Field Development Project

8/12/2019 Field Development Project

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FIELD DEVELOPMENT PROJECT PRESENTATION


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Presentation Outline Corporate Profile Lithology Log Interpretations Findings Appraisal Well Location

Drilling Design Conclusion


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Corporate Profile

PHOENIXENERGY is the oil and gas operator company of which based inMalaysia and were found on 1985. Together with its subsidiaries andassociated companies, PHOENIXENERGY, a FORTUNE Global 500company, has fully integrated oil and gas operations in a broad spectrum ofthe oil and gas value-chain.

Its business activities include ; (i) the exploration, development and production of crude oil and naturalgas in Malaysia and overseas;(iv) the refining and marketing of petroleum products;

(v) the manufacture and sale of petrochemical products;(vi) the trading of crude oil, petroleum products and petrochemicalproducts;(vii) shipping and logistics relating to LNG, crude oil and petroleumproducts.


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VisionPHOENIXENERGYwants to be recognised as a greatcompany competitively successful and a force forprogress. We have a fundamental belief that we can make a

difference in the world. Mission To generate consistently profitable returns from

investments in core business activities. Providing direction, financial resources and management

support for each operating unit. Through dynamic and innovative management,

teamwork and a commitment to excellence.

Vision&Mission


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Organizational Chart

Asha KanamuthyReservoir Engineer

Norazri NordinSenior Quality, Health, Safety and Environment (QHSE) Manager

Muhammad Faidhi Fahmi IsmailCHIEF EXECUTIVE OFFICER/Economist

Nur Amirah BasiranSenior Production Manager

Tajuddin Tapri

Senior Reservoir ManagerSaiful SaariAssociate Petrophysicist

Hesham IsmailSenior Drilling Manager


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FieldSummary

Geological Area : Sabah BasinArea : Offshore Sabah

Country : MalaysiaLocation : 113 kilometers Southwest of

Kimanis Oil & Gas Terminal


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GEOLOGY AND PETROPHYSICSAMIRAH BASIRAN, GEOLOGIST


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Data Provided Phoenix Fields Profile Exploration Well Static Pressure Gradient Well Correlation

Productive Layer Distribution Conclusion

Presentation Outline


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Data ProvidedData Source Well 1 Well 2 Well 3 Well 4

PVT Data /Static P

Gradient / / / /

Gamma Ray / / / /

SP / / / /

Resitivity / / / /

Density / / / /

Sonic / / / /

Neutron / / / /

Mud Log / / / /

Core Data /


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Sabah BasinGeological Area

Sandstone Group E from earlyMiocene ageFormation

Fluviodeltaic source rockSource Rock

Cross strata migrationMigration

AnticlinesReservoir Structure Longitude 115 32 24E, Latitude 6 42 00N 113 kilometres southwest of the Kimanis Oil & Gas

TerminalLocation

4Exploration Well

Phoenix Fields Profile


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Phoenix Field

113 km

Geological Area : Sabah Basin

Area : Offshore Sabah

Location : 113km from the

Kimanis Oil & Gas Terminal

Block : 7T-11

Nearest Field : Gajah Hitam,

Rusa Timur, Mengkira, Dengkis


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Phoenix Field


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Contour Map


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Exploration WellWELL CLASSIFICATION DISCOVERY DEPTH OF

RECORDED (ft)

Well 1 Exploration well Oil 5975 - 6290Well 2 Exploration well Oil 6125 - 6429Well 3 Exploration well Oil 6425 - 6737

Well 4 Exploration well Water 6561 - 6877


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Static Pressure Gradient Graph of Phoenix Field

ll l b d


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Well Correlation based on GammaRay Log

W ll 1


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Well 1

Well 2


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Well 2


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Productive Layer

Layer BulkVolume

(MM ft3)

Porosity Boi Swi Soi STOIIP(MMST

B)AB1 1900 0.21 1.39 0.14 0.86 197

AB2 789 0.24 1.35 0.14 0.86 92Total 289

Reservoir Oil Sand

Thickness (ft)

OWC (ft) Net to gross

ratio (N/G)

FD1 Oil 55 6480 0.8

FD2 Oil 55 6480 1.0


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Porosity Distribution

Zone 1 Zone 2

0

5

10

15

20

25

0.09 0.15 0.21 0.27 0.29 0.35 0.42

F r e q u e n c y

Porosity

0

5

10

15

20

25

30

9 15 21 24 33 42

F r e q u e n c y

Porosity


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Water Saturation Distribution

