WI Performance Review

Value Creation

Presentation to MPM
09.06.2020

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 Potential Value Creation
Potential value creation from enhancement of water treatment efficiency, uptime and
improvement of unit injection cost (UIC) is shown here.

WI
Oil Processed Actual WIM Overboard Overboard
N0 Field
Production Water Injection
Treatment UIC
Uptime
PIR
Water Reduction
Estimated Value Creation
Eff Remarks
Overboard UIC
BOPD BWPD BWPD % RM/Bbl % BWPD BWPD PIR Total
Reduction Reduction
1 St Joseph 7000 14000 10000 71 0.35 89 0.70 4000 2000 255,500 127,750 17,374,000 17,757,250
2 Barton 1190 5000 5000 100 0.29 93 0.24 0 0 - 52,925 - 52,925
3 Kikeh 14320 150556 108400 72 0.14 94 0.13 42156 15000 766,500 553,924 24,591,033 25,911,457 Multi Res. Inj.
4 SNP 8500 9800 7000 72 0.14 94 1.21 2800 1400 71,540 35,770 21,097,000 21,204,310
5 West Desaru 3500 40000 30000  98 0.71 72  0.12 10000 5000 1,295,750 777,450 7,239,167 9,312,367 Treatment Efficiency to reconfirm
6 Cendor 8200 81633 80000 98 3.35 76 0.10 1633 0 - 9,782,000 - 9,782,000
7 Tapis 10100 6600 1.53
8 GuntongD 3300 Field using GI
GuntongABCF 13900 41000 0.34
9 Tabu 4600 0
10 Larut 2800 8000 0.35
11 West Patricia 1747 6000 0.29
12 Permas 3300 3500 0.94
13 South Acis 14800 12000 1.23
14 Serendah 4030 10000 0.40
15 Bunga Raya - - - - - -
16 Bunga Tulip 700 7500 0.09
17 Bunga Kekwa - - - - - - - Field have multi reservoir
18 Gemusut Kakap 131100 81114 1.62
19 Malikai 57900 5625 4500 80 95  12.87 1125 250 - - 3,102,500 3,102,500 Assumed PIR = 1 to calculate value creation opportunity
2,389,290 11,329,819 70,301,200 84,020,309
Note:
1. Value in blue colour is interpreted/read from available data/graph
2. Data's retrieved from AMiR 2019 pack
3. Production Injection Ratio, specific to the field.
4. Overboard reduction value creation = overboard reduction x UIC x 365 days
5. UIC reduction value creation = Reduction of UIC e.g. 10% reduction x Injection Rate x 365 days
6. PIR Opportunity = PIR x WI improvement (in KBD) x 365 days x Oil Price ($) x $/RM Conversion x Effectiveness factor
7. Effectiveness factor is assumed to be = 0.2

© 2019 Petroliam Nasional Berhad (PETRONAS) |

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 WI
Oil Processed Actual WIM Overboard Overboard
N0 Field
Production Water Injection
Treatment UIC
Uptime
PIR
Water Reduction
Estimated Value Creation
Eff Remarks
Overboard UIC
BOPD BWPD BWPD % RM/Bbl % BWPD BWPD PIR Total
Reduction Reduction
Kikeh (by reservoir)
1 H150 2163 43600 0.05
2 H140/145 2690 15900 0.17
3 H130/136 3171 8400 0.38
4 H110/115/120 8340 40500 0.21
16364 108400 0.15

© 2019 Petroliam Nasional Berhad (PETRONAS) |

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 Latest Progress Update
36 Months
(30 Fields OBO + COB)

5 Fields in 2020
1. Tabu
2. West Desaru
3. South Acis
4. St Joseph
5. Cendor (suggested by JVM)

Expected value creation is

approximately RM 60 Million
MCO
18 March Extended to
2020 9 June 2020

Outstanding Actions
With PSB (Petrovirtus SB)
1. Finalize PSB manning.
2. Preparation for workshop with OBO.
3. To finalize on commercial: change order for reducing the scope of Continuous Operation Supports (i.e. change
from 4 (four) to 2 (two) of Water Injection Operation Specialists (WIOS)).

