NATIONAL
SECURITY COUNCIL TO
COMBACT HIJACKING
NEGOTIATION GROUP
PASKAL (OFFSHORE)
MCC (ONSHORE)
FEDERAL AUTHORITIES
(WHERE NECESSARY)
OUTSIDE EXPERT
(WHERE NECESSARY)
GM, GHSE
PETRONAS
COMCEN
CC

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18.6 NOTIFICATION OF EMERGENCIES AND RESPONSIBILITIES

18.6.1 PS Contractor

18.6.1.1 All emergencies involving incidents and accidents shall be reported to
PMU. The emergency message shall contain the required information as
per Initial Incident Notification Form shown in Appendix18A.
18.6.1.2 All incident cases under Tier 1, shall be recorded and included by PS
Contractor into their monthly HSE performance report submission to PMU.
Refer to Figure 1 for the procedure of Tier 1- Incident
18.6.1.3 For Tier 1, LTI, RWC, MTC and Minor Oil and Toxic/Hazardous Chemical
Spill (with ERT is activated), PSC is required to notify PMU within the
period of 24 hours. The incident shall be notified by PS Contractors by
phone to SM PMU Regional Offices and SM PMU HSE Kuala Lumpur,
followed by e-mail/telefax of the Initial Incident Notification Form.
18.6.1.4 All emergency cases under Tier 2 and 3 shall be notified immediately,
regardless of the time and location by phone to SM PMU Regional Offices
and SM PMU HSE and followed by e-mail/telefax of the Initial Incident
Notification Form addressed to SM PMU Regional Offices, SM PMU HSE
Kuala Lumpur, SGM POM-PMU and copied to PETRONAS COMCEN,
regardless of the time of the location. Depending on the severity of the
incident, the follow-up reporting of the incident to PMU Regional Offices
shall be provided at appropriate intervals and at least on a daily basis until
the emergency situation/crisis has been resolved or the deactivation of the
ECC, which ever is later. Refer to Figure 2 for the procedure of Tier 2-
Emergency.
18.6.1.5 Not withstanding to the above Tier classification, any incident which has
impact on the reputation and credibility of PETRONAS, both in terms of
media and public concern, shall also be notified to PETRONAS
immediately as per item 18.6.1.4.

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SM PMU Regional Office, SM PMU HSE Kuala Lumpur, SGM POM-PMU
and PETRONAS COMCEN can be reached via the contact numbers in
Appendix 18B: Notification Contact List.
18.6.1.6 Should the emergency involved oil/chemical spill, it is the responsibility of
PS Contractor to appropriately notify and request PIMMAG for their
response. PIMMAG can be reached via the contact numbers in Appendix
18B: Notification Contact List.
18.6.1.7 PSC shall forthwith notify the nearest related local Authority (DOE, POLICE,
DOSH, HOSPITAL, ETC) by the quickest means available for all emergency
cases under Tier 2 and 3 except for Tier 1.

18.6.2 Petroleum Management Unit, PETRONAS

18.6.2.1 Upon receipt of emergency message, SM PMU Regional Offices and SM
PMU HSE Kuala Lumpur shall immediately notify/update SGM POM-
PMU Kuala Lumpur and will continue to provide him with further
information as and when received from PS Contractor.
18.6.2.2 As and when required, SGM POM-PMU, SM PMU HSE and SM PMU
Regional Offices can liaise with PETRONAS COMCEN to get latest
update, and vice versa.
18.6.2.3 For Tier 3, SGM of POM-PMU shall appraise the emergency status,
activate coordination assistance from authorities/organisations (external),
update management and impart strategic and technical input to
PETRONAS Crisis Management Team at corporate level as and when
appropriate.

- END OF SECTION 18-

SECTION 19
GUIDELINES FOR OPERATING PERFORMANCE
IMPROVEMENT (OPI)
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SECTION 19
GUIDELINES FOR OPERATING PERFORMANCE IMPROVEMENT
(OPI)
Executive Summary
This section provides guidelines on effective tools and methodology for PS Contractor
implementing improvement initiatives in closing performance gap.
It is PETRONAS aspirations for PS Contractor to achieve operational excellence in conducting
upstream activities. PS Contractor may at its own effort or upon instructed by PETRONAS conduct
improvement initiative on specific activities (i.e. production operations or projects) or incident etc. in
the event that any of the abovementioned activities performed poorer than expected.
PS Contractor shall pursue their own improvement tool and methodology where applicable or may
adopt the following tools and methodology developed by PETRONAS.
The purpose of this guideline is to have a common understanding of terms and standardized
reporting and tracking.

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19.1 OVERALL EQUIPMENT EFFICIENCY (OEE) AND DOWNTIME
DATA

PS Contractor is required to submit the OEE and downtime data (planned and unplanned)
for oil and gas facilities to PETRONAS on monthly basis.
Description
OEE is a key performance indicator that measures field operational performance.
Operational performance can be measured by dividing the platforms reconciled production
by the adjusted technical potential over the same period of time
Rationale
OEE measurement forms the foundation of cascading performance dialogues and
performance management system, e.g., from hour-by-hour shift manager to operator
performance dialogues to weekly platform Operations Improvement Management (OIM)
performance dialogues. It also provides a standard methodology to measure platform and
field performance.
Instructions and Format
OEE =
Adjusted Technical Potential = Technical Potential (TP) Indirect Losses
Indirect Losses = External Deferment (planned and unplanned) + Planned Deferment
External Deferment = common facilities Operated By Others (OBO) downtime, tanker
delays, tank top etc
Planned Deferment = DOSH, PETRONAS requirement etc.
Actual Production = Adjusted Technical Potential Direct Losses
Direct Loss = Availability Loss + Productivity Loss + Quality Loss
Availability Loss = Planned Maintenance (PM) other than DOSH and PETRONAS
requirement + Unplanned Deferment (unplanned activities, equipment malfunction)
Actual Production
Adjusted Technical Potential

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Productivity Loss = Other losses / slowdown + losses due to well characteristics
Quality Loss = Reconciliation effect
Please refer to Appendix 19A, 19B for OEE oil and gas methodology respectively and
Appendix 19C for deferment category.

19.2 ROOT CAUSE PROBLEM SOLVING (RCPS)
Description
The term Five (5) WHY methodology has been developed to identify and analyze causes
of poor performance. PS Contractor may adopt and utilize this methodology using the
Causal Tree (refer to Appendix 19D)
Rationale
RCPS is the central analytical tool for problem solving. The benefits are:
1. It is a systematic tool that uncovers hard and soft root causes of problems
2. Teaches frontline and management to be relentless, rigorous, and always fact-based
in problem-solving
3. Engages the relevant personnel in problem solving as well as developing possible
solutions
4. Balances comprehensiveness and prioritization in determining probable causes to a
problem
1. Define the problem
2. Start at an actionable lever and ask why to generate hypothetical answers keeping in
mind both the soft (e.g. organization, mindsets) and hard (e.g. operational) factors
3. Gather data to turn hypotheses into clearly supported facts
4. Iterate trees until reach an answer that is either a:
Mindset

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Leadership issue,
Capability issue, or an
Organization issue, but realize that not all issues have these root causes
5. Test probable root cause by reversing current situation:
does it solve the problem?, or
is it caused by an element raised earlier in the tree?
6. If test fails, ask why again or go one step back up the tree and ask why there, if it
passes, go to step 7.
7. Group the root causes what are the potential interventions that emerge?
19.3 GAP SIZING ANALYSIS
Description
In the event that any specific activities performed poorer than expected a gap sizing
analysis shall be conducted. This gap sizing exercise will include cost as well as
production elements.
Rationale
Gap analysis is a business resource assessment tool enabling a company to compare its
actual performance with its potential performance. This helps provide PETRONAS and PS
Contractor with insight into areas that have room for improvement.
A gap is measured based on actual performance versus target or plan for any specific
period. The gap will further broken down into deferment category as described in Appendix
C (level 1).

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19.4 STAGE GATE
Background
The gap sizing will enabled PETRONAS and PS Contractor to pinpoint the most critical
issues to close the production gap. This document provides and overview of the initiative
tracking process requirements to manage high value initiatives. PS Contractor is required
to develop a comprehensive set of interventions plan to the critical issues and develop a
standard methodology to track and monitor intervention progress.
Rationale
The stage gate tool will provide greater transparency regarding intervention tracking, and
to resolve specific issues as they arise. This tool will help to better understand the situation
and actions to be taken.

This document serves as an introduction to a four-step stage gate project management
methodology and templates to track high value interventions.
Introduction to stage gate processes
Stage gating is a project management tool that breaks down a project into a series of
stages (activities) and gates (decision points), please refer to Appendix 19E. It uses a
four-step stage gate process to monitor interventions i.e.:
Stage Gate 1: Problem definition (refer to Appendix F)
Stage Gate 2: Root cause solution (refer to Appendix G)
Stage Gate 3: Implementation and risk mitigation plans (refer to Appendix H)
Stage Gate 4: Implementation monitoring (refer to appendix I )
Please refer to Appendix E to J for the Stage Gate templates and guidelines.
PETRONAS may request PS Contractors to submit the Stage Gates template on case by
case basis.


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APPENDIX 1.1
HSE Case Guidelines for Documentation
The Case described in this guideline is constructed in 7 parts as shown below:-
1. Management Summary and Introduction
The Management Summary provides a brief overview of the Case findings, a
summary of the objectives established by operations management (based upon HSE
MS objectives), and all parties associated with its compilation, review and validation. It
may also include a description of historical HSE performance in the facility or
operation by way of background to the objectives and targets set, and providing a
baseline for future comparison over time of how HSE MS is actually performing in the
operation.
2. Operations HSE Management System
The Operations HSE MS documents the quality system used for managing HSE risk
in the specific facility or operation covered. It translates the material given in the HSE
MS Manual from the corporate level, to the demonstration of practice at the level
applicable to the management of the specific facility or operation. This section should
demonstrate the operation specific application of the systems described in the HSE
MS Manual. It should also detail local interpretation of corporate policies and
objectives, contact persons, relevant meetings, controls and plans, e.g. contingency
plans. It should relate, and be cross referenced to, appropriate parts of the hazard
analysis and installation description. Reference should be as specific as possible.
Documents, standards, procedures, etc., which are referenced to the Case should be
controlled documents with unambiguous titles and document numbers.
3. Activities Catalogue
The Activities Catalogue shall contain the quality requirements for activities involved
in the application of the Hazards and Effects Management Process in the facility
operation. The documentation requirements shall also be cascaded from the
corporate level to a level applicable to the facility or operation. As a general rule, the
Case analysis documented in the Case Activities Catalogue should show that controls
are in place and that the working practices and procedures are both suitable and
sufficient.

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To include in this section:
Foreword
Describe the purpose of Activities Catalogue and how it is to be used. It shall
also provide documentation of controls at the appropriate level and endorsement
by the custodian of the documents. The Activity Records will require review
cycles and re-endorsement as and when process custodian or activity owners
change.
Structure of the Activity Listing
In all cases, supervisory staff needs to have understanding of the tasks carried
out in their area of responsibility and should be able to confirm on the standing
instructions and work instructions. The hazards and effects encountered in the
work situation should be cross-checked with the activities to gain assurance that
all hazards and effects are being effectively managed.
Catalogue of Activity Records (Specification Sheets)
The Activity Records, which should be endorsed and reviewed, can be used as
the information database from which information can be extracted, which is both
relevant and usable at the workplace. If Task Definition specification records are
produced as an additional, same level of verification or business control is not
required and it shall be cross referenced in the Activity Records. However, the
Case does not necessarily require such task sheets, but it needs to refer to a
competent set of work instructions and procedures instead.
4. Description of Operation
This section shall describe the essential features relevant to HSE and emergency
management of the facility or operation, which will enable the understanding of how the
hazards and effects could affect the facility or operation and its HSE systems. The
process description and the facilities management shall be supported with technical
illustrations for better understanding.
The section shall consist of but not limited to:
Outline of Operation
HSE-critical Controls
Illustrations

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5. Hazards and Effects Analysis

The Hazards and Effects Analysis should demonstrate that all potentially significant
hazards and effects have been identified, the risks from the hazards and effects
evaluated and understood, and that controls to manage risks of the hazards and effects
are in place. This section shall include:
Hazards and Effects Analysis
It shall summarize the investigations carried out as part of the Hazards and Effects
Analysis into all types of accident scenarios, hazardous conditions, and
environmental effects. This section shall be regarded as evidence that a full and
systematic check has been made for hazards and effects and that potentially
significant hazards and effects have been analyzed in terms of associated risks.

Hazards and Effects Register
The purpose of this register is to present in a clear and concise form, the results of
the analysis made of each hazard or effects present at, or resulting from, the facility
or operation. The contents shall demonstrate that all hazards and effects have been
identified, are understood and are being properly controlled. It shall also
demonstrate that the facility is adequately defended and preparations are in place
to handle any emergencies.

HSE-critical Operations Procedures
This section covers mandatory HSE-critical operational procedures. These
procedures will often already exist in some form as a part of the operating
procedures and simply require to be flagged and for a listing to be produced. The
procedures shall also include a statement of the hazard management objectives
and the design assumptions inherent in its preparations.

6. Identified Shortfalls and Remedial Work Plan
The preparation of HSE Case is a fact finding process used to determine conformity at
the installation/operational level to the various elements of the companys HSE MS and
the acceptance criteria for hazard and risk management. The Case should contain a
demonstration of commitment to improvement by providing a plan, known as the
Remedial Work Plan, to resolve the shortfall findings of the assessments

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thereby improving the safety of the installation / operation. The plan should show action
parties, a priority rating and completion dates.
7. Conclusions and Statement of Fitness
This section presents conclusions concerning meeting the objectives of the Case as
simple as possible. It should also contain a Statement of Fitness for the operation or
facility. In particular it that notes those events with the potential to cause major harm to
people or the environment have been identified, assessed, controlled and that plans are
in place for recovery in the event that control is lost. It shall conclude that the Case
demonstrates the facilities management system in place, adequately to enable the
company to comply with all relevant statutory and company provisions and any activity in
connection with it. In view of the above, the operation/installation is considered safe to
operate.

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APPENDIX 1.2
Data Submission Guidelines for Reporting of Health, Safety and Environment
Data Submission Frequency Reporting Level
A Health:
1
Total Reportable Occupational Illness
(TROI: No. Of Cases)
Monthly PMU Regional & KL Office
2
Total Reportable Occupational Illness
Frequency (TROIF)
B Safety
1 Fatality* Monthly PMU Regional & KL Office
2 Lost Time Injury* (LTI) Monthly PMU Regional & KL Office
3 Lost Time Injury Frequency (LTIF) Monthly PMU Regional & KL Office
4
Total Reportable Case Frequency
(TRCF)
5 Restricted Work Cases* (RWC) Monthly PMU Regional & KL Office
6 Medical Treatment Cases* (MTC) Monthly PMU Regional & KL Office
7 First Aid Cases Monthly PMU Regional & KL Office
8 Fire and or Explosion Incident Monthly PMU Regional & KL Office
9 Nearmisses Cases Monthly PMU Regional & KL Office
10 Unsafe Acts/Unsafe Conditions Monthly PMU Regional & KL Office

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Data Submission Guidelines for Reporting of Health, Safety and Environment

Data Submission Frequency Reporting Level
C Environment

1 No. of Major Oil Spill Incident & Volume
(> 5 bbls)*
2 No. of Major Oil Spill Incident & Volume
(> 5 bbls)
3 Oil Spill Index (Total vol. of oil
Spill/Total Production (bbl))
4 No of Condensate Spill Incident &
Volume (bbl)
5 Effluent Discharge Quality* (Oil &
Grease) from Onshore Terminals
(Crude & GasT)
6 Produced Water Quality* (Oil in Water)
from Offshore (including FSO/FPSO)
7 Hydrocarbon & Toxic Gas release Monthly PMU Regional & KL Office
8 GHG Emission (CO2, CH4, Total CO2
in tonnes and Total CO2(tonnes)/kBOE)
Quarterly PMU KL Office
9 Scheduled Wastes As per DOE req PMU KL Office
10 TENORM Wastes As per AELB req PMU KL Office
D Others

1 Property Damages (all categories under
RAC)
2 Number of fines (by Authority) Monthly PMU Regional & KL Office
3 Total Manhours Worked Monthly PMU KL Office
4 Vessel Encroachment (within 500 m
radius)

*Note HSE incident reported under Fatality, LTI, RWC, MTC, Fire/Explosion, Oil Spill (>5 bbls),
EDQ & PWQ of > 40 ppm and Vessel encroachment shall be supported by incident description,
Initial findings and lesson learnt to be attached together with the monthly report. For LTI, the
report shall include the following:-
a. Summary of incident
b. Investigation findings
c. Root cause
d. Action taken
e. Lesson learnt

Submissions of the HSE KPI by PS Contractor to PMU shall be made in the form of softcopy, followed by a
formal hardcopy issuance by the 15th. of the following month.

APPENDIX 1
Page 393

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

APPENDIX 1.3

List of Health, Safety and Environmental Documents for Submission

List of Submission Frequency Deadline Reporting Level
1 HSE-MS Manual Once
Within one
month after
endorsement
PMU Regional & KL Office
2
HSE Cases (Production
Phase)
Once
One month
before
commencement
PMU KL Office
3
CIMAH Report (for
onshore operations)
Once
One month
before
commencement
PMU KL Office
4 Health Risk Assessment Once
One month after
the assessment
PMU KL Office
5 HSE Plan Yearly
December of
the preceding
year
6
Emergency Response
Plan
Once
One month
before
commencement
PMU KL Office
7 HSE KPI Report Monthly
Every 15th of
the following
month
8
HSE-MS Audit Final
Report
As per audit
plan
One month after
audit
completion
9 HSE Audit Final Report Upon request - PMU Regional & KL Office
10
Incident Investigation
Report
Upon
completion of
the
investigation
One month after
the date of
incident
11 EIA/EMP Report Once
One month after
DOE approval
PMU KL Office
12 EIA Approval Condition Once
One month after
DOE approval
PMU KL Office
13
Environmental
Compliance Report
As per
DOE/AELB
requirements
- PMU Regional & KL Office
14 GHG Emission Quarterly
-
PMU KL Office

APPENDIX 1
Page 394

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

APPENDIX 1.4

GAZETTING CHECKLIST

Most recent photos:
- size 8 x 10
- 5 angles (north, south, east, west, aerial)
- 1 copy each angle

Hydrographic map:
- scale 1:5000
- 2 copies (one copy each for GSO and AG)

Contour map:
- scale 1:500 000
- 2 copies (one copy each for GSO and AG)

Relevant information:
- name of facility
- type of facility
- spherical coordinates
- purpose of facility (oil/gas/both)
- location (nm from shore)
- field name that the installation is used for
- oil and gas production (after installation)
- value of installation (in RM million)

Not needed for
resubmission

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APPENDIX 2

Page 396

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

APPENDIX 2.1
LIST OF LOCAL AUTHORITIES
1. Yang Berbahagia Setiausaha Kerajaan Negeri Terengganu
Pejabat Setiausaha Kerajaan
Tingkat 15, Wisma Darul Iman
20503 Kuala Terengganu
Terengganu Darul Iman
Fax : 09-6234278
Tel : 09-6231957

2. Pengarah
Bahagian Perlindungan Sumber
Ibu Pejabat Perikanan Malaysia
Kementerian Pertanian Malaysia
Aras 1-7, Menara Blok 4G2 Wisma Tani
Presint 4
Pusat Pentadbiran Kerajaan Persekutuan
62628 W.P Putrajaya
Fax : 03-88892786

3. Pengarah Operasi
Jabatan Arah Operasi
Kementerian Pertahanan (Kementah)
Jalan Padang Tembak
50634 Kuala Lumpur

4. Pengarah
Pusat Penyelarasan Penguatkuasaan Maritim
Bahagian Keselamatan Negara
Jalan Iskandar Shah
Telok Muroh
32200 Lumut
Perak Darul Ridzuan
Tel : 05-6804111 / 6834113 / 6835291 / 6834961

5. Syahbandar Pantai Timur
Pejabat Syahbandar
20000 Kuala Terengganu

APPENDIX 2

Page 397

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

6. Pengarah
Perikanan Negeri Terengganu
Wisma Perikanan Negeri
Taman Perikanan Chendering
21080 Chendering
Kuala Terengganu
Fax : 09- 6173351
Tel : 09 - 6173352 / 6173353

7. Pengarah
Perikanan Negeri Kelantan
Tingkat 6, Wisma Persekutuan
Jalan Bayam
15628 Kota Bharu
Kelantan Darul Naim
Fax : 09-7483433
Tel : 09-7486606 / 7482851

8. Pengarah Laut
Jabatan Laut Sarawak
Lot. 683, Seksyen 66
Jalan Utama
Tanah Puteh
93619 Kuching, Sarawak
Fax : 082- 331778
Tel : 082- 484159

9. Pengarah Laut
Jabatan Laut Malaysia
Pejabat Laut Wilayah
Persekutuan Labuan
Peti Surat 81005
87020 Wilayah Persekutuan Labuan
Tel.: 087-413511
Fax No. : 087-413515
Website: www.marine.gov.my

10. Pengarah Perikanan Laut
Jabatan Perikanan Laut Sarawak
Tingkat 15, Bgn Sultan Iskandar
Jalan Simpang Tiga, Peti Surat 1375
93728 Kuching, Sarawak
Fax : 082-415499
Email : kufish@tm.net.my
Tel : 082-252743 / 250357

APPENDIX 2

Page 398

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

11. Pengarah Perikanan Laut,
Jabatan Perikanan Sabah
Aras 4, Blok B
Wisma Pertanian Sabah
Jalan Tasik Luyang
Off Jalan Maktab Jaya
88624 Kota Kinabalu, Sabah
Fax : 088- 240511
Tel : 088- 235966 / 245489 / 245484
Email : fish.dept@sabah.my

12. Pengarah
Jabatan Perikanan Labuan
Km 4, Jalan Patau-Patau
Peti Surat 81411
87024 W.P Labuan
Fax : 087- 412885
Tel : 087- 415881

13. Pegawai Laut
Jabatan Laut Sarawak
Kawasan Sarawak Timur
Pejabat Bahagian Miri
Jalan Kubu, Beg Berkunci No.18
98009 Miri Sarawak
Tel.: 085-442121
Fax No.: 085-418608

14. Marine Manager, Bintulu Port Sdn. Bhd
Km 12, Jalan Tanjung Kidurong
P.O.Box 996, 97008 Bintulu, Sarawak
Fax No.: 086-253597

15. Ketua Bahagian Haidrografi,
Markas Tentera Laut
Kementerian Pertahanan (Kementah, KL)
Jalan Padang Tembak
50634 Kuala Lumpur
Fax No.: 03-3685289

16. Senior Manager
Petronas Maritime Services Sdn Bhd
Level 16, Menara Dayabumi
Jalan Sultan Hishamuddin
50050 Kuala Lumpur
Tel.: 03-27836000
Fax No.: 27836966

APPENDIX 2

Page 399

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

17. General Manager
Petroleum Resource Exploration
Petroleum Management Unit
Level 22, Tower 2
PETRONAS Twin Towers
Kuala Lumpur City Centre
50088 Kuala Lumpur
Fax No.: 03-5813238

18. Senior Manager
Sabah/Sarawak Regional Office
Jalan Sekolah
98100 Lutong
Sarawak
Fax No.: 085-662623

19. Senior Manager
East Cost Regional Office
3rd Floor, PETRONAS Office Complex
24300 Kertih, Kemaman
Terengganu
Fax No.: 09-8640127

APPENDIX 2

Page 400

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AUG 2000
ISSUED BY
REVISION 2
AUG 2008

APPENDIX 2.2A

Type : UNJANG

Sea Surface
Buoy
Bamboo
Flag
Coconut leaves
Seabed
Sinkers

APPENDIX 2

Page 401

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

APPENDIX 2.2B

Type : UNJANG BUAI

Sea Surface
Floats
Coconut Leaves
Weight
Rope

APPENDIX 2

Page 402

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

APPENDIX 2.2C

Type : UNJANG IBU

Sea Surface
Bamboo
Galvanized Wire
Sinkers
Seabed

APPENDIX 2

Page 403

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

APPENDIX 2.2D

Type : BUBU

Dove-eyed Wire
Valve
Trap Door
Weight Base

APPENDIX 2

Page 404

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

APPENDIX 2.2E

Type : FISH TRAP

APPENDIX 2

Page 405

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

APPENDIX 2.2F

Type : FISH TRAP
Briddle
Weighted Base
Dan Buoy
Seabed
Sea Surface
Dove-eyed Wire

APPENDIX 3 Page 406

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

APPENDIX 3.1
MILESTONES DEFINITION
a) Planning Milestone(MR#1)
The Planning Milestone is reached when a feasibility study of a potential field or
area development has been completed. The feasibility study provides reserves
assessment, preliminary development concepts, cost and schedule and
economic viability. In this phase, although uncertainties are at the highest level,
broad outline of the project can be defined.
b) Geological and Geophysical (Static) Milestone (MR#2)
The Geological and Geophysical Milestone is reached when the geological
description, resource size and associated uncertainties have been reasonably
established and addressed. At this stage, the main deliverables are seismic
related structural and attribute maps, structural and reservoir maps, cross-
sections, petrophysical summary and gross bulk volumes and volumetric in-
place. Sufficient work would have been performed to provide a comprehensive
description and interpretation of subsurface reservoirs. Upside potential and
future plans to appraise such potential should be highlighted.
c) Reservoir (Dynamic) Milestone (MR#3)
The Reservoir Milestone is reached when the subsurface aspects of the field
including depletion mechanism, size of recoverable reserves, expected
production profile, number of platforms, numbers and types of development well
have been reasonably established. At this stage an optimal sub-surface
development option would have been studied to include important
considerations such as well density and coverage, application of new
technologies i.e., horizontal and multi-lateral wells, suitability of pressure
maintenance and suitability of enhanced recovery techniques. For fields
containing high carbon dioxide , this milestone must address the potential for
enhanced recovery and/or geo-sequestration through immiscible or miscible
carbon dioxide injection.
An important aspect of this milestone is to address the uncertainties, alternative
scenario outcomes and the range of possible outcomes for each scenario. The
reservoir appraisal, monitoring and surveillance programmes aimed at resolving
these uncertainties must also be addressed.