Zone 1 Zone 2

0

5

10

15

20

25

9 10 12 14 16 19 21 22 23 26 30 31 33

F r e q u e n c y

Water Saturation (%)

0

2

4

6

8

10

12

14

16

18

20

8 10 12 14 22 24 26 28

F r e q u e n c y

Water Saturation (%)


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Oil Saturation DistributionZone 1 Zone 2

0

5

10

15

20

25

30

67 69 70 73 81 84 85 86 88 90 92 94 96 98 100

F r e q u e n c y

Oil Saturation (%)

0

5

10

15

20

25

30

35

72 76 78 80 86 88 90 92

F r e q u e n c y

Oil Saturation (%)


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Percentile STOIIP(MMSTB)

P90 130

P50 197

P10 305

Percentile STOIIP(MMSTB)

P90 60

P50 92

P10 125

STOIIP at P50 = 92 MMSTB

STOIIP at P50 = 197 MMSTB

Zone FD1

Zone FD2


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Conclusion

Phoenix Field have 2 productive layers containoil

Total Initial Oil In-Place at P50 = 289 MM resBbl.


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Appendixes


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Source Rock

Late Oligocene: Limestone

Early Miocene :Sandstone, Siltstone,conglomerate with

metamorphic, chert,volcanics (shallow

water)

Thickness of beds: varies from a few

centimeters toone meter

Slumps &

Channelinfillings

Stronglyisoclinal folded

Sandstones

with thickturbidites


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Permeability Distributions Zone 1 Zone 2

0

5

10

15

20

25

30

35

40

45

310

F r e q u e n c y

Permeability (mD)

k Distribution

k Distribution

0

5

10

15

20

25

30

35

40

45

343

F r e q u e n c y

Permeability (mD)

k Distribution

k Distribution


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Zone FD1


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Zone FD2


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Contour Map


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RESERVOIRASHA KANAMUTHY, RESERVOIR ENGINEER


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Rock Properties Oil Properties Gas Properties Water Properties Well Test

Phase Envelope Risk Analysis



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ROCK PROPERTIESZone Zone FD1 Zone FD2

Type Of Hydrocarbon Oil Oil

Lithology Sandstone

Average Permeability, K (mD) 313 343

Average Porosity, (fraction) 0.21 0.24

Initial Water Saturation, S wi (fraction) 0.14 0.14

Reservoir

(Zone)

Datum

(ft subsea)

Pressure

(psia)

Temperature

(0F)

FD16055 2806 210

FD2 6135 2884 215


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OIL PROPERTIES

Zone Zone FD1 Zone FD2

Pi (psia) 2806 2884

T(F) 210 215

P b(psia) 2342 2634

API 31.7 35.4

R s(SCF/STB) 977.6 854.0

Bo(bbl/STB) 1.39 1.35

co(psia -1) 2.075e-05 2.112e-05

o(cp) 0.2383 0.373

o 0.867 0.848


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GAS & WATER PROPERTIES


Z 0.827 0.796

g (cp) 0.0234 0.0219 g 0.893 0.89

cg (psi -1) 3.014e-04 2.92e-04


Bw (bbl/STB) 1.032 1.034

w(cp) 0.2831 0.2730

cw (psi -1) 3.1696e-06 3.2002e-06

GAS PROPERTIES

WATER PROPERTIES


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Solution gas oil ratio vs Pressure

Bg vs PressureBo vs Pressure

Oil viscosity vs Pressure


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WELL TEST

Zone FD1 k=311mD S=6


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WELL TEST

Zone FD2 k=343mD S=5


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PHASE ENVELOPE

Zone FD1


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Zone FD2


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RISK ANALYSIS ZONE FD1

P10 290 MM STB

P50 197 MM STB

P90 130 MM STB


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RISK ANALYSIS ZONE FD2

P10 130 MM STB

P50 92 MM STB

P90 55 MM STB


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RESERVOIR SIMULATIONTAJUDDIN TAPRI, SIMULATION ENGINEER


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MODEL CONSTRUCTION

Enlarge and grid the contour map

Create static model

Create dynamic model

Run simulation based on study parameters

Observe result

Production, drilling, well completion and economics evaluation


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STATIC MODEL

Zone L 1

Zone L 2


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Zone L 1 ( IOIP = 197.2 MM bbl )