With Stakeholders within PETRONAS

1. To align with MPM on field by field value creation.
2. To align with UD in developing WI performance management system for PETRONAS COB and OBO.
© 2019 Petroliam Nasional Berhad (PETRONAS) |

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 Deliverables for 3 (three) years contract
Category Scope Deliverable Improvement

 Conduct “M2M” Water WIM performance 19 fields in OBO and

Injection performance analysis & report, 11 fields in COB
improve efficiency • Increase efficiency of 10%
 Improve WIM • Increase uptime of 10%
performance Reduce value leakages • Reduce overboard water of
and safeguard cost 20%
 Assess, benchmark • Reduce /maintain UIC
and rank all WIM • Maintain the WI
Technology WIM Operation
performance
benchmark

 WIM TTS development WI training module

 Develop 4 (four) WIM TTS
and WI training to fulfill MA and IA
 WI capability  Sustainability of WI
development Coaching for WIM
operations (MA and IA)
People TTS development

WI Performance  Fast analysis and problem

 Develop & implement Management System solution
WI performance  Integrated WI database
system WI PTS, Souring and performance
Guideline monitoring system
 Enhance guidelines  Prudent and effective
Process Water Injection governance on WI
Management Assurance
(WIMA)

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 30 Fields Put in ITB
30 existing water injection fields and 3 optional fields (expected
as new water injection fields) are put in ITB.

The inclusion of those WI fields

has been made as part of
execution of MPM directive on
conducting Molecule to Molecule
(M2M) water injection review
for OBOs after successful M2M
for COB.

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 WI Performance Review - Timeline
Conduct WI Performance review for 30 fields (19 OBO + 11 COB),
develop WI performance management system for PETRONAS COB and
OBO. 2020 2021 2022 2023
N
Activities Notes
o 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4

Field by Field Performance Review

5 OBOs (1st
1
batch) The sequence is flexible to
5 OBOs Tabu, West Desaru, South accommodate to suit with the
2 (2nd Acis, St Joseph, Malikai
batch) most up to date situation.
5 OBO (3rd
3
batch)
4 OBO (4th
4 Expected new WI operations:
batch) 1. Sepat (2020)
4 new 2. Bokor (Q4 2020)
5 3. Betty (2021)
COBs 4. Limbayung (TBA).
7 existing
6
COBs

Water Injection Performance System

Assessment PCSB for COB : ODMS, PGPS and FPC

1
on the
needs
MPM for OBO : ODU and PACE
Concept
2
and design
Develop Petrovirtus : KRYSTAL
3 the Testing done in parallel
system with KRYSTAL system

4 Testing
Performanc
5 e system
Plan Actual
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 WI Performance Review - Timeline
The contract also cover operation supports that include Training, WIM
TTS development and guideline development.
N 2020 2021 2022 2023
Activities Notes
o 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4

Training and WIM TTS Development

Training
1
module
Class-room Training modules will be
2
Training compliment to any training
modules in PETRONAS
Training
3
module
Baseline:
3 candidate
gaps Hands on coaching is conducted through face to face interaction on site.
Coaching
4 WIM TTS
candidates
TTS PETRONAS TTS Assessment to
5 measure the development
Assessment

Guidelines

WIM
1 To suit this part with
operational
PETRONAS EAGLE
Reservoir
2 initiatives
Souring

3 WIMA

PTS
4
Related

Plan Actual
© 2019 Petroliam Nasional Berhad (PETRONAS) | 9

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 Way Forwards

1. To register and budget for 10 (ten) OBO Fields in 2021 Work Plan.
The amount is RM 550K perf field or RM 5.5 Million.

The contract for conducting 30 fields (OBO + COB) has been made
accordingly with a total amount of RM 19.5 Million for 3 years
duration.

2. Plan necessary preparation and communication accordingly.

© 2019 Petroliam Nasional Berhad (PETRONAS) |

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 Collaboration Map

VP IA VP MA VP COE (Champion)
MPM (Champions)
En Aidil Shabudin
WI CoP (Champion) Dr Rahim Mashoudi
Amir Ali

Country Head Region Head

PMA, SKO, SBA Head of RMP Head of PED Head of OE
(Champion) (Champion)
Nazri B A Latiff

Head of Head of Oil Production

Operation PMA, SKO and SBA Head of TAG Head of TX

PIC: Nor Erza Shafina Khairuddin Head of SWIFT

Md Zarin Md Zainuri
JVM MPM RDM/POM
Managers Managers PIC: Hew Zhong Yin
PIC: Sriyanta Hadi