APPENDIX 3 Page 407

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AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Lastly, this milestone must address the potential for cluster or phased
development of other nearby discoveries or exploration prospects if they are
successful.
d) Development Milestone (MR#4)
The Development Milestone is reached when the preferred development concept
consistent with the reservoir development scenario, well design and facilities
design has been evaluated. These cover processing, gathering, gas utilization,
storage and evacuation systems. At this stage a firm base case for field
development outlining the preferred technical option with uncertainties would
have been identified and quantified. Any potential for development integration
with existing facilities (even if these are operated by another PS Contractor)
must be addressed. Where it is necessary to examine potential for development
integration between two or more PSCs, PETRONAS will facilitate these
discussions upon request.
Bases for the selected development option should be clearly defined. In addition,
PS Contractors shall also briefly discuss all the shortlisted options and their
evaluation results. Cost estimates should be of sufficient accuracy and
breakdown for Work Program and Budget purposes.

APPENDIX 3 Page 408

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

APPENDIX 3.2

GOVERNMENT AND PETRONAS' OBJECTIVES

a) comply with PSC requirements
b) ensure application of appropriate exploration technology which reduces
uncertainty and risk
c) ensure that sufficient and accurate data is gathered
d) ensure that development and depletion of discovered fields are at a pace
consistent with national needs
e) secure the full recovery of developable reserves and address future potential
f) avoid waste of petroleum and reservoir energy in the recovery of reserves
g) an infrastructure should, where feasible, aid future field developments
h) an integrated development concept be pursued, where applicable
i) impact of field scheduling on crude/gas quality and area development
j) comply with local regulations and government policies
k) adopt oilfield practices that are comparable with practice adopted in similar,
successful developments
APPENDIX 3 Page 409

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

APPENDIX 3.3

MILESTONE REVIEWS KEY ACTIVITIES LIST

Key Activities List Planning Milestone #1
PSC commitment to undertake area/field
development from exploration, development and
production within the period of PSC

PSC compliance
DESCRIPTIONS KEY ACTIVITY
surface development options comparison (type of
facilities)
subsurface development options (no of wells,
pressure maintenance, EOR feasibility etc)
capital and operating expenditures (high level
estimates)
project timing/preliminary milestone schedule (1st
production / startup), development phases
new technology application
production rate
evacuation route

Feasibility study /
Conceptual
Development Plan
volumetrics, recoverable reserves, upside and
downside potential, reserves uncertainties

Resource Assessment
resource assessment
production forecast
subsurface / well planning
seismic (2D, 3D, OBC & Hires
seismic/reprocessing)
fluid properties, appraisal
geohazard, seabed / route / area survey
metocean, environmental data
Data availability &
validation

APPENDIX 3

Page 410

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ISSUED BY
REVISION 2
AUG 2008


Key Activities List Planning Milestone #1(contd..)

supply/demand forecast
project value ranking
tariff/ullage
field unitisation (if applicable)
Preliminary commercial
arrangement
zero flaring / venting plan
decommissioning of facilities / abandonment of
wells
asset integrity
HSE compliance (especially on EIA)
Preliminary design f operating
philosophy
indicative economics including sensitivities cases
early monetisation
Economic Feasibility

risk identification, assessment, mitigation plan

Project Risk
Management
Maximise local content
plan
sharing of facilities, infrastructure
evacuation options
host facility integrity
clustar development, with field unitisation (if
applicable), near field
Area Development
project organisation
project value chain (i.e. design, fabrication etc.)

APPENDIX 3

Page 411

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ISSUED BY
REVISION 2
AUG 2008


Key Activities List G&G Milestone #2 (Geophysics)

(geophysics)
reservoir container size & shape (i.e. sheet sand or chanelise),
reservoir continuity
reservoir stratigraphic demarcation (channel boundaries & geo-
bodies)
fault linkages, fault compartmentalisation
Summary of
Uncertainties and
Nitigation Plan
Multi-attributes, seismic facies analysis
seismic/wellbore quantitative analysis (i.e. reservoir calibration
and prediction)
forward modeling such as AVO & seismic inversion (AI)
Q migration/ Time lapse analysis
Special Seismic
Studies
isochore/ net sand/ reservoir map, seismic workflow
attribute analysis (spec. decomp, coherency, sweetness, etc)
velocity analysis/depth conversion/synthetic seismogram
structural reconstruction/modeling
geo-volume interpretation (GVI)
Seismic
Interpretation
site investigation for pipeline route survey, platform hazard, geo-
hazard such as shallow gas & seabed channels, gas chimney,
gas seepage, pork mark & sink holes.
seismic; 2D vs 3D, wellbore data (VSP, DSI, etc)
recent technology (shear wave, 4C & OBC)
reprocessing and new acquisition (PSDM, PSTM, under
shooting, Q-3D)
seabed logging (electromenictic) & high resolution seismic
Database Quality 8
Quantity
Legend:
+C = + components
DS! = Dipolar Shear !mager
OBC = Ocean Bottom Cable
PSDN = Pre Stack Depth Nigration
PSTN = Pre Stack Time Nigration
AvO = Amplitude vs Offset
A! = Acoustic !mpedance
vSP = vertical Seismic Profile

APPENDIX 3

Page 412

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ISSUED BY
REVISION 2
AUG 2008


Key Activities List G&G Milestone #2 (Geology)

updip/downdip potential, deeper HPHT/ untested fault block /
near field potential/stratigraphic
untested reservoir/fault block/new play potential
future plans/propose appraisal
Upside potential

methodology/approach (probabilistic and deterministic)
classification as per PETRONAS Resources Classification and
Guidelines
uncertainties and risk
Resource Assessment
structure, trend mapping, structural/ stratigraphic X-section
3D geologic modeling/facies modeling
deterministic/stochastic modeling
GBV calculation
STOIIP computation
STOIIP distribution (By platform, fault blocks, etc)
Static Model
well to well correlation/cross section/sequence stratigraphy
structural reconstruction/fault analysis
facies analysis (log/core calibration & descriptions)
reservoir characterisations i.e. architecture
reservoir description (diagenesis, sedimentology, petrography,
biostratigraphy & geochemistry etc)
fluid analysis i.e. compositional analysis & crude properties
geomechanics/rock physics.
geopressure
Stratigraphy/
Structural
/Sedimentation/
Studies
depositional environment/hydrocarbon migration/source rock
tectonic history/structural style
wellbore database quality and quantity (logs, cores, RFT etc)
Geological
Database
(geology)
Legend:
Sw = Water Saturation
RFT = Repeat Formation Tester
HPHT = High Pressure High Temperature
COS = Chances of Success
SR = Speculative Recovery

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REVISION 2
AUG 2008


Key Activities List G&G Milestone #2 (Formation Evaluation)

formation water analysis
V-shale & V Clay analysis
NMR analysis
saturation determination techniques (resistivity-based
& resistivity independent such as Pc)
borehole image analysis
LRLC (log modelling)
rock mechanics
log-core calibration techniques
environmental corrections (log editing)
pressure analysis
production logging analysis
permeability modelling/porosity modelling
cut-offs justification
geological integration
log reconstruction, petrofacies
uncertainty analysis
comprehensive documentation
Analysis
input/output logs
reservoir parameters (internal averages I.e. net
sands, porosity,
Sw, etc.)
composite logs
routine and SCAL
Database
DESCRIPTIONS

KEY ACTIVITY
(formation evaluation)

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ISSUED BY
REVISION 2
AUG 2008


Key Activities List Reservoir Engineering Milestone #3
oil>45%
gas>85%
Recovery Factor
(RF)
objective
well and reservoir monitoring plan (surveys- no survey & frequency,
well test requirement)
potential and well reservoir issues and mitigation plan (artificial lift,
formation damage, sand production etc.)
well intervantion plan
RSP ( refer to
PPGUA Section 12
for details)
additional data acquisition, aquifer size
upside potential, downside risk
deliverability ullage
development phasing impact
Uncertainties
Nanagement
well and reservoir monitoring
offtake rate, GOR limit, drawdown, target pressure, well intervention
GIGP ratio, waterflood mgmt, EOR surv program and sensitivity
analysis
Reservoir Mgmt
Plan and Operating
Strategy
well test results, well deliverabilities, well flow analysis,well integrity
analysis formation damage
completion design, sand exclusion, artificial lift, perforation techniques
production problems, stimulation techniques
application of horizontal or multi-lateral wells
Well Construction
and Completion
number of platforms/wells, drainage plan, oil and gas depletion plans,
secondary recovery, production profile, recovery efficiencies
application of horizontal or multi-lateral wells
EOR (processes, performance, well spacing) etc.
Depletion
Nechanism
construction of the model
fluid interaction and rock properties
PVT reports, core analysis, DST etc
reservoir geometry, aquifer size, gascap size, oil column, GOR, dip,
production data
fluid contact
fluid properties and composition
pressure data
Reservoir Model

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ISSUED BY
REVISION 2
AUG 2008


Key Activities List Development Milestone #4

options shortlist and final selection
facilities requirement, material selection
corrosion Management Plan
flow Assurance
structural integrity and available ullage at host
platform
cost reduction efforts
gas disposition plan
zero flaring / venting commitments
HSE Philosophy
Surface Development
Concept
drilling experience, drilling plans & schedule
well design, rig selection, material selection,
new technology, drilling risks
completion design, sand exclusion, perforation
techniques
production problems, stimulation techniques
type of drilling mud used (water / oil based mud)
generate detail well package (refer to para 3.1.9.6 of
this document)
Describe all technology application, if applicable
Describe potential production problem due to mud
design,etc
Drilling Plan, Schedule 8
Well Layout
outline description of the field/reservoirs proposed for
development
reservoir depletion mechanisms
Number and location of wells likely required
Pressure maintenance requirement i.e gas injection
and/or gas production
forecasts of oil, gas, water and greenhouse gases
production
proposed means of disposing greenhouse gases
forecast reservoir pressures and produced fluid
properties
appraisal opportunities through development drilling or
early production
Sub-Surface Development
Concept

SHORTLISTED DESCRIPTIONS KEY ACTIVITY

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ISSUED BY
REVISION 2
AUG 2008


Key Activities List Development Milestone #4 (contd)

measurement concept/method (fiscal, allocation or
operation)
validation & certification requirement
well testing requirements
Measurement

project risk register - surface and sub-surface Project Risk Mitigation Plan
timing / schedule, method, cost estimate for
decommissioning of facilities and abandonment of
wells
Decommissioning
surface and sub-surface technology application
New technology

evacuation route
throughput capacity, pipeline material selection
flow assurance
Final Evacuation Route

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AUG 2000
ISSUED BY
REVISION 2
AUG 2008


Key Activities List Development Milestone #4 (Contd..)

Project returns on the selected development
concepts (Base Case vs options IRR, NPV,
assumptions)
Incremental project returns for IOR/EOR projects
Economic Analysis
preliminary design concept Design Basis Memorandum
preliminary Overall Contracting Strategy

Contracting Strategy
lessons learnt from similar past projects Lessons learnt

compliance with local authority
basic facility safety design philosophy
HSE risk management
HSE Requirements
manning requirements
shutdown & control philosophy
inspection & maintenance philosophy
reliability & asset integrity
Operating Philosophy

provision for EOR implementation: well slots, space &
facilities upgrade provision
EOR Initiative / Plan

CAPEX & OPEX cost estimate including cost phasing
(well, platform, floaters, drilling, pipeline etc)
Final Cost Estimates

Detail schedule activities
First production/startup date
Project Master Schedule


APPENDIX 3 Page 418

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

APPENDIX 3.4

FDP/NOP REVISION MATRIX

Changes to plan in FDP FDP
Revision
NOP
Revision
1 Target location changes within 1km radius of original target in the
same region or fault block (including workover sidetracks to
correct/optimize perforation depths). Plan not addressed in the
approved FDP
Y (NOP
revision or
NOWOP
approval)
2 Target location changes within 1km radius of original target but to
a different fault block / region (plan not addressed in the
approved FDP)
Y Y
3 Addition and deletion of wells Y if not
addressed in
FDP
Y if
addressed
in FDP
4 Changes to depletion strategy (if not addressed in FDP) Y
5 Changes to well utility eg producer to injector, or vice versa Y if not
addressed in
FDP
Y if
addressed
in FDP
6 Addition and deletion of completions or changes to tubular sizes
or casing program with no change in well utility / type eg. addition
or deletion of packers, bigger or smaller tubings, conventional vs
horizontal well, changes in sand control type, etc. . Plan not
addressed in the approved FDP.
Y
7 Deeper TD due to G&G / Reservoir / Operational reasons Y
8 Changes to well cost estimates Y
9 Well sidetrack or suspension due to G&G / operational reasons
(excluding sidetracks / suspensions already planned in NOP)
Y
10 Significant changes to facilities concept Y

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AUG 2000
ISSUED BY
REVISION 2
AUG 2008

APPENDIX 4.1
SECTION 4 OF PETRONAS TENDERS & CONTRACTS ADMINISTRATIVE PROCEDURE MANUAL FOR
UPSTREAM PROCUREMENT ACTIVITIES
EXECUTION OF PROCUREMENT ACTIVITIES
4.1.1 SCREENING
Definition:
Screening of bidders is an exercise where bidders in all appropriate categories of the LLRC are asked
whether they are interested to bid.
Scope:
This process takes place before the list of bidders to be invited in the tender exercise is finalised.
Screening are generally carried out to check licensed company interest to participate in bidding exercise
when there are too many companies in the LLRC
Principle:
All companies in the appropriate SWEC of the LLRC at the time of the screening exercise shall be invited
for the exercise.
PETRONAS prior approval is not required to carry out screening exercise.
For above CTL, the result of the exercise together with the recommended list of bidders shall be
incorporated in the Tender Plan and shall be presented to the relevant Tender Committee within one (1)
month after the closing date of the screening exercise.
The above principles shall apply to all value bands.
Screening Process (SC)
Value Band Process
Above CTL SCAC1
In the screening, all bidders listed in the relevant Work Category shall
be invited.
SCAC2
PS Contractors shall incorporate list of invited bidders and screening
results in the Tender Plan.
CTL & Below SCBC1
As per individual PS Contractors' in-house procurement procedures.

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AUG 2000
ISSUED BY
REVISION 2
AUG 2008

4.1.2 TENDER PLAN
Definition:
The Tender Plan is the package that describes the scope of work, procurement strategy, evaluation
criteria, etc.
Scope:
The Tender Plan shall contain but not limited to the following: -
i) Project Background / Tender Brief.
ii) Scope Of Work.
iii) Procurement Strategy And Methodology.
iv) MPP Code.
v) Tender And Project Schedule.
vi) Highlights of Instructions To Bid (ITB).
vii) Bidders List/Basis Of Selection.
viii) Bid Evaluation Process.
ix) Technical Evaluation, Methodology, Criteria and Team Member.
x) Commercial Evaluation, Methodology, Criteria and Team Member
xi) Highlight of the Technical Evaluation Criteria & Specification for TCC.
xii) Technical & Commercial evaluation criteria for procurement above RM15 Million, a separate
technical and commercial evaluation criteria proposal must be submitted to TCC for approval.
Principle:
For procurement above the CTL, PETRONAS prior approval of the Tender Plan is required except for
the following cases:
i) Sole Source items provided such items are identified and approved by PETRONAS in the yearly
consolidated Master Procurement Plan such as VDP and proprietary items.
ii) Marine vessels under CORAL Database (less than twelve (12) months with value less than RM5
Million). Any intention to bid shall only require PETRONAS Technical Coordinators prior approval.
iii) For Umbrella Contracts:
a) With Approved Contract Value (Umbrella Design Service Contract (UDSC)) - value of each
work order less than the value as specified in the approval letter.
b) Without Approved Contract Value (Umbrella Design Service Agreement (UDSA)) - value of
each work order less than the value as specified in the approval letter.

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ISSUED BY
REVISION 2
AUG 2008

The cut-off date for the recommended list of bidders in the Tender Plan shall be on the day of the
appropriate Tender Committee meeting. The decision on the final list of bidders to be invited for bidding
shall rest with the respective Approving Authority.
PS Contractors shall ensure that bid validity period is kept as short as practicable and guided by the
following common practices: -
i) Below RM15 Million - 90 days or less
ii) RM15 Million and above - 90 -120 days
In the event there is a requirement to extend the bid validity for any tender above CTL, PS Contractors
shall seek PETRONAS prior approval to extend the bid validity.

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ISSUED BY
REVISION 2
AUG 2008

Tender Plan Process (TP)
Value Band Process
Above
RM15 Million
TPA1

Two (2) sets of the draft Tender Plan shall be submitted to the Senior
Manager, PSC Management Department for PETRONAS review.
The Tender Plan shall be in the format given in ATTACHMENT VIII.
Compliance to this format will ensure the quality of the submission and
timely PETRONAS review. Non-compliance to the format will render the
submission automatically rejected.
TPA2 The Tender Plan shall be reviewed and signed by the Technical
Coordinator and Techno-Commercial Coordinator. The review is expected
to complete within ten (10) working days.
TPA3 Seven (7) copies of the Tender Plan shall be submitted by PS Contractors
to the TCC Secretary, three (3) working days before the TCC meeting.
TPA4

After Tender Committee deliberation, PS Contractors should submit the
amended report incorporating all Tender Committees comments. The
amended report must be re-signed and submitted to the TCC Secretary
within 14 days. However, amended report submitted within 24 hours after
deliberation need not be resigned.
Failure to comply with the above, PS Contractors is required to re-present
the Tender Plan in the subsequent Tender Committee meeting.
TPA5

Once endorsed by the TCC, the Tender Plan shall be signed by the TCC
Chairman. Eight (8) copies shall be submitted by PS Contractors to the
CTC Secretary, three (3) working days before CTC meeting.
Two (2) additional copies will be provided by PS Contractors to the
Technical Coordinator and Techno-Commercial Coordinator.

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AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Tender Plan Process (TP) (continued)
Value Band Process
Above CTL to
RM15 Million
TPAC1

Two (2) sets of the draft Tender Plan shall be submitted to the Senior
The Tender Plan shall be in the format given in ATTACHMENT IX and
ATTACHMENT X. Compliance to this format will ensure the quality of the
submission and timely PETRONAS review. Non-compliance to the format
will render the submission automatically rejected.
TPAC2

The Tender Plan shall be reviewed and signed by the Technical
Coordinator and Techno-Commercial Coordinator. The review is expected
to complete within ten (10) working days.
TPAC3 Seven (7) copies of the Tender Plan shall be submitted by PS Contractors
to the relevant Tender Committee Secretary three (3) working days before
the JTC meeting.
TPAC4 After Tender Committee deliberation, PS Contractors should submit the
amended report incorporating all Tender Committees comments. The
amended report must be re-signed and submitted to relevant Tender
Committee Secretary within the following time frame: -
MJTC - 14 days
JTC - 7 days
RJTC - 7 days
However, amended report submitted within 24 hours after deliberation need
not be resigned.
Failure to comply with the above, PS Contractors is required to re-present
the Tender Plan in the subsequent Tender Committee meeting.
TPAC5 Once endorsed by the relevant Tender Committee, the Chairman shall
prepare the Tender Committee Meeting Summary for approval from
Approving Authority.
CTL & Below TPBC1 As per individual PS Contractors in-house procurement procedures.

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SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

4.1.3 ISSUANCE OF INVITATION TO BID (ITB) DOCUMENT
Definition:
ITB documents comprise instructions to the bidders, technical requirements, terms and conditions for
procurement and the standard format for all the bidders in submitting their bids.
Scope:
This covers the process of issuance of ITB to the approved bidders.
Principle:
ITB documents shall only be issued to the bidders as approved in the Tender Plan.
The bidders must comply fully with the ITB requirements in their base bid. Qualifications and exceptions
may render their bids as being non compliant and the bidders may be disqualified.
Alternative proposals are generally encouraged but such alternatives shall only be considered against
the base bid.
ITB Process (ITB)
Value Band Process
Above CTL

ITBAC1

PS Contractors shall require bidders to submit at least three (3) copies
of technical and two (2) copies of commercial bid proposals of which
one (1) set is marked Original and the remaining sets are marked
Copy 1 and/or Copy 2. All copies of the bid proposals shall be
marked CONFIDENTIAL.
ITBAC2

Any amendment to the ITB documents after its issuance must be
approved by PETRONAS.
PS Contractors shall communicate such amendments in writing to all
bidders within a reasonable time prior to closing date of receipt of
tenders. Any amendment thus advised, shall be deemed to constitute
part of the Invitation to Bid documents.
Where necessary, PS Contractors may revise the closing date for
receipt of bids upon receiving PETRONAS approval in order for
bidders to comply with the amended requirements.

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AUG 2000
ISSUED BY
REVISION 2
AUG 2008

ITB Process (ITB) (continued)
Value Band Process

ITBAC3 Any additional information, interpretation, or advice to the tender
package given by or agreed upon by PS Contractors shall be made
known to all the bidders.

ITBAC4

Any information, which may be required by the bidders in order to
complete their bids or any interpretation thereof, shall be documented.
CTL & Below ITBBC4 As per individual PS Contractors in-house procurement procedures.
4.1.4 RECEIVING BID PROPOSAL (RB)
Definition:
Bid proposals are the submissions made by the bidders based on the invitation solicited by PS
Contractors. These consist of separate technical and commercial bid proposals.
The technical bid proposals shall include the unpriced commercial proposals.
Scope:
This process covers the receipt of bid proposals from the bidders and includes the safe custody of the
bid proposals until formally opened.
Principle:
Security of documents is to be strictly observed. Packages are to be in sealed envelopes clearly marked
as Commercial, Technical, "Original, Copies, as applicable, together with bidder's name and
deposited in a designated locked tender box/room before specified bid closing time.
It shall be the responsibility of all personnel involved in procurement to maintain the confidentiality of bid
documents and to ensure that they are kept in a safe and secure place at all times.
A Tender Register is to be maintained to record details of receipt. Non compliance to bid instructions
and late bids shall be rejected after due consideration of the circumstances.

