Unlocking Stranded Marginal Gas Fields in Malaysia with Low CAPEX Approach

Abstract

Abstract Vestigo Petroleum Sdn. Bhd. (VPSB) has been awarded the right to develop and produce gas fields via a Petroleum Sharing Contract in offshore Peninsular Malaysia. The contract area consists of undeveloped Field T, Field I and Field B integrated late life asset. The undeveloped Field T and Field I marginal gas fields lie within 60km from existing Field B production hub. The production comes from gas dominant Field B, a producing field that is in decline and of which VPSB assumed operatorship in 2017. The immediate business driver is rapid monetization of the asset via tapping into nearby potential marginal gas fields. To enable this, low CAPEX and rapid development with fast investment return are required. Among the undeveloped gas fields, Field T was identified to anchor the development as it carries significant discovered gas volume. However, majority of the gas volume comes with H2S, and CO2 content which is beyond sales gas specification. Therefore, inter and intra fields blending were considered. Owing to the complexity of Field T that is dependent on other fields to provide blending medium, it is crucial to outline sequencing, timing of the other gas fields appraisal and development to optimize the development. To start with, Field T development from a wellhead platform tied back to existing VPSB processing facilities via a 60km long pipeline was the identified concept. A standardized wellhead platform, batch drilling and fit purpose well design in conjunction with application of Zap-Lok, mechanical connection technology in pipeline and sharing of operation cost with existing facilities led to cost effective development. This is the first application of Zap-Lok technology offshore Malaysia. The deployment of VPSB standard wellhead platform enabled rapid field development, with platform installed in less than eleven (11) months after project approval. All five (5) development wells were batch drilled to penetrate multiple stacked reservoirs and completed monobore to accommodate selective bottom-up perforation. These monobore wells either commingled minor reservoirs within similar pressure regime or selectively perforated at major reservoirs only for production to meet committed gas rate. This also ensures not to jeopardize major reservoirs gas reserves and reservoir management plan. Future developments are being planned to duplicate the success of Field T development to other identified marginal fields to drive cost reductions over time with higher efficiency.