Subsurface SWIFT Team Operations Upstream

(Chander) (Sriyanta Hadi) Digital
M Azmin B M Talhah Sharina Bt Fong Chung
Mohd Salim Chiu (PETRONAS - Petrovirtus Collaboration)
Ahmad Firdaus B Ab
Zarith Anna Bt Adzuan Faisal
Hapidz
Khalid B Ahmed
M Faisal B M Rosli
Syamsina Bt
Rashid
M Zazimi B
Asmawi
Legend
Asmawi B Rashid
Ali Sabzabadi Siti Sakinah Bt
Enabler Champion Doer
Mashadi Isnainye
Sariat
Delivery Line to MPM
Nadirah Bt Siti Nurul Aimi
Khairul Anwar Bt M Shariff Din
Reporting Line Consult

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 Data Acquisition and Processing

Document
No Description
Name
1 WIM Daily DAR From Platform Operation (7 days min)
Operation
Report
• These
2 WIM Water Water Quality Surveillance (7 days min) documents is the
Quality Report
basis for the
3 WIM Chemical Chemical types, injection frequency & subsequent Data
Report volumes (7 days min) Technical acquisition
4 WIM Design Conceptual & WIM Design Technical Questionnaire through
Basis Manual Specifications (TQ) to be e-form
(DBM) distributed to form Data
each WIP respective analysis,
5 WIM As-built Process Equipments Layout &
custodian. PSC. performance
PFD and/or Specifications
P&ID monitoring
• Develop specific and problem
6 WI Pipeline Current pipeline network drawing & e-form for
Distribution specifications Establish solving
specific WI
Network Program custom
7 Special Studies Internal (taskforce) and 3rd party report,
databases
& Audit Report KPAs & KPIs reviews • At this stage the and
focus is on stringent
8 Month End Summary of WI Surveillance data data rule
Return Report (WIM,Pipeline & Injectors)
Reference
information; NOT for QC.
9 Month End Summary of WI Chemical Program data - Operation and
Chemical Volume, UTC, Compliance Surveillance data
OPEX Report yet.
10 WIM Highlight Scheduled downtime, WIM upgrades and
(Monthly) key events
Report
11 RMP target Monthly target as defined/targeted by Sub-
surface Group

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 Develop WIM TTS
Based on the latest SCA (2019), requirement for WIM TTS is 7 (seven). With 3
(three) current WIM TTS, SWIFT through WI Performance Review Contract try
to fill up the gap by having Water Injection Specialist from the market.
Change Curren Phasing Strategy for
SCA SCA Additional WIM TTS Technical Justification for Additional
No Area (2019- t Fill
2017 2019 WIM TTS
2017) up 2019 2020 2021 2022
Maintain the number, to cater both
WIMs in Angsi and Dulang fields.
1 PMA 2 2 0 1 1
TTS candidate has been identified
and plan to fill up the box in 2020.
1 WIM TTS is required to cater
Sumandak WIM that operated to
2 SBA 0 1 +1 0 1 supply water injection for both
Sumandak and Semarang fields and
incoming Limbayung WIM (2021).
Additional 1 WIM TTS is to cater the
current business dimensions as well
3 SKO 2 3 +1 1 1 1
as to support new Bokor WIM (to be
commissioned in Q3 2020).
The box for Iraq WIM TTS so far is
only one. Mentioned by OELT. TTS
4 Iraq 1 1 0 1
candidate has been identified and
plan to fill up the box in 2020.

Total 5 7 +2 3 2 2

SKO: Linggong Anak Alam, PMA: Rusdi B Che Abd Rahman, SBA: Zainal B Ashat

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 Stakeholders
Champhion : En Aidil Shabudin (MPM), Dr Rahim Masoudi(MPM),
VP Chen Kah Seong (COE), En Nazri Latiff (RMP), En Anwar Hussein
(PED), En Amir Ali (MA)

Result Manager (overall): En Md Zarin B Md Zainuri (SWIFT).