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SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Receiving Bid Process (RB)
Value Band Process
Above CTL RBAC1

After the bid closing time, PS Contractor should record the
following:
i) Name of bidders invited / collected
ii) Number of bid received
iii) Name of bidders who submitted bid
Non compliance to bid instructions and late bids shall be rejected
after due consideration of the circumstances.
The PS Contractors shall deposit its detailed Cost Estimate
(endorsed by PS Contractors Team Leader) in a sealed
envelope into the tender box prior to opening of commercial bids.
CTL & Below RBBC1 As per individual PS Contractors in-house procurement
procedures.
4.1.5 BID OPENING (BO)
Definition:
Bid Opening - Authorised opening of solicited bids received from bidders and detailed PS Contractors
cost estimates. Basically there are two types of bid opening: -
i) Technical Bid Opening - the formal opening of technical bid proposal received from bidders invited
to bid for the tender.
ii) Commercial Bid Opening - the formal opening of commercial bid proposals and cost impacts
resulting from technical clarifications.
Bid Opening Committee - A committee set up by PS Contractors to administer the receipt and opening of
bids from the bidders. The committee shall comprise of a minimum of two (2) persons.
Scope:
This covers the formal opening of bids and the control procedures required to ensure the integrity of the
bids.

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SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

For value RM15 Million and Above: -
i) The technical bid proposal shall be opened after TCC has approved the Technical Evaluation
Methodology and Criteria (TEMC).
ii) The commercial bid proposal shall be opened after CTC has approved the Technical Evaluation
Report and TCC has approved the Commercial Evaluation Criteria (CEC).
For value RM15 Million and Below: -
i) The technical bid proposal shall be opened immediately after the closing date.
ii) The commercial bid proposal shall be opened only for technically acceptable bidders.
The detailed PS Contractors cost estimates shall be opened together during commercial bid opening.
Principles:
Two-tier Bid Opening
Two-tier Bid opening shall be the norm. Technical bid proposal shall be opened first on the same day or
the first working day after bid closing date.
The commercial bid proposal and cost impact shall be opened only after technical clarification and
evaluation report have been completed and approved by PETRONAS where applicable.
Only commercial proposals of technically acceptable bidders will be opened.
Single-Tier Bid Opening
PETRONAS prior approval is required for single-tier bid opening by incorporating such request in the
Tender Plan. The technical and commercial bid proposals shall be opened concurrently on the same day
preferably on the first working day after closing time.
Bid Opening
Bids shall be opened immediately after the bid closing date for security reasons, as well as to ensure that
the bidding process is not delayed.
In the event only one (1) bidder is technically qualified from a competitive bidding exercise, PS
Contractors shall present the Technical Evaluation Report to the relevant Tender Committee for
PETRONAS approval before opening the commercial bid.
In the event that only one (1) bidder submits the bid proposal, PS Contractors are allowed to proceed
with the technical bid opening. The commercial bid proposal and cost impact shall be opened only after
technical clarification and evaluation report have been completed.

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Page 428

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Bid Opening Process (BO)

Value Band Process
Above
RM15 Million
BOA1 Once the ITB documents are issued, the detailed Technical
Evaluation Methodology and Criteria (TEMC) must be submitted to
TCC for approval.
BOA2 Two (2) sets of the draft TEMC shall be submitted to the Senior
The TEMC shall be in the format given in ATTACHMENT XI.
Compliance to this format will ensure the quality of the submission
and timely PETRONAS review. Noncompliance to the format will
render the submission automatically rejected.
BOA3 The TEMC shall be reviewed and signed by the Technical
Coordinator. The review is expected to complete within ten (10)
working days.
BOA4 Seven (7) copies of the TEMC shall be submitted by PS Contractors
to the TCC Secretary, three (3) working days before the TCC
meeting.
BOA5 The TEMC is to be deliberated at the TCC after the bid closing date.
Subsequently, the technical bids must be opened immediately
thereafter but no later than two (2) working days after the approval
of the TEMC.
Above CTL BOAC1

The Bid Opening Committee is required to stamp and sign the
relevant pages of the original copy of technical bids only.
PS Contractors shall ensure that original bid and related documents
are properly kept in the designated room after duly stamped and
signed by Bid Opening Committee.
BOAC2 The Secretary of the Bid Opening Committee shall record all
attendees, date and time tenders were opened.

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SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Bid Opening Process (BO) (continued)
Value Band Process
Above CTL BOAC3 The summary of bid response shall be included in the technical and
techno-commercial reports.
BOAC4 Any alteration or correction to the commercial proposal shall be
initialed and highlighted by the bidders and counter initialed by the
Bid Opening Committee. If the alteration does not bear the bidders
initials, the Bid Opening Committee shall initial the changes.
BOAC5 PS Contractors Bid Opening Committee is prohibited to
communicate with the invited bidders after bid opening.
BOAC6 PETRONAS reserves the right to witness any bid opening as and
when appropriate.
CTL & Below BOBC1 As per individual PS Contractors in-house procurement
procedures.

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AUG 2000
ISSUED BY
REVISION 2
AUG 2008

4.1.6 BID EVALUATION
Definition:
Bid Evaluation is when the technical and commercial bid proposals submitted by Bidders are assessed
against the approved evaluation criteria and commercial model to determine the compliance. Evaluation
exercise shall be divided into two (2) categories: -
i) Technical Bid Evaluation - evaluate the technical bid proposal received from bidders to bid for the
tender using the technical parity band.
ii) Commercial Bid Evaluation - evaluate the commercial bid proposals and cost impacts if any
resulting from technical clarifications.
Scope:
This covers the process of technical and commercial bids evaluations. The technical bid evaluation shall
include bid clarification if any.
The bid clarification shall include but not be limited to the clarification of all deviations and exceptions in
the technical and unpriced commercial proposals submitted by the bidders. It also includes clarification
by bidders to PS Contractors on any matter in the bid proposals.
Principle:
Two-tier Bid Evaluation
The technical and unpriced commercial bid proposal shall be evaluated based on the approved
Technical Evaluation Criteria.
The commercial bid proposal is only opened and evaluated after the technical clarification and evaluation
exercise have been completed or upon approval of the technical evaluation report by PETRONAS.
Single-Tier Evaluation
Techno-Commercial evaluation shall be done simultaneously but by separate evaluation team members.
The coordinator/evaluation team leader shall have access to both technical & commercial evaluation
documents for purposes of merging the two (2) reports to be submitted to PETRONAS for approval.
Technical Evaluation
The technical evaluation criteria shall be classified into essential and general criteria, which had been
approved by PETRONAS. Bidders technical proposal shall be evaluated based on the Technical Parity
Band (TPB) system.

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SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

The technical parity band shall be categorised as follows: -
GREEN - Technically Acceptable.
YELLOW - Technically Acceptable But With Areas Of Minor Concern.
RED - Technically Not Acceptable.
Essential Criteria - Essential Criteria are "must" criteria. Non-compliance/deviations/ exceptions to any
of these criteria after clarification will render the bid technically unacceptable. Bidders shall be requested
to comply with the requirement and to submit cost impact (if any). Only GREEN and RED parity band
will be used.
General Criteria - General Criteria are "want" criteria. Non-compliance/deviations/ exceptions to any of
these criteria, after clarifications may or may not render the bid to be technically unacceptable. Bidders
shall be requested to comply with the requirements and to submit cost impact (if any). GREEN,
YELLOW and RED parity band may be used.
Clarifications during technical bid evaluation which allow for price changes or technical data alterations
by bidder(s) shall as far as possible be avoided.
Bid clarification shall mean any clarification on the part of PS Contractors during the technical evaluation
stage with regards to the following: -
i) Technical specification
ii) Scope of supply
iii) Unpriced commercial items including terms and conditions of the contract
Such clarification may or may not result in cost impact. All technical clarifications should be signed by the
respective approving authority.
PS Contractors shall ensure that the integrity of the bidding exercise is not jeopardised through bid
clarifications. Bid clarifications shall be conducted in a fair and professional manner. PS Contractors
should ensure that clarifications are minimised and questions should be clear, complete and precise. All
correspondence with bidders shall be recorded.
During the technical evaluation stage, contact with bidders is prohibited. Where clarifications are
necessary, all such communications must be made via letter or facsimile duly approved and authorised
by the relevant authority of PS Contractors.
Commercial Evaluation
For commercial evaluation, the following shall be taken into account to derive the Estimated Total Bid
Award Price.
Raw Bid Price - The original cost of the equipment or services quoted by the bidder, in the commercial
proposal for the specified scope of work/supply.

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SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Cost Impact - Any addition/deletion to the Raw Bid Price quoted by the bidders for compliance to
requirements of the bid arising from technical and unpriced commercial clarifications.
Discount - Discount shall refer to the reduction in Price quoted by the bidder.
Estimated Total Bid Award Price = Raw Bid Price + Cost Impact - Discount.
There shall be no clarification with the bidders after commercial bids are opened.
If PS Contractors intent to apply the External Cost for the commercial evaluation, such requirement must
be incorporated in the Tender Plan.
PS Contractors shall proceed with the commercial evaluation for bidders whose application for renewal
of licence/registration is still pending approval.
Only approved Evaluation Team members of PS Contractors shall be involved in bid evaluation
exercises. The evaluation team leader shall be a senior personnel of the PS Contractors.
PETRONAS reserves the right to send its representative(s) to any bid evaluation exercise conducted by
PS Contractors and shall have access to bid documents as and when required.

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SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Technical Evaluation Process (TE)

Value Band Process
Above CTL TEAC1 PS Contractors shall ensure that the bid evaluation is conducted in a
designated room. During the evaluation, no personnel other than
those approved in the Tender Plan or TEMC or CEC as Evaluation
Team members shall have access to the documents.
TEAC2 The technical evaluation criteria as approved by PETRONAS is to be
adhered to strictly. PETRONAS prior approval is required for any
deviation from the approved criteria.
TEAC3 Any noncompliance in the original technical and unpriced
commercial proposal will not result in automatic disqualification. PS
Contractors will advise the Bidders to comply with the ITB
requirement through clarifications, which will be carried out in a
controlled environment.
The proposed clarifications must be approved by PS Contractors
relevant Approving Authority.
All clarifications shall be in writing.
TEAC4 The following procedures shall be observed by bidders when
responding to clarifications:
i) Bidders are required to respond on or before a stipulated time,
date and to a specified address.
ii) Similar procedures in bid opening shall govern the opening of
response to clarifications with cost impact.
iii) PS Contractors shall indicate and outline all the changes to
the original bid, especially if they involve changes in price.
iv) Bidders who fail to respond to bid clarifications after two (2)
reminders will be disqualified.

APPENDIX 4

Page 434

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Technical Evaluation Process (TE) (continued)

Value Band Process
Above CTL TEAC5 Should there be a cost impact as a result of technical clarification,
PS Contractors shall request bidders to submit their responses in
sealed envelopes. The cost impacts shall be kept sealed until
commercial bid opening. For single-tier evaluation, the cost impacts
can be opened upon receipt.
TEAC6 Where Bidders cannot comply with one or more of the Essential
Criteria, then no further evaluation will be carried out on the General
Criteria for such Bidders.
TEAC7

If modifications of the bid package become inevitable during the bid
clarification meetings, such changes shall be issued to all approved
bidders, provided that such changes, in the opinion of both
PETRONAS and PS Contractors, do not substantially alter the
original intent of the bids and prices quoted.
TEAC8 Upon completion of the technical evaluation, the bidder will be
categorised under any one of the following Technical Parity Band
(TPB): -
Green - Technically Acceptable
Yellow - Technically Acceptable with Areas of Minor Concern
Red - Technically Not Acceptable
TEAC9 Bidders Code shall be assigned to each bidder immediately after
completion of technical evaluation. This bidders code shall be used
for technical evaluation report, commercial evaluation and award
recommendation.
CTL & Below TEBC1 As per individual PS Contractors in-house procurement procedures.

APPENDIX 4

Page 435

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Commercial Bid Opening & Evaluation (CE)

Value Band Process
Above CTL CEAC1 The commercial bid proposal is only opened and evaluated after the
technical clarification and evaluation exercise have been completed
or upon approval of the technical evaluation report by PETRONAS.
Only bidder who is categories under Green and Yellow will be
opened and commercially evaluated.
CEAC2 The Bid Opening Committee is required to open, stamp and sign
the relevant pages of the original copy of commercial bids.
The Secretary of the Bid Opening Committee shall record all
attendees, date and time bids were opened.
CEAC3 PS Contractors shall ensure that the bid evaluation is conducted in
a designated room. During the evaluation, no personnel other than
those approved in the Tender Plan or TEMC or CEC as Evaluation
Team members shall have access to the documents.
CEAC4 The commercial evaluation criteria as approved by PETRONAS are
to be adhered to strictly. PETRONAS prior approval is required for
any deviation from the approved criteria.
CEAC5 The commercial evaluation should be conducted in Ringgit Malaysia
(RM). Commercial bid proposals in foreign currencies should be
converted to RM equivalent.
The exchange rate used should be the average of buying and
selling quoted by Bank Negara on the bid closing date.
CEAC6

Upon completion of commercial evaluation all the technically
acceptable bidders should be ranked commercially. Bidder with the
lowest total bid award price shall be recommended for award.

APPENDIX 4

Page 436

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Commercial Bid Opening & Evaluation (CE) (continued)

Value Band Process
Above CTL CEAC6 No clarification or communication with the bidders is allowed during
the commercial evaluation.
CTL & Below CEBC1 As per individual PS Contractors in-house procurement
procedures.

4.1.7 TECHNICAL AND COMMERCIAL EVALUATION REPORTS & AWARD RECOMMENDATION
Definition:
Technical and Commercial Evaluation Reports are the reports on findings and result of technical and
commercial bids evaluations respectively.
Award Recommendation is a recommendation from PS Contractors to PETRONAS based on the
Technical and Commercial Evaluation results to award the tender to the successful bidder.
Scope:
This covers the process from preparation of report which details out the findings and result of technical
and commercial evaluation from which award recommendation is developed.
Principles:
Technical Evaluation Report (TER) for tender value above RM15 Million requires PETRONAS approval
prior to the opening and evaluation of the commercial bid.
For tender value below RM15 Million, the technical and commercial evaluation results are integrated in
the Techno-Commercial and Award Recommendation Report. However, when there is none or only one
(1) technically acceptable bidder from a competitive bidding exercise, PS Contractors shall present the
Technical Evaluation Report to the relevant Tender Committee for PETRONAS approval on the next
course of action.
Award Recommendation proposed by PS Contractors to PETRONAS shall be based on technically
acceptable and commercially lowest bidder. The final decision on the Award Recommendation shall rest
with the respective Approving Authority

APPENDIX 4

Page 437

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Evaluation & Award Recommendation Process (AR)

Value Band Process
Above
RM15 Million
ARA1

Two (2) sets of the draft TER shall be submitted to the Senior
The TER shall be in a format given in ATTACHMENT XIII.
Compliance to this format will ensure the quality of the submission
and timely PETRONAS review. Noncompliance to the format will
render the submission automatically rejected.
ARA2

The TER shall be reviewed and signed by the Technical
Coordinator and Techno-Commercial Coordinator. The review is
expected to complete within seven (7) working days.
ARA3

Seven (7) copies of the TER shall be submitted by PS Contractors
to the TCC Secretary three (3) working days before the TCC
meeting.
ARA4

After Tender Committee deliberation, PS Contractors should submit
the amended report incorporating all Tender Committees
comments. The amended report must be re-signed and submitted
to the TCC Secretary within 14 days.
Failure to comply with the above, PS Contractors is required to re-
present the Tender Plan in the subsequent Tender Committee
meeting.
ARA5 Once endorsed by the TCC, the TER shall be signed by the TCC
Chairman. Eight (8) copies shall be submitted by PS Contractors to
the CTC Secretary, three (3) working days before CTC meeting.

APPENDIX 4

Page 438

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Evaluation & Award Recommendation Process (AR) (continued)

Value Band Process
Above
RM15 Million
ARA6

Upon approval of the Technical Evaluation Report by CTC, the
Commercial Evaluation Methodology and Criteria shall be
presented to TCC for approval. Then the commercial bids can be
opened for evaluation.
ARA7

A draft of Techno-Commercial Evaluation and Award
Recommendation Report shall be submitted to the Senior Manager,
PSC Management Department for PETRONAS review.
The Techno-Commercial and Award Recommendation Report shall
be in a format as given in ATTACHMENT XV. Compliance to this
format will ensure the quality of the submission and timely
PETRONAS review. Noncompliance to the format will render the

ARA8

The Techno-Commercial Evaluation and Award Recommendation
Report shall be reviewed and signed by the Techno-Commercial
Coordinator. The review is expected to complete within seven (7)
working days.
ARA9

Seven (7) copies of the Techno-Commercial Evaluation and Award
Recommendation Report shall be submitted by PS Contractors to
the TCC Secretary three (3) working days before the TCC meeting.
ARA10 A Bidders' Code in the format as per ATTACHMENT XIV shall be
submitted in a sealed envelope to TCC Secretary on the day of the
TCC meeting.
ARA11

After Tender Committee deliberation, PS Contractors should submit
the amended report incorporating all Tender Committees
to the TCC Secretary within 14 days.
Failure to comply with the above, PS Contractors is required to re-
present the Tender Plan in the subsequent Tender Committee
meeting.

APPENDIX 4

Page 439

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008


Value Band Process
Above
RM15 Million
ARA12

Once endorsed by the TCC, the Techno-Commercial Evaluation
and Award Recommendation Report shall be signed by the TCC
Chairman. Eight (8) copies shall be submitted by PS Contractors
to the CTC Secretary, three (3) working days before CTC meeting.
ARA13

For tender value RM15 -100 Million, three (3) copies of the
Techno-Commercial and Award Recommendation Report must be
submitted by PS Contractors to the CTC Secretary, three (3)
working days before the MC meeting.
The Techno-Commercial and Award Recommendation Report for
PETRONAS MC approval shall be in a format as given in
ATTACHMENT XVIII.
ARA14

For tender value above RM100 Million, nineteen (19) copies of the
Techno-Commercial and Award Recommendation Report must be
submitted by PS Contractors to the CTC Secretary, three (3)
working days before the Board meeting.
PETRONAS Board approval shall be in a format as given in
ATTACHMENT XVIII.
ARA15

After the approval of PETRONAS Board has been obtained, one
(1) copy of the Techno-Commercial and Award Recommendation
Report shall be submitted by PS Contractors to the CTC Secretary
for onward submission to Ministry of Finance (MOF) for
concurrence.
MOF concurrence shall be in a format as given in ATTACHMENT
XVIII.

APPENDIX 4

Page 440

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008


Value Band Process
Above CTL to RM15
Million
ARAC1

Two (2) sets of the draft Techno-Commercial Evaluation and
Award Recommendation Report shall be submitted to the Senior
The Techno-Commercial Evaluation and Award
Recommendation Report shall be in a format given in
ATTACHMENT XVI and ATTACHMENT XVII. Compliance to this
format will ensure the quality of the submission and timely
PETRONAS review. Noncompliance to the format will render the
However, when there is none or only one (1) technically
acceptable bidder, PS Contractors shall present the Technical
Evaluation Report to the relevant Tender Committee after
reviewed and signed by the Technical Coordinator and Techno-
Commercial Coordinator for PETRONAS approval on the next
course of action.
The TER shall be in a format given in ATTACHMENT XIII and
ATTACHMENT XVII.
ARAC2 The Techno-Commercial Evaluation and Award
Recommendation Report shall be reviewed and signed by the
Technical Coordinator and Techno-Commercial Coordinator. The
review is expected to complete within seven (7) working days.
ARAC3 Seven (7) copies of the Techno-Commercial and Award
Recommendation Report shall be submitted by PS Contractors to
the relevant Tender Committee Secretary three (3) working days
before the JTC meeting.
ARAC4 A Bidders' Code in the format as per ATTACHMENT XIV shall be
submitted in a sealed envelope to relevant Tender Committee
Secretary on the day of the meeting.

APPENDIX 4

Page 441

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Value Band Process
ARAC5 After Tender Committee deliberation, PS Contractors should
submit the amended report incorporating all Tender Committees
to relevant Tender Committee within the following time frame: -
i) MJTC - 14 days
ii) JTC - 7 days
iii) RJTC - 7 days
However, amended report submitted within 24 hours after
deliberation need not be resigned.
Failure to comply with the above, PS Contractors is required to
re-present the Tender Plan in the subsequent Tender Committee
meeting.
ARAC6 Once endorsed by the relevant Tender Committee, the Chairman
shall prepare the tender committee summary for approval from
Approving Authority.
CTL & Below ARBC1 As per individual PS Contractors in-house procurement
procedures.
4.1.8 CONTRACT AWARD
Definition:
Contract award is when PS Contractors award the contract to the successful bidder upon receiving
PETRONAS approval.
Scope:
This covers the period from PETRONAS approval of the Techno-Commercial and Award
Recommendation Report until the successful bidder is notified of the award and finalised contract
documents are with the various parties for execution.

APPENDIX 4

Page 442

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Principle:

PETRONAS will issue an approval letter for the Techno-Commercial and Award Recommendation
Report to PS Contractors upon obtaining approval from Approving Authority.
The approval letter should include name of successful bidder, Approved Contract Value (ACV), contract
duration and the approval condition(s). The ACV is known as Original ACV and this information shall not
be revealed to the successful bidder.
PS Contractors shall issue a Letter Of Intent to Award or Letter Of Award to the successful bidder within
fourteen (14) days after receipt of PETRONAS approval.
PS Contractors shall ensure the approval condition(s) are incorporated into the contract documents.

Contract Award Approval Process (CA)
Value Band Process
Above CTL CAAC1 PETRONAS to notify PS Contractors of the award approval via fax
and/or letter.
CAAC2 PS Contractors shall issue a letter of Award/Intent to the successful
bidder.
CAAC3 A copy of award notification shall be submitted to PETRONAS.
CAAC4 PS Contractors shall prepare final contract document, which
incorporates all conditions imposed by PETRONAS.
CTL & Below CABC1 As per individual PS Contractors in-house procurement
procedures.

APPENDIX 4

Page 443

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

4.1.9 ABORTING TENDER
Definition:
Aborting Tender is when PS Contractors recommend to abort the tendering exercise or when PETRONAS
direct PS Contractors to abort the tender.
Scope:
This covers the process of aborting tender resulting from, but not limited to the following situations:
i) A major change in work scope and technical specification.
ii) The goods or services are no longer required after further study of the requirement.
iii) Unreasonable bid price i.e. too high compared to the prevailing market price.
iv) Deferment or cancellation of projects.
v) The only technically acceptable bidder withdrew from tendering exercise.
vi) Non-compliance to the tendering process.
Principle:
PS Contractors shall notify PETRONAS in writing of their intention to abort the specific tender with
justifications.
Subsequently, PS Contractors are required to present the proposal to abort the tender exercise to the
relevant Tender Committee for PETRONAS approval within 30 days.
The proposal shall contain, but not limited to the following elements:
i) Objective.
ii) Tender Background - original tender requirement, work scope and tender approval process.
iii) Justification.
iv) Recommendation.

APPENDIX 4

Page 444

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Tender Abortion Process (TA)
Value Band Process
Above CTL TAAC1 PS Contractors shall notify PETRONAS in writing on their intention
to abort the tender.
TAAC2 Two (2) sets of the draft proposal to abort the tender shall be
submitted to the Senior Manager, PSC Management Department for
PETRONAS review.
TAAC3 The proposal to abort the tender shall be reviewed and signed by
the Technical Coordinator and Techno-Commercial Coordinator.
The review is expected to complete within seven (7) working days.
TAAC4 Seven (7) copies of the proposal to abort the tender shall be
submitted by PS Contractors to the relevant Tender Committee
Secretary three (3) working days before the meeting.
CTL & Below TABC1 As per individual PS Contractors in-house procurement procedures.

