Application of Due Diligence Audit for Value Creation: Case Study from Gas PSC of Malaysia

2021 ◽  
Author(s):  
Ankaj Kumar Sinha ◽  
Hue Teng Lim
Keyword(s):  
Value Creation ◽  
Operating Cost ◽  
Gas Production ◽  
Early Years ◽  
Due Diligence ◽  
Gas Field ◽  
Technical Assessment ◽  
Gas Fields ◽  
Gas Supply

Abstract As resource owner of all hydrocarbon assets of Malaysia, Petroliam Nasional Berhad (PETRONAS) through Malaysia Petroleum Management (MPM) is responsible for providing asset integrity assurance, maintaining producing assets in safe and operable conditions and ensuring compliance to data management by Petroleum Agreement Contractors (PACs). For mature fields nearing expiry of production sharing contracts (PSCs), it is even more critical to safeguard the integrity of petroleum facilities and to conduct an inventory check of acquired data during transition from existing to new PACs. A Due Diligence Audit (DDA) provides an important milestone to benchmark the health of existing assets (subsurface and surface) and outlining roadmap for future development opportunities for the PSC fields. This paper presents key technical results and value creation areas from the DDA conducted for one of the largest gas field PSC in Malaysia. This gas PSC consisted of multiple gas fields and production hubs catering to a majority of gas production in the region. Although the fields had been in production for more than 20 years, maintaining production plateau rate and optimizing operating cost were identified as key concerns for long term sustainability. New development opportunities were also needed to mitigate the same. For existing fields, incremental recovery projects focused on lowering the abandonment pressure are planned. To maximize the utilization of gas processing capacity in production hubs, nearby gas fields have also been identified for cluster development and evacuation. Assurance on long-term gas supply is targeted through fast pace exploration in the early years of new PSCs to discover new gas development areas and to further increase the operating life of these hubs. As ageing assets, each of the fields also faced unique challenges such as liquid handling, subsidence issues and increasing inventory of idle wells. Through successful application of the DDA framework, a detailed technical assessment of deliverables was conducted along with liability management to address these asset integrity risks. With the successful completion of DDA for these fields, the technical assessment deliverables have created significant PSC value by securing identified opportunities under minimum work commitments. In addition, it facilitated a roadmap for idle wells management plan and new technology in "Implement Replicate" phasing. This has helped PETRONAS to further monetize opportunities in ageing assets, and safeguard producing hubs for long-term gas supply. This paper presents an efficient Due Diligence Audit workflow for long term value creation in mature fields and assets.

Research and Application of Material Corrosion Prevention Technology in the Completed well System for Sour Gas well

2013 ◽  
Vol 712-715 ◽  
pp. 1096-1099
Author(s):  
Ling Feng Li
Keyword(s):  
Steel Corrosion ◽  
Gas Production ◽  
Corrosion Prevention ◽  
Gas Reservoirs ◽  
Gas Field ◽  
Gas Well ◽  
Corrosion Resistant Alloy ◽  
System Life ◽  
Sour Gas

For natural gas well in sour gas reservoirs, very serious corrosion in the completed well system is an important factor of gas production system life. In order to ensure the long-term development of gas wells, this paper mainly introduces material corrosion prevention technology in the completed well system, such as corrosion-resistant alloy steel corrosion control technology, bimetallic combination tubing, corrosion inhibitor technology and so on. By taking LJ Gas Field as an example, this paper introduces the material corrosion prevention technology in the completed well system in LJ Gas Field. For application in the completed well system in LJ Gas Field, the technology above have good performance of corrosion resistance.

Enhanced gas recovery, CO2 storage and implications from the CO2CRC Otway Project

2011 ◽  
Vol 51 (2) ◽  
pp. 684
Author(s):  
Peter Cook ◽  
Yildiray Cinar ◽  
Guy Allinson ◽  
Charles Jenkins ◽  
Sandeep Sharma ◽  
...  
Keyword(s):  
Pore Space ◽  
Co2 Storage ◽  
Co2 Concentration ◽  
Gas Production ◽  
Anthropogenic Sources ◽  
Future Price ◽  
Gas Field ◽  
Enhanced Gas Recovery ◽  
Gas Recovery ◽  
Gas Fields

