Win-for-All: Strategic Approach in HSE Management for E&P in Malaysia

Abstract

Abstract Since the first oil exploration in 1910, Malaysia has advanced to join the global oil and gas players in redefining the industry's landscape by making discoveries in newer frontier and challenging fields such as ultra deepwater, High Pressure High Temperature (HPHT) and high CO2. As the entrusted entity and the custodian to manage the hydrocarbon resources under the Malaysia Petroleum Development Act 1974, PETRONAS has discovered over 400 fields, developed and operated by joint-venture agreements with 16 international oil and gas companies. Compliance with the prescriptive Malaysian regulations for E&P activities is not the only condition to ensure effective Health, Safety and Environment (HSE) management and implementation. This paper discusses the philosophy and strategic approach that PETRONAS, through its Petroleum Management Unit (PMU), has taken to formulate the "win-for-all" concept and harmonized standards in steering the E&P operators’ HSE management. As PETRONAS leads the oil and gas industry in Malaysia, it is PMU's obligation to bridge the Government's expectation and E&P operators’ conformance, whilst taking into account the latest technology available derived from international standards and industrial best practices. With the evolving relevant Malaysian laws and regulations, increasing public awareness in HSE, and managing new E&P players and subcontractors; PETRONAS has effectuated the self-regulatory principle by influencing the E&P operators to adopt their own global HSE standards for continuous improvement. Through this concept, PETRONAS has developed several HSE standards to be met by E&P operators at minimum, in which the challenges and anticipated achievement will be discussed further in this paper. The key success factor for PETRONAS in managing HSE in E&P is the ability to manage the portfolio for assets in Malaysia and balancing those between minimizing HSE risks and maximizing the profit returns, as the highest contributor to the nation economic growth.