APPENDIX 4

Page 445

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

APPENDIX 4.2

LIST OF GOVERNMENTAL PERMIT, APPROVALS AND
NOTIFICATIONS FOR OFFSHORE FACILITIES OF
DEVELOPMENT PROJECT (BY PHASES)

Permit, Approval or Notice
Government
Agency
Applicable
Law
A. Screening, Conceptual Design, Concept Selection and DBM Preparation.

1) Approval of Environmental Impact Assessment (EIA) Report for Offshore
Facilities.
DOE EQA
B. Preliminary and Detailed Design

1) Approval to Install and Operate Platforms, Pipelines, Submarine Cables in
the EEZ .
MDTCA EEZA

2) Approval for Direct Importation of Procured Materials and Equipment for
the Project.
CED CEO

3) Exemption from Customs Duties and Tax for Project Purchased Non-BEL
Items.
Treasury CA

4) Communications Equipment Import Permit for Platforms.
TD TA

5) Approval to Install Subsea Trunk Pipelines and Onshore Pipelines (PTI)
DOSH PSMA

6) Notification of Intent to Cross Telecommunications Cable.
JTM -

7) Approval for OSC (Onshore Slug Catcher) Pipeline Shore Crossing.
Port Authority -
C. Fabrication

1) DOSH Approval of Cranes/Pressure Vessels/Machineries on Platforms.
DOSH FMA

2) Approval to Dispose of Project Purchased BEL Items.
Treasury CEO
D. Offshore Transportation and Installation

1) Approval to Designate Platforms as Legal Landing Places. (Construction
to make request thru Tax Dept.)
CED CA

2) Maritime Notification for Temporary Offshore Marine Vessel Operations
Related to Offshore Construction Activities.
MD MSO

3) Notification of Permanent Offshore Installation of Platforms, Pipelines and
Submarine Cables.
MD MSO

APPENDIX 4

Page 446

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Permit, Approval or Notice
Government
Agency
Applicable
Law

4) Approval for Direct Importation/Relocation of Fabricated
Components.
CED CEO

5) Notification to DOE of Commencement of Offshore Construction
Work.
DOE EQA

6) Notification to DOE for Completion of Offshore Construction Work. DOE EQA

7) Notification to DOSH for Subsea Trunk/Onshore Pipelines.
DOSH PSMA

8) Approval from DOE Director General to Discharge Effluent into
Malaysia Waters for Pipeline Flushing, Pigging and Hydrotesting.
DOE EEZA

9) Notification of Platforms and Pipelines Installation for Fishermens
Compensation.
FD MOU

10) Notification of Pipeline Installation Landing Onshore.
DC -
E. Startup And Operations

1) Gazetting the Offshore Installation as a Protected Place.
MHA PAPPA

2) Communications Equipment Operating License and Assignment of
Operating Frequencies.
TD TA

3) Approval to Operate Subsea Pipelines to shore.
DOSH PSMA
F. Notifications to DOSH for Emergency Pipeline Works (If necessary)
DOSH PSMA

APPENDIX 5

Page 447

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

* P l e a s e n ot e d t ha t al l a p pr o va l r e q u e st a n d i n fo n ee d t o b e s u b m i t t o P S C E x p l or a t io n M a n a g e m e n t gr o u p
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O
P
E
R
A
T
I
O
N
S

M
A
N
A
G
E
M
E
N
T

3
.

P
R
D

P
E
T
R
O
L
E
U
M

R
E
S
O
U
R
C
E

D
E
V
E
L
O
P
M
E
N
T

4
.

N
O
O
P

N
O
T
I
C
E

O
F

O
P
E
R
A
T
I
O
N

5
.

G
&
G

G
E
O
L
O
G
I
S
T

A
N
D

G
E
O
P
H
Y
S
I
S
T

A
P
P
E
N
D
I
X

5

P
a
g
e

4
4
9

S
U
P
E
R
S
E
D
E

I
S
S
U
E
:

A
U
G

2
0
0
0

I
S
S
U
E
D

B
Y

P
E
T
R
O
L
E
U
M

M
A
N
A
G
E
M
E
N
T

U
N
I
T

R
E
V
I
S
I
O
N

2

A
U
G

2
0
0
8

N
o
t
e
:

1
.

P
R
E
X

P
E
T
R
O
L
E
U
M

R
E
S
O
U
R
C
E

E
X
P
L
O
R
A
T
I
O
N

2
.

P
O
M

P
E
T
R
O
L
E
U
M

O
P
E
R
A
T
I
O
N
S

M
A
N
A
G
E
M
E
N
T

3
.

P
R
D

P
E
T
R
O
L
E
U
M

R
E
S
O
U
R
C
E

D
E
V
E
L
O
P
M
E
N
T

4
.

N
O
O
P

N
O
T
I
C
E

O
F

O
P
E
R
A
T
I
O
N

5
.

G
&
G

G
E
O
L
O
G
I
S
T

A
N
D

G
E
O
P
H
Y
S
I
S
T

P
R
O
D
U
C
T
I
O
N

S
T
A
G
E

P
l
u
g

&

A
b
a
n
d
o
n

(
P
&
A
)

E
x
i
s
t
i
n
g

W
e
l
l

A
p
p
r
o
v
a
l

(
P
O
M
)

I
n
f
o

(
P
R
D
)

D
E
C
O
M
M
I
S
I
O
N
I
N
G

S
T
A
G
E

W
e
l
l

A
b
a
n
d
o
n
m
e
n
t

A
p
p
r
o
v
a
l

(
P
O
M
)

I
n
f
o

(
P
R
D
)

P
M
U

C
O
R
R
E
S
P
O
N
D
E
N
C
E

L
I
S
T

APPENDIX 5

Page 450

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Detail Cost Breakdown

LINE DETAILS OF COSTS TOTAL (USD)
A TANGIBLE COSTS DRILLING COMPLETION TOTAL
CASING AND ACCESSORIES
TUBING
WELL EQUIPMENT - SURFACE
WELL EQUIPMENT - SUBSURFACE
OTHERS TANGIBLE COST

TOTAL TANGIBLE COST
B INTANGIBLE COSTS DRILLING COMPLETION TOTAL
1 PREPARATION AND TERMINATION
- RIG UP / RIG DOWN
- SURVEY
-LOCATION STAKING / POSITIONING

2 DRILLING AND WORKOVER OPERATION
-CONTRACT RIG
-MUD CHEMICAL AND ENGINEERING SERVICES
- WATER
-BIT, REAMERS AND CORE HEAD
-DIRECTIONAL DRILLING AND SURVEY
-CASING INSTALLATION
-CEMENT, CEMENTING AND PUMP FEES
-EQUIPMENT RENTAL
-DIVING SERVICES

3 FORMATIONAL EVALUATION
-CORING AND SIDEWALL CORE
-MUD LOGGING SURFACE
-DRILLING STEM TEST, RFT
-OPEN HOLE ELECTRICAL LOGGING SERVICES

4 COMPLETION
-CASING LINER AND TUBING INSTALLATION
-CEMENT, CEMENTING AND PUMP FEES
-CASED HOLE ELECTRICAL LOGGING SERVICES
-PERFORATION AND WIRELINE SERVICES
-STIMULATION TREATMENT

5 GENERAL
-SUPERVISION
-INSURANCE
-MARINE RENTAL AND CHARTERS
-HELICOPTER AND AVIATION CHARGERS
-OTHER TRANSPORTATION
-ALLOCATION OVERHEAD
-FUEL & LUBRICANT
-ENVIRONMENTAL COST
TOTAL INTANGIBLE COST
TOTAL COST

APPENDIX 6

Page 451

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

INTENTIONALLY LEAVE AS BLANK PAGE

APPENDIX 7 Page 452

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

TABLE A

~ FIRE INTEGRITY OF BULKHEADS SEPARATING ADJACENT SPACES ~

Space Below \ Space Above [1] [Z] [3] [4] [5] [6] [7] [8] [9] [10]
Control Stations [1] AO
d/
AO A60 A0 A15 A60 A15 A60 A60
Corridors [2]

C BO BO
AO
b/
BO A60 AO AO AO
Accommodation Spaces [3]

C BO
AO
b/
BO A60 AO AO AO
Stairways [4]

BO
AO
b/
BO
AO
b/
A60 AO AO AO
Services Spaces (low risk) [5]

C A60 AO AO AO
Machinery Spaces of
Category A
[6]

a/
AO
a/
A60 A60
Other Machinery Spaces [7]

AO
a/
c/
AO AO
Hazardous Areas [8]

- AO -
Service Spaces (high risk) [9]

AO
c/

Open Deck [10]

-

APPENDIX 7 Page 453

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

TABLE B

~ FIRE INTEGRITY OF DECKS SEPARATING ADJACENT SPACES ~

Space Below \ Space Above [1] [Z] [3] [4] [5] [6] [7] [8] [9] [10]
Control Stations
[1]
AO AO AO A0 AO A60 AO AO AO
Corridors
[2]
AO AO A60 AO AO AO
Accommodation Spaces
[3]
A60 AO AO A60 AO AO AO
Stairways
[4]
AO AO AO AO A60 AO AO AO
Services Spaces (low risk)
[5]
A15 AO AO AO A60 AO AO AO
Machinery Spaces of
Category A
[6]
A60 A60 A60 A60 A60 A60 A60 A60
Other Machinery Spaces
[7]
A15 AO AO AO AO AO
a/

a/
AO AO
Hazardous Areas
[8]
A60 AO AO AO AO A60 AO - AO -
Service Spaces (high risk)
[9]
A60 AO AO AO AO A0 AO AO AO
c/

Open Deck
[10]
- -

A
P
P
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N
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S
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APPENDIX 9
Page 464

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008


APPENDIX 10
Page 465

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008


APPENDIX 11

Page 466

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

List of KPIs for Facilities Reliability and Integrity

KPI Element Definition Unit of
Measure
Compliance to overall
planned maintenance.

Number of PMs completed x 100%
Number of PMs planed
%
Compliance of critical
safety devices and
systems preventive
maintenance.

Number of PMs completed x 100%
Number of PMs planed
%
Loss of Containment
(LOC) incident related
to technical integrity.
Number of reportable Loss of Containment
(LOC) incident related to technical integrity of
facilities.
No.
Overall Equipment
Efficiency, OEE-(Oil)
100
Potential Technical Adjusted
Production Actual
OEE x =

%
Overall Equipment
Efficiency, OEE-(Gas)
100
Potential Technical Adjusted
Production Net
OEE x =

%

APPENDIX 12
Page 467

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

TECHNICAL PROPOSAL REQUIRES PETRONAS APPROVAL

NO. TECHNICAL PROPOSAL DOCUMENT
PETRONAS
APPROVAL
TIMING
1 Any new wells not included in the
approved FDP
FDP revision or
Notice of Operations
1 Month
2 Any workover wells of the following
objectives:-
Recomplete/deepen to new zone
not develop/address in the FDP,
Sidetrack new zone not
develop/address in the FDP
FDP Revision
Technical Proposal
1 Month
3 Any workover wells of the following
objectives:-
Recompletion
Reperforation
Sidetrack exciting zones
Squeeze/plug job
Gravelpack installation
Mechanical repair
Acid stimulation/fracturing
Change in well utility
Technical proposal 2 weeks
4 FDP revision:-
Development of new reservoirs,
wells, platform.
Appraisal of new area
Changes to drainage plan i.e:-
Platforms
Wells
Type of completions
Changes to development concept
e.g. Evacuation route, integrated
development, FPSO. Etc.
FDP Revision 1 Month

APPENDIX 12
Page 468

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

NO. TECHNICAL PROPOSAL DOCUMENT
PETRONAS
APPROVAL
TIMING
5 Reservoir Management Plan
revisions:-
GOR Limit revision/relaxation
Gas/Water Injection revision
Production Policy i.e:-
Offtake by well/reservoir
Commingle/decommingle zone
Change in depletion strategy and
well utility i.e.:-
Oil producer to gas/water
injection
Gas injection to gas sale
Technical proposal 2 weeks
6 Facilities Improvement Plan (FIP)
Revision / Facilities Rejuvenation Plan
(FRP):-
Any changes of :
Objective
Concept/Scheme
Technology
Operations & Maintenance
Philosophy
FIP Revision 1 Month

Note:

1) Other activities not listed above do not require PETRONAS technical
approval.
2) Contractor may apply for exception to the above approval timing i.e. when
good opportunity arises with justification for PETRONAS approval.
3) The PETRONAS approval timing is based on best endeavour basis and
subject to issues being resolved.

APPENDIX 13

Page 469

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008


APPENDIX 14 Page 470

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

14.0 TYPICAL LIQUID METERING SYSTEM

Figure 1: Liquid Metering System (Custody Transfer) typical schematic diagram.


SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

14.1 FLOWMETER TYPES

For each flowmeters that is to be/currently used, Contractors shall comply with the following
requirements:
14.1.1 Turbine Meters

Turbine meters shall be equipped with two pick-up coils each of which shall be fitted
with a preamplifier and is independent of each other.
The turbine meter shall be installed and provided with meter tubes and flow
straighteners as necessary, in accordance with the ISO 2715 Liquid Hydrocarbons
Volumetric measurement by turbine meter systems and API MPMS Chapter 5
Metering Section 3 Measurement of Liquid Hydrocarbons by Turbine Meters
The linearity of each meter shall be within +/- 0.25% of the average meter factor over
the designed flow range and for the full range of viscosities specified, i.e. the complete
family of calibration curves for all viscosities within the specified "Normal operating
flow range", shall lie within the envelope of +/- 0.25% of the average between the
highest and lowest meter factor at the specified viscosity.
The vendor shall provide, in its proposal, typical meter test reports for the type and
size of meter offered over the specified viscosity range.
14.1.2 Positive Displacement Meters

Positive displacement (PD) meters are to be used when the turbine meters can not
meet the conditions of the medium such as too high a viscosity for it to operate.
Double casing type of PD meter should be used for high-pressure application to
minimize the effect of pressure in volume of the measuring chamber of the meter. The
required repeatability and linearity for the meter is similar to that of a turbine meter.
The proving requirement for the PD meter is also similar to that of the turbine meter.
The pulse generator selected must be capable to provide sufficient pulses required i.e
10,000 whole pulses (unaltered) for a single trip when proving using conventional pipe
prover.


SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

14.1.3 Other Meters

Use of other types of flowmeter other than turbine and positive displacement meters
shall be subjected to PETRONAS approval.
14.2 METERING DATA

The following metering data, including but not limited to, shall be made available and printed
automatically or on demand:

14.2.1 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. Batch Start Report
i. Batch Number
ii. Batch Start Date/Time
iii. Gross Volume Start (Cumulative)
iv. Gross Volume Finish (Cumulative)
v. Gross Volume (Gross Volume Start Gross Volume Finish)
vi. Flow Rate
vii. Meter Factor
viii. Temperature
ix. Pressure
x. Prover and Meter Runs Settings and Constants Log

B. Batch Hourly Report
i. Batch Number
ii. Report Date/Hour
iii. Gross Volume Start (Cumulative)
iv. Gross Volume Finish (Cumulative)
v. Gross Volume (Gross Volume Start Gross Volume Finish)
vi. Flow Rate
vii. Meter Factor
viii. Temperature
ix. Pressure


SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

C. Batch End Report
i. Batch Number
ii. Batch Start Date/Time
iii. Batch End Date/Time
iv. Gross Volume Start (Cumulative)
v. Gross Volume Finish (Cumulative)
vi. Gross Volume (Gross Volume Start Gross Volume Finish)
vii. FWAT - Flow Weighted Average Temperature
viii. FWAP - Flow Weighted Average Pressure
ix. Meter Factor
x. Calculated CTL
xi. Calculated CPL
xii. Standard Volume

D. Meter Proving Report
i. Batch Number
ii. Prover Volume Identification/Volume
iii. Meter Tag No.
iv. Proving Start Date/Time
v. Proving End Date/Time
vi. Trial Run Number

For Each Trial Run:

vii. Volume Flow Rate
viii. Pulse Count
ix. Flight Time
x. Density
xi. Line Temperature
xii. Line Pressure
xiii. Prover Temperature
xiv. Prover Pressure
xv. CTLm, CPLm, CTLp, CPLp, CTSp, CPSp
xvi. Meter Factor


SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Every final average of the 5 consecutive trial runs resulting the successful meter
proving:

xvii. Volume Flow Rate
xviii. Pulse Count
xix. Flight Time
xx. Density
xxi. Line Temperature
xxii. Line Pressure
xxiii. Prover Temperature
xxiv. Prover Pressure
xxv. CTLm, CPLm, CTLp, CPLp, CTSp, CPSp
xxvi. Meter Factor
xxvii. Meter Factor Repeatability %
xxviii. Previous in Use Meter Factor
xxix. Difference between the New and Previous in Use Meter Factor

14.2.2 Continuous Flow Measurement

The metering data for continuous flow measurement should consist of Hourly Report,
Sale Report and Production Report.
A. Hourly Report
i. Date/Time of Report
ii. Gross/Standard/Net Volume and Mass (if applicable) Start (Cumulative)
iii. Gross/Standard/Net Volume and Mass (if applicable) Finish (Cumulative)
iv. Gross/Std/Net Volume and Mass (if applicable) (Gross Volume Start Gross
Volume Finish)
v. Flow Rate
vi. FWAT
vii. FWAP
viii. Density
ix. Calculated CTL
x. Calculated CPL


SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

xi. Base Oil and Water Density Settings
xii. Calculated Water-Cut

B. Sale Report (e.g. 00:00 00:00)
C. Production Report (e.g. 06:00 06:00)


SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

TYPICAL GAS METERING SYSTEM

Figure 1: Gas Metering System (Custody Transfer) typical schematic diagram.

15.1 METERING DATA
The following metering data, including but not limited to, shall be made available and printed
automatically or on demand:
15.1.1 Continuous Flow Measurement
The metering data for continuous flow measurement should consist of Hourly Report,
Sale Report and Production Report.


SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

A. Hourly Report
2. Date/Time of Report
3. Gross/Standard/Net Volume, GHV and Mass (if applicable) Start
(Cumulative)
4. Gross/Standard/Net Volume, GHV and Mass (if applicable) Finish
(Cumulative)
5. Gross/Std/Net Volume, GHV and Mass (if applicable) (Gross Volume
Start Gross Volume Finish)
6. Flow Rate
7. FWAT
8. FWAP
9. Density
10. Calculated CTL
11. Calculated CPL
12. Base Oil and Water Density Settings
13. Calculated Water-Cut

B. Sale Report (e.g. 00:00 00:00)
C. Production Report (e.g. 06:00 06:00)


SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Appendix 16.1


SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Appendix 16.2


SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Appendix 16.3


SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Appendix 16.4


SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Appendix 16.5

Appendix 16.6


SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Appendix 16.7


SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Appendix 16.8

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F
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1
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3

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t
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1
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1

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1

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N
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t
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D
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2

B
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y

2
.
1

W
a
t
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r

d
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p
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m
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P
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p
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r

C
D
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1
:
2
5
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0
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0

1
:
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1
:
1
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A
c
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b
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P
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1

m
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a
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c
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d

N
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n
e

2
.
2

W
a
t
e
r

d
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p
t
h

d
a
t
a

P
a
p
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r

C
D
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/
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N
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a

A
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S
h
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p
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f
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(
E
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)

1

m
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N
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n
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3

S
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t
e

S
u
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y

3
.
1

P
r
o
c
e
s
s
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d

d
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g
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t
a
l

d
a
t
a

C
D
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/
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D

N
/
a

S
E
G
-
Y

1

m
o
n
t
h

a
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y

c
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d

N
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n
e

3
.
2

I
n
t
e
r
p
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t
a
t
i
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n

r
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p
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r
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P
a
p
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C
D
R
/
D
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D

N
/
a

A
c
r
o
b
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t

P
D
F

3

m
o
n
t
h
s

a
f
t
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r

i
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r
p
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t
a
t
i
o
n

c
o
m
p
l
e
t
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d

I
n
c
l
u
s
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v
e

o
f

a
n
a
l
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g

d
a
t
a

A
P
P
E
N
D
I
X

1
7

P
a
g
e

4
9
1

S
U
P
E
R
S
E
D
E

I
S
S
U
E
:

A
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G

2
0
0
0

I
S
S
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D

B
Y

P
E
T
R
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L
E
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M

M
A
N
A
G
E
M
E
N
T

U
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I
T

R
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S
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2

A
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2
0
0
8

N
O
.

D
A
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A

C
L
A
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S

M
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A

S
C
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L
E

F
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N

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*
E
l
e
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F
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D
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3
.
3

S
i
t
e

S
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y

M
a
p

C
D
R
/
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D

A
c
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P
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F

S
h
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p
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f
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m
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t

(
E
S
R
I
)

1

m
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n
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h

a
f
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e
r

s
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y

c
o
m
p
l
e
t
e
d

N
o
n
e

4

G
r
a
v
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t
y

S
u
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v
e
y

(
i
f

a
v
a
i
l
a
b
l
e
)

4
.
1

G
r
a
v
i
t
y

a
n
d

a
c
c
e
l
e
r
o
m
e
t
e
r

r
e
c
o
r
d
s
/
p
r
o
f
i
l
e
s

o
r

s
p
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t

r
e
a
d
i
n
g

P
a
p
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r

C
D
R

/

D
V
D

/

I
B
M

3
5
9
0

N
/
a

N
/
a

1

m
o
n
t
h

a
f
t
e
r

s
u
r
v
e
y

c
o
m
p
l
e
t
e
d

N
o
n
e

4
.
2

T
r
a
v
e
r
s
e

l
i
n
e

m
a
p
s

P
a
p
e
r

C
D
R
/
D
V
D

1
:
2
5
,
0
0
0

1
:
5
0
,
0
0
0

1
:
1
0
0
,
0
0
0

A
S
C
I
I

1

m
o
n
t
h

a
f
t
e
r

s
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v
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y

c
o
m
p
l
e
t
e
d

N
o
n
e

4
.
3

M
e
t
e
r

c
a
l
i
b
r
a
t
i
o
n

a
n
d

d
r
i
f
t

b
a
s
e

s
t
a
t
i
o
n

r
e
p
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r
t
s

P
a
p
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r

C
D
R
/
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D

N
/
a

A
S
C
I
I

1

m
o
n
t
h

a
f
t
e
r

s
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r
v
e
y

c
o
m
p
l
e
t
e
d

N
o
n
e

4
.
4

N
a
v
i
g
a
t
i
o
n
a
l

r
e
c
o
r
d
s

r
e
q
u
i
r
e
d

f
o
r

c
o
r
r
e
c
t
i
o
n

t
o

o
b
s
e
r
v
a
t
i
o
n
s

P
a
p
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r

C
D
R
/
D
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D
/

I
B
M

3
5
9
0

N
/
a

1

m
o
n
t
h

a
f
t
e
r

s
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r
v
e
y

c
o
m
p
l
e
t
e
d

N
o
n
e

4
.
5

P
r
o
c
e
s
s
e
d

g
r
a
v
i
t
y

a
n
o
m
a
l
y

m
a
p
s

P
a
p
e
r

C
D
R
/
D
V
D

1
:
2
5
,
0
0
0

1
:
5
0
,
0
0
0

1
:
1
0
0
,
0
0
0

A
c
r
o
b
a
t

P
D
F

1

m
o
n
t
h

a
f
t
e
r

s
u
r
v
e
y

c
o
m
p
l
e
t
e
d

M
e
t
h
o
d

o
f

a
n
o
m
a
l
i
e
s

c
a
l
c
u
l
a
t
i
o
n

s
h
o
u
l
d

b
e

e
x
p
l
a
i
n
e
d

A
P
P
E
N
D
I
X

1
7

P
a
g
e

4
9
2

S
U
P
E
R
S
E
D
E

I
S
S
U
E
:

A
U
G

2
0
0
0

I
S
S
U
E
D

B
Y

P
E
T
R
O
L
E
U
M

M
A
N
A
G
E
M
E
N
T

U
N
I
T

R
E
V
I
S
I
O
N

2

A
U
G

2
0
0
8

N
O
.