Successful completion of the first stage of the CO2CRC Otway Project demonstrated safe and effective CO2 storage in the Naylor depleted gas field and confirmed our ability to model and monitor subsurface behaviour of CO2. It also provided information of potential relevance to CO2 enhanced gas recovery (EGR) and to opportunities for CO2 storage in depleted gas fields. Given the high CO2 concentration of many gas fields in the region, it is important to consider opportunities for integrating gas production, CO2 storage in depleted gas fields, and CO2-EGR optimisation within a production schedule. The use of CO2-EGR may provide benefits through the recovery of additional gas resources and a financial offset to the cost of geological storage of CO2 from gas processing or other anthropogenic sources, given a future price on carbon. Globally, proven conventional gas reserves are 185 trillion m3 (BP Statistical Review, 2009). Using these figures and Otway results, a replacement efficiency of 60 % (% of pore space available for CO2 storage following gas production) indicates a global potential storage capacity—in already depleted plus reserves—of approximately 750 Gigatonnes of CO2. While much of this may not be accessible for technical or economic reasons, it is equivalent to more than 60 years of total global stationary emissions. This suggests that not only gas—as a lower carbon fuel—but also depleted gas fields, have a major role to play in decreasing CO2 emissions worldwide.

Well Completion for Effective Deliquification of Natural Gas Wells

2011 ◽  
Vol 134 (1) ◽  
Author(s):  
John Yilin Wang
Keyword(s):  
Natural Gas ◽  
Operating Cost ◽  
Gas Production ◽  
Gas Wells ◽  
Liquid Loading ◽  
Gas Recovery ◽  
Well Completion ◽  
Reservoir Permeability ◽  
Gas Fields ◽  
Gas Lift

Liquid loading has been a problem in natural gas wells for several decades. With gas fields becoming mature and gas production rates dropping below the critical rate, deliquification becomes more and more critical for continuous productivity and profitability of gas wells. Current methods for solving liquid loading in the wellbore include plunger lift, velocity string, surfactant, foam, well cycling, pumps, compression, swabbing, and gas lift. All these methods are to optimize the lifting of liquid up to surface, which increases the operating cost, onshore, and offshore. However, the near-wellbore liquid loading is critical but not well understood. Through numerical reservoir simulation studies, effect of liquid loading on gas productivity and recovery has been quantified in two aspects: backup pressure and near-wellbore liquid blocking by considering variable reservoir permeability, reservoir pressure, formation thickness, liquid production rate, and geology. Based on the new knowledge, we have developed well completion methods for effective deliquifications. These lead to better field operations and increased ultimate gas recovery.

scholarly journals Multiple-criteria decision analysis for cross-country gas pipelines

2019 ◽  
Vol 102 ◽  
pp. 03010 ◽  
Author(s):  
Mikhail Sukharev ◽  
Ruslan Popov ◽  
Anton Balchenko
Keyword(s):  
Gas Production ◽  
Optimization Task ◽  
Gas Pumping ◽  
The Stability ◽  
Production Capacities ◽  
The Cost ◽  
Gas Fields ◽  
Planning Problems ◽  
Gas Supply

The paper considers the shortand medium-term planning problems of the regimes of multi-line technical gas pipeline corridors (MLGP) of Russian gas supply system. The fall in gas production due to the depletion of the gas fields leads to a decrease in the load of some operating MLGPs. At the same time, there is a redundancy of production capacities at compressor stations (CS). It becomes possible to use various technological schemes for incorporating CS with lines "pass by" in order to reduce the cost of gas pumping. The solution of the optimization task for the search for MLGP regimes in a one-criterion (minimum of the energy cost) formulation leads to frequent equipment switching. That is unacceptable. Therefore, it is advisable to proceed to multi-criteria statements, formalizing and introducing as criteria the requirements for the stability of technological schemes for switching on equipment, which are usually respected by the dispatch services. The purpose of this article is the development and testing of mathematical models and a computer program to support the adoption of dispatch solutions for managing modes of large MLGPs under conditions of incomplete loading. The solution method is demonstrated by the example of a three-line MLGP. The choice of optimal control is carried out using dynamic programming methods. In order to improve the quality of the choice of control actions, an algorithm is suggested that takes into account the stochastic nature of the loading of the MLGP.