Zone L 1 ( IOIP = 92.5 MM bbl )


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SENSITIVITY RUN

3 cases

A 2000 ft

B 1500 ft

C 1000 ft

DYNAMICMODEL


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Plan B Result

Zone L 1

Zone L 2


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Plan C Result

Zone L 1

Zone L 2


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SummaryPlan Reserv

oirQ(bbl/

d)Plateau

rate(bbl/d)

TotalPlateau

rate(bbl/d)

PlateauPeriod(Year)

EUR(MMST

B)

TotalEUR

(MMSTB)

RF(%)

TotalRF(%)

A

2000ft

Zone

FD1

2200 17600 32000 8 56.3 81.5 28.5 28.2

ZoneFD2

1800 14400 4 25.2 27.4

B1500ft

ZoneFD1

2200 26400 48000 4 59.1 87.6 30 30.3

ZoneFD2 1800 21600 3 28.5 30.1

C1000ft

ZoneFD1

2200 35200 64000 3 59.2 84 30.1 29.1

Zone

FD2

1800 28800 2 24.8 27


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Supplemental Recovery

PLAN B

WATER INJECTION

GAS INJECTION

SENSITIVITYANALYSIS


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RESULT AND ANALYSIS

SecondaryRecovery

Reservoir Number

Ofinjection

well

Injectionrate

Injectiondate

PlateauRate

(bbl/d)

PlateauPeriod(year)

RF(%)

TotalRF(%)

EUR(MM bbl)

GasInjection Zone L1

2 WPRD

convert toGINJ

5

MMScf/d

1-June-

2017

15600

9 35.5

35.5 102.56

Zone L22 WPRDconvert to

GINJ

5MMScf/d

1-Feb-2016

9600

6 36.0

WaterInjection

Zone L1 2 WPRDconvert to

GINJ

10000bbl/d

1-June -

2017

1560010 37.5

37.6108.84

Zone L2 2 WPRDconvert to

GINJ

10000bbl/d

1-Feb -2016

96007 38.0


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Zone L 1

Zone L 2

WATERINJECT.


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CONCLUSIONS

PLAN B BEST RESULT Economic evaluation will be run for these

three plans


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WELL DRILLINGHESHAM ISMAIL, DRILLING ENGINEER


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Objective Casing seating depth. Mud program. Casing design. Cementing program Drill Bit selection. Blowout Preventer design(BOP)



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Casing setting Depth Fracture gradient Mud gradient Formation pressure gradient

KEY Parameters


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DRILLING FLUID The drilling fluids that being use is Oil Based

Mud

Additives : such as Barite, KCL, Flo-Tro, NaOHand Xantham gum polymer.


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CASING DESIGN


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Cementing API G Class . e.g : well #1


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Drill Bit Selection

-Drill Pipe = X-95, 13.8 lb/ft-Drill Collar = 50 lb/ft , 5 OD

For bit selection, the result are shown below

Casing type Casing OD Bit Size

Conductor 20 26 Rolling CutterBit

Surface 13 3/8 17 RollingCutter BitIntermediate 9 5/8 12 PDC Bit

Production 7 8 PDC Bit


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WELL COMPLETIONNORAZRI NORDIN, COMPLETION ENGINEER


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Type of Completion Tubing Selection

Packer Selection Perforation Technique Completion Fluid Wellhead design Conclusion



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Type of Completion

Dual String Tubing Completion


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Completion Technique

Cased hole completion with shape chargeperforation:

Sand problem issue can be preventedespecially during high flow rate

Formation can be selectively stimulated


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Tubing Specifications


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Packer Selection

XHP Premium Production Packer Advantage :

i)Suitable for high pressure and hightemperature environments

ii) Prevent debris build up above slips

iii) Minimize casing damage

iv) Tensile & compressive rating compatible withcompletion tubular


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Perforation Technique


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Penetrating charges are able to createdeep perforation tunnels with smallopening diameters