D
A
T
A

C
L
A
S
S

M
E
D
I
A

S
C
A
L
E

F
O
R
M
A
T

S
U
B
M
I
S
S
I
O
N

P
E
R
I
O
D

R
E
M
A
R
K
S

H
a
r
d
c
o
p
y

*
E
l
e
c
t
r
o
n
i
c
s

F
u
t
u
r
e

D
a
t
a

4
.
6

L
i
s
t
i
n
g

o
f

a
b
s
o
l
u
t
e

m
e
a
s
u
r
e
d

g
r
a
v
i
t
y

v
a
l
u
e
s
,

t
h
e
o
r
e
t
i
c
a
l

g
r
a
v
i
t
y

v
a
l
u
e
s

a
n
d

c
o
r
r
e
c
t
e
d

f
r
e
e
-
a
i
r

g
r
a
v
i
t
y

a
n
o
m
a
l
y

v
a
l
u
e
s

P
a
p
e
r

C
D
R
/
D
V
D

N
/
a

A
S
C
I
I

1

m
o
n
t
h

a
f
t
e
r

s
u
r
v
e
y

c
o
m
p
l
e
t
e
d

N
o
n
e

5

M
a
g
n
e
t
i
c

S
u
r
v
e
y

(
i
f

a
v
a
i
l
a
b
l
e
)

5
.
1

M
a
g
n
e
t
o
m
e
t
e
r

r
e
c
o
r
d
s
/
p
r
o
f
i
l
e
s

P
a
p
e
r

C
D
R
/
D
V
D
/
I
B
M

3
5
9
0

N
/
a

N
/
a

1

m
o
n
t
h

a
f
t
e
r

s
u
r
v
e
y

c
o
m
p
l
e
t
e

N
o
n
e

5
.
2

A
l
t
i
m
e
t
e
r

r
e
c
o
r
d
s
,

s
t
o
r
m

m
o
n
i
t
o
r

r
e
c
o
r
d
s

a
n
d

n
a
v
i
g
a
t
i
o
n
a
l

r
e
c
o
r
d

P
a
p
e
r

C
D
R
/
D
V
D
/
I
B
M

3
5
9
0

N
/
a

N
/
a

1

m
o
n
t
h

a
f
t
e
r

s
u
r
v
e
y

c
o
m
p
l
e
t
e
d

N
o
n
e

5
.
3

T
r
a
v
e
r
s
e

l
i
n
e

m
a
p
s

P
a
p
e
r

C
D
R
/
D
V
D

1
:
2
5
,
0
0
0

O
R

1
:
5
0
,
0
0
0

O
R

1
:
1
0
0
,
0
0
0

A
c
r
o
b
a
t

P
D
F

1

m
o
n
t
h

a
f
t
e
r

s
u
r
v
e
y

c
o
m
p
l
e
t
e
d

N
o
n
e

5
.
4

M
a
g
n
e
t
o
m
e
t
e
r

o
p
e
r
a
t
o
r

l
o
g

o
r

o
t
h
e
r

m
e
a
n
s

o
f

r
e
l
a
t
i
n
g

m
a
g
n
e
t
i
c

o
b
s
e
r
v
a
t
i
o
n

t
o

l
o
c
a
l

t
i
m
e

r
e
p
o
r
t
s

P
a
p
e
r

C
D
R
/
D
V
D
/

I
B
M

3
5
9
0

A
c
r
o
b
a
t

P
D
F

1

m
o
n
t
h

a
f
t
e
r

s
u
r
v
e
y

c
o
m
p
l
e
t
e
d

N
o
n
e

A
P
P
E
N
D
I
X

1
7

P
a
g
e

4
9
3

S
U
P
E
R
S
E
D
E

I
S
S
U
E
:

A
U
G

2
0
0
0

I
S
S
U
E
D

B
Y

P
E
T
R
O
L
E
U
M

M
A
N
A
G
E
M
E
N
T

U
N
I
T

R
E
V
I
S
I
O
N

2

A
U
G

2
0
0
8

N
O
.

D
A
T
A

C
L
A
S
S

M
E
D
I
A

S
C
A
L
E

F
O
R
M
A
T

S
U
B
M
I
S
S
I
O
N

P
E
R
I
O
D

R
E
M
A
R
K
S

H
a
r
d
c
o
p
y

*
E
l
e
c
t
r
o
n
i
c
s

F
u
t
u
r
e

D
a
t
a

5
.
5

D
i
u
r
n
a
l

v
a
r
i
a
t
i
o
n

r
e
c
o
r
d
s

P
a
p
e
r

C
D
R
/
D
V
D

N
/
a

N
/
a

1

m
o
n
t
h

a
f
t
e
r

s
u
r
v
e
y

c
o
m
p
l
e
t
e
d

N
o
n
e

5
.
6

M
E
T
O
C
E
A
N

(
M
e
t
e
o
r
o
l
o
g
y

a
n
d

O
c
e
a
n
o
g
r
a
p
h
y
)

d
a
t
a

:

1
)

W
a
v
e

2
)

W
i
n
d

3
)

C
u
r
r
e
n
t

4
)

T
i
d
e

5
)

T
e
m
p
e
r
a
t
u
r
e

6
)

S
a
l
i
n
i
t
y

P
a
p
e
r

C
D
R
/
D
V
D

A
c
r
o
b
a
t

P
D
F

f
o
r

r
e
p
o
r
t

A
S
C
I
I

f
o
r

d
a
t
a

3

m
o
n
t
h
s

a
f
t
e
r

c
o
m
p
l
e
t
i
o
n

R
e
p
o
r
t

p
e
r

p
r
o
j
e
c
t

6

S
e
a
b
e
d

L
o
g
g
i
n
g

S
u
r
v
e
y

(
i
f

A
v
a
i
l
a
b
l
e
)

6
.
1

R
a
w

D
a
t
a

(
E
M

d
a
t
a
)

P
M
U

D
a
t
a

M
a
n
a
g
e
m
e
n
t

N
/
a

C
D
R
/
D
V
D
/
3
5
9
0

N
/
a

1

m
o
n
t
h

a
f
t
e
r

s
u
r
v
e
y

c
o
m
p
l
e
t
e
d

6
.
2

P
r
o
c
e
s
s
e
d

D
a
t
a

P
M
U

D
a
t
a

M
a
n
a
g
e
m
e
n
t

N
/
a

C
D
R
/
D
V
D
/
3
5
9
0

N
/
a

3

m
o
n
t
h

a
f
t
e
r

p
r
o
c
e
s
s
i
n
g

c
o
m
p
l
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t
e
d

A
P
P
E
N
D
I
X

1
7

P
a
g
e

4
9
4

S
U
P
E
R
S
E
D
E

I
S
S
U
E
:

A
U
G

2
0
0
0

I
S
S
U
E
D

B
Y

P
E
T
R
O
L
E
U
M

M
A
N
A
G
E
M
E
N
T

U
N
I
T

R
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V
I
S
I
O
N

2

A
U
G

2
0
0
8

N
O
.

D
A
T
A

C
L
A
S
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M
E
D
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A

S
C
A
L
E

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U
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I
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N

P
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R
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M
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H
a
r
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y

*
E
l
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F
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t
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D
a
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6
.
3

A
c
q
u
i
s
i
t
i
o
n

&

P
r
o
c
e
s
s
i
n
g

(
F
i
n
a
l
)

R
e
p
o
r
t
s

P
M
U

D
a
t
a

M
a
n
a
g
e
m
e
n
t

P
a
p
e
r

(
I
f

A
v
a
i
l
a
b
l
e
)

C
D
R
/
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V
D

N
/
a

P
D
F

1

M
o
n
t
h

a
f
t
e
r

c
o
m
p
l
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t
i
o
n

o
f

A
c
q
u
i
s
i
t
i
o
n

3

M
o
n
t
h
s

a
f
t
e
r

c
o
m
p
l
e
t
i
o
n

o
f

P
r
o
c
e
s
s
i
n
g

7

O
t
h
e
r

S
u
r
v
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y

a
n
d

S
t
u
d
i
e
s

7
.
1

W
e
l
l

o
r

P
l
a
t
f
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r
m

s
i
t
e

s
u
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v
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y

d
i
g
i
t
a
l

I
B
M

3
5
9
0

(
1
0

o
r

2
0
G
b
)

N
/
a

S
E
G
-
D
/
S
E
G
Y

3

m
o
n
t
h
s

a
f
t
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r

s
t
u
d
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e
s
/
s
u
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v
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y

c
o
m
p
l
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t
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d

P
r
o
f
i
l
e
s
,

p
r
o
c
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s
s
e
d

d
a
t
a
,

m
a
p
s

a
n
d

r
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p
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t
s

S
E
G
-
D

f
o
r

f
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l
d

d
a
t
a

a
n
d

S
E
G
Y

f
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r

p
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s
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d

d
a
t
a

7
.
2

W
e
l
l

o
r

P
l
a
t
f
o
r
m

s
i
t
e

s
u
r
v
e
y

r
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p
o
r
t
s

P
a
p
e
r

C
D
R
/
D
V
D

N
/
a

A
c
r
o
b
a
t

P
D
F

3

m
o
n
t
h
s

a
f
t
e
r

s
t
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s
/
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v
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y

c
o
m
p
l
e
t
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d

P
r
o
f
i
l
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s
,

p
r
o
c
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s
s
e
d

d
a
t
a
,

m
a
p
s

a
n
d

r
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p
o
r
t
s

7
.
3

P
i
p
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l
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n
e

r
o
u
t
e

h
y
d
r
o
g
r
a
p
h
i
c

s
u
r
v
e
y

(
b
e
f
o
r
e

a
n
d

a
f
t
e
r

i
n
s
t
a
l
l
a
t
i
o
n
)

r
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p
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t

i
n
c
l
u
d
i
n
g

t
h
e

l
o
c
a
t
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o
n

p
o
i
n
t

P
a
p
e
r

(
r
e
p
o
r
t
)

C
D
R
/
D
V
D

N
/
a

R
e
p
o
r
t
-
A
c
r
o
b
a
t

P
D
F

D
i
g
i
t
a
l
-
C
A
D
/
S
h
a
p
e

f
i
l
e

3

m
o
n
t
h
s

a
f
t
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r

s
t
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d
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e
s
/
s
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v
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y

c
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m
p
l
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t
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d

P
r
o
f
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l
e
s
,

p
r
o
c
e
s
s
e
d

d
a
t
a
,

m
a
p
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a
n
d

r
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p
o
r
t
s

7
.
4

R
i
g

o
r

p
l
a
t
f
o
r
m

p
o
s
i
t
i
o
n
i
n
g

r
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p
o
r
t

P
a
p
e
r

C
D
R

N
/
a

A
c
r
o
b
a
t

P
D
F

1

w
e
e
k

a
f
t
e
r

s
p
u
d

d
a
t
e

F
i
n
a
l

s
p
u
d

l
o
c
a
t
i
o
n

m
u
s
t

b
e

t
r
a
n
s
m
i
t
t
e
d

i
m
m
e
d
i
a
t
e
l
y

w
i
t
h
i
n

2
4

h
r
s

A
P
P
E
N
D
I
X

1
7

P
a
g
e

4
9
5

S
U
P
E
R
S
E
D
E

I
S
S
U
E
:

A
U
G

2
0
0
0

I
S
S
U
E
D

B
Y

P
E
T
R
O
L
E
U
M

M
A
N
A
G
E
M
E
N
T

U
N
I
T

R
E
V
I
S
I
O
N

2

A
U
G

2
0
0
8

N
O
.

D
A
T
A

C
L
A
S
S

M
E
D
I
A

S
C
A
L
E

F
O
R
M
A
T

S
U
B
M
I
S
S
I
O
N

P
E
R
I
O
D

R
E
M
A
R
K
S

H
a
r
d
c
o
p
y

*
E
l
e
c
t
r
o
n
i
c
s

F
u
t
u
r
e

D
a
t
a

7
.
5

E
n
v
i
r
o
n
m
e
n
t
a
l

o
r

o
c
e
a
n
o
g
r
a
p
h
i
c

d
a
t
a

P
a
p
e
r

C
D
R
/
D
V
D

N
/
a

A
c
r
o
b
a
t

P
D
F

3

m
o
n
t
h
s

a
f
t
e
r

s
t
u
d
i
e
s
/
s
u
r
v
e
y

c
o
m
p
l
e
t
e
d

A
s

a
n
d

w
h
e
n

a
v
a
i
l
a
b
l
e

P
r
o
f
i
l
e
s
,

p
r
o
c
e
s
s
e
d

d
a
t
a
,

m
a
p
s

a
n
d

r
e
p
o
r
t
s

7
.
6

W
e
l
l

v
e
l
o
c
i
t
y

s
u
r
v
e
y

a
n
d

v
e
l
o
c
i
t
y

s
e
i
s
m
i
c

p
r
o
f
i
l
i
n
g

(
V
S
P
)

P
a
p
e
r

C
D
R
/
D
V
D

N
/
a

A
c
r
o
b
a
t

P
D
F

3

m
o
n
t
h
s

a
f
t
e
r

s
t
u
d
i
e
s
/
s
u
r
v
e
y

c
o
m
p
l
e
t
e
d

P
r
o
f
i
l
e
s
,

p
r
o
c
e
s
s
e
d

d
a
t
a
,

m
a
p
s

a
n
d

r
e
p
o
r
t
s

7
.
7

P
i
s
t
o
n

a
n
d

g
r
a
v
i
t
y

c
o
r
i
n
g

i
n
v
e
s
t
i
g
a
t
i
o
n

P
a
p
e
r

C
D
R
/
D
V
D

N
/
a

A
c
r
o
b
a
t

P
D
F

3

m
o
n
t
h
s

a
f
t
e
r

s
t
u
d
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e
s
/
s
u
r
v
e
y

c
o
m
p
l
e
t
e
d

P
r
o
f
i
l
e
s
,

p
r
o
c
e
s
s
e
d

d
a
t
a
,

m
a
p
s

a
n
d

r
e
p
o
r
t
s

7
.
8

S
o
i
l

o
r

f
o
u
n
d
a
t
i
o
n

i
n
v
e
s
t
i
g
a
t
i
o
n

r
e
p
o
r
t

P
a
p
e
r

C
D
R
/
D
V
D

N
/
a

A
c
r
o
b
a
t

P
D
F

3

m
o
n
t
h
s

a
f
t
e
r

s
t
u
d
i
e
s
/
s
u
r
v
e
y

c
o
m
p
l
e
t
e
d

P
r
o
f
i
l
e
s
,

p
r
o
c
e
s
s
e
d

d
a
t
a
,

m
a
p
s

a
n
d

r
e
p
o
r
t
s

7
.
9

P
l
a
t
f
o
r
m

O
u
t
l
i
n
e

C
D
R
/
D
V
D

N
/
a

C
A
D

/

S
h
a
p
e

f
i
l
e

m
a
p

/

A
u
t
o

c
a
d

W
i
t
h
i
n

3

m
o
n
t
h
s

a
f
t
e
r

i
n
s
t
a
l
l
a
t
i
o
n

7
.
1
0

F
i
e
l
d

O
u
t
l
i
n
e

C
D
R
/
D
V
D

N
/
a

C
A
D

/

S
h
a
p
e

f
i
l
e

W
i
t
h
i
n

3

m
o
n
t
h
s

a
f
t
e
r

i
n
s
t
a
l
l
a
t
i
o
n

P
a
r
t

o
f

F
i
n
a
l

s
t
u
d
y

r
e
p
o
r
t
.

T
o

b
e

u
p
d
a
t
e
d

d
u
r
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n
g

A
R
P
R

s
u
b
m
i
s
s
i
o
n
.

M
u
s
t

b
e

i
n
c
l
u
s
i
v
e

o
f

1
)

D
e
p
t
h

s
t
r
u
c
t
u
r
e

m
a
p

2
)

M
i
n

o
f

2

r
e
f
e
r
e
n
c
e

s
e
i
s
m
i
c

c
r
o
s
s

l
i
n
e

a
n
d

i
n
l
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e

a
c
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o
s
s

t
h
e

f
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d

3
)

I
n
t
e
r
p
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t
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d

w
e
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l

l
o
g
s

4
)

P
r
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s
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u
r
e

p
l
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t

5
)

G
e
o
l
o
g
i
c
a
l

c
r
o
s
s

s
e
c
t
i
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n

a
c
r
o
s
s

t
h
e

f
i
e
l
d

A
P
P
E
N
D
I
X

1
7

P
a
g
e

4
9
6

S
U
P
E
R
S
E
D
E

I
S
S
U
E
:

A
U
G

2
0
0
0

I
S
S
U
E
D

B
Y

P
E
T
R
O
L
E
U
M

M
A
N
A
G
E
M
E
N
T

U
N
I
T

R
E
V
I
S
I
O
N

2

A
U
G

2
0
0
8

N
O
.

D
A
T
A

C
L
A
S
S

M
E
D
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A

S
C
A
L
E

F
O
R
M
A
T

S
U
B
M
I
S
S
I
O
N

P
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R
I
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D

R
E
M
A
R
K
S

H
a
r
d
c
o
p
y

*
E
l
e
c
t
r
o
n
i
c
s

F
u
t
u
r
e

D
a
t
a

8

G
e
o
l
o
g
i
c
a
l

&

P
e
t
r
o
p
h
y
s
i
c
a
l

d
a
t
a

8
.
1

W
e
l
l

R
e
p
o
r
t
s

8
.
1
.
1

W
e
l
l

p
r
o
p
o
s
a
l
s

P
a
p
e
r

C
D
R
/
D
V
D

N
/
a

A
c
r
o
b
a
t

P
D
F

2

w
e
e
k
s

b
e
f
o
r
e

s
p
u
d

d
a
t
e

N
o
n
e

8
.
1
.
2

R
e
c
o
m
m
e
n
d
a
t
i
o
n

t
o

D
r
i
l
l

o
r

W
e
l
l

P
r
o
p
o
s
a
l
s

P
a
p
e
r

C
D
R
/
D
V
D

N
/
a

A
c
r
o
b
a
t

P
D
F

2

w
e
e
k
s

b
e
f
o
r
e

s
p
u
d

d
a
t
e

N
o
n
e

8
.
1
.
3

D
e
p
t
h

a
n
d

t
i
m
e

s
t
r
u
c
t
u
r
e

m
a
p
s

a
n
d

v
e
l
o
c
i
t
y

m
a
p
s

u
s
e
d

o
f

p
r
o
s
p
e
c
t
i
v
e

h
o
r
i
z
o
n
s

P
a
p
e
r

C
D
R
/
D
V
D

1
:
1
2
,
5
0
0

O
R

1
:
2
5
,
0
0
0

O
R

1
:
5
0
,
0
0
0

A
c
r
o
b
a
t

P
D
F
/
C
G
M

N
o
n
e

8
.
1
.
4

M
i
g
r
a
t
e
d

T
V
S

s
e
c
t
i
o
n
s

w
i
t
h

a
t

l
e
a
s
t

o
n
e

(
1
)

k
e
y

s
e
i
s
m
i
c

l
i
n
e

p
a
s
s
i
n
g

t
h
r
o
u
g
h

t
h
e

l
o
c
a
t
i
o
n

o
f

t
h
e

p
r
o
p
o
s
e
d

w
e
l
l

P
a
p
e
r

C
D
R
/
D
V
D

N
/
a

A
c
r
o
b
a
t

P
D
F
/
C
G
M

N
o
n
e

8
.
1
.
5

A
s
s
e
s
s
m
e
n
t

o
f

h
y
d
r
o
c
a
r
b
o
n

v
o
l
u
m
e
-
i
n
-
p
l
a
c
e

a
n
d

e
s
t
i
m
a
t
e
d

r
e
s
e
r
v
o
i
r

p
a
r
a
m
e
t
e
r
s

P
a
p
e
r

C
D
R
/
D
V
D

N
/
a

A
c
r
o
b
a
t

P
D
F

D
e
t
a
i
l
e
d

b
y

c
a
t
e
g
o
r
y

o
f

p
r
o
v
e
d
,

p
r
o
b
a
b
l
e

a
n
d

p
o
s
s
i
b
l
e

a
n
d

e
x
p
e
c
t
e
d

v
a
l
u
e

(
E
V
)

a
n
d

a
s
s
i
g
n
e
d

t
o

e
a
c
h

r
e
s
e
r
v
o
i
r

a
n
d

f
a
u
l
t

b
l
o
c
k

o
f

s
u
c
h

F
i
e
l
d
;

A
P
P
E
N
D
I
X

1
7

P
a
g
e

4
9
7

S
U
P
E
R
S
E
D
E

I
S
S
U
E
:

A
U
G

2
0
0
0

I
S
S
U
E
D

B
Y

P
E
T
R
O
L
E
U
M

M
A
N
A
G
E
M
E
N
T

U
N
I
T

R
E
V
I
S
I
O
N

2

A
U
G

2
0
0
8

N
O
.

D
A
T
A

C
L
A
S
S

M
E
D
I
A

S
C
A
L
E

F
O
R
M
A
T

S
U
B
M
I
S
S
I
O
N

P
E
R
I
O
D

R
E
M
A
R
K
S

H
a
r
d
c
o
p
y

*
E
l
e
c
t
r
o
n
i
c
s

F
u
t
u
r
e

D
a
t
a

8
.
1
.
6

S
t
r
u
c
t
u
r
a
l

o
r

s
t
r
a
t
i
g
r
a
p
h
i
c

c
r
o
s
s
-
s
e
c
t
i
o
n

P
a
p
e
r

C
D
R
/
D
V
D

N
/
a

A
c
r
o
b
a
t

P
D
F

N
o
n
e

8
.
1
.
7

C
o
s
t
s

a
n
d

t
e
c
h
n
i
c
a
l

d
e
t
a
i
l
s

r
e
l
a
t
i
n
g

t
o

p
r
o
s
p
e
c
t

o
r

f
i
e
l
d

a
n
d

n
e
w

p
r
o
j
e
c
t
s

P
a
p
e
r

C
D
R
/
D
V
D

N
/
a

A
c
r
o
b
a
t

P
D
F

N
o
n
e

8
.
1
.
8

P
r
o
p
o
s
e
d

d
r
i
l
l
i
n
g

a
n
d

f
o
r
m
a
t
i
o
n

e
v
a
l
u
a
t
i
o
n

p
r
o
g
r
a
m
s

t
o

b
e

s
u
b
m
i
t
t
e
d

P
a
p
e
r

C
D
R
/
D
V
D

N
/
a

A
c
r
o
b
a
t

P
D
F

I
n
c
l
u
d
i
n
g

d
e
t
a
i
l
e
d

w
e
l
l

c
o
s
t

e
s
t
i
m
a
t
e
;

8
.
2

E
x
p
l
o
r
a
t
i
o
n

D
r
i
l
l
i
n
g

8
.
2
.
1

D
a
i
l
y

o
r

W
e
e
k
l
y

d
r
i
l
l
i
n
g

r
e
p
o
r
t
s

P
a
p
e
r

E
l
e
c
t
r
o
n
i
c

F
i
l
e
/
D
i
g
i
t
a
l
/
C
D
R
/
D
V
D

N
/
a

A
c
r
o
b
a
t

P
D
F
/
S
p
r
e
a
d
s
h
e
e
t

f
i
l
e

D
a
i
l
y

o
r

w
e
e
k
l
y

N
o
n
e

8
.
2
.
2

A
b
a
n
d
o
n
m
e
n
t

P
r
o
g
r
a
m
s

P
a
p
e
r

C
D
R
/
D
V
D

N
/
a

A
c
r
o
b
a
t

P
D
F

2

w
e
e
k
s

b
e
f
o
r
e

s
p
u
d

d
a
t
e

N
o
n
e

8
.
2
.
3

D
r
i
l
l
i
n
g

C
o
m
p
l
e
t
i
o
n

R
e
p
o
r
t
s

P
a
p
e
r

C
D
R
/
D
V
D

N
/
a

A
c
r
o
b
a
t

P
D
F

W
i
t
h
i
n

t
h
r
e
e

(
3
)

m
o
n
t
h
s

o
f

c
o
m
p
l
e
t
i
o
n

o
f

t
h
e

w
e
l
l

N
o
n
e

8
.
3

G
e
o
l
o
g
i
c
a
l

C
o
m
p
l
e
t
i
o
n

R
e
p
o
r
t
s

8
.
3
.
1

G
e
o
l
o
g
i
c
a
l

C
o
m
p
l
e
t
i
o
n

R
e
p
o
r
t
s

P
a
p
e
r

C
D
R
/
D
V
D

N
/
a

A
c
r
o
b
a
t

P
D
F

W
i
t
h
i
n

t
h
r
e
e

(
3
)

m
o
n
t
h
s

o
f

c
o
m
p
l
e
t
i
o
n

o
f

t
h
e

w
e
l
l

N
o
n
e

A
P
P
E
N
D
I
X

1
7

P
a
g
e

4
9
8

S
U
P
E
R
S
E
D
E

I
S
S
U
E
:

A
U
G

2
0
0
0

I
S
S
U
E
D

B
Y

P
E
T
R
O
L
E
U
M

M
A
N
A
G
E
M
E
N
T

U
N
I
T

R
E
V
I
S
I
O
N

2

A
U
G

2
0
0
8

N
O
.