Esso Australia’s long-term contribution to the east coast gas market

2019 ◽  
Vol 59 (3) ◽  
Author(s):  
Nathan Fay
Keyword(s):  
Joint Venture ◽  
Oil And Gas ◽  
Free Market ◽  
Supply And Demand ◽  
Petroleum Industry ◽  
Gas Production ◽  
Oil And Gas Production ◽  
The Right ◽  
Gas Supply

This year marks the golden jubilee of Australia’s offshore petroleum industry after the first gas was produced from Bass Strait by Esso and BHP’s Gippsland Basin Joint Venture. For half a century our industry has been driven by technology – pioneering technical excellence and pushing the envelope in the pursuit of much needed oil and gas production. Today, the landscape in East Australia is changing and gas is at the forefront of the discussion. Declines in East Australia’s historical conventional fields have seen gas supply tighten and prices rise. There is a strong need for additional affordable and reliable gas supply. While continued improvements in technology remain a critically important enabler in developing Australia’s gas resources; global supply and demand, regulatory frameworks, and the commercial arrangements that underpin new developments are becoming more and more important. ExxonMobil Australia’s new Chairman, Nathan Fay, has a wealth of experience working with gas markets around the world. He will explain why it is so important for policymakers to establishment a stable free market environment to encourage these long-term relationships. To view the video, click the link on the right.

Evolution of the east coast gas market

2018 ◽  
Vol 58 (2) ◽  
pp. 513
Author(s):  
Philip Byrne
Keyword(s):  
East Coast ◽  
Regulatory Frameworks ◽  
The Us ◽  
Major Transition ◽  
Gas Market ◽  
Gas Fields ◽  
Eastern Seaboard ◽  
Gas Supply ◽  
Australian Industry

This extended abstract reviews how the east coast gas market is managing the major transition from being a ring-fenced domestic market to being part of an interconnected global trading market, and what still needs to be done to rebalance after half a decade of disruption. The east coast gas market has a great future ahead of it, but only if Australia acts quickly to open up access to new gas supply sources as existing gas fields mature and decline. The presence of a global liquefied natural gas (LNG) supply market on the east coast now provides an incentive for gas producers to invest in new provinces and new plays at a scale the domestic gas market could not have supported on its own. This can only be good for competition in the east coast gas market over the medium to long term, and potentially open up enormous supplies for the growth of Australian industry, akin to the US shale gas revolution. To make the most of the resources and infrastructure we now have on the eastern seaboard, there is a role for governments to play in ensuring access to resources and providing stable, coordinated, robust energy policy and regulatory frameworks that attract investment in further growth in the gas sector, the benefits of which will flow on to Australian industry more generally.

Impact of hydrogen solubility on depleted gas field's caprock: an application for underground hydrogen storage

2021 ◽  
Vol 61 (2) ◽  
pp. 366
Author(s):  
Mohammad Bahar ◽  
Reza Rezaee
Keyword(s):  
Hydrogen Storage ◽  
Organic Material ◽  
High Pressures ◽  
Significant Risk ◽  
Gas Production ◽  
Threshold Pressure ◽  
Gas Field ◽  
Wide Range ◽  
Gas Fields ◽  
Underground Hydrogen Storage

Depleted gas fields are considered a low-risk location for underground hydrogen storage purposes to balance seasonal fluctuations in hydrogen supply and demand. The objective of this study was to identify any significant risk of hydrogen leakages stored in depleted gas fields. The capability of the storage area in terms of sealing efficiency varies with parameters such as rate of diffusion, solubility, thickness and capillary threshold pressure of the caprock. The most common caprock are shales, which contain organic material. The solubility of hydrogen into organic material could change the petrophysical properties of the rock, such as porosity and permeability. Any changes in these petrophysical characteristics can reduce the capillary threshold pressure thus reducing the caprock efficiency for the safe storage of hydrogen. There is about 20% of the remaining gas volume in the depleted gas field, which helps to prevent brine from entering the production streamlines and maintain reservoir pressure. The characteristic data of hydrogen at different high pressures and temperatures have been evaluated and imported into the simple finite element model using the Python programming language. Most of the parameters that influence reducing the strength of the caprock are identified. Crucial parameters are the rate of diffusion, the solubility of hydrogen in kerogen, geomechanical deformation, threshold capillary pressure, long period of injection and withdrawing of hydrogen. The model shows that the native gas production with hydrogen is low due to significant density variation and mobility ratio between methane and hydrogen. Finally, a wide range of parameters and reservoir conditions has been considered for minimising the potential risks of possible leakages.

scholarly journals GAS PRODUCTION AND UTILIZATION IN NIGERIA: A LONG-TERM PERSPECTIVE