MPM Focal Person : Nor Erza Shafina Bt Khairuddin (MPM/RDM)

SWIFT Focal Person : Sriyanta Hadi
No Identified MPM RDM MPM POM JV Manager
Fields Manager Manager
1 Malikai / Shell Sharina Bt Mohd Fong Chung Chiu M Azmin B M Talhah
Salim
2 St Joseph / Zarith Anna Bt Khalid Adzuan Faisal B Ahmed Ahmad Firdaus B Ab
SEAH Hapidz
3 South Acis / Syamsina Bt Rashid M Zazimi B Asmawi M Faisal B M Rosli
PTTEP
4 Tabu / EMEPMI Ali Sabzabadi Siti Sakinah Bt Sariat Asmawi B Rashid

5 West Desaru / Nadirah Bt Khairul Siti Nurul Aimi Bt M Mashadi Isnainye

PETROFAC Anwar Shariff Din

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 Detail of Deliverables and Analysis (page 1 of 3)
Assurance and Contract
No Scope Contractor Deliverable Required Analysis Required Data WFH Do-ability
Help Payment

1 To perform 1. Water injection performance 1. a. Plant efficiency 1. WIM process 1. Data supply from 1. Yes, it can be 1. Based on
Water Injection management analysis and b. Injection design. Asset with the help done the report
performance report that includes efficiency 2. WIM from MPM and through/by 2. Monthly
management recommendations for c. Plant operational JVM. WFH. payment for
review with medium and long term Utilization data. 2. Virtual meeting 2. Consult and continuous
coverage of end solutions to improve and d. WI uptime 3. WI data that with Asset can be QC can be support (1c)
to end water sustain water injection e. Unit injection includes conducted to make done through
injection efficiency. cost subsurface clear virtual meeting.
surveillance 2. recommend solutions for any (UIC) injected water understanding of 3. During MCO,
program and operational problems on WI volume/wells. the operational provide
monitoring and and IWAG (WI/GI) based on 2. a. Short Term 4. Encountered matters. solution by
benchmarking of criteria set by PETRONAS solution problems WIM TTS visit
Water Injection b. Long Term (surface and is not feasible.
(WI) efficiency. solution subsurface).

2 To explore & 1. Cost-saving and/or 1. Safeguarded cost 1. WIM operational 1. Data supply from 1. Yes, it can be 1. Based on
establish safeguarded cost and/or or efficiency data. Asset with the done the report
potential quick efficiency improvement that improvement. 2. Encountered help from MPM through/by 2. Monthly
cost-saving can be translated into cost- problems and JVM. WFH. payment for
and/or saving. 1. a. WI efficiency including WIM 2. Virtual meeting 2. Consult and continuous
safeguarded 2. Target: 5% (base) to 20% b. UIC and wells. with Asset can be QC can be support (1c)
cost and any (stretch) efficiency c. Overboard 3. WI costs that conducted to done through
relevant actions improvement of WI water includes make clear virtual meeting.
based on the operations by all means e.g. d. WIM Uptime consumption understanding of
current reducing unit injection cost and WIM the operational
operation (UIC), reducing value 1. a. Value maintenance matters.
situation. leakage, increase equipment leakages costs.
reliability and uptime. b. WI costs 4. WI volume and
3. The achievement that c. WI Plant flow
measured through these Uptime measurement.
KPIs: d. Equipment 5. WIM equipment
a. Reduce value leakage Uptime uptime.
b. UIC
c. WI Plant uptime
d. Equipment uptime

© 2019 Petroliam Nasional Berhad (PETRONAS) | 15

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 Detail of Deliverables and Analysis (page 1 of 3)