D
A
T
A

C
L
A
S
S

M
E
D
I
A

S
C
A
L
E

F
O
R
M
A
T

S
U
B
M
I
S
S
I
O
N

P
E
R
I
O
D

R
E
M
A
R
K
S

H
a
r
d
c
o
p
y

*
E
l
e
c
t
r
o
n
i
c
s

F
u
t
u
r
e

D
a
t
a

8
.
3
.
2

G
e
o
l
o
g
i
c
a
l

a
n
d

o
p
e
r
a
t
i
o
n
s

s
u
m
m
a
r
i
e
s

P
a
p
e
r

C
D
R
/
D
V
D

N
/
a

A
c
r
o
b
a
t

P
D
F

W
i
t
h
i
n

t
h
r
e
e

(
3
)

m
o
n
t
h
s

o
f

c
o
m
p
l
e
t
i
o
n

o
f

t
h
e

w
e
l
l

N
o
n
e

8
.
3
.
3

W
e
l
l

c
o
m
p
l
e
t
i
o
n

l
o
g
s

i
n

d
i
g
i
t
a
l

t
a
p
e

(
s
e
e

8
.
4
.
1
)

D
i
g
i
t
a
l

C
D
R
/
D
V
D

1
:
5
0
0

L
I
S

/

L
A
S
/

D
L
I
S

/

P
D
S
,

C
G
M
,

P
D
F

W
i
t
h
i
n

t
h
r
e
e

(
3
)

m
o
n
t
h
s

o
f

c
o
m
p
l
e
t
i
o
n

o
f

t
h
e

w
e
l
l

S
h
o
w
i
n
g

f
o
r
m
a
t
i
o
n

t
e
s
t

d
e
p
t
h
s
/
r
e
s
u
l
t
s
,

c
o
r
e
s

o
r

s
i
d
e
w
a
l
l

c
o
r
e
s

d
e
p
t
h
,

h
y
d
r
o
c
a
r
b
o
n

s
h
o
w
s
,

p
r
e
l
i
m
i
n
a
r
y

l
o
g

a
n
a
l
y
s
e
s

a
n
d

s
t
r
a
t
i
g
r
a
p
h
y

8
.
3
.
4

W
e
l
l

c
o
m
p
l
e
t
i
o
n

l
o
g
s

i
n

p
a
p
e
r

p
r
i
n
t
s

(
s
e
e

8
.
4
.
1
)

P
a
p
e
r

C
D
R
/
D
V
D

1
:
5
0
0

P
D
S
/
C
G
M
/
T
I
F
F

W
i
t
h
i
n

t
h
r
e
e

(
3
)

m
o
n
t
h
s

o
f

c
o
m
p
l
e
t
i
o
n

o
f

t
h
e

w
e
l
l

S
h
o
w
i
n
g

f
o
r
m
a
t
i
o
n

t
e
s
t

d
e
p
t
h
s
/
r
e
s
u
l
t
s
,

c
o
r
e
s

o
r

s
i
d
e
w
a
l
l

c
o
r
e
s

d
e
p
t
h
,

h
y
d
r
o
c
a
r
b
o
n

s
h
o
w
s
,

p
r
e
l
i
m
i
n
a
r
y

l
o
g

a
n
a
l
y
s
e
s

a
n
d

s
t
r
a
t
i
g
r
a
p
h
y
;

8
.
3
.
5

G
e
o
l
o
g
i
c
a
l

w
e
l
l

o
r

c
o
m
p
o
s
i
t
e

l
o
g

i
n

d
i
g
i
t
a
l

(
s
e
e

8
.
4
.
1
)

D
i
g
i
t
a
l

C
D
R
/
D
V
D

1
:
5
0
0

L
I
S
/
L
A
S
/
D
L
I
S

W
i
t
h
i
n

t
h
r
e
e

(
3
)

m
o
n
t
h
s

o
f

c
o
m
p
l
e
t
i
o
n

o
f

t
h
e

w
e
l
l

S
h
o
w
i
n
g

d
e
t
a
i
l
e
d

l
i
t
h
o
l
o
g
y

d
e
s
c
r
i
p
t
i
o
n

a
n
d

p
e
r
c
e
n
t
a
g
e
s
,

p
e
n
e
t
r
a
t
i
o
n

r
a
t
e
s
,

b
a
s
i
c

d
r
i
l
l
i
n
g

d
a
t
a

(
R
O
P
,

W
O
B
,

M
u
d

w
e
i
g
h
t
,

e
t
c
.
)
,

g
a
s

r
e
a
d
i
n
g
s

a
n
d

c
o
m
p
o
s
i
t
i
o
n

8
.
3
.
6

G
e
o
l
o
g
i
c
a
l

w
e
l
l

o
r

c
o
m
p
o
s
i
t
e

l
o
g

i
n

p
a
p
e
r

p
r
i
n
t

(
s
e
e

8
.
4
.
1
)

P
a
p
e
r

C
D
R
/
D
V
D

1
:
2
0
0

1
:
5
0
0

P
D
S
/
C
G
M
/
T
I
F
F

W
i
t
h
i
n

t
h
r
e
e

(
3
)

m
o
n
t
h
s

o
f

c
o
m
p
l
e
t
i
o
n

o
f

t
h
e

w
e
l
l

S
h
o
w
i
n
g

d
e
t
a
i
l
e
d

l
i
t
h
o
l
o
g
y

d
e
s
c
r
i
p
t
i
o
n

a
n
d

p
e
r
c
e
n
t
a
g
e
s
,

p
e
n
e
t
r
a
t
i
o
n

r
a
t
e
s
,

b
a
s
i
c

d
r
i
l
l
i
n
g

d
a
t
a

(
R
O
P
,

W
O
B
,

M
u
d
w
e
i
g
h
t
,

e
t
c
.
)
,

g
a
s

r
e
a
d
i
n
g
s

a
n
d

c
o
m
p
o
s
i
t
i
o
n

A
P
P
E
N
D
I
X

1
7

P
a
g
e

4
9
9

S
U
P
E
R
S
E
D
E

I
S
S
U
E
:

A
U
G

2
0
0
0

I
S
S
U
E
D

B
Y

P
E
T
R
O
L
E
U
M

M
A
N
A
G
E
M
E
N
T

U
N
I
T

R
E
V
I
S
I
O
N

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.

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8
.
3
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P
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6

m
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8
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3
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8

F
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8
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3
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8
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3
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1
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8
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1
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8
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3
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1
2

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8
.
3
.
1
3

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p
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l
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s
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s
;

8
.
3
.
1
4

P
a
l
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p
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r
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p
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s

P
a
p
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C
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N
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A
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3

m
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o
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w
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N
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n
e

8
.
3
.
1
5

G
e
o
c
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m
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l

r
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s

P
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p
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A
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3

m
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o
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N
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n
e

8
.
3
.
1
6

P
e
t
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r
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s
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s

P
a
p
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C
D
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D

N
/
a

A
c
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3

m
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w
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N
o
n
e

8
.
3
.
1
7

C
o
r
e

a
n
a
l
y
s
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p
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s

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P
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C
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D

N
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A
c
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P
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3

m
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w
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N
o
n
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8
.
3
.
1
8

F
l
u
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a
n
a
l
y
s
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r
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p
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-

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T

a
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s
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s

P
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p
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E
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F
i
l
e
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g
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t
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N
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A
c
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,

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p
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f
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3

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c
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o
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t
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w
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N
o
n
e

8
.
3
.
1
9

D
i
r
e
c
t
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o
n
a
l

s
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v
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y

r
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p
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s
.

P
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p
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r

E
l
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c
t
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n
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F
i
l
e
/
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g
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t
a
l
/
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D
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D

N
/
a

A
c
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b
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P
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,

S
p
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f
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A
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I

3

m
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a
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c
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w
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N
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n
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A
P
P
E
N
D
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X

1
7

P
a
g
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5
0
1

S
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D
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I
S
S
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:

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2
0
0
0

I
S
S
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B
Y

P
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M
A
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M
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U
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2
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8

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O
.

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H
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E
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c
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F
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8
.
4

W
e
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l

L
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g
s

8
.
4
.
1

W
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L
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)
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c
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1
.

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2
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3
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4
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5
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r

M
a
g
n
e
t
i
c

R
e
s
o
n
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n
c
e

L
o
g
g
i
n
g

6
.

F
o
r
m
a
t
i
o
n

P
r
e
s
s
u
r
e

&

S
a
m
p
l
i
n
g

L
o
g
g
i
n
g

C
D
R

/

D
V
D

N
/
a

D
L
I
S
/
L
I
S

a
n
d

L
A
S

3

m
o
n
t
h
s

a
f
t
e
r

c
o
m
p
l
e
t
i
o
n

o
f

t
h
e

w
e
l
l
.

R
a
w

d
i
g
i
t
a
l

d
a
t
a

a
c
q
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d

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s

p
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a
c
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l

l
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g
g
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g

p
r
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g
r
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m

f
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r

e
x
p
l
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r
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t
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n

a
n
d

d
e
v
e
l
o
p
m
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t

w
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l
l
s
,

f
o
r

o
p
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n

h
o
l
e

a
n
d

c
a
s
e
d

h
o
l
e

l
o
g
g
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n
g
.

C
o
m
p
o
s
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t
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l
o
g
,

p
r
o
c
e
s
s

a
n
d

i
n
t
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r
p
r
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d

r
e
s
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l
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s

d
a
t
a

a
r
e

f
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p
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d

v
e
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s
.

D
a
t
a

d
e
l
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r
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s

i
n

M
e
a
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d

D
e
p
t
h

(
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D
)
.

T
r
u
e

V
e
r
t
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c
a
l

D
e
p
t
h

(
T
V
D
)

i
f

a
v
a
i
l
a
b
l
e
)

A
P
P
E
N
D
I
X

1
7

P
a
g
e

5
0
2

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U
P
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R
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E

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S
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E
:

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U
G

2
0
0
0

I
S
S
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D

B
Y

P
E
T
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L
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M

M
A
N
A
G
E
M
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N
T

U
N
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T

R
E
V
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S
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N

2

A
U
G

2
0
0
8

N
O
.

D
A
T
A

C
L
A
S
S

M
E
D
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A

S
C
A
L
E

F
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M
A
T

S
U
B
M
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S
S
I
O
N

P
E
R
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D

R
E
M
A
R
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S

H
a
r
d
c
o
p
y

*
E
l
e
c
t
r
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n
i
c
s

F
u
t
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r
e

D
a
t
a

7
.

G
e
o
l
o
g
i
c
a
l

L
o
g
g
i
n
g

8
.

A
u
x
i
l
i
a
r
y

L
o
g
g
i
n
g
,

G
e
o
c
h
e
m
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c
a
l

L
o
g
g
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g

9
.

C
a
s
e
d

H
o
l
e

L
o
g
g
i
n
g

8
.
4
.
2

F
i
e
l
d

a
n
d

f
i
n
a
l

p
r
i
n
t
s
,

(
c
o
l
o
r
e
d

a
n
d

i
n

a
l
l

a
v
a
i
l
a
b
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e

s
c
a
l
e
s
)

P
a
p
e
r

1
/
2
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0
,

1
/
5
0
0

P
D
S

/

C
G
M

/
T
I
F
F

W
i
t
h
i
n

3

m
o
n
t
h
s

a
f
t
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r

c
o
m
p
l
e
t
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o
n

o
f

t
h
e

w
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l
l

S
c
a
l
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s

I
n

m
e
a
s
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d

d
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p
t
h

(
M
D
)
.

I
n

t
r
u
e

v
e
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c
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d
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h

(
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D
)

a
v
a
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b
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e
.

S
c
a
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m
a
y

v
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e
p
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n
d
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g

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q
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.
e
.

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M
S
/
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1
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4
0
)
.

8
.
5

S
a
m
p
l
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s

8
.
5
.
1

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r
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l
l

c
u
t
t
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s
;

n
/
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n
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n
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A
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N
o
n
e

8
.
5
.
2

A

r
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p
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n
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p
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s
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/
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a

n
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a

n
/
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s

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a
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e

N
o
n
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8
.
5
.
3

D
r
i
l
l

c
o
r
e
s

n
/
a

n
/
a

n
/
a

n
/
a

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s

w
h
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n

a
v
a
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l
a
b
l
e

N
o
n
e

8
.
5
.
4

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l
u
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d

-

o
i
l
,

g
a
s
,

c
o
n
d
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n
s
a
t
e
,

w
a
t
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r

n
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a

n
/
a

n
/
a

n
/
a

A
s

w
h
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n

a
v
a
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l
a
b
l
e

N
o
n
e

8
.
5
.
5

A
n
y

o
t
h
e
r

t
y
p
e
s

o
f

s
a
m
p
l
e
s

n
/
a

n
/
a

n
/
a

n
/
a

A
s

w
h
e
n

a
v
a
i
l
a
b
l
e

N
o
n
e

A
P
P
E
N
D
I
X

1
7

P
a
g
e

5
0
3

S
U
P
E
R
S
E
D
E

I
S
S
U
E
:

A
U
G

2
0
0
0

I
S
S
U
E
D

B
Y

P
E
T
R
O
L
E
U
M

M
A
N
A
G
E
M
E
N
T

U
N
I
T

R
E
V
I
S
I
O
N

2

A
U
G

2
0
0
8

N
O
.

D
A
T
A

C
L
A
S
S

M
E
D
I
A

S
C
A
L
E

F
O
R
M
A
T

S
U
B
M
I
S
S
I
O
N

P
E
R
I
O
D

R
E
M
A
R
K
S

H
a
r
d
c
o
p
y

*
E
l
e
c
t
r
o
n
i
c
s

F
u
t
u
r
e

D
a
t
a

8
.
6

P
r
o
d
u
c
t
i
o
n

W
e
l
l

T
e
s
t

D
a
t
a

8
.
6
.
1

P
r
o
d
u
c
t
i
o
n

t
e
s
t
i
n
g

p
r
o
c
e
d
u
r
e
s

R
e
q
u
i
r
e
m
e
n
t

f
o
r

s
u
b
m
i
s
s
i
o
n

i
s

a
s

p
e
r

s
t
a
t
e
d

i
n

S
e
c
t
i
o
n

1
1

o
f

P
P
G
U
A

(
1
1
.
5

R
e
c
o
r
d

K
e
e
p
i
n
g
)

8
.
6
.
2

D
e
t
a
i
l
e
d

p
r
o
d
u
c
t
i
o
n

t
e
s
t
s

r
e
p
o
r
t
s

R
e
q
u
i
r
e
m
e
n
t

f
o
r

s
u
b
m
i
s
s
i
o
n

i
s

a
s

p
e
r

s
t
a
t
e
d

i
n

S
e
c
t
i
o
n

1
1

o
f

P
P
G
U
A

(
1
1
.
5

R
e
c
o
r
d

K
e
e
p
i
n
g
)

9

I
n
t
e
r
p
r
e
t
a
t
i
v
e

M
a
t
e
r
i
a
l

-

R
e
p
o
r
t
s

9
.
1

P
r
o
g
r
e
s
s

r
e
p
o
r
t
s

o
n

g
e
o
p
h
y
s
i
c
a
l

a
n
d

d
r
i
l
l
i
n
g

o
p
e
r
a
t
i
o
n

P
a
p
e
r

C
D
R
/
D
V
D

N
/
a

A
c
r
o
b
a
t

P
D
F

A
s

w
h
e
n

a
v
a
i
l
a
b
l
e

(
I
n
c
l
u
s
i
v
e

o
f

a
n
y

s
u
b
s
e
q
u
e
n
t

r
e
v
i
s
i
o
n
s

t
h
e
r
e
o
f
)

9
.
2

A
n

a
n
n
u
a
l

g
e
n
e
r
a
l

r
e
v
i
e
w

o
f

t
h
e

i
n
t
e
r
p
r
e
t
a
t
i
o
n

o
f

t
h
e

s
u
b
s
u
r
f
a
c
e

s
t
r
u
c
t
u
r
e

i
n

a
n
y

a
r
e
a

o
v
e
r

w
h
i
c
h

g
e
o
l
o
g
i
c
a
l
,

g
e
o
p
h
y
s
i
c
a
l
,

d
r
i
l
l
i
n
g

o
r

o
t
h
e
r

o
p
e
r
a
t
i
o
n
s

h
a
v
e

b
e
e
n

c
o
n
d
u
c
t
e
d

P
a
p
e
r

C
D
R
/
D
V
D

N
/
a

A
c
r
o
b
a
t

P
D
F

A
s

w
h
e
n

a
v
a
i
l
a
b
l
e

(
I
n
c
l
u
s
i
v
e

o
f

a
n
y

s
u
b
s
e
q
u
e
n
t

r
e
v
i
s
i
o
n
s

t
h
e
r
e
o
f
)

9
.
3

R
e
s
e
r
v
e

C
a
l
c
u
l
a
t
i
o
n

R
e
p
o
r
t
s
.

A
l
l

r
e
p
o
r
t
s

i
n
c
l
u
s
i
v
e

o
f

a
n
y

s
u
b
s
e
q
u
e
n
t

r
e
v
i
s
i
o
n
s

w
i
t
h

r
e
s
p
e
c
t

t
o

t
h
e

a
m
o
u
n
t

o
f

P
a
p
e
r

C
D
R
/
D
V
D

N
/
a

A
c
r
o
b
a
t

P
D
F

A
s

w
h
e
n

a
v
a
i
l
a
b
l
e

I
n

r
e
s
p
e
c
t

o
f

c
o
n
t
r
a
c
t

a
r
e
a

t
h
e

r
e
p
o
r
t
s

s
h
a
l
l

i
n
c
l
u
d
e

1
.

t
h
e

l
o
c
a
t
i
o
n
,

s
i
z
e
,

e
x
t
e
n
d
,

s
t
r
u
c
t
u
r
a
l

a
n
d

s
t
r
a
t
i
g
r
a
p
h
i
c

c
r
o
s
s
-
s
e
c
t
i
o
n
s

o
f

t
h
e

A
P
P
E
N
D
I
X

1
7

P
a
g
e

5
0
4

S
U
P
E
R
S
E
D
E

I
S
S
U
E
:

A
U
G

2
0
0
0

I
S
S
U
E
D

B
Y

P
E
T
R
O
L
E
U
M

M
A
N
A
G
E
M
E
N
T

U
N
I
T

R
E
V
I
S
I
O
N

2

A
U
G

2
0
0
8

N
O
.

D
A
T
A

C
L
A
S
S

M
E
D
I
A

S
C
A
L
E

F
O
R
M
A
T

S
U
B
M
I
S
S
I
O
N

P
E
R
I
O
D

R
E
M
A
R
K
S

H
a
r
d
c
o
p
y

*
E
l
e
c
t
r
o
n
i
c
s

F
u
t
u
r
e

D
a
t
a

P
e
t
r
o
l
e
u
m

i
n

a

p
e
t
r
o
l
e
u
m

r
e
s
e
r
v
o
i
r

c
l
a
s
s
i
f
i
e
d

a
s

1
.

P
r
o
v
e
n

p
e
t
r
o
l
e
u
m

o
r
i
g
i
n
a
l
l
y
-
i
n
-
p
l
a
c
e

2
.

E
x
p
e
c
t
e
d

a
n
d

m
a
x
i
m
u
m

p
o
s
s
i
b
l
e

p
e
t
r
o
l
e
u
m

o
r
i
g
i
n
a
l
l
y
-
i
n
-
p
l
a
c
e

3
.

P
r
o
v
e
n

e
s
t
i
m
a
t
e
d

u
l
t
i
m
a
t
e

r
e
c
o
v
e
r
a
b
l
e

p
e
t
r
o
l
e
u
m

r
e
s
e
r
v
e
s

4
.

E
x
p
e
c
t
e
d

e
s
t
i
m
a
t
e
d

u
l
t
i
m
a
t
e

r
e
c
o
v
e
r
a
b
l
e

p
e
t
r
o
l
e
u
m

r
e
s
e
r
v
e
s

P
l
a
t
f
o
r
m

c
o
n
f
o
r
m
a
b
l
e

p
r
o
v
e
n

a
n
d

e
x
p
e
c
t
e
d

e
s
t
i
m
a
t
e
d

r
e
c
o
v
e
r
a
b
l
e

p
e
t
r
o
l
e
u
m

r
e
s
e
r
v
e
s

p
e
t
r
o
l
e
u
m

r
e
s
e
r
v
o
i
r
s

2
.

t
h
e

a
m
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o
p
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r
a
t
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o
n

o
f

m
e
a
s
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r
e
m
e
n
t

s
y
s
t
e
m
s
;

P
a
p
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r

A
s

a
n
d

w
h
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n

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e
q
u
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d

1
3
.
2

R
e
p
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t

o
f

R
e
s
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o
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t
h
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v
a
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d
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n

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p
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d

P
a
p
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n

t
h
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m
o
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t
h

a
f
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r

t
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e

c
a
l
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b
r
a
t
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n
/
v
a
l
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d
a
t
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o
n

h
a
s

b
e
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n

d
o
n
e

1
3
.
3

D
e
t
a
i
l
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d

P
e
t
r
o
l
e
u
m

a
c
c
o
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n
t
i
n
g

p
r
o
c
e
d
u
r
e
s
;

P
a
p
e
r

C
D
R
/
D
V
D

N
/
a

A
c
r
o
b
a
t

P
D
F

A
s

w
h
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n

a
v
a
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l
a
b
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e

1
3
.
4

P
r
o
d
u
c
t
i
o
n
,

s
t
o
c
k
,

s
a
l
e
s

o
r

e
x
p
o
r
t
s

a
n
d

l
o
s
s
e
s

f
i
g
u
r
e
s
.

P
a
p
e
r

C
D
R
/
D
V
D

N
/
a

A
c
r
o
b
a
t

P
D
F

A
s

w
h
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n

a
v
a
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l
a
b
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e

A
P
P
E
N
D
I
X

1
7

P
a
g
e

5
1
4

S
U
P
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R
S
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D
E

I
S
S
U
E
:

A
U
G

2
0
0
0

I
S
S
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D

B
Y

P
E
T
R
O
L
E
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M

M
A
N
A
G
E
M
E
N
T

U
N
I
T

R
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V
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S
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N

2

A
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G

2
0
0
8

N
O
.