Reduce rig time by eliminating wirelineruns


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Conclusion

Well Completion Department will achieve thedepartment objectives and followed the companys

plan as well hopefully all the suggestions and recommendations

from department will be able to meet theeconomical target in order to develop this field

safely, efficiently, effectively and reliably


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WELL PRODUCTIONSAIFUL SAARI, PRODUCTION TECHNOLOGIST


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Field Location Introduction

Present and Future IPR

IPR, VLP and CP Curves

Production Analysis

Platform

Surface facilities



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INTRODUCTION

Evaluate deliverability of Phoenix Field Analyze fluid flow from:

Reservoir to wel lbore

(Inflow performance relationship) Bot tom -hole to su r face

(Vertical lift performance) Wellhead to s eparator

(Choke performance)


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Zone 1

0

500

1000

1500

2000

2500

3000

0 10000 20000 30000 40000 50000 60000 70000 80000 90000 100000

P w

f

q


2013

20152017

2019

2021

2023


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Zone 2

0

500

1000

1500

2000

2500

3000

3500

0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000

P w

f

q


20132015

2017

2019


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Zone 1

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000

P w

f

Q

IPR, VLP & CP Curve

Qopt =1300BPD


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Zone 2

0

500

1000

1500

2000

2500

3000

3500

0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000

P w

f

Q

IPR, VLP & CP Curve

Qopt =600BPD


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PRODUCTION ANALYSIS

PI 25.9971

Pwf 2853.23

Qmax 51927.34

PI 47.5651

Pwf 2793.39

Qmax 86322.61

Q1300Bbl/Day

TUBING 3.5 inch

CHOKE 24/64 inch

THP 440 psi

Q800Bbl/Day

TUBING 2.875 inch

CHOKE24/64inch

THP 330 psi

ZONE 1 ZONE 2

PLATFORM


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PLATFORM

Jack up platform will be used. Completed with drilling

module

Wellhead will be installed onthe subsea

Lower cost (economical) Long term flexibility

Intelsat communicationsystem


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SURFACE FACILITIES SEPARATOR

1. Type of separator that will be installed isvertical separator.

2. Two stages of separator:

a) First stage - To separate the liquid andgasb) Second stage To separate oil and

waterc) Third stage - Storage tank

3. The vertical separator has been chosen: Easy to install and cheap. More efficient. Easy to clean. Reduce the space area for installation.


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FLOATING PRODUCTION STORAGE AND OFFLOADING(FPSO)

FPSO will used as storage tanks tokeep the oil until the shuttle tankerscome and take over for

transportationLocated 2 km away from the platform

The produced oil will be loaded toFPSO

Facilities as production module,helideck, accommodation, controlroom and utilities


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The separation, the gas treatment and the water treatment

and injection module

Produced gas will be directed to flare

CONCLUSION


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CONCLUSION

Platform used : mobile jack up platform

Separator used : 3-phase and 2-phase verticalseparator

FPSO

ZONE 1 ZONE 2

Q = 1300 BPD Q = 800 BPD

Tubing size = 3.5 inch OD Tubing size = 2.875 inch OD

Choke size = 24/64 inch Choke size = 24/64 inch

THP = 440 psi THP = 330 psi


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ECONOMIC EVALUATIONFAIDHI FAHMI, ECONOMIST

P t ti O tli


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Company Policies Real-time Scenario Economic Models 1997 R/C PSC OPEX/CAPEX Sensitivity Analysis Analysis


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Company Policies

1. The top priority of the economic department: The top priority of the economic division is to

maximize the profit. Expand the production capacity of the invested

project. Increase in market share and value of assets

posses by the company.

2. Minimum rate of return (MROR): MROR for Global Top Corp is set at 18%

R l Ti S i


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Real Time Scenario

Determination of Oil Price Oil price is to be set at USD 90 with 5% price

escalation due to inflation and other factors

2. LOCAL SCENARIO PSC 1997 - Production Period (20 years)

- Royalty (10%)- Export Duty (10%)

- Cost Oil- Profit Oil

E i M d l


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Economic Model

Contract Period

- Contract Duration 19 YEARS

- Exploration Period 3 YEARS- Development Period 2 YEARS

- Production Period 15 YEARS

1997 R/C PSC


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1997 R/C PSC

GROSS REVENUE

LESS COST : COST OIL CEILING

PROFIT OIL SPLIT

UNUSED COSTOIL

PETRONASPROFIT OIL

ACTUAL USED

COST

CONTRACTOR

PROFIT OIL

PITA 38%

PITA 38%

ROYALTY 10% G O V E R N

ME N

T C A S H F L O W

CAPEX


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CAPEX The management decide to acquire FPSO by

purchasing used vessel and transforming it into FPSOwhich undergo RLEC process

Affected the CAPEX significantly but the NPV will increasedue to the reduce in OPEX and maintenance cost