3 To assess, 1. Assessment report of 1. Operational 1. Operational 1. Best practices 1. Possible Milestone

benchmark and operational water procedure or and WI are determined done by Payment
rank all WI injection best practices. best practices. problems through WFH
programs in 2. Improvement of 2. End to end water (surface and benchmark provided
Malaysia operational water injection subsurface). analysis. communicati
including WI injection best practices management 2. Observation to 2. Meeting with on to get
programs and guidelines based on that include the current Asset may be necessary
under PCSB Best Practices. surface practices that required. information
(COB) and 3. Enhancement of end to operations and include is smooth.
under OBO. end water injection sub-surface surface-
management. (injectors). subsurface
4. Provide training on end to integration,
end water injection multi-
management. disciplines
integration,
etc.
4 To assess the 1. WI training module that 1. The needs of WI 1. Common WI 1. Information of 1. Can be done Milestone
capability covers end to end water training that technologies existing WI by WFH. Payment
development injection subject matters covers surface applied in technologies 2. Verification
with regards to (surface and subsurface), and subsurface, Malaysia and applied in and validation
water injection the current and the latest the common and PETRONAS. Malaysia and can be done
technology; to technology in water the latest 2. New WI PETRONAS are through
develop and injection operation. technology. technologies available. virtual
enhance 2. 30 days of formal training 2. Technical Know applied in 2. WIM TTS TKH meeting with
capability delivery for PETRONAS How (TKH) gap of PETRONAS requirement is relevant TPs.
development staff throughout 3 years WIM TTS COB and OBO. available. 3. On site
mainly in water 3. Training and coaching for candidates. 3. TKH and gaps 3. Assessment coaching for
injection subject TTS development through 3. Closing gap of WIM TTS results or WIM WIM TTS is
matters. classroom and on-site process for WIM candidates TTS candidate not feasible.
training. KPI will be TTS TTS candidates. 4. SKG TI&R gaps is available.
Know How to level 4. Relevant descriptors for 4. Relevant SKG
improvement. technologies that water injection TI&R is available.
4. Assessment report on incorporated in subject in SKG
capability development with the current SKG 10 and SKG 16
regards to WI in relevant Technology (16.1, 16.2,
SKG in PETRONAS (SKG Inventory & Ruler 16.3 and 16.5).
10 and 16). (TI&R).

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 Detail of Deliverables and Analysis (page 1 of 3)

5 To develop Development and 1. Content and 1. Current PTS 1. Relevant 1. Yes, it can Milestone
guidelines enhancement of the effectiveness on WI. materials that be done by Payment
and/or following guidelines but not of current PTS 2. Current WI currently WFH.
enhance the limited to: on WI. surveillance available in 2. Verification
existing i. PETRONAS Technical 2. Content and guideline/stan PETRONAS and
guidelines Standards (PTS) on effectiveness dards. and/or other validation
relevant to Water Injection of current WI 3. Requirement sources are can be done
water injection ii. Water Injection surveillance for anticipating available. through
subject surveillance guideline/ reservoir virtual
matters. guideline/standards standards. souring. meeting
iii. Reservoir souring 3. Requirement 4. Relevant with
iv. Water Injection for avoiding matters for relevant TPs
Management Assurance and reservoir and stake-
(WIMA) anticipating souring. holders.
reservoir 5. WIMA and WI
souring. performance
4. Relevant reporting and
operational database.
matters to
reservoir
souring.
5. WIMA and WI
performance
reporting and
database.

6 To develop/ 1. Utilize or develop tools to 1. Water 1. The existing WI 1. Understanding on 1. Information Milestone
implement do the performance performance performance the current are gathered Payment
water injection analysis with system, system (if any), system,database, through
performance documentation. analysis and database, data analysis, data interactions
management 2. All analysis results to be visualization. capture and capture, data flow with WI
system in integrated with the 2. Integration of flow, data QC. and data QC. stakeholders.
PETRONAS existing/upcoming the analysis 2. Integration of 2. Any practices of 2. Face to face
Carigali Sdn PETRONAS database. and analysis and integration meeting is
Bhd and MPM 3. PETRONAS to verify the visualization. visualization analysis and its effective to
results of the database 3. Database 3. Database visualization. get clear
integration. integration. integration 3. Observation on understandin
4. To integrate with the 4. Existing 4. Existing what have been g.
current PETRONAS IO PETRONAS IO PETRONAS IO captured in
system (applicable for relevant to WI relevant to WI © 2019 Petroliam
PETRONAS IO. Nasional Berhad (PETRONAS) | 17
COB Fields) operations. operations.
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 Operational Performance Support

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 Potential data required –Wells/Subsurface

1. Production and Injection rates and uptime days

2. Well water cut and GOR
3. Production and Injection Allocation for commingled injection
4. Well head Pressures and Temperatures.
5. Bottom-hole Pressures (SGS, FGS, PDG, PBU, IFO) and Temperatures
6. Gas Lift parameters – rate, pressure, operating valves etc.
7. Updated Well schematics
8. PLT data/reports if available
9. Relevant Maps, logs and well correlations
10. Sand production/control
11. Well intervention history
12. Any specific data/information required will be communicated further

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