D
A
T
A

C
L
A
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M
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D
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A

S
C
A
L
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F
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B
M
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N

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R
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M
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H
a
r
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y

*
E
l
e
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t
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c
s

F
u
t
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r
e

D
a
t
a

1
4

H
e
a
l
t
h
,

S
a
f
e
t
y

a
n
d

E
n
v
i
r
o
n
m
e
n
t

1
4
.
1

H
S
E
-
M
S

M
a
n
u
a
l

P
a
p
e
r

C
D
R

N
/
a

A
c
r
o
b
a
t

P
D
F

W
i
t
h
i
n

o
n
e

m
o
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h

a
f
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r

e
n
d
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r
s
e
m
e
n
t

1
4
.
2

H
S
E

C
a
s
e
s

(
P
r
o
d
u
c
t
i
o
n

P
h
a
s
e
)

P
a
p
e
r

C
D
R

N
/
a

A
c
r
o
b
a
t

P
D
F

O
n
e

m
o
n
t
h

b
e
f
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o
m
m
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n
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m
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t

1
4
.
3

C
I
M
A
H

R
e
p
o
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t

(
f
o
r

o
n
s
h
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e

o
p
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r
a
t
i
o
n
s
)

P
a
p
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r

C
D
R

N
/
a

A
c
r
o
b
a
t

P
D
F

O
n
e

m
o
n
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h

b
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f
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o
m
m
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n
c
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m
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n
t

1
4
.
4

H
e
a
l
t
h

R
i
s
k

A
s
s
e
s
s
m
e
n
t

P
a
p
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r

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D
R

N
/
a

A
c
r
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b
a
t

P
D
F

O
n
e

m
o
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h

a
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c
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m
m
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t

1
4
.
5

H
S
E

P
l
a
n

P
a
p
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r

C
D
R

N
/
a

A
c
r
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b
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t

P
D
F

D
e
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m
b
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o
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t
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p
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d
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y
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r

1
4
.
6

E
m
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r
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n
c
y

R
e
s
p
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n
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e

P
l
a
n

P
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p
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r

C
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N
/
a

A
c
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o
b
a
t

P
D
F

O
n
e

m
o
n
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b
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f
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c
o
m
m
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m
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t

1
4
.
7

H
S
E

K
P
I

R
e
p
o
r
t

P
a
p
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r

C
D
R

N
/
a

A
c
r
o
b
a
t

P
D
F

E
v
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r
y

1
5
t
h

1
4
.
8

H
S
E
-
M
S

A
u
d
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t

F
i
n
a
l

R
e
p
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P
a
p
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r

C
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N
/
a

A
c
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b
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t

P
D
F

O
n
e

m
o
n
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h

a
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c
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m
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m
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t

1
4
.
9

H
S
E

A
u
d
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F
i
n
a
l

R
e
p
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t

P
a
p
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r

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N
/
a

A
c
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o
b
a
t

P
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F

1
4
.
1
0

I
n
c
i
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e
n
t

I
n
v
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s
t
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a
t
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n

R
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p
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P
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p
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N
/
a

A
c
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b
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t

P
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F

O
n
e

m
o
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t
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a
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t
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d
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t
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f

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c
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1
4
.
1
1

E
I
A

R
e
p
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t

P
a
p
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r

C
D
R

N
/
a

A
c
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b
a
t

P
D
F

O
n
e

m
o
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h

a
f
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r

D
O
E

a
p
p
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o
v
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l

1
4
.
1
2

E
I
A

a
n
d

E
M
P

A
p
p
r
o
v
a
l

C
o
n
d
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t
i
o
n

P
a
p
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r

C
D
R

N
/
a

A
c
r
o
b
a
t

P
D
F

O
n
e

m
o
n
t
h

a
f
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r

D
O
E

a
p
p
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o
v
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l

A
P
P
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N
D
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X

1
7

P
a
g
e

5
1
5

S
U
P
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R
S
E
D
E

I
S
S
U
E
:

A
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G

2
0
0
0

I
S
S
U
E
D

B
Y

P
E
T
R
O
L
E
U
M

M
A
N
A
G
E
M
E
N
T

U
N
I
T

R
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V
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S
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N

2

A
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G

2
0
0
8

N
O
.

D
A
T
A

C
L
A
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M
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D
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A

S
C
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L
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F
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M
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N

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R
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M
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H
a
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d
c
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p
y

*
E
l
e
c
t
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n
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c
s

F
u
t
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r
e

D
a
t
a

1
4
.
1
3

E
n
v
i
r
o
n
m
e
n
t
a
l

C
o
m
p
l
i
a
n
c
e

R
e
p
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r
t

(
S
c
h
e
d
u
l
e
d

W
a
s
t
e
,

T
E
N
O
R
M
,

E
f
f
l
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t

Q
u
a
l
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y

a
n
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E
m
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P
a
p
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r

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R

N
/
a

A
c
r
o
b
a
t

P
D
F

1
4
.
1
4

P
E
T
R
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N
A
S

G
r
o
u
p

G
H
G

R
e
p
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r
t

P
a
p
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r

C
D
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N
/
a

A
c
r
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b
a
t

P
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F

E
a
r
l
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A
p
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l

o
f

t
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e

s
u
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c
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d
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g

y
e
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r

1
5

O
n
s
h
o
r
e

/

O
f
f
s
h
o
r
e

O
p
e
r
a
t
i
o
n
s

1
5
.
1

N
o
t
i
c
e

o
f

I
n
t
e
n
t

1
5
.
2

A
n
n
u
a
l

S
h
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t
d
o
w
n

P
l
a
n

1
5
.
3

M
a
j
o
r

U
n
p
l
a
n
n
e
d

C
r
u
d
e

O
i
l

P
r
o
d
u
c
t
i
o
n

I
n
t
e
r
r
u
p
t
i
o
n

1
5
.
4

M
a
j
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r

U
n
p
l
a
n
n
e
d

G
a
s

S
u
p
p
l
y

I
n
t
e
r
r
u
p
t
i
o
n

1
5
.
5

A
s
-
b
u
i
l
t

D
r
a
w
i
n
g
s

o
f

C
o
m
p
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t
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d

P
r
o
j
e
c
t
s

1
5
.
6

D
a
i
l
y

P
r
o
d
u
c
t
i
o
n

O
p
e
r
a
t
i
o
n
s

R
e
p
o
r
t

1
5
.
7

Q
u
a
r
t
e
r
l
y

P
r
o
d
u
c
t
i
o
n

O
p
e
r
a
t
i
o
n
s

R
e
p
o
r
t

A
P
P
E
N
D
I
X

1
7

P
a
g
e

5
1
6

S
U
P
E
R
S
E
D
E

I
S
S
U
E
:

A
U
G

2
0
0
0

I
S
S
U
E
D

B
Y

P
E
T
R
O
L
E
U
M

M
A
N
A
G
E
M
E
N
T

U
N
I
T

R
E
V
I
S
I
O
N

2

A
U
G

2
0
0
8

N
O
.

D
A
T
A

C
L
A
S
S

M
E
D
I
A

S
C
A
L
E

F
O
R
M
A
T

S
U
B
M
I
S
S
I
O
N

P
E
R
I
O
D

R
E
M
A
R
K
S

H
a
r
d
c
o
p
y

*
E
l
e
c
t
r
o
n
i
c
s

F
u
t
u
r
e

D
a
t
a

1
6

R
e
l
i
n
q
u
i
s
h
m
e
n
t

s
t
a
t
u
s

r
e
p
o
r
t

P
a
p
e
r

C
D
R
/
D
V
D

N
/
a

A
c
r
o
b
a
t

P
D
F

W
i
t
h
i
n

3

m
o
n
t
h
s

a
f
t
e
r

r
e
l
i
n
q
u
i
s
h
e
d

N
o
n
e

1
6
.
1

C
o
m
p
l
e
t
e

r
e
p
o
r
t

l
i
s
t
i
n
g
s

P
a
p
e
r

C
D
R
/
D
V
D

N
/
a

A
c
r
o
b
a
t

P
D
F

W
i
t
h
i
n

3

m
o
n
t
h
s

a
f
t
e
r

r
e
l
i
n
q
u
i
s
h
e
d

N
o
n
e

1
6
.
2

W
e
l
l
,

r
e
s
e
r
v
o
i
r

a
n
d

f
i
e
l
d

p
e
r
f
o
r
m
a
n
c
e

h
i
s
t
o
r
y

P
a
p
e
r

C
D
R
/
D
V
D

N
/
a

A
c
r
o
b
a
t

P
D
F

W
i
t
h
i
n

3

m
o
n
t
h
s

a
f
t
e
r

r
e
l
i
n
q
u
i
s
h
e
d

N
o
n
e

1
6
.
3

R
e
s
e
r
v
o
i
r

a
n
d

w
e
l
l

d
a
t
a

P
a
p
e
r

C
D
R
/
D
V
D

N
/
a

A
c
r
o
b
a
t

P
D
F

W
i
t
h
i
n

3

m
o
n
t
h
s

a
f
t
e
r

r
e
l
i
n
q
u
i
s
h
e
d

N
o
n
e

1
6
.
4

W
e
l
l

s
t
a
t
u
s

P
a
p
e
r

C
D
R
/
D
V
D

N
/
a

A
c
r
o
b
a
t

P
D
F

W
i
t
h
i
n

3

m
o
n
t
h
s

a
f
t
e
r

r
e
l
i
n
q
u
i
s
h
e
d

N
o
n
e

1
6
.
5

R
e
s
e
r
v
e

s
t
a
t
u
s

P
a
p
e
r

C
D
R
/
D
V
D

N
/
a

A
c
r
o
b
a
t

P
D
F

W
i
t
h
i
n

3

m
o
n
t
h
s

a
f
t
e
r

r
e
l
i
n
q
u
i
s
h
e
d

N
o
n
e

1
6
.
6

L
a
t
e
s
t

a
s
-
b
u
i
l
t

d
r
a
w
i
n
g

P
a
p
e
r

C
D
R
/
D
V
D

N
/
a

A
c
r
o
b
a
t

P
D
F

W
i
t
h
i
n

3

m
o
n
t
h
s

a
f
t
e
r

r
e
l
i
n
q
u
i
s
h
e
d

N
o
n
e

1
6
.
7

M
a
j
o
r

m
a
i
n
t
e
n
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SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

APPENDIX 18A


SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

APPENDIX 18B
NOTIFICATION CONTACT LIST :
PMU, PETRONAS REGIONAL OFFICE, KERTEH
POSITION : MANAGER,
EAST COAST REGIONAL OFFICE
TELEPHONE : 09-864-0688(DL)
HANDPHONE : 019-9153340 (PMU KERTEH, REGIONAL MANAGER)
FAX : 09-8640127
PMU, PETRONAS REGIONAL OFFICE, SABAH / SARAWAK:
POSITION : MANAGER,
SABAH/SARAWAK REGIONAL OFFICE
TELEPHONE : 085-662425 / 085-474030 (D/L)
HANDPHONE : 019-2749268 (PMU MIRI, REGIONAL MANAGER)
FAX : 085-662623
PETROLEUM OPERATION MANAGEMENT (POM), PMU, KUALA LUMPUR:
1.
POSITION : SENIOR MANAGER, HSE
TELEPHONE : 03-2331-3279 (DL)
HANDPHONE : 012-3289341 (PMU HSE KL OFFICE)
FAX : 03-2331-3168 / 3169
ALTERNATE : GENERAL MANAGER, PRODUCTION OPERATIONS
TELEPHONE : 03-2331-2599
HANDPHONE : 019-8215492
FAX : 03-2331-3168 / 3169
2. POSITION : SENIOR GENERAL MANAGER, POM
TELEPHONE : 03-2331-4108 (DL)
HANDPHONE : 019-9830392
FAX : 03-2331-3168 / 3169


SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

PETRONAS COMCEN, KUALA LUMPUR (24 HOURS MANNED STATION)
TELEPHONE : 03-21611703 (D/L), 03-23312141 / 2142 / 2143 / 2144
FAX : 03-21611696
ATTENTION : COMCEN MANAGER
H/P : 019-2266699
03-2331 6250 (D/L)
DESIGNATION NAME OFFICE HOME
GM PIMMAG Capt. Amir Murad 03-2783-6993 (D/L) H/P 019-3500197
03-2783-6997 (G/L)
03-2783-6992 (Fax)
- Alternate -
Manager, Operations Capt. Chin Kon Wing 03-2783-6998 (D/L) H/P 019-3131631
And Training 03-2783-6992 (Fax)


SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

APPENDIX 18B
PETRONAS : EMERGENCY CONTACT LIST
03-23312141 /
2142 / 2143 /
2144
03-21611703
COMCEN / Manager PETRONAS Twin Towers
COMCEN
H/P: 012-2012942
azlan_msaid@petr
onas.
com.my
03-2331 2372
03-2331 2336
Azlan Mohd Said
General Manager,
Security Planning Development &
Crisis Management
CORPORATE SECURITY
H/P: 012-3289341
amero@petronas.co
m.my
03-2331 3279
03-2331 3314
Amer Othman Senior Manager
Health, Safety & Evironment
HP: 019-3527779
norzeta@petronas.co
m.my
03-23313515 Norzeta Binti Ismail Manager
HRM & Administrative Services
HP: 012-3257165
ahmadnahrawi_moh
d@petronas.com.my
03-23313171 Ahmad Nahrawi General Manager
Drilling
HP: 019-8215492
josephp@
petronas.com.my
03-2331 2599
03-2331 3675
Joseph Podtung General Manager
Production Operations
H/P: 019-3180920
jaizan@petronas.
com.my
03-2331 3115
03-2331 5170
Dr Jaizan Hardi Jais
General Manager
Technology, Capability & Data Mgt
H/P: 012-3731013
marinat@petronas.c
om.my
03-23314432
03-23312717
Marina Bt Md taib General Manager
Strategic Planning
H/P: 017-6307220
jukrisw@petronas.
com.my
03-2331 9393
03-2331 9339
Mohd Jukris Abd Wahab
Senior General Manager
Petroleum Resource Development
H/P: 012-2771245
effendy@petronas
.com.my
03-2331 4678
03-2331 2116
Effendy Cheng Abdullah Senior General Manager
Petroleum Resource Exploration
H/P: 019-9830392
tarmizm@petrona
s.com.my
03-2331 4108
03-2331 3364
Mohd Tarmizi Munir Senior General Manager
Petroleum Operations
Management
H/P: 012-8388387
ramlanm@petrona
s.com.my
03-2331 3362
03-2331 1301
Ramlan Abdul Malek
Vice President
(E&P Business)
03-42532590 03-2331 4802
03-2331 4401
Y.Bhg. Tan Sri Dato' Mohd Hassan
Marican
President
HP/EMAIL OFFICE NAME DESIGNATI ON


SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

H/P: 019-6554512 085-662425 (D/L)
085-474030 (D/L)
Dzulkafli B Mansor Senior Manager
PMU Sabah/Sarawak
H/P: 019-9534006 082-419601(G/L)
082419604(G/L)
Mosir B Hamid
General Manager Sarawak
H/P: 012-2993700 088-296900 (D/L)
088-296901
Burhan Rasit General Manager Sabah
PETRONAS - SABAH/SARAWAK REGIONAL OFFICE
09-8640688
03-2331 9269
Hamadi Tani Senior Manager
PMU Kerteh
H/P: 019-2136737 09-8655517
09-8655574
Zulkifly B. Mohd Ismail
General Manager
PETRONAS - EAST COAST REGIONAL OFFICE
H/P: 013-3501531
roslirh@petronas.
com.my
03-2331 1354
03-2331 4736
Rosli bin Abdul Rahim
General Manager
Stakeholders Management (Group
Corporate Affair)
LEGAL & CORPORATE AFFAIR DIVISION
H/P: 012-3937690
iqbal@petronas.
com.my
03-2331 4955 Iqbal Abdullah
Senior General Manager
Group HSE
H/P: 019-2335411
zaharan@petrona
s.com.my
03-2331 2014
03-2331 2367
Zaharan B. Mat Alipiah
General Manager
Group HRM
HP/EMAIL OFFICE NAME DESIGNATION


SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008


SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008


SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008


SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008


SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008


SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008


SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

APPENDIX 18D


SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008


SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008


SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008


SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

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s
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e
s
E
x
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n
a
l

L
o
s
s
e
s
A
v
a
i
l
a
b
i
l
i
t
y

L
o
s
s
e
s
Q
u
a
l
i
t
y

L
o
s
s
e
s
Availability
S
l
o
w
d
o
w
n

/

L
o
w
P
r
o
d
u
c
t
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y

L
o
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s
R
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c
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d
1
0
0
x
P
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t
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T
e
c
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A
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P
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n

A
c
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O
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=
A
P
P
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N
D
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1
9
A

A
P
P
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N
D
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1
9

P
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e

5
3
6

S
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I
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:

A
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2
0
0
0

I
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D

B
Y

P
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M

M
A
N
A
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M
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N
T

U
N
I
T

R
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V
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S
I
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N

2

A
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G

2
0
0
8

0
E
F
E
P
h
E
N
T

C
A
T
E
C
D
P
I
E
S

1
Reconciled Well Technical Potential
E
x
t
e
r
n
a
l

D
e
f
e
r
m
e
n
t
P
l
a
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d

D
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f
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t

(
D
O
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H
/
P
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)
U
n
p
l
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D
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f
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r
m
e
n
t
(
U
n
r
e
l
i
a
b
i
l
i
t
y
)
Reconciled Production
E
x
c
e
s
s

c
a
p
a
c
i
t
y
*
*
*
Metered Production
T
r
a
n
s
m
i
s
s
i
o
n
/

R
e
c
o
n
c
i
l
i
a
t
i
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n

l
o
s
s
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s
L
e
a
k
a
g
e
/
R
e
c
o
n
c
i
l
i
a
t
i
o
n
O
p
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r
a
t
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o
n
a
l

U
s
a
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e
C
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n
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n
s
a
t
i
o
n
1
.
O
p
e
r
a
t
i
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n
a
l

f
l
a
r
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n
g
2
.
F
u
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l
3
.
G
a
s

r
e
-
i
n
j
e
c
t
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o
n
4
.
G
a
s

l
i
f
t
5
.
B
l
a
n
k
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t

g
a
s
6
.
U
t
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l
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/
I
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s
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n
t

g
a
s
P
l
a
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d

D
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f
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n
t

N
O
N

D
O
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H
/
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t

L
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1
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*
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T
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A
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R
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c
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O
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=
*
A
d
j
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T
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c
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P
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t
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l

=

R
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c
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c
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d

P
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d
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n

+

t
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/
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c
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c
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n

l
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+

u
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p
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d

d
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f
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t

(
U
n
r
e
l
i
a
b
i
l
i
t
y
&

Q
u
a
l
i
t
y
)

+

p
l
a
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d

d
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f
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n
t

(
n
o
n

D
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/
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)

*
*
W
h
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n

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a
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a
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b
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q
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a
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p
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n

i
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*
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p
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d

D
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f
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(
Q
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a
l
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y
*
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)
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.
E
q
u
i
p
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t

m
a
i
n
t
e
n
a
n
c
e
2
.
P
r
o
j
e
c
t
s
1
.
C
o
m
p
r
e
s
s
o
r

s
h
u
t
d
o
w
n
2
.
H
u
m
a
n

e
r
r
o
r
1
.
C
u
s
t
o
m
e
r
s

u
n
a
v
a
i
l
a
b
i
l
i
t
y
2
.
P
i
p
e
l
i
n
e

o
v
e
r
p
r
e
s
s
u
r
e
R
e
c
e
i
v
e
d

b
y

T
e
r
m
i
n
a
l
G
a
s

-
O
E
E
A
P
P
E
N
D
I
X

1
9
B

APPENDIX 19
Page 537

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

LEVEL 1
Code CategorIes 0efInItIon
W Well E FeservoIr
ProductIon deferment attrIbuted to subsurface factors, namely, reservoIr, well (wellbore tubIng up to
wellhead) and artIfIcIal lIft system (excludIng gas lIft compressIon).
P Process E UtIlItIes
ProductIon deferment attrIbuted to systems In productIon, processIng or collectIon facIlItIes. However, systems
wIth major rotatIng equIpment (as categorIzed under Code 'F') are excluded.
F
FotatIng
EquIpment
ProductIon deferment attrIbuted to systems wIth major rotatIng equIpment (IncludIng auxIlIary systems) In
productIon, processIng or collectIon facIlItIes.
D DperatIons
ProductIon deferment attrIbuted to actIvItIes and resources requIred to perform them. t covers mostly
planned actIvItIes (and extensIons) as well as backonlIne requIrements.
E External
ProductIon deferment attrIbuted to:
PETFDNAS' requIrements (other than stIpulated In PPCUA).
Covernment's requIrements (other than stIpulated In regulatIons).
CascadIng effect of actIvItIes / events at other facIlItIes (not necessarIly operated by others).
X Dthers/Unknown
ProductIon deferment that:
0oes not fall under any of the categorIes above.
Foot cause could not be determIned through systematIc troubleshootIng / faIlure analysIs.
Fesulted from HSE IncIdents (excludIng those resulted from system faIlure).
0ue to events that would normally be treated as force majeure occurrence (IncludIng weather and
natural dIsasters).

APPENDIX 19C

APPENDIX 19
Page 538

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

LEVEL 2

W- WELL PESEPVDIP

W1 FeservoIr condItIons 0eferment due to reservoIr or fluId condItIons / characterIstIcs.
W2 Well condItIon
0eferment due to abnormal operatIons or faIlure of wellbore, tubIng or wellhead IncludIng all
auxIlIary systems and assocIated components.
WJ ArtIfIcIal lIft
0eferment due to abnormal operatIons or faIlure of artIfIcIal systems IncludIng all auxIlIary
systems and assocIated components.
W4
FeservoIr
management
0eferment Incurred to maIntaIn optImal fIeld performance and maxImIze hydrocarbon recovery as
per FeservoIr |aIntenance Plan (F|P).

APPENDIX 19C (CONT.)

A
P
P
E
N
D
I
X

1
9

P
a
g
e

5
3
9

S
U
P
E
R
S
E
D
E

I
S
S
U
E
:

A
U
G

2
0
0
0

I
S
S
U
E
D

B
Y

P
E
T
R
O
L
E
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M

M
A
N
A
G
E
M
E
N
T

U
N
I
T

R
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I
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N

2

A
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G

2
0
0
8

P
-

P
P
D
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S

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C
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d
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C
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0
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1

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P
2

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P
J

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a
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c
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(
0
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(
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)
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a
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)

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5

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APPENDIX 19
Page 540

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

P- PDTATINC EUIPhENT

F1 Export compressIon
0eferment due to abnormal operatIons or faIlure of compressIon systems related to export gas
IncludIng all 'booster' compressIon systems. t Includes major components (prIme movers and gas
compressors) and all auxIlIary systems and assocIated components not lImIted to skId lImIts.
F2
Cas lIft
compressIon
0eferment 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.
FJ Power generatIon
0eferment 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. t excludes electrIcal power dIstrIbutIon systems.
F4 Export pumps
0eferment due to abnormal operatIons or faIlure of pumpIng systems related to crude oIl and
condensate export IncludIng all 'booster'pumpIng pumpIng systems. t Includes major components
(prIme movers and pumps) and all auxIlIary systems and assocIated components not lImIted to skId
lImIts.


APPENDIX 19
Page 541

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

D- DPEPATIDNS

D1 0rIllIng E workover 0eferment due to drIllIng and workover actIvItIes.
D2 WIrelIne 0eferment due to wIrelIne actIvItIes.
DJ
DffloadIng
operatIons
0eferment due to crude oIl offloadIng / lIftIng actIvItIes.
D4
ProductIon
operatIons
0eferment resultIng from error In human InterventIon durIng normal operatIons or lack of
resources (IncludIng manpower and logIstIcs) to resume productIon (backonlIne) followIng a
shutdown.
D5
nspectIon E
maIntenance
0eferment necessItated by InspectIon and preventIve maIntenance actIvItIes for surface facIlItIes
and wells.
D6 ConstructIon
0eferment due to constructIon actIvItIes IncludIng InstallatIon, hookup / tIeIn, repaIr and
commIssIonIng actIvItIes.