Vessel Purchase USD 18 mil

Topside USD 152 mil

Hull & Marine USD 11 mil

Riser & Mooring USD 28 mil

Hook up & Commissioning USD 43 mil

Engineering Design USD 6 mil


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OPEX OPEX mainly focused on Operation &

Maintenance, Charter Rate for FSO andOverhead Cost which already been set up toat most 15% from the gross revenue perannum


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NPV @ 18%($USD billion)

IRR(%)

PIR(Ratio)

Charter FPSO & FSO +Jack up Platform

1.3 24 7.5Charter FPSO & FSO +

Unman Platform 1.2 24 8.0Purchase FPSO ,

Charter FSO +Jack Up

1.0 22 7.0

Purchase FPSO,Charter FSO+Unman Platform

1.5 25 9.1


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NPV @ 18%($USD billion)

IRR(%)

PIR(Ratio)

Water Injection 1.3 24 7.5Gas Injection 1.2 24 8.0

Cash Flow


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Cash Flow

Payback period

Ultimate Cash Surplus

Economic Life

Maximum Cash Sink

Economic Limit years

EXPLORATION &DEVELOPMENT

PRODUCTION A B

A ND

O N M

E N T


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N E T P R E S E N T V A L U E

DISCOUNTED RATE

NPV @ 10% = USD 357 mil

NPV @ 15% = USD 241 mil

NPV @ 20% = USD 172 mil

NPV @ 29% = USD 0 mil

10% 15% 20% 10%

IRR = 34%


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Sensitivity Analysis for NPV


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Sensitivity Analysis for NPV


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QUALITY, HEALTH, SAFETY & ENVIRONMENTNORAZRI NORDIN, QHSE ENGINEER



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Health, Safety and Environmental Principles Safety Management System Basic Safety Rule Personal Protection Cleanliness And Good Housekeeping Fire And Safety Design Emergency Plan



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Health, Safety and Environmental Principles

To treat health, safety and environmentalconsiderations as priority in the projectplanning and works,

To operate our facilities and provide ourservices in a manner that always maintain thestandard of our employees, public health andsafety and the environmental practices


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Health, Safety and Environmental Principles To constantly formulate and improve the company

Health, Safety and Environmental practices based onemployees, clients and public concerns to helpsafeguard of the workplaces, community andenvironment

To actively participate with governments and otherresponsible bodies in meeting the industrial rules andregulations of health, safety and environment

To develop and implement procedures for the properstorage, transportation and disposal of waste materialsand to minimize pollutant emissions


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Safety Management System

Position that responsible for management ofsafety: General Manager Operations line-manager Line managers Operations staffs

Basic Safety Rule


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Basic Safety Rule

Understand the job Assess any possible hazard before start the

work Attend safety meeting Must familiarize with instruction for

emergency situation Adhere with the company rule

Personal Protection


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Personal Protection

Head Protection Foot Protection Eye and Face Protection Hearing Protection Hand Protection Work Clothing Safety Harness

Cleanliness And Good Housekeeping


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Cleanliness And Good Housekeeping

Ensure work place are kept clean and tidy All chemical must be stored in designated

container or area Unused equipment must be stored neatly All employees must take serious consideration

of personal hygiene to prevent spread ofdisease

Fire And Safety Design


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Fire And Safety Design

Shutdown System In the case of fire or other emergencies it is

essential to prevent the release of process

fluid or well fluid on the facilitiesFire and Gas Detection System Purposely for monitoring the facilities

protection against fire or gas release.

Emergency Plan


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Emergency Plan

Emergency plans will be developed for allPhoenix Energy managed facilities.

Safety department will establish procedures

for emergency action. Periodic drill or exercise will be carried out to

test the effectiveness of emergency plan.

Conclusion


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Co c us o

The HSE policy of Phoenix Energyimplementation can guarantee the safety ofPhoenix Energy s employee.

Documents

Field Development Project