2020 ◽  
Vol 6 (5) ◽  
pp. 58-72
Author(s):  
Henry Biose
Keyword(s):  
Gas Production ◽  
Regulatory Structure ◽  
Compressed Natural Gas ◽  
Financing Structure ◽  
Benin City ◽  
Gas Utilization ◽  
Gas Consumption ◽  
Sustainable Financing ◽  
Gas Supply

The study reviewed the gas production and utilization in Nigeria and outlines strategies for long term development. There is weak gas resource management system in Nigerian that has resulted to gas production being at 8.0bscf/d with utilization of 39% (2.9 bscf/d) on NLNG, 31% (2.3 bscf/d) on reinjection and other operational usage, 15% (1.1 bscf/d) on gas flaring and 16% (1.2bscf/d) on domestic gas consumption. The study shows a 41% daily average domestic gas supply obligation performance. Extensive review of related literatures was used to obtain relevant data and information on gas production and utilization in Nigeria. The study revealed inconsistencies and low gas production and utilization in Nigeria with respect to the Nigerian Gas Master plan that was not fully implemented, relatively low gas flare penalty and insufficient domestic gas utilization projects. The compressed natural gas utilization in Nigeria has only been used in Benin-City for cars, Nestle Shagamu factory and Power gas Africa. The proposed strategy for the long-term gas production and utilization in Nigeria includes sustainable management structure, sustainable governance and regulatory structure and sustainable financing structure.

Price review mechanisms in a global market

2011 ◽  
Vol 51 (2) ◽  
pp. 678
Author(s):  
David Thomas ◽  
Chris Douglas
Keyword(s):  
Review Process ◽  
Cost Effective ◽  
Global Market ◽  
Commercial Arbitration ◽  
Price Review ◽  
Gas Market ◽  
Gas Fields ◽  
Substantial Change ◽  
Gas Supply

The east Australian gas market (including SA) has, throughout its history, been isolated with limited connectivity from the gas fields that supply its major centres. With the arrival of CSG, imminent LNG exports and recent increased connectivity between gas fields and customers, the east Australian gas market has undergone substantial change. Against this background, it is timely to reconsider the approach to price review mechanisms contained in long-term gas supply agreements—particularly what market will be considered in any review process and what evidence will be available to the parties to a price review (in a cost-effective way) to allow consideration of movements in that market for the purposes of re-setting the price to be paid by a customer. In this extended abstract, the author discuss the effects of CSG developments and increased connectivity on the eastern gas market along with the effect LNG can have, particularly by reference to its impact on the WA gas market. A critical analysis of various price review mechanisms is undertaken with a view to identifying appropriate price review processes and criteria for the future along with reviewing the fundamentals of a price review process—specifically, the need for any price review and associated arbitration to give rise to a justiciable dispute such that the process attracts the operation of the relevant Commercial Arbitration Act and overriding Court supervision for the purposes of any necessary subpoenas or reviews of decisions.

VICTORIAN GAS MARKET-OPPORTUNITIES FOR PRODUCERS

1997 ◽  
Vol 37 (1) ◽  
pp. 755
Author(s):  
C.P. Demarte
Keyword(s):  
Gas Production ◽  
Market Place ◽  
Supply Contracts ◽  
Gas Industry ◽  
Market Growth ◽  
Field Development ◽  
Market Opportunities ◽  
Gas Market ◽  
Gas Supply

This paper addresses opportunities for producers in the Victorian gas market arising from the ongoing reform of the Australian gas industry. Much of the impetus of the change has occurred in Victoria but to date there has been little evidence of the benefit of market reform to producers. This is expected to change.Until recently, Esso/BHPP had a secure hold on gas production into the Victorian market. The renegotiation of their gas supply agreement with Gas and Fuel has created opportunities for limited production from new producers in the short term and significant market options in the long term.Gas marketing companies are preparing to change the way they do business. Rigid long-term gas supply contracts will be balanced with alternative arrangements with producers such as financing of field development, equity investment in projects, alliances, commodity exchanges and the use of underground gas storage and LNG.The formation of a spot market for gas will allow a transparent market place to evolve where forward physical and paper transactions can take place. Trading of gas futures and options will provide a mechanism for producers to take up any risk position that meets their corporate strategy.In the light of market growth forecasts, flexible supply arrangements and market restructure, the potential for supply of natural gas by producers into the Victorian market is considerable.

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