APPENDIX 19
Page 542

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

E-EXTEPNAL

E1 Covernment
0eferment arIsIng from government's requIrements other than what Is stated In exIstIng or new
regulatIons.
E2 PETFDNAS
0eferment arIsIng from PETFDNAS' requIrements other than what Is stated In PPCUA. t Includes
changes to approved productIon allowable and flarIng lImIt.
EJ TransportatIon 0eferment related to means to delIver produced hydrocarbon to customers.
E4 Dther facIlItIes 0eferment due to cascadIng effects of actIvItIes or events at other facIlItIes.


APPENDIX 19
Page 543

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

4
R C P S C a u s a l T r e e
I s t h e
p r o b l e m
s t a t e m e n t
c l e a r ?
L e a d e r s h i p
C a p a b i l i t y
M i n d s e t s &
B e h a v i o r
O r g a n i z a t i o n
W h a t a r e t h e i m m e d i a t e
c a u s e s ? A r e t h e y
c o m p r e h e n s i v e a n d
i n d e p e n d e n t o f e a c h o t h e r ?
I f I s o l v e t h i s
i s s u e , d o e s i t
s o l v e t h e
p r e v i o u s i s s u e ?
A s k w h y 5 t i m e s t o g e t t o t h e r o o t c a u s e G r o u p t h e r o o t c a u s e s
A p p e n d i x E
APPENDIX 19D

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(
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APPENDIX 19
Page 548

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

T i m e t o
c o m p l e t e
E x t e r n a l
r e s o u r c e s
r e q u i r e d
E s t i m a t e
d c o s t
E x p e c t e d
i m p a c t
P r o p o s e d s o l u t i o n a n d a c t i o n s M a j o r c a u s e s
T e a m l e a d e r C o n t i n u o u s i m p r o v e m e n t m a n a g e r S e n i o r m a n a g e r r e s p o n s i b l e
V a l i d a t i o n :
S o u r c e : P M U
S t a g e G a t e 2 : R o o t c a u s e s o l u t i o n t e m p l a t e
A P P E N D I X 1 9 G

APPENDIX 19
Page 549

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

T h e S t a g e G a t e 2 t e m p la t e c a n o n l y b e f i l l e d i n o n c e t h e R C P S a n a l y s i s ( A p p e n d i x E ) c o m p l e t e d . T h e r e
a r e 6 s u b - s t e p s t o t e m p l a t e c o m p le t i o n :
1 ) M a j o r c a u s e s : L i s t o u t t h e m a j o r c a u s e s / s p e c i f i c f i n d i n g s o f t h e r o o t c a u s e i n v e s t i g a t i o n . F o r
e x a m p le , i f y o u u s e d t h e 5 - w h y m e t h o d o l o g y , t h i s w o u ld c o r r e s p o n d t o t h e l a s t
b r a n c h ( e s ) o f t h e 5 - w h y t r e e .
2 ) P r o p o s e d s o l u t i o n : L i s t p r o p o s e d s o lu t i o n a n d h i g h - le v e l a c t i o n s t o a d d r e s s t h e m a j o r c a u s e .
3 ) E x p e c t e d i m p a c t : L i s t t h e b e n e f i t t h a t y o u w i l l a c h i e v e t h r o u g h i m p l e m e n t i n g t h e a c t i o n s . T h i s s h o u l d
b e li n k e d d i r e c t l y o r i n d i r e c t l y w i t h t h e K P I s
l i s t e d i n t h e s t a g e o n e t e m p la t e
4 ) E s t i m a t e d c o s t : E s t i m a t e t h e c o s t t o i m p l e m e n t t h e a c t i o n . P r o v i d e d e t a i le d b a c k u p f o r b u d g e t
a p p r o v a l
5 ) E x t e r n a l r e s o u r c e s I n d i c a t e i f y o u w i l l r e q u i r e a d d i t i o n a l v e n d o r o r s e r v i c e p r o v i d e r s u p p o r t t o
r e q u ir e d : i m p l e m e n t t h e a c t i o n . W h e r e a p p l i c a b l e , P E T R O N A S m a y b e a b l e t o le v e r a g e i t s
o w n n e t w o r k a n d a l li a n c e s t o a s s i s t i f n e e d e d .
6 ) E s t i m a t e d t im i n g : E s t i m a t e t h e t i m i n g t o c o m p l e t e t h e a c t i o n . A lt h o u g h t h e d e t a i l e d i m p l e m e n t a t i o n
p l a n w i l l b e d e v e l o p e d i n t h e n e x t s t a g e , p r o v i d e a n i n d i c a t i o n o f h o w l o n g y o u
b e li e v e i t w i l l t a k e t o i m p l e m e n t .
S t a g e G a t e 2 : R o o t c a u s e s o l u t i o n g u i d e l i n e
A P P E N D I X 1 9 G ( C O N T . )

APPENDIX 19
Page 550

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

S t a g e G a t e 3 : I m p l e m e n t a t i o n a n d r i s k m i t i g a t i o n p l a n s t e m p l a t e ( p g 1 / 2 )
S o u r c e : P M U
T e a m m e m b e r s
P o t e n t i a l i s s u e s / r i s k s a n d m i t i g a t i o n :
R i s k A c t i o n
T e a m l e a d e r C o n t i n u o u s i m p r o v e m e n t m a n a g e r S e n i o r m a n a g e r r e s p o n s i b l e
C o m m i t m e n t N a m e P r o f i l e D e p a r t m e n t
A P P E N D I X 1 9 H

APPENDIX 19
Page 551

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

S o u r c e : P M U
P e r s o n
r e s p o n s i b l e
E n d d a t e
( y y / m m / d d )
S t a r t d a t e
( y y / m m / d d )
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S t a g e G a t e 3 : I m p l e m e n t a t i o n a n d r i s k m i t i g a t i o n p l a n s t e m p l a t e ( p g 2 / 2 )
A P P E N D I X 1 9 H ( C O N T . )

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APPENDIX 19
Page 553

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

S o u r c e : P M U
S t a g e G a t e 4 : I m p l e m e n t a t i o n m o n i t o r i n g t e m p l a t e
A c t i o n i t e m s c l o s u r e
A c t i o n i t e m
E x p e c t e d
c l o s u r e
A c t u a l
c l o s u r e
.
.
.
.
T e a m l e a d e r
C I m a n a g e r
S e n i o r m a n a g e r
r e s p o n s i b l e
A c t i o n s f o r s u s t a i n a b i l i t y :
P e r s o n n e l t r a i n e d o n
p r o b l e m / n e w s o l u t i o n s
D o c u m e n t a t i o n
g e n e r a t e d / u p d a t e d
O t h e r
A P P E N D I X 1 9 I

APPENDIX 19
Page 554

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

S t a g e G a t e 4 c o v e r s a c t i o n i t e m c l o s e o u t a n d s u s t a i n a b i l i t y s t e p s :
1 ) A c t i o n i t e m c l o s e o u t : T h e a c t i o n i t e m s h e r e s h o u l d d i r e c t l y c o r r e l a t e t o m a j o r c a u s e f r o m t h e S t a g e G a t e 2 t e m p l a t e
a n d t h e i m p l e m e n t a t i o n p l a n . L i s t t h e a c t i o n i t e m , t h e p l a n n e d c l o s e d d a t e ( f r o m S t a g e G a t e 3 ) a n d a c t u a l c l o s e d d a t e .
2 ) S u s t a i n a b i l i t y p l a n : S t e p s t a k e n t o e n s u r e s u s t a i n a b i l i t y o f t h e i n i t i a t i v e i m p r o v e m e n t s . E x a m p l e s i n c l u d e , b u t a r e n o t
l i m i t e d t o , t r a i n i n g , d o c u m e n t a t i o n a n d p r o c e s s r e d e s i g n .
S t a g e G a t e 4 : I m p l e m e n t a t i o n m o n i t o r i n g g u i d e l i n e
A P P E N D I X 1 9 I ( C O N T . )

DEFINITION
Page 555

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

DEFINITIONS
Actual Production
Average production rate actually realised over a specified period.
Approved Production
Average production rate over a specified period that is established and issued by
PETRONAS from time to time to be complied by PS Contractor.
Facilities, structures and pipelines
All topside facilities, offshore structures, pipelines, safety devices and system, storage tanks,
wellhead stack-ups including sub-sea completions system, export & loading facilities,
electrical installations and telecommunications facilities that related to production of oil, gas
and condensate either installed onshore or offshore except for subsurface safety devices.
Gas Oil Ratio (GOR) Limits
GOR limits established and issued by PETRONAS to be complied by PS Contractor.
Gas Utilisation
The gas uses for petroleum operations and gas lift.
Guideline
The official document outlining main PETRONAS requirements on specific activities to be
undertaken by PS Contractor to ensure safe and cost effective operations in upstream
activities.
HALAL Food
Food contain no pork or meat without proper Islamic preparation. It shall be certified by
Local Islamic Authorities.

DEFINITION
Page 556

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Major Repairs
Any repair work which cost RM 500 K and above for each particular unplanned works
related to crude, gas and condensate production.
National Depletion Policy (NDP)
Major fields having total Oil Initially Inplace (OIIP) equal to or more than 400 MMstb. The
production from major fields will be limited to a ceiling of 3.0% of OIIP in any one year.
Oil Production Availability
The Oil Production Potential after taking into account the planned shutdown schedule.
Oil Production Potential
The forecast of oil production deliverability at full wellstream or at system capacity.
Operational Integrity
Operational Integrity of a facility is achieved when it is being operated as intended, such that
it can achieve production targets without attracting undue risks to personnel, environment or
assets.
Over-Production
The differential by which the Actual Production exceeds the Approved Production Levels.
PETRONAS Regional Office
PETRONAS Petroleum Management Unit (PMU) regional offices located at Kerteh and Miri.
Procedure
The official document outlining detail PETRONAS requirements on specific tasks in
upstream operations to be undertaken by PS Contractor to ensure quality, reliability and
standardized output

DEFINITION
Page 557

SUPERSEDE ISSUE:
AUG 2000
ISSUED BY
REVISION 2
AUG 2008

Tanker Lifting / Programming Meeting
The monthly meeting between Crude Oil Group, Petroleum Management Unit and PS
Contractor to forecast and target the subsequent month production level.
Technical Standard
Standard set by PETRONAS in meeting certain technical specifications and requirements.
Technical Integrity
Absence during specified operation of a facility foreseeable risk of failure endangering safety
of personnel, environment or asset value. (Acceptable technical integrity refer to audit team
recommendation prior to the field handover/relinquishment process).
Under-Production
The differential by which the Actual Production falls short of the Approved Production levels.
Upstream Operations
All activities involved in the oil, gas and condensate production.

FOR UPSTREAM ACTIVITIES

ISSUED BY

ACKNOWLEDGEMENT
These procedures and guidelines review update for the Upstream Activities have been
undertaken by Petroleum Management Unit in association with the established PETRONAS
Production Sharing Contractors namely, PETRONAS Carigali Sdn.Bhd.(PCSB), ESSO
Production Malaysia Limited (EMEPMI), Sarawak Shell Berhad (SSB), PETROFAC (Malaysia)
Limited (PETROFAC), Amerada Hess (Malaysia) Limited (AMERADA HESS),Talisman
Malaysia Limited (TML) Nippon Oil Limited (NIPPON), Newfield Sarawak Malaysia Inc
(NEWFIELD) and Murphy Sarawak Oil Ltd & Sabah Oil Ltd (MURPHY OIL). The PMU
Management would like to express special thanks and appreciation to the following key
personnel for their perseverance and endless commitment in making these procedures and
guidelines possible:
1. Guidelines for Health Safety & Environment
i. Azlan Subari (PMU)
ii. Rozita Musib (PMU)
iii. Bolhi Maskawi (PMU)
iv. Razali Ibrahim (PMU)
v. Nur Atikah Abu Bakar (PMU)
vi. Enteli (PCSB)
vii. Roziah Noordin (EMEPMI)
viii. Andrew Collin (SHELL)
ix. Mahathir Malim (PETROFAC)
x. Saabi Wahab (TML)
xi. Marina Jamil (MURPHY)

2. Guidelines for Explorations Survey Operations
i. M Zaki Othman (PMU)
ii. Kevin Robinson (NEWFIELD)
iii. M Yashkor Yunus (MURPHY)
iv. W Hasan W Zakaria (PCSB)


ISSUED BY

v. Anyi Ngau (SHELL)
vi. Abd Razak Nurin (EMEPMI)
vii. Anwar Khan (TML)
viii. Yoshinori Lino (NIPPON)
ix. Wee Eng Swee (AMERADA HESS)
3. Guidelines for FDP Review & Approval Process
i. Norhayati Hashim (PMU)
ii. Chen Kah Seong (PMU)
iii. Aidil Shabudin (PMU)
iv. Zulkifli Abd Rani (PMU)
v. Boo Kean Soon (PMU)
vi. M Farizan Ahmad (PMU)
vii. Jimmy Wee (SHELL)
viii. Anthony Yeo (SHELL)
ix. Abdul Rahman Abd Rahim (EMEPMI)
x. Tn Syed Mohammad Syed Ismail (PCSB)
xi. Ku Azhar Ku Akhil (MURPHY)
xii. Quentin Goodbody (TML)
xiii. Yoshinori Lino (NIPPON)
xiv. Nor Azila Mohd Salleh (AMERADA HESS)
xv. Barry Dawe (NEWFIELD)
xvi. Cy. MC Cants (PETROFAC)
4. Guidelines for Project Development Management
i. Norhayati Hashim (PMU)
ii. Mazuin Ismail (PMU)
iii. Lau Nai Tung (SHELL)
iv. Hafidzah Abdul Rahman (EMEPMI)


ISSUED BY

v. Noriyani Osman (EMEPMI)
vi. Syed Mohammad Syed Ismail (PCSB)
vii. Ahmad Kamal Razak (PCSB)
viii. Zahimi Osman (MURPHY)
ix. Geoff Bell (TML)
x. Kentaro Mochizuki (NIPPON)
xi. Nor Azila Mohd Salleh (AMERADA HESS)
xii. Patrick Simpson (NEWFIELD)

5. Guidelines for Drilling Operations
i. Iskandar Riza (PMU)
ii. Alfian Iqbal (PMU)
iii. Razali Ibrahim (PMU)
iv. Mariam A Aziz (PMU)
v. Bambang Iriyanto (PMU)
vi. Khairul Anuar Mahadi (PMU)
vii. Neil Hudson (PCSB)
viii. Kamarulzaman Jaafar (PCSB)
ix. Kayode Olaikan (SHELL)
x. Azmeer Ahmad (EMEPMI)
xi. Azman (EMEPMI)
xii. Fauzi Abbas (TML)
xiii. Lee Chih Chiang (TML)
xiv. Alan Ferguson (PETROFAC)
xv. Chris Fannery (MURPHY)
xvi. Kasim Selamat (MURPHY)
xvii. Mike Wylie (NEWFIELD)
xviii. Harun Embong (NIPPON)


ISSUED BY

6. Guidelines for Sub Surface Safety Devices
i. Mariam A Aziz (PMU)
ii. Alfian Iqbal (PMU)
iii. Iskandar Riza (PMU)
v. Bambang Iriyanto (PMU)
vi. Khairul Anuar Mahadi (PMU)
vii. Neil Hudson (PCSB)
viii. Kamarulzaman Jaafar (PCSB)
ix. Kayode Olaikan (SHELL)
x. Azmeer Ahmad (EMEPMI)
xi. Azman (EMEPMI)
xii. Fauzi Abbas (TML)
xiii. Lee Chih Chiang (TML)
xiv. Alan Ferguson (PETROFAC)
xv. Chris Fannery (MURPHY)
xvi. Kasim Selamat (MURPHY)
xvii. Mike Wylie (NEWFIELD)
xviii. Harun Embong (NIPPON)

7. Guidelines for Barges Operating Offshore Malaysia
i. Zaidi Zulkifli (PMU)
ii. Yogarajan Egamabran (PMU)
iii. Ismail Sulaiman (PCSB)
iv. Syed Hairil Hafez (PCSB)
v. Chin Chun Fatt (SHELL)
vi. Azman Johari Skymmar (EMEPMI)


ISSUED BY

vii. Manjit Singh (TML)
viii. Sh Hassan Omar (NIPPON)
ix. Rob Deane (NEWFIELD)
8. Guidelines for Crude Oil Production Allowables
i. Khairul Anuar Mahadi (PMU)
ii. Zaidi Zulkipli (PMU)
iii. Yogarajan Egambaran (PMU)
iv. Mohd Irwan Mohd Saari (PMU)
v. Mohd Anwar Mohd Latif (PMU)
vi. Azizul Atemin (PMU)
vii. Albert Terry (MURPHY)
viii. Mustafa Adenan (PCSB)
ix. Joseph Liew (SHELL)
x. Syed Helmi Syed Mohsin (EMEPMI)
xi. Dave Spence (PETROFAC)
xii. Kim Hansen (AMERADA HESS)
xiii. Abdullah Zulkarnain Abu Bakar (TML)
xiv. Shahril Adha Zamhury (TML)
9. Guidelines for Gas Production and Flaring / Venting Limit
iii. Yogarajan Egambaran (PMU)
v. Mohd Anwar Mohd Latif (PMU)
vi. Azizul Atemin (PMU)
vii. Albert Terry (MURPHY)
viii. Mustafa Adenan (PCSB)


ISSUED BY

ix. Joseph Liew (SHELL)
x. Syed Helmi Sye Mohsin (EMEPMI)
xi. Dave Spence (PETROFAC)
xii. Kim Hansen (AMERADA HESS)
xiii. Abdullah Zulkarnain Abu Bakar (TML)
xiv. Shahril Adha Zamhury (TML)

10. Guidelines for On-Shore and Off-Shore Operations
i. Bolhi Maskawi (PMU)
ii. Lionel Tan (PCSB)
iii. Alan Tan (SHELL)
iv. Norman Anjek (SHELL)
v. Roziah Noordin (EMEPMI)
vi. Ahmad Ghani (MURPHY)
vii. Shahril Adha (TML)
viii. Greg Youd (NEWFIELD)
11. Guidelines for Facilities & Integrity Management
i. Norazman Mohd Isa (PMU)
ii. Marcella Abdul Karim (PMU)
iii. Safree Zainudin (SHELL)
iv. Husni Ishak (EMEPMI)
v. M Sarifuddin B Othman (PCSB)
vi. Fadzal Ahmad (MURPHY)
vii. Ronizain Ismail (TML)
viii. Azuzani Haslinda Abdul Halim (AMERADA HESS)
ix. David Balusek (NEWFIELD)
x. Hisham Ibrahim (PETROFAC)


ISSUED BY

12. Guidelines for Reservoir Management
i. Mariam A Aziz (PMU)
iii. Amir Yusof (PMU)
v. Azizul Atemin (PMU)
vi. Yogarajan Egambaran (PMU)
vii. Ronny Gunarto (PMU)
viii. Bambang Iriyanto (PMU)
ix. Tg Ahmad Tarmizi (PMU)
x. Mohd Izat Ali (PCSB)
xi. Ooi Kiam Chai (NIPPON)
xii. Azlan Anuar (NEWFIELD)
xiii. Patrick Simpson (NEWFIELD)
xiv. James Lim (SHELL)
xv. Jeremy Wong (SHELL)
xvi. Bay Chung Yong (TML)
xvii. Chua Hwa Tian (TML)
xviii. Siti Sabrina Sutu (AMERADA HESS)
xix. Kamarul A. Buang (EMEPMI)
xx. Henrikus Amperanto (MURPHY)
13. Guidelines for Well Test, Production Measurement & Allocation
i. Zainal Din (PMU)
ii. Norasmarina Masrom (PMU)
iii. Zakiah Zakaria (PMU)
iv. M Kamarulanuar A Kadir (PMU)
v. Mohd Azri Abdul Aziz (PMU)


ISSUED BY

vi. Razali Ibrahim (PMU)
vii. Raja Sharifuddin Ahmad (PMU)
viii. Rick Chan (MURPHY)
ix. Ismi Mohd Nasir (MURPHY)
x. Syahzad Samad (MURPHY)
xi. Fadzal Ahmad (MURPHY)
xii. Shahril Adha (TML)
xiii. Abdullah Zulkarnain (TML)
xiv. Azhar Omar (PCSB)
xv. Mohd Azhar Mazlan (PCSB)
xvi. D. Vijay Kumar (PCSB)
xvii. Barry Goodin (NEWFIELD)
xviii. Jaz Marshall (SHELL)
xix. Chew Boon Fei (SHELL)
xx. Nasreen Khalid (EMEPMI)

14. Guidelines for Dynamic Liquid Hydrocarbon Measurement
i. Zainal Din (PMU)
xi. Fadzal Ahmad (MURPHY)]


ISSUED BY

xvi. D Vijay Kumar (PCSB)
15. Guidelines for Gas Measurement
i. Zainal Din (PMU)
xi. Fadzal Ahmad (MURPHY)]
xvi. D Vijay Kumar (PCSB)


ISSUED BY

16. Guidelines for Decommissioning of Upstream Installation
i. M Nasir Yunus (PMU)
ii. Sameerah M Nawi (PMU)
iii. M Nazori Janor (PMU)
iv. Azlan Subari (PMU)
v. Khairul Anuar Mahadi (PMU)
vi. Emry Hisham Yusoff (PMU)
vii. M Azrunizam Yaacob (PMU)
viii. Desline Sinta (SHELL)
ix. Jerry Siran Langan (SHELL)
x. Ahmad Mazlan Osman (NEWFIELD)
xi. Greg Youd (NEWFIELD)
xii. Akihiko Miyahara (NIPPON OIL)
xiii. Mohamad Azahar (NIPPON OIL)
xiv. Muzakir Zainal Abidin (EMEPMI)
xv. Agustinus Hadi (MURPHY OIL)
xvi. Tay Kim Chee (MURPHY OIL)
xvii. A Khalid B Jaafar (PCSB)
xviii. Azizul Azhar (PCSB)
xix. Ronizain Ismail (TALISMAN)
xx. Shahril Adha Zamhuri (TALISMAN)


ISSUED BY

17. Guidelines for Data Management and Submission
i. Norzilah Jaafar (PMU)
ii. Azlan Subari (PMU)
iii. Idrus M Shuhud (PMU)
iv. Robert Siahaan (PMU)
v. M Kasim M som (PMU)
vi. Anthony Yeo (SHELL)
vii. Kamarulzaman Jaafar (PCSB)
viii. Mat Zakir Darus (TML)
ix. Hassan Mohd Ali (TML)
x. Wan Aswandi (PETROFAC)
xi. Chandramoorthy (PCSB)
xii. Henrikus Amperanto (MURPHY)
xiii. Mohd Azlan Anuar (NEWFIELD)
xiv. Kentaro Mochizuki (NIPPON)
xv. Mokhzani Ariffin (AMERADA HESS)
xvi. Fadzillah Abdullah (EMEPMI)
xvii. Clarence Samuel (EMEPMI)
xviii. Ghazali Noordin (EMEPMI)
xix. Yap Siew Chee (EMEPMI)
18. Guidelines for Emergency Response and Communication Procedure
i. Rozita Musib (PMU)
ii. Azlan Subari (PMU)
iii. Bolhi Maskawi (PMU)
v. Rozita Musib (PMU)
vi. Nur Atikah Abu Bakar (PMU)


ISSUED BY

vii. Enteli (PCSB)
viii. Roziah Noordin (EMEPMI)
ix. Andrew Collin (SHELL)
x. Mahathir Malim (PETROFAC)
xi. Saabi Wahab (TML)
xii. Marina Jamil (MURPHY)
19. Guidelines for Operating Performance Improvement
ii. M Ali M Shamsuddin (PMU)
iii. Danial Khan Abdul Rashid Khan (PMU)
iv. Rahul Mehrota (GTS)
v. Wira Yusof (GTS)
vi. Noor Azlan M Harif (PCSB)
vii. Syed Helmi (EMEPMI)
viii. Jonny Labo (SHELL)
ix. Gerard Liang (NIPPON OIL)
x. Shahril Adha (TML)
xi. Ahmad Ghani (MURPHY OIL)

Ppgua Aug 2008 As Rolled Out Feb 2009

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TABLE OF CONTENT

PETRONAS PROCEDURES AND GUIDELINES

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