Driving Resource Stewardship to Secure Hydrocarbon Resource Development for Sustainability and Growth in Sarawak Region

Abstract

Abstract Strategic vision and long-term view of upstream development plan is one of the key directives entrusted to Malaysia Petroleum Management (MPM) to secure sustainable production for the nation. The Sarawak Area Development Planning (SK ADP) is one such critical study aimed at identifying the inventory of hydrocarbon resources, potential outlook on projects' commercial viability, as well as shaping the portfolio mix strategy to deliver the long-term business growth. This SK ADP study also keeps Petroliam Nasional Berhad (PETRONAS) well-positioned to steer Petroleum Arrangement Contractors (PACs) in developing and maximizing the full value of resources. This includes outlining opportunities to collaborate in project sequencing and cost optimization efforts. This paper illustrates the methodology, process workflow and key takeaways from the SK ADP study. The SK ADP study was conducted to establish a development blueprint based on overall available resources and projects' first hydrocarbon sequencing for the short-term and long-term development planning in the Sarawak region. The key objective of the study was to identify the most optimum and technically viable integrated development plans, whilst also incorporating the agreed commitments and existing limitations inclusive of technology application and replications. The process workflow consisted of identifying six focus areas to further enhance the Sarawak Portfolio, maximizing the assets' value and ultimately meeting overall supply and demand requirements. These focus areas act as guiding principles to mature the overall development plan for the area, relating to generating an inventory basket, facilities optimization, clustering strategy, technology evaluation, contaminant management and risk assessment. Cross-discipline integration plays a pivotal role in shaping the final roadmap for each of the focus areas coupled with holistic validation. With the SK ADP in place, it can function as a key reference document and kept updated with the latest developments to maintain PETRONAS' agility in the pursuit of both business sustainability and continuous growth in the region. Key deliverables from this ADP can be turned into actionable insights for field implementation and help boost overall resource management in the region for long-term production delivery. This paper presents the best practices adopted for region level development planning in alignment with strategic vision for business growth.