South Sabah Synergy

Abstract

Abstract South Sabah operations consists of two major players namely PETRONAS Carigali Sdn Bhd (PCSB) and Talisman Malaysia Ltd. (TML) of which both are operating in close proximity and codependent by design. Driven by an innovative Petroleum Arrangement, integration between PCSB and TML is inevitable in pursuing synergy within the South Sabah area. The accomplishments achieved shall be a role model for other operators to emulate. A formal steering committee, South Sabah Synergy Group (SSSG), consists of senior representatives of PETRONAS, PCSB and TML was established with a role to direct and oversee series of working groups. The coordination was made possible by a Joint Asset Working Group (JAWG) which put forward specific opportunities for deliberation and deliver a comprehensive list of synergies. This was done through identifying all opportunities purely on technical prospects and for each of the opportunity, a preliminary analysis of its potential benefits and risks were done followed by capturing all plans that were essential to its realization. Lastly, the identified opportunities were ranked and assessed based on impact against do-ability and the ones identified as "low hanging fruits" became the main focus area. A potential savings of USD 30 million to USD 50 million are expected over the Production Sharing Contract (PSC) life. This was evident from two years' worth of achievements (1) spare parts sharing has saved USD 200,000, (2) subsurface data sharing has saved USD 3.0 million on core samples acquisition, (3) sharing of drilling rig mobilization has saved USD 1.4 million and accelerated the project by 30 days. In the mid-term opportunities; (1) logistics sharing will save USD 520,000 a year and increase 50% boat availability, (2) a 5-year integrated planning will optimize production downtime and (3) streamlining emergency response will result in an effective and well-coordinated response. The list goes on beyond current scope and vicinity and further opportunities can be realized within the wider Sabah network. The key success factor is to streamline the mindset and perspective between all parties to focus on win-win strategy by understanding that the ultimate goal of fulfilling synergy will translate into increasing profitability in the most